The Railways Pension Scheme Order 1994

Defined Benefit Arrangement

3D  If a Designated Employer decides to adopt the Defined Benefit Arrangement the Deed of Establishment and Participation shall also set out which of the following options the Designated Employer has chosen to apply to Members of its Section:

(a) Whether or not Pensionable Service shall be contracted–out by reference to the Scheme (in which case Clause 9 (Contracting–out) shall apply).

(b) A Minimum Pension Age, on or between the Member’s 60th and 70th birthdays (or earlier if acceptable to the Inland Revenue).

(c) A Member’s Contribution Rate, to be either nil or at a specified percentage no greater than 15% of Pensionable Pay.

(d) An Accrual Rate of 1/100th, 1/80th or 1/60th.

(e) Provisions for survivors' pensions as follows:

• whether a Spouse’s Pension Fraction is to apply when the Member dies before his pension has started. If it is, this shall be ½ or ⅔

• whether a Spouse’s Pension Fraction is to apply when the Member dies or after his pension has started. If it is, this shall be ½ or ⅔

• whether a Children’s Pension Fraction is to apply. If it is, this shall be ½.

(f) A Lump Sum Death Benefit of nil, 1, 2, 3 or 4 times the Member’s Final Average Pay at the date of death.