The Railways Pension Scheme Order 1994

Rule 4A

SCHEDULE 3 TO THE RULES OF THE SHARED COST ARRANGEMENT BRASS 2 POLICY

In this Schedule the following terms have the following meaning:

“Insurer”	means the person or persons or corporation with whom the Policy is effected.
“Policy”	means annuity policies or life assurance policies issued by any Insurance Company in which the Trustee has invested the contributions received under Rules 4A (Additional Voluntary Contributions by Members) and 4B (Additional Contributions by Participating Employers).

1.  The Trustee shall immediately pay to the Insurer all contributions received from the Members and the Participating Employers under Rules 4A and 4B.

2.  The benefits under the Policy shall become payable only when a Member becomes entitled to a benefit under the Section other than a deferred benefit under Rule 9A (Deferred Benefits).

3.  When a Member who leaves Service with deferred benefits exercises his right under Rule 10A (Member’s Right to Transfer or “Buy–out”), a lump sum equal to the proceeds of the Policy in respect of the Member shall be added to the transfer payment.

4.  When as a consequence of the death of a Member any person or persons become entitled to a benefit from the Section, then the proceeds of the Policy shall be used, in such proportions as the Trustee determines to provide benefits for that person or persons.

5.  When a Member becomes entitled to the proceeds of the Policy, those proceeds shall be transferred from the Policy to the Scheme to be used to secure in the Section additional pension using a factor of 12 per 1 per annum of pension. The Member must receive as a minimum a lump sum under the Rules equal to the lesser of:

(A) the amount of the Policy proceeds;

and

(B) the maximum total amount of lump sum payable under the Rules.

• Subject always to the Inland Revenue limits set out in Schedule 6.

6.  If a benefit becomes payable from the Section to or in respect of a Member, and that benefit is less than it would have been but for Inland Revenue limits then an amount shall be payable to or in respect of the Member equal to the lesser of:

(A) that part of the proceeds of the Policy attributable to the Member’s contributions under Rule 4A;

and

(B) a sum equal to the value of the difference between:

(i) the benefits which would be payable under these Rules if Inland Revenue limits did not apply;

and

(ii) the benefits actually payable under the Rules.