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C1.—(1) In relation to a pensionable employee of an administering authority the appropriate superannuation fund is the fund administered by that authority.
(2) In relation to a pensionable employee of an employing authority who are a party to an admission agreement or an agreement under regulation B6 made with an admitting authority the appropriate superannuation fund shall be the fund or further fund administered by the admitting authority.
(3) In relation to the pensionable employees of the Western Isles Islands Council the appropriate superannuation fund shall be the fund maintained by Highland Regional Council.
(4) In relation to the pensionable employees of the Central Scotland Water Development Board the appropriate superannuation fund shall be the fund maintained by Strathclyde Regional Council.
(5) Subject to paragraph (6), in relation to a pensionable employee whose case does not fall within paragraphs (1) to (4) the appropriate superannuation fund is the fund maintained by the administering authority within whose area his employing authority or the greater part of the area of his employing authority lies.
(6) Where paragraph (5) applies to any pensionable employees of a scheduled body the Secretary of State may, after consultation with the bodies appearing to him to be concerned, by direction substitute as the appropriate superannuation fund in relation to those employees or any of them the fund maintained by some other administering authority (“the substituted fund”).
(7) A direction under paragraph (6) shall, if the Secretary of State deems it necessary—
(a)require the making of financial adjustments between the funds, whether by way of a payment to the substituted fund or of a transfer of assets or both, or
(b)contain provision as to the transfer of liabilities to the substituted fund, and any other consequential and incidental matters.
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