The Railways Pension Scheme Order 1994

Priority of Benefits

22B  If the assets attributable to the Section are insufficient then after consulting the Actuary, the Trustee shall provide the following benefits first and in the following order:

(1) to pay all costs, charges and expenses incurred or to be incurred by the Trustee in relation to the termination of the Section;

(2) to pay costs, charges or expenses incurred by the Trustee before the winding–up commenced;

(3) to provide lump sums payable on the day the winding–up commenced and pensions in respect of those Members who are in receipt of a pension, at the rate in force on the day the winding– up commenced, with allowance for statutory increases, if any;

(4) to provide benefits payable on the death of any person in receipt of a pension, at the rate in force on the day the winding–up commenced with allowance for statutory increases, if any;

(5) in so far as they have not already been secured, GMPs and accrued rights to such benefits;

(6) state scheme premiums;

(7) State Graduated Retirement Benefits;

(8) in respect of each Member who is paying or has paid or in respect of whom have been paid additional contributions under Rule 4A (Additional Voluntary Contributions by Members) and Rule 4B (Additional Contributions by Participating Employers) including contributions that would have been paid by the Participating Employer but for the last paragraph of Rule 4B, the benefits secured in respect of each Member under Schedule 3;

(9) benefits resulting from transfer credits;

(10) deferred benefits under Rule 9 (Early Leavers) at the rate applicable on the date the winding– up commenced, with allowance for statutory increases before and after retirement;

(11) benefits (vested or contingent) which have not already been provided;

(12) increases, which have not already been provided for, to pensions already in payment and to Preserved Benefits for the periods prior to retirement and after retirement pension increases by analogy with pension increases under Rule 18A (Pension Increases).