Where there is a transfer payment following a change of employment in circumstances where the Transfer of Undertakings (Protection of Employment) Regulations 1981 apply the Trustee will (taking account of the factors below) decide the liabilities (if any) in respect of relevant pensioners and deferred pensioners to be transferred to the new Employer, subject (in the case of a transfer between Franchise Operators) to the agreement of the Franchising Director. The factors to be taken into account above are the former employment of the relevant pensioners and deferred pensioners and the views of the new Employer concerned.

The amount of the transfer payment to be made in respect of the liabilities referred to above will be calculated on a share of fund basis unless the Trustee having consulted the Actuary otherwise determines.

To the extent liabilities in respect of pensioners and deferred pensioners are not transferred the Trustee will pay benefits out of the Section in which case the Pension Trust and the Rules of the Section will continue to apply.