The Postal Services Act 2011 (Transfer of Assets) Order 2012

Citation, commencement and interpretation

1.—(1) This Order may be cited as the Postal Services Act 2011 (Transfer of Assets) Order 2012.

(2) Article 1(1) and (2) will come into force on 31 March 2012, and articles 1(3) and 2 to 9 will come into force on a day to be specified by Order made under section 25(4) and (5) of the Postal Services Act 2011.

(3) In this Order—

“Adjusted Final Transfer Amount” means the Final Transfer Amount adjusted in accordance with whichever of paragraphs 9 or 12 of Schedule 6 (assets comprising the transfers) applies;

“Amended RMPP Rules” means the trust deed and rules governing the RMPP as amended by article 11 but not article 13 of the Benefits Order;

“Associated Liability” means any liability related to an Asset or Claim (where Asset has the meaning given in Schedule 5 (further provision about transfer of assets));

“Benefits Order” means the Postal Services Act 2011 (Transfer of Accrued Pension Rights) Order 2012(1);

“Claim” has the meaning given in Schedule 5;

“Cut-Off Date” and “Effective Date” both mean 31 March 2012;

“Estimated Final Transfer Amount” is the amount calculated in accordance with paragraph 9 of Schedule 1;

“Estimated Final Transfer Amount Portfolio” has the meaning given in paragraph 4 of Schedule 6;

“Final Transfer” has the meaning given in article 6(a);

“Final Transfer Amount” is the amount calculated in accordance with paragraph 10 of Schedule 1;

“Final Transfer Date” means the fifth business day after the day on which the Government Actuary verifies that the calculation of the Final Transfer Amount is complete in accordance with article 3(b);

“Fund” means BIS (Postal Services Act 2011) Company Limited (registered number 7941521);

“Fund Subsidiary” means BIS (Postal Services Act 2011) B Company Limited (registered number 7970529);

“Gilts” means stock or bonds of any of the descriptions included in Part I of Schedule 11 to the Finance Act 1942(2);

“Government Actuary” means the Government Actuary or the Deputy Government Actuary;

“Interim Transfer” has the meaning given in article 5(a);

“Interim Transfer Amount” is the amount calculated in accordance with paragraph 8 of Schedule 1;

“money purchase benefits” has the meaning given by the words used to define “money purchase benefits” at section 181 of the Pension Schemes Act 1993(3) read together with section 29 of the Pensions Act 2011(4);

“Transfer” is the Interim Transfer or the Final Transfer, as the case may be, and “Transfers” means both of them; and

“Trustee” means Royal Mail Pensions Trustees Limited or such other person who is trustee of the RMPP as at the applicable time.

Determination of Transfer Amounts

2.  The Government Actuary must determine—

(a) the Interim Transfer Amount, the Estimated Final Transfer Amount and the Final Transfer Amount in accordance with Schedules 1, 2, and 3, and

(b) the Adjusted Final Transfer Amount in accordance with those Schedules and also paragraphs 9 and 12 of Schedule 6.

3.  The determinations must be made at the following times—

(a) the Interim Transfer Amount, the Estimated Final Transfer Amount must be determined as soon as is reasonably practicable after the Effective Date.

(b) The Final Transfer Amount must be determined as soon as is reasonably practicable after the time that the Government Actuary is able to make that determination;

(c) The Adjusted Final Transfer Amount must be determined as soon as is reasonably practicable after the Final Transfer Date.

Interim and Final Transfers

4.  The Trustee must make the Transfers in accordance with articles 5 to 9.

5.  The Interim Transfer—

(a) is the transfer of an amount of assets which have a value, determined in accordance with Schedule 4, as at the Effective Date equal to the Interim Transfer Amount, together with any Associated Liabilities and Claims related to those assets, and

(b) must take effect at the time provided for by whichever of paragraphs 2, 5, 6, 7, 8, 9 or 10 of Schedule 5 applies in respect of each asset.

6.  The Final Transfer—

(a) is the transfer of an amount of assets which have a value, determined in accordance with Schedule 4, as at the Final Transfer Date equal to the Adjusted Final Transfer Amount, together with any Associated Liabilities and Claims related to those assets, and

(b) must take effect at the time provided for by whichever of paragraphs 2, 5, 6, 7, 8, 9 or 10 of Schedule 5 applies in respect of each asset.

7.  The Transfers are to the Fund, other than in respect of any assets listed at paragraph 2 of Schedule 6, which are to the Fund Subsidiary.

8.  The Transfers are subject to Schedule 5 which makes provision in respect of the Transfers and arrangements relating to the assets, Associated Liabilities and Claims.

9.  Schedule 6 makes further provision about—

(a) the assets comprising the Transfers,

(b) the investment by the Trustee of assets in the Estimated Final Transfer Amount Portfolio, and

(c) the calculation of the Adjusted Final Transfer Amount.

Norman Lamb

Parliamentary Under Secretary of State for Employment Relations, Consumer and Postal Affairs

Department for Business, Innovation and Skills

7th March 2012

Michael Fabricant

James Duddridge

Two of the Lords Commissioners of Her Majesty’s Treasury

8th March 2012