THE SCHEDULEPENSION TRUST OF THE RAILWAYS PENSION SCHEME

Appendix 2THE ARRANGEMENTS AND RULES GOVERNING THE ARRANGEMENTSThe Arrangements of the Scheme are the Shared Cost Arrangement, the Defined Benefit Arrangement and the Defined Contribution Arrangement.

PART 3RULES OF THE DEFINED CONTRIBUTION ARRANGEMENT

Trustee’s Discretion to “Buy–out”15J

Instead of providing benefits under the Section in respect of a Member the Trustee may use the Member’s Accumulated Fund to buy a Buy–out Policy in the Member’s name. The Trustee must buy the policy from the UK office or branch of an insurance company. The policy must satisfy the requirements of Rule 10B (Requirements for Buy–out Policies).