Statutory Instrument 1994 No. 2388

The Railway Pensions (Substitution) Order 1994

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© Crown Copyright 1994

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1994 No. 2388

TRANSPORT

The Railway Pensions (Substitution) Order 1994

Whereas the Secretary of State on 8th September 1994 gave a guarantee under paragraph 11 of Schedule 11 to the Railways Act 1993^[1] in relation to the 1994 Pensioners "A" Section of the Railways Pension Scheme (defined in the following Order^[2]), being a new scheme within the meaning of the said Schedule 11, which section includes the Paragraph 1 Section and the Paragraph 4 Section (defined in the following Order^[2]), which sections are designated under paragraph 10(1) of that Schedule^[2];

And whereas the Secretary of State has laid before each House of Parliament a copy of such guarantee, in accordance with section 52D(3) of the Transport Act 1980^[3];

And whereas the Secretary of State^[4] has consulted with the trustees of the Paragraph 1 Section and the Paragraph 4 Section in accordance with section 52D(1) of the Transport Act 1980;

Now therefore, the Secretary of State, in exercise of the powers conferred on him by sections 52B and 52D(4) and (5) of the Transport Act 1980^[5] and all other powers enabling him in that behalf, hereby makes the following Order:

Citation, commencement and interpretation
    1.    —(1)  This Order may be cited as the Railway Pensions (Substitution) Order 1994 and shall come into force on 13th September 1994.

    (2)  In this Order—

"actuarial valuation" means an actuarial valuation of the Railways Pension Scheme made by the actuaries under the second paragraph of Clause 6B (Actuarial Valuations) of the Railways Pension Scheme or such other actuarial valuation made by the actuaries as the Secretary of State and the trustee of the Railways Pension Scheme may agree shall constitute an actuarial valuation for the purposes of this Order;


"actuaries" means the actuary appointed by the trustee of the Railways Pension Scheme under Clause 6B of that Scheme and the Government Actuary;


"business day" means any day other than a Saturday, Sunday, Christmas Day, Good Friday or a day which is a bank holiday in England and Wales;


"the Paragraph 1 Section" means the section of the Railways Pension Scheme designated in paragraph 1 of Schedule 5 to the Railway Pensions (Transfer and Miscellaneous Provisions) Order 1994^[6] as a pension scheme which is to be treated as included among those schemes which are B.R. pension schemes for the purpose of Part III of the Transport Act 1980;


"the Paragraph 4 Section" means the section of the Railways Pension Scheme designated in paragraph 4 of Schedule 5 to the Railway Pensions (Transfer and Miscellaneous Provisions) Order 1994 as a pension scheme which is to be treated as included among those schemes which are B.R. pension schemes for the purpose of Part III of the Transport Act 1980;


"the Railways Pension Scheme" means the occupational pension scheme established by the Railways Pension Scheme Order 1994^[7], as amended by the Railway Pensions (Transfer and Miscellaneous Provisions) Order 1994^[8] and by two deeds dated 8th September 1994 made by the trustee of the scheme;


"retail prices index" means the general index of retail prices (for all items) published by the Central Statistical Office;


"valuation date" means, in relation to any actuarial valuation, the date at which that valuation is made; and

a reference to an actuarial valuation which has been signed shall be taken to be a reference to an actuarial valuation which has been signed by or on behalf of the actuaries, and cognate expressions shall be construed accordingly.    (3)  Where this Order requires any payment to be made on any particular day that payment shall be made on that day, or if that day is not a business day on the next following business day.

    (4)  Except so far as the context otherwise requires, any reference in this Order to a numbered article is to the article in this Order which bears that number.

    2.    The date which, for the purposes of section 52B of the Transport Act 1980, is to be the termination date in relation to the Paragraph 1 Section is 13 October 1994, and the liability of the Secretary of State to make to the persons administering the Paragraph 1 Section payments under section 52(1) of the Transport Act 1980 in relation to that section shall not continue after that date.

    3.    As at the termination date in relation to the Paragraph 1 Section the capital value of the unfunded obligations in the case of that section is £385,981,000, such amount having been determined by the Secretary of State.

    4.    The date which, for the purposes of section 52B of the Transport Act 1980, is to be the termination date in relation to the Paragraph 4 Section is 13 October 1994, and the liability of the Secretary of State to make to the persons administering the Paragraph 4 Section payments under section 52(1) of the Transport Act 1980 in relation to that section shall not continue after that date.

    5.    As at the termination date in relation to the Paragraph 4 Section the capital value of the unfunded obligations in the case of that section is £5,001,000, such amount having been determined by the Secretary of State.

    6.—(1)  Schedules 1 and 2 to this Order shall have effect for the purpose of—
 (a) requiring the Secretary of State to make payments in respect of the capital values of the unfunded obligations specified in articles 3 and 5; and
 (b) providing for the accrual and payment of interest on the outstanding balances of the capital values of the unfunded obligations specified in articles 3 and 5.

    (2)  Any payment required to be made by the Secretary of State under Schedule 1 or 2 shall be made to the persons administering the Paragraph 1 Section and the Paragraph 4 Section.

    7.—(1)  The obligations to make payments under Schedules 1 and 2 shall be discharged if both the Paragraph 1 Section and the Paragraph 4 Section ("the sections") have, in the opinion of the Secretary of State, been wound up.

    (2)  Where it appears to the Secretary of State that the sections may have been wound up the Secretary of State shall consult with the trustee of the Railways Pension Scheme.

    (3)  The Secretary of State shall notify the trustee of the Railways Pension Scheme of any determination by him that in his opinion the sections have been wound up.

Signed by authority of the Secretary of State for Transport

Goschen

Parliamentary Under Secretary of State, Department of Transport

12th September 1994

[1] 1993 c. 43. back

[2] See article 1(2). back

[3] 1980 c. 34; section 52D was inserted by paragraph 9(3) of Schedule 11 to the Railways Act 1993. back

[4] See the definition of "Minister" in section 70(2), as amended by paragraph 9(4) of Schedule 11 to the Railways Act 1993. back

[5] Section 52B was inserted by paragraph 9(3) of Schedule 11 to the Railways Act 1993. back

[6] S.I. 1994/2005. back

[7] S.I. 1994/1433. back

[8] See article 5 and Schedule 4. back

Explanatory Note