Superannuation funds
17. Regulation P1 of the principal Regulations is amended—
(a)by inserting before the words“The superannuation funds”the figure“(1)”; and
(b)by adding at the end the following:
“(2) An administering authority (other than the Severn-Trent Water Authority) who are a party to any admission agreement may establish a further superannuation fund (a“further fund”), to be maintained by them in addition to the fund they maintain under paragraph (1) (“the main fund”).
(3) An authority who establish a further fund shall notify the Secretary of State forthwith, in writing, that they have done so, identifying the bodies (which must be bodies specified in regulation B3(8)) whose employees are to participate in the benefits of the further fund.
(4) On the establishment of a further fund the authority shall cease to hold as part of the main fund assets of a value to be specified by an actuary, which shall then become part of the further fund.
(5) When the authority first obtain under regulation P5 valuations of both the main fund and the further fund, they shall also obtain from the actuary a statement specifying the value to which further assets should in his opinion cease to be held by them as part of the main fund and become part of the further fund.
(6) On a day to be selected by them, which shall be as soon as is reasonably practicable after they obtain the statement mentioned in paragraph (5), the authority shall cease to hold as part of the main fund assets to the value specified, which shall then become part of the further fund.
(7) As soon as is reasonably practicable after the establishment of the further fund the authority shall obtain from the actuary consulted by them for the purposes of paragraph (5) a certificate specifying in respect of the further fund, for each remaining year of the period of 5 years to which the most recent certificate obtained by them under regulation P6 relates, the matters referred to in regulation P6(1) (common rate of employer’s contribution and any individual adjustments).
(8) For each of the remaining years mentioned in paragraph (7), regulation P7 (employer’s contributions) shall in relation to any body identified in the notification required by paragraph (3) have effect as if for references to a certificate under regulation P6 there were substituted references to the certificate required by paragraph (7).
(9) On the establishment of the further fund all rights to payment out of the main fund in respect of service in employment under a body identified in the notification required by paragraph (3) shall become rights to payment out of the second fund.”.