The Arrangements of the Scheme are the Shared Cost Arrangement, the Defined Benefit Arrangement and the Defined Contribution Arrangement.
1. This Rule sets out the meaning of words used in the these Rules.
| “Accumulated Fund” | means a Member’s accumulated fund as described in Rule 5 (Member’s Accumulated Fund). |
| “Benefit Date” | means a Member’s benefit date as described in Rule 6A (Benefit Date). |
| “Dependant” | means any person who the Trustee determines is financially dependent on another person or was so dependent at the time of the other person’s death. |
| “Earnings Cap” | means the amount specified for the purposes of section 590C of the Taxes Act. |
| “Employee” | means a permanent employee or director of a Participating Employer. |
| “Final Pensionable Pay” | means the average of the Member’s Pensionable Pay during the 12 months ending on the date the Member leaves Service, reaches Minimum Pension Age or dies, whichever is earlier. If the Member was not in Service for the whole of the last 12 months, his Pensionable Pay shall be deemed to continue for the balance of the year for the purpose of calculating Final Pensionable Pay. |
| “GMP” | means a guaranteed minimum pension (or accrued right to one) under the Pensions Act. |
| “Incapacity” | means permanent physical or mental incapacity which the Trustee determines prevents a Member from following his normal occupation or seriously impairs his earning capacity. |
| “Lump Sum Death Benefit” | means the amount payable under Rule 7A (Using the Member’s Accumulated Fund) on the Member’s death before his Benefit Date at the rate chosen by the Designated Employer under Clause 3D of the Pension Trust (Defined Benefit Arrangement) and set out in the Deed of Establishment and Participation. |
| “Member’s Contribution Rate” | means the contribution rate chosen by the Designated Employer under Clause 3D of the Pension Trust and set out in the Deed of Establishment and Participation. |
| “Minimum Pension Age” | means the age chosen by the Designated Employer under Clause 3D of the Pension Trust (Defined Benefit Arrange– ment) and set out in the Deed of Establishment and Participation. |
| “Participating Employer” | means an employer participating in the Section. |
| “Pension Trust” | means the trust which governs the Scheme. |
| “Pensionable Pay” | means the Member’s annual basic salary or wages earned from the Participating Employer together with such other remuneration as the Participating Employer, with the consent of the Trustee, decides. Pensionable Pay cannot, however, exceed the amount of the Earnings Cap at the relevant date. |
| “Pensionable Service” | means the Member’s Service after joining the Section. |
| “Section” | means in relation to a particular Designated Employer the Defined Contribution Section for that Participating Em– ployer. |
| “Service” | means employment as an Employee. |
2A Each Employee whose contract of service says that he is eligible to join the Section may join immediately on starting Service. The Trustee shall include an Employee in the Section automatically if the Employee’s contract of service so provides consistent always with Revenue Approval.
An Employee who does not join the Section at the first opportunity may join later only with the specific permission of the Participating Employer. With the consent of the Participating Employer the Trustee may treat a person as having joined the Section on the date on which he became eligible to join the Section.
A Participating Employer may vary the above requirement of this Rule for any of its Employees or a class of its Employees.
Applications to join the Section must be made in the form required by the Trustee.
A Member ceases to be eligible in circumstances set out in Rule 13 (Ceasing to be Eligible).
A Member who has opted–out may rejoin only in the circumstances set out in Rule 14 (Opting out).
2B Unless an Employee is included in the Section automatically under Rule 2A, either the Participating Employer or the Trustee may at its discretion require the Employee to pass a medical examination to its satisfaction before admission to the Section.
3A Each Participating Employer shall contribute to the Section in respect of each of its Employees who are in Pensionable Service at such rate as the Designated Employer decides from time to time. This rate shall be fixed at 12 monthly intervals, and shall be notified to Members by the Designated Employer at the beginning of each 12 month period.
3B Each Member in Pensionable Service shall pay contributions at the Member’s Contribution Rate of the Member’s Pensionable Pay (except where the Designated Employer has chosen a Member’s contribution rate of nil to apply).
Contributions paid under this Rule 3 shall be at least sufficient to enable the Trustee to provide the Lump Sum Death Benefit and any GMP for and in respect of any Member.
4. A Member in Pensionable Service may pay Additional Voluntary Contributions on a basis agreed with the Trustee. If the Trustee so requires, a Member must give notice of his intention to start, reduce or stop paying Additional Voluntary Contributions.
Each Member’s Additional Voluntary Contributions shall be invested separately from all the other assets of the Scheme. The proceeds shall be used to provide additional benefits for or in respect of the Member.
The additional benefits shall be equivalent on a money purchase basis to the Additional Voluntary Contributions paid and shall comply so far as possible with any wishes made known by the Member in writing to the Trustee. The additional benefits cannot, however, be paid as a lump sum, except on the Member’s death or if the Trustee is satisfied that Revenue Approval would not be prejudiced.
If there is a surplus of a Member’s Additional Voluntary Contributions which cannot be used to provide benefits within Inland Revenue limits, the Trustee shall repay that surplus to the Member or, if the Member is dead, the Member’s personal representatives. Surplus shall be calculated in accordance with the Retirement Benefits Schemes (Restrictions on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993(1) and the Trustee shall at all times comply with the requirements of those Regulations.
5. The Trustee shall allocate to each Member’s Accumulated Fund:
(1) the contributions paid by the Member under Rule 3 and by the Participating Employer in respect of the Member;
(2) any transfer payments received by the Section in respect of the Member; and
(3) a fair share (determined on the advice of the Actuary) of the income, gains, losses and expenses of the Section.
Where the Trustee effects an insurance policy on the life of the Member, the Member’s Accumulated Fund shall be debited with the premiums and (where the Trustee considers appropriate) credited with any proceeds of the policy.
Any allocation of assets to a particular Member’s Accumulated Fund is for benefit calculation purposes only. No beneficiary is entitled to any specific assets of the Section.
6A A Member’s Benefit Date is his Minimum Pension Age but:
(1) if the Member stays in Service after Minimum Pension Age, his Benefit Date shall be the date he leaves Service or, if earlier, age 75; and
(2) if the Member retires before Minimum Pension Age, he may with the Participating Employer’s consent choose an earlier date but not earlier than age 50 (unless the Member is leaving as a result of Incapacity).
6B The Trustee shall use the Member’s Accumulated Fund to provide benefits for the Member in one or more of the following forms:
(1) a pension payable to the Member starting with effect from the Benefit Date (see Rule 6A (Benefit Date));
(2) a lump sum payable to the Member on the Benefit Date;
(3) benefits payable with effect from the Member’s death after the Benefit Date as described in Rule 7 (Death Benefits).
A lump sum shall be provided only if the Member so chooses and the Trustee agrees. The lump sum cannot exceed the maximum described in Rule 6C (Maximum Lump Sum).
When providing benefits the Trustee shall take into account any wishes made known by the Member in writing to the Trustee. Benefit must not exceed Inland Revenue limits and shall comply with the Contracting–out Laws.
The amount of benefits under Rule 6B (Using the Member’s Accumulated Fund) shall be calculated on a basis determined by the Trustee after taking actuarial advice.
6C A Member shall normally (subject to Inland Revenue limits) be able to choose a lump sum of up to ⅜ths of Final Pensionable Pay for each complete year of Pensionable Service plus an additional proportion for each additional complete day. The Trustee may allow a Member to choose a larger lump sum within Inland Revenue limits in which case it shall write and tell the Member.
7A If a Member dies before his Benefit Date the Trustee shall, subject to the remainder of this Rule use the Member’s Accumulated Fund to provide benefits in one or both of the following forms:
(a)a lump sum payable as described in Rule 7B (Discretionary Trusts);
(b)a pension or pensions payable to one or more of the Member’s spouse, children or Dependants (see Rule 15 (General Rules about Benefits)).
When providing benefits the Trustee shall take into account any wishes made known by the Member in writing to the Trustee and shall have regard to actuarial advice. No benefit shall be paid which shall prejudice Revenue Approval.
If the Member dies before his Benefit Date but while still in Service the Trustee shall however use the Member’s Accumulated Fund to provide a lump sum payable as described in Rule 7B equal to the Lump Sum Death Benefit (except where the Designated Employer has chosen a Lump Sum Death Benefit of nil). If the Member’s Accumulated Fund:
(i)exceeds the amount required to provide this benefit the remainder shall be used as described at (a) and (b) above;
(ii)is not sufficient to provide this benefit the Trustees may use any other assets of the Section to meet the shortfall.
7B The lump sum death benefit shall be paid to one or more of the Beneficiaries or used for their benefit in such shares as the Trustee decides. If the benefit is not paid within 2 years of the Member’s death, however, it shall be paid to the Member’s personal representatives.
The “Beneficiaries” are the Member’s widow or widower, the Member’s grandparents and their descendants, any person with an interest in the Member’s estate and any person nominated by the Member in writing to the Trustee.
So long as no–one other than Beneficiaries can become entitled, the Trustee may:
(a)direct that all or part of the lump sum be held by itself or other trustees on such trusts (including discretionary trusts) and with such powers and provisions (including powers of selection and variation) as the Trustee sees fit; or
(b)pay all or part of the lump sum to the trustees of any other existing trust.
No payment shall be made under this Rule to the Crown or to the Duchy of Lancaster or Cornwall. If payment of the whole or any part of the lump sum death benefit would result in the payment falling to the Crown or to the Duchy of Lancaster or Cornwall as bona vacantia, the benefit, or that part of the benefit, shall be retained by the Trustee in the Section.
8. If Inland Revenue limits restrict the benefits that can be provided at a Member’s Benefit Date (see Rule 6 (Retirement Benefits)) or on a Member’s death (see Rule 7 (Death Benefits)) the Trustee shall at least every 15 months while there is an Accumulated Fund use it to provide increased or additional benefits within Inland Revenue limits in respect of the Member.
9A A Member who leaves Service before Minimum Pension Age and who satisfies the preservation requirements (see Rule 9C (Preservation Requirements)) shall remain entitled to benefits under the Section.
Benefits shall be provided for the Member as described in Rule 6 (Retirement Benefits) except that the Member’s Benefit Date shall be Minimum Pension Age unless the Member with the consent of the Trustee chooses either (a) a later date not later than when the Member leaves all employment and not in any event later than age 75 or (b) an earlier date not earlier than age 50 (unless the Member is suffering from Incapacity).
Any GMP shall be increased before payment as required by the Contracting–out Laws.
If the Member dies before his Benefit Date death benefits shall be provided as described in Rule 7.
9B A Member who leaves Service before Minimum Pension Age without satisfying the preservation requirements (see Rule 9C (Preservation Requirements)) shall receive a refund of his contributions (if any), less tax at 20% or such other rate as applies from time to time.
If the Member’s Service was contracted–out under the Section the Member (and the Member’s spouse, if any) shall remain entitled to GMP unless this is extinguished by a contributions equivalent premium (“CEP”) under the Pensions Act. Any refund of contributions shall be reduced if a CEP is paid by the amount recovered under section 61 of that Act and otherwise by the amount that the Trustee estimates would have been recoverable if a CEP had been paid.
9C A Member satisfies the presentation requirements if, when he leaves Service, he has at least 2 years' Qualifying Service or if a transfer payment in respect of his rights under a personal pension scheme has been made to the Section.
“Qualifying Service” means Service after joining the Scheme and employment which qualified the Member for retirement benefit under any occupational pension scheme from which a transfer payment has been made in respect of the Member either to the Scheme, or to a Buy–out Policy and subsequently to the Scheme.
If a Member receives a refund of his contributions with the prior consent of the Inland Revenue the Trustee shall pay any balance of the Member’s Accumulated Fund to the Participating Employer or if the Designated Employer so directs shall add the balance to another Accumulated Fund or other Accumulated Funds.
9D If a Member leaves Service, returns and rejoins the Section and then leaves again before Minimum Pension Age and the break did not exceed one month or was due to a trade dispute the Member’s Service before and after the break shall be treated as continuous (but excluding the break) for the purpose of calculating whether the Member has at least 2 years' Qualifying Service after the break.
10A A Member who leaves Service with preserved benefits at least a year before Minimum Pension Age can require the Trustee by application in writing to use his Accumulated Fund in whichever of the following ways (or combination of them) the Member chooses:
(a)to buy one or more Buy–out Policies (see Rule 10B (Requirements for “Buy–Out” Policies)) from one or more Insurance Companies chosen by the Member;
(b)to acquire rights under another occupational pension scheme or under a personal pension scheme or another Section of the Scheme (see Rule 10C).
The Trustee may allow a Member who does not have a right to a cash equivalent to choose a transfer or a “buy–out” as described in this Rule. The Trustee may impose such conditions on the exercise of this choice as it thinks fit.
The Member may exercise this right by application in writing to the Trustee at any time up to a year before Minimum Pension Age (or, if later, 6 months after leaving Service).
10B A Buy–out Policy must satisfy the Transfer Value Laws and the requirements of the Inland Revenue. In particular the policy must provide that the annuities payable to or for the benefit of the Member and the Member’s spouse (if any) shall be at least equal to their GMP under the Section including revaluation in accordance with the Contracting–out Laws.
10C The receiving scheme must be (a) an occupational pension scheme with Revenue Approval or which otherwise satisfies the Inland Revenue’s requirements, or (b) a personal pension scheme approved under Chapter IV of Part XIV of the Taxes Act, or (c) a “statutory scheme” as defined in section 612(1) of that Act.
When making the transfer the Trustee shall comply with any requirements of the Inland Revenue.
If the Member’s cash equivalent includes accrued rights to GMP, the transfer must also satisfy the requirements of the Contracting–out Laws.
11. The Participating Employer may continue contributing to the Scheme for any Member who is away from work or who is on secondment for so long as the Inland Revenue permits.
If the Participating Employer stops contributing the Member shall be treated as if he had left Service on the day the Participating Employer stopped contributing. Rule 12 (Maternity) shall apply if the Member is away from work by reason of maternity.
12. A period of absence for pregnancy or confinement shall count as Pensionable Service for so long as the Member receives contractual pay or statutory maternity pay. The Participating Employer and the Trustee may agree any special provisions (consistent with the Contracting–out Laws and Revenue Approval) to apply to the Member’s contributions in respect of this period.
If the Member stops receiving contractual pay or statutory maternity pay before returning to work, the Participating Employer may agree to treat her as still in Pensionable Service. The Participating Employer may also agree any special provisions (consistent with the Contracting–out Laws and Revenue Approval) to apply to the Member’s contributions and benefits in respect of this period.
If the Member is not treated as still in Pensionable Service, she shall be treated as if she had left Service.
13. A Member shall cease to be eligible if his contract of service is varied so that he is no longer eligible for membership. The Member shall be treated as if he had left Service on the day he ceased to be eligible except that a Member with preserved benefits cannot choose a Benefit Date earlier than Minimum Pension Age before actually leaving Service.
14. A Member may at any time opt out of the Section by giving one month’s notice to the Participating Employer and the Trustee. The Member shall be treated as if he had left Service on the day the notice expires except that no pension or lump sum shall be paid to the Member until the Member actually leaves Service (or reaches age 75, if earlier).
A Member who opts out of the Section may rejoin only with the specific permission of the Participating Employer.
15A A pension under the Section shall be secured by buying an annuity contract from the UK office or branch of an Insurance Company. The Trustee shall buy the annuity contract in the name of the Member (or other beneficiary) and pensions shall be payable in accordance with the terms of that contract.
The Trustee may delay buying the annuity contract for up to 5 years after the Benefit Date and pay pension (calculated in accordance with actuarial advice) out of the Member’s Accumulated Fund in the meantime. In this event pensions shall be payable every 4 weeks in arrears. A proportionate payment shall be made for any period of less than 4 weeks. Pension shall be paid for the 4 week period in which a pensioner dies.
In the event that any payment is paid late the Trustee may increase it to take account of late payment.
15B A pension shall be of a fixed yearly amount or subject to increases of not more than 5% per annum compound provided that no pension shall be increased in any year by more than the increase in the retail prices index.
Where GMP is payable that part of the GMP which is attributable to earnings for the tax year 1988—89 and subsequent tax years shall increase in each tax year by the percentage specified in any order made by the Secretary of State under section 109 of the Pensions Act (which is approximately equal to the percentage rise in the retail prices index in each year with a maximum of 3% per year compound).
15C A Member’s pension shall be payable for life and may if the Trustee decides (taking into account any wishes made known to them by the Member) be guaranteed for a minimum period of up to 10 years.
If it is guaranteed for more than 5 years, no survivor’s pension may start until the end of the guarantee period. If it is guaranteed for 5 years or less, and the Member dies before the end of the guarantee period, either the pension may be continued for the guarantee period or a lump sum may be paid on the Member’s death equal to the pension payments which would have been made during the remainder of the guarantee period. Any lump sum shall be paid as described in Rule 7B (Member dies within 5 years after Pension starts).
15D Subject to the Contracting–out Laws a spouse’s pension shall be payable for life unless the Trustee decides that it shall cease on remarriage. A pension payable to any adult Dependant shall be payable for life.
A child’s pension shall be payable until the child reaches age 18. But the Trustee may, at its discretion, continue to pay a pension (a) to a child aged 18 or over while he remains in full–time education or training approved by the Trustee, or (b) for the lifetime of a child who was wholly incapacitated at birth or becomes wholly incapacitated before age 18.
15E If a Member has incurred a monetary obligation to or caused a financial loss to the Participating Employer arising out of a criminal, negligent or fraudulent act or omission, the Participating Employer may require that the benefits in respect of the Member (other than GMPs and benefits arising out of a transfer payment) shall be reduced by an amount that the Trustee determines on actuarial advice to be equivalent to the obligation. If the obligation is greater than the value of the benefits which may be reduced, the benefits shall cease to be payable. If the Participating Employer requests, the Trustee shall pay to the Participating Employer the amount of the obligation or, if less, the value of the reduction in benefits.
The Member shall be given a certificate specifying the amount of the obligation and of the reduction in benefits. If the amount of the obligation is disputed, no reduction in benefits shall be made until the obligation has become enforceable under the order of a court or arbitrator appointed (failing agreement between the Member and the Participating Employer by the President of the Law Society or, in Scotland, by the Sheriff.
15F At the request of a Participating Employer and if the Participating Employer pays any additional contributions that the Trustee considers appropriate (for which purpose the Trustee shall consider actuarial advice), the Trustee shall provide (a) increased or additional benefits in respect of any Member or Members, (b) benefits in respect of any Member or Members different, or on different terms, from those set out elsewhere in the Rules or (c) benefits in respect of any Employee or former Employee or any spouse or Eligible Dependant of a former Employee (or for any other person for whom the Inland Revenue permits the Section to provide benefits).
Any benefits provided under this Rule shall be consistent with the Contracting–out, Preservation, Revaluation and Transfer Value Laws and with Revenue Approval.
15G The Trustee may allow a Member who is exceptionally seriously ill when his pension starts to give up the whole of his pension (except GMP) for a lump sum. This choice shall not affect any pension payable on the Member’s death.
15H The Trustee may accept a transfer of assets in respect of a Member from another Section of the Scheme, another approved occupational pension scheme or a personal pension scheme or the surrender value of a Buy–out Policy or retirement annuity contract bought in the Member’s name. The Trustee shall add these assets to the Member’s Accumulated Fund.
15I Instead of providing benefits under the Section in respect of the Member, the Trustee may transfer a Member’s Accumulated Fund to another Section of the Scheme, another approved occupational pension scheme or to a personal pension scheme so that benefits shall be provided under the other scheme or Section in respect of the Member.
The transfer must satisfy the requirements of the Preservation and Contracting–out Laws and Rule 10C (Requirements for Transfers).
15J Instead of providing benefits under the Section in respect of a Member the Trustee may use the Member’s Accumulated Fund to buy a Buy–out Policy in the Member’s name. The Trustee must buy the policy from the UK office or branch of an insurance company. The policy must satisfy the requirements of Rule 10B (Requirements for Buy–out Policies).
16. If a Member’s Service becomes Contracted–out by reference to this Section under the Pensions Act, Clause 9 of the Pension Trust (Contracting–out) shall apply and shall override any inconsistent Rules.
17. If a Member’s Accumulated Fund has become so great that Revenue Approval is prejudiced, the Trustee may reduce it to a level which is acceptable to the Inland Revenue by paying the excess to the Participating Employer (with the consent of the Inland Revenue) or by adding the excess to another Accumulated Fund or other Accumulated Funds.
If after a Member’s death a balance of his Accumulated Fund remains which, because there is no surviving spouse, child or Dependant, cannot be used to provide benefits, the Trustee may pay it to his Participating Employer (with the consent of the Inland Revenue) or, add it to another Accumulated Fund or other Accumulated Funds.
18A If all the Participating Employers in a Section cease to participate in that Section or if the Trustee, having taken actuarial advice and consulted with the Designated Employer considers that the Section Assets and the contributions that are reasonably expected in the future are likely to be insufficient to meet the cost of providing GMPs and Lump Sum Death Benefits, benefits shall cease to accrue under the Section for all Members and former employees of the Participating Employers (except for those Members who remain in Pensionable Service with a Participating Employer who participates in another Section in respect of whom Clause 10D of the Pension Trust (Participating Employer transfers between Sections) shall apply). Each Member in employment with a Participating Employer shall be treated as if, on the day the Participating Employer ceased to participate, the Member had left Service. The Trustee shall wind–up the part of the Scheme appropriate to the Section as set out in the rest of the Rule.
The Trustee may defer winding up the Section for so long as it sees fit and in the meantime provide benefits in accordance with the Pension Trust and Rules. In such a case the Trustee may under Clause 13 of the Pension Trust (Changing the Pension Trust and Rules) amend the Rules applying to these beneficiaries as it sees fit but not so as to impose any further liability on the Participating Employer.
18B The Trustee shall first pay all sums due before the Participating Employers ceased to participate in the Section for those Members in respect of whom the Section had ceased to apply (including lump sums in respect of Members who have died within 2 years before the Participating Employers ceased to participate in the Section). The Trustee shall then set aside sufficient assets to pay the expenses of the winding–up.
18C The Trustee shall buy annuity contracts to secure benefits in respect of pensioners from the UK office or branch of an Insurance Company. The contracts shall be consistent with Revenue Approval and the Contracting–out Laws and shall provide benefits as nearly as practicable the same as each person’s entitlement under the Section. Any annuity contract bought in the name of the Trustee before the winding–up started may be assigned to the pensioner concerned.
In the case of Members who have not started to receive pensions under the Section the Trustee shall use each Member’s Accumulated Fund to buy annuity contracts or insurance policies from the UK office or branch of an Insurance Company. The Trustee shall buy contracts and policies in the name of the Members. The contracts and policies shall be consistent with the Preservation, Revaluation and Contracting–out Laws and with Revenue Approval.
If the whole of a Member’s Accumulated Fund cannot be used because of Inland Revenue limits the balance shall be used as described in Rule 18E (Surplus).
If the assets of the Section are insufficient to provide all benefits in full the following benefits shall be provided first and in the following order of priority: (1) benefits in respect of pensioners and of Members who reached Minimum Pension Age before the winding–up started and (2) GMPs not yet payable, state scheme premiums and equivalent pension benefits for periods of non– participating employment under the National Insurance Act 1965(2).
18D In the case of a Member who has not reached the Benefit Date the proceeds of any Additional Voluntary Contributions paid by the Member shall be used separately to provide benefit for and in respect of the Member as described in Rule 4 (Additional Voluntary Contributions by Members).
18E If there are assets of the Section remaining after all benefits have been provided in full the Trustee shall use them with the consent of the Designated Employer to provide increased or additional benefits for or in respect of any Member. Any assets remaining shall be paid to Participating Employers in such proportions as the Trustee decides.
18F The Trustee may transfer the relevant assets to some other scheme in accordance with Rule 10C (Requirements for Transfers) instead of providing benefits as described in Rule 18C (Buying Annuities) and 18D (Additional Voluntary Contributions) except that if the Section is the last Section being wound–up GMPs may not be transferred to another scheme without the approval of the Occupational Pensions Board under section 50(1) of the Pensions Act.
If the Trustee so decides the liabilities in respect of any Members and former employees of any Participating Employer shall be met by a transfer in accordance with Rule 10C (Requirements for Transfers) and the liabilities in respect of the remaining Members and former Employees shall be met as described in Rule 18C (Buying Annuities) and 18D (Additional Voluntary Contributions).
If the Section is the last Section being wound–up the Member’s right to a transfer or “buy–out” under the Rules shall be subject to any power which the Occupational Pensions Board has to extend the period which the Trustee has to do what the Member requires.
18G If the relevant assets are insufficient to provide in full the GMPs and benefits to be provided before GMPs in accordance with Rule 18C (Buying Annuities), the Participating Employers participating in the Section shall immediately pay to the Trustee, in the proportions decided by the Trustee, the amount specified by the Trustee as necessary to provide the GMPs and benefits in full.
If the Section is the last Section being wound–up, (or if the Scheme ceases earlier to be a Contracted–out Scheme) the Trustee may pay state scheme premiums under the Pensions Act to reinstate any Members and their widows and widowers for earnings related benefits in the state scheme. If the Trustee pays state scheme premiums, the benefits otherwise to be provided on termination shall be reduced as the Trustee considers appropriate, to take account of the GMPs extinguished. Any reduction in benefits shall be consistent with the Contracting–out and Preservation Laws and the requirements of the Occupational Pensions Board.
18H The Trustee may commute trivial benefits for a lump sum under Clause 8A of the Pension Trust (Commutation: Triviality) whether or not the benefits have become payable.
19. The Rules of the Section may be changed as set out in Clause 13 of the Pension Trust (Changing the Pension Trust and Rules).
S.I. 1993/3016.