The Railway Pensions (Substitution and Miscellaneous Provisions) Order 1995

7.—(1) A proportion of the interest (“the total of the interest”) which has accrued under paragraph 6 on 13th October in any year (“the relevant year”) on the outstanding balance of any Table B amount (“the relevant Table B amount”), being such proportion as is determined in accordance with sub–paragraph (2), shall, on the day after it has accrued, be added to the outstanding balance of the amount specified in column 2 of Table B in relation to the year 10 years later than the relevant year, and the remaining interest shall be paid by the Secretary of State on 14th October in the relevant year.

(2) The proportion of the interest which is required by sub–paragraph (1) to be added to the outstanding balance of any Table B amount is that proportion of the total of the interest which X bears to Y, subject to a maximum of 100 per cent, where

• “X” means the amount determined by the actuaries in the relevant actuarial valuation in relation to the relevant year 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 the amount retained in that Fund is or is to be increased or reduced pursuant to Rule 13B or 14B before 1st April in the year in which 13th April is not less than thirty nine months and not more than fifty one months after the date of signature of the relevant actuarial valuation in relation to the relevant year, that amount so increased or reduced as the case may be; and

• “Y” means, subject to sub–paragraph (3), the sum ofenrule;

  (a)

  the amount specified in column 2 of Table B in relation to the year in which the valuation date of the relevant actuarial valuation in relation to the relevant year occurs (“the specified amount”) and any interest added to the outstanding balance of any such amount under paragraph 5(1) or (3) or 7(1); and

  (b)

  any amount specified in column 2 of Table B below the specified amount in relation to which there is no subsisting duty to make payments under paragraph 2 or 3 (or, where more than nine such amounts are so specified, the nine such amounts immediately following the specified amount) and any interest added to the outstanding balance of any such amount under paragraph 5(1) or (3) or 7(1); and

  (c)

  where the 1994 Pensioners “B” Section of the Railways Pension Scheme is deemed to have been wound up be virtue of the operation of Rule 19 of the Rules of that section—

  (i)

  the amount (if any) specified in column 2 of Table B of Schedule 2 to the 1994 Order in relation to the year in which the valuation date of the relevant actuarial valuation in relation to the relevant year occurs (insofar as it remains unpaid) (“the relevant amount”) and any interest added to the outstanding balance of that amount under paragraph 5(1) or (3) or 7(1) of Schedule 2 to that Order; and

  (ii)

  any amount specified in column 2 of Table B of that Schedule below the relevant amount in relation to which there is no subsisting duty to make payments under paragraph 2 or 3 of that Schedule (or, where more than nine such amounts are so specified, the nine such amounts immediately following the relevant amount) and any interest added to the outstanding balance of any such amount under paragraph 5(1) or (3) or 7(1) of that Schedule,

  excluding any part of any such amount or interest which has been paid.

(3) For the purposes of calculating Y—

(a) in sub–paragraph (b) of the definition of Y the reference to any amount specified in column 2 of Table B in relation to which there is no subsisting duty to make payments shall be taken to include a reference to a composite amount in relation to any part of which there is no subsisting duty to make payments under paragraph 2 or 3;

(b) in sub–paragraph (c)(ii) of the definition of Y the reference to any amount specified in column 2 of Table B of Schedule 2 to the 1994 Order in relation to which there is no subsisting duty to make payments under paragraph 2 or 3 of that Schedule shall be taken to include a reference to a composite amount in relation to any part of which there is no subsisting duty to make payments under either of those paragraphs;

(c) in sub–paragraphs (a) and (b) of the definition of Y there shall be excluded from the amounts referred to in those sub–paragraphs any Table B amount comprised in a composite amount and in relation to which there is a subsisting duty to make payment;

(d) in sub–paragraph (c) of the definition of Y there shall be excluded from the amounts referred to in that sub–paragraph any amount specified in column 2 of Table B of Schedule 2 to the 1994 Order comprised in a composite amount and in relation to which there is a subsisting duty to make payment under that Schedule;

(e) Table B shall be treated as if—

(i) in column 1, before the year first specified, the years 1995 to 2004 where each specified, and

(ii) in column 2, in relation to each of those years, the amount specified was zero; and

(f) where the 1994 Pensioners “B” Section of the Railways Pension Scheme is deemed to have been wound up by virtue of the operation of Rule 19 of the Rules of that section, Table B of Schedule 2 to the 1994 Order shall be treated as if—

(i) in column 1, before the year first specified, the years 1995 to 2003 were each specified, and

(ii) in column 2, in relation to each of those years, the amount specified was zero.

(4) In this paragraph—

(a) except in sub–paragraph (3)(b) and (d), “composite amount” has the meaning given in paragraph 4(5)(a);

(b) in sub–paragraph (3)(b) and (d), “composite amount” has the meaning given in paragraph 4(5)(b); and

(c) “relevant actuarial valuation”, in relation to any year, means the latest actuarial valuation to have been signed before 14 January of that year.

(5) Where, at the time when sub–paragraph (1) requires a proportion of interest to be added to the outstanding balance of an amount specified in a particular place in column 2 of Table B, no amount is so specified, there shall be deemed for the purposes of this paragraph to be such a Table B amount whose value is zero.