The Railway Pensions (Substitution and Miscellaneous Provisions) Order 1995

5.—(1) Interest shall accrue from 13th April 1995 to 13th October 1995 on the outstanding balance for the time being of each Table B amount, on 13th October 1995, at the rate of 4.25 per cent per annum, and shall be added to the outstanding balance of the Table B amount in respect of which it has accrued on 14th October 1995.

(2) Subject to the provisions of paragraph 8, during each relevant period from 13th October 1995 to 13th October in the year 10 years earlier than the year specified in column 1 of Table B in relation to any Table B amount except the first amount specified in column 2 of that Table (“the relevant Table B amount”) interest shall accrue on 13th October in each year on the outstanding balance for the time being of the relevant Table B amount at the rate determined in accordance with sub–paragraph (4) in relation to the relevant period.

(3) Interest which has accrued under sub–paragraph (2) shall be added to the outstanding balance of the relevant Table B amount on the day after it has accrued.

(4) The rate in relation to any period shall be—

per cent per annum where—

“W” means the retail prices index for the month of September in the year before the year in which the relevant period begins, and

“Z” means the retail prices index for the month of September in the year in which the relevant period begins;

and for the purposes of this paragraph

shall be calculated to three decimal places and, if it is less than one, it shall be treated as one.

(5) In this paragraph “relevant period” means the period of 12 months during which interest accrues under sub–paragraph (2) beginning on 14th October in any year.