The Railways Pension Scheme Order 1994

Transfers between Sections which have adopted the rules of the Shared Cost Arrangement or of the Defined Benefit Arrangement

(a) Transfers (not following a compulsory change in employment)

If the benefits of a Member who has retained his rights under the Railway Pensions (Protection and Designation) Order 1994 are transferred within 15 months of leaving Service then the amount of the transfer payment will be equal to the Member’s Past Service Reserve. Otherwise, the amount of the transfer payment will be equal in value to the cash equivalent of the Member’s benefits calculated in accordance with the Transfer Value Laws. The benefits to be provided under the receiving Section will be calculated using the same actuarial basis and assumptions as the Actuary used to determine the amount of the transfer payment.

The Designated Employer may in either case agree to a higher transfer payment (but not exceeding a share of the fund).

The Trustee may, having regard to Clause 2G, agree to a higher transfer payment (but not exceeding a share of fund) in relation to a Member who has retained his rights under the Railway Pensions (Protection and Designation) Order 1994 whose benefits are transferred within 15 months of leaving Service provided that the higher transfer payment:—

(i) does not exceed the amount which is sufficient to credit the Member with Pensionable Service on a year for year basis in respect of the period of Pensionable Service in relation to which the transfer is made adjusted to take account of any difference in benefit structure between the transferring and receiving Sections; and

(ii) shall not cause an increase in contributions under Rule 3A.

(b) Transfers (following a compulsory change in employment)

If the benefits of a Member who is a Protected Person are transferred following a compulsory change in employment on or before 30th September 2003, the amount of the transfer payment will be calculated on a share of fund basis.

• If benefits are transferred following a compulsory change in employment in the case of a Member who is not a Protected Person or who is a Protected Person but does not transfer on or before 30th September 2003 then the amount of the transfer payment will be equal to the Member’s Past Service Reserve unless the Designated Employer agrees to a higher transfer payment (not exceeding a share of the fund).

• The benefits to be provided under the receiving Section will be calculated using the same actuarial basis and assumptions as the Actuary used to determine the amount of the transfer payment and will be actuarially equivalent to the amount transferred to the receiving Section.