The Railway Pensions (Substitution and Miscellaneous Provisions) Order 1995

11.—(1) If, on any relevant date in relation to any year after 2004 in which 13th April is not less than three months and not more than fifteen months after the date of signature of the relevant actuarial valuation in relation to that year (“the relevant year”)—

(a) the duty to make payments under paragraph 2 or 3 has arisen in respect of any Table B amount (“the relevant Table B amount”) and

(b) the circumstances specified in sub–paragraph (3) arise,

the Secretary of State may, on or before 13th April in the relevant year, issue a notice to the persons administering the Paragraph 2 Section and the Paragraph 5 Section and from 13th April in the relevant year the duty to make payments under paragraph 2 or 3, as the case may be, in respect of that amount shall terminate, but no notice shall be issued which would result in the total of the relevant amounts exceeding A + B (as defined in sub–paragraph (3)).

(2) From 13th October in the relevant year the provisions of this Schedule shall apply to such part of the relevant Table B amount as remains unpaid and any interest added to that amount by any provision of this Schedule which has not been paid as if such part of the relevant Table B amount as remains unpaid had been added to the amount (if any) specified in Table B in relation to the year (“the later year”) 9 years later than the relevant year, and as if the total, or that amount, as the case may be, had been inserted in column 2 of Table B in relation to the later year, and, unless the contrary intention appears, any reference in this Schedule (including this paragraph) (however expressed) to a Table B amount, to an amount specified in column 2 of Table B in relation to any particular year, or to the outstanding balance of a Table B amount, shall be construed accordingly.

(3) The circumstances referred to in sub–paragraph (1) are that the total of the relevant amounts does not exceed A + B where—

• “A” means the amount determined by the actuaries in the relevant actuarial valuation as being the amount retained in the Special Reserve Fund as at the valuation date in relation to that valuation and, where in consequence of that valuation that amount retained in that Fund has been increased or reduced pursuant to Rule 13B or 14B within six months after the date of signature of that valuation, so increased or reduced as the case may be; and

• “B” means 3% of the amount determined by the actuaries in the relevant actuarial valuation as being the total of the value of all the liabilities of the section in respect of pension rights as at the valuation date in relation to that valuation, and, where any change in pension rights has been made pursuant to Rule 13B or 14B in consequence of that valuation, increased or reduced as the case may be by an amount determined by the actuaries, before the date six months after the date of signature of the relevant actuarial valuation, as the change in the value of the liabilities of the section taken account of such change in pension rights.

(4) Where the Secretary of State has isued a notice terminating the duty to make payments in respect of the relevant Table B amount, from 13th October in the relevant year interest shall cease to accrue on the outstanding balance of that Table B amount under paragraph 8(1), the duty under paragraph 8 to make payments in respect of interest which has accrued on the outstanding balance of that Table B amount shall cease, and paragraphs 6 and 7 shall apply in respect of the outstanding balance of that Table B amount and shall apply in respect of any interest which has accrued under paragraph 8 and has not been paid on or before 13th October in the relevant year.

(5) Where the duty to make payments in respect of any Table B amount under paragraph 2 or 3 has previously arisen and has terminated, if—

(a) on any relevant date (for the purposes of paragraph 2) the circumstances specified in paragraph 2(2) arise in relation to that amount; or

(b) that amount is included in the amounts in respect of which the Secretary of State comes under a duty to make payments under paragraph 3,

then paragraph 2 or 3, as the case may be, shall apply in relation to that amount as if paragraph 2(1) or paragraph 3(5) or (6), as the case may be, required the Secretary of State to make payments amounting in aggregate to such part of the Table B amount as remains unpaid.

(6) In this paragraph—

“relevant actuarial valuation”, in relation to any year, means the latest actuarial valuation to have been signed, before 14th January of that year;

“relevant amounts” has the same meaning as in paragraph 3(7); and

“relevant date”, unless the context otherwise requires, means any date before 14th April in the relevant year but after 14th April in the previous year, being a date not less than three months after the date of signature of the relevant actuarial valuation in relation to the relevant year.