The Railway Pensions (Transfer and Miscellaneous Provisions) Order 1994

Transfer of members, assets and liabilities and the winding up of certain existing schemes

2.—(1) All those persons with pension rights under the BR Pension Scheme (being an existing scheme) who are eligible to be members of the Railways Pension Scheme (being a new scheme) shall be members of the Railways Pension Scheme (“the transferee scheme”) instead of the BR Pension Scheme (“the transferor scheme”); and their pension rights under the transferor scheme shall be transferred so as to become pension rights under the transferee scheme.

(2) Subject to the provisions of paragraph (5) of this article, all of the assets held by the trustee of the transferor scheme for the purposes of that scheme shall be transferred so as to be held by the trustee of the transferee scheme for the purposes of that scheme, and any assets held by any other person for the purposes of the transferor scheme, whether on behalf of the trustee of the transferor scheme or otherwise, shall be transferred so as to be held by that person for the purposes of the transferee scheme on behalf of the trustee of the transferee scheme or otherwise, as the case may be.

(3) Subject to the provisions of paragraph (5) of this article, any liabilities under or in relation to the transferor scheme of an employer who is participating in that scheme shall be transferred so as to become liabilities of that employer under or in relation to the transferee scheme, to the extent that such liabilities are not transferred by paragraph (2) of this article.

(4) Any liabilities of the trustee of the transferor scheme under or in relation to that scheme shall be transferred so as to become liabilities of the trustee of the transferee scheme under or in relation to that scheme, to the extent that such liabilities are not transferred by paragraph (1) or (2) of this article.

(5) Paragraphs (2) and (3) of this article shall not transfer any liability of an employer who is participating in the transferor scheme to pay contributions to that scheme in respect of any period after 30th September 1994 so as to become a liability of that employer under or in relation to the transferee scheme or an asset of the transferee scheme.

(6) The investment assets (within the meaning of Schedule 1 to this Order) transferred by paragraph (2) of this article shall be allocated to sections of the transferee scheme in accordance with the provisions of Schedule 1 to this Order.

(7) The pension rights transferred by this article so as to become pension rights under the transferee scheme shall be allocated to sections of that scheme, and persons with pension rights so transferred shall become members of sections of that scheme, in accordance with the provisions of Schedule 2 to this Order.

(8) Subject to the provisions of paragraph (9) of this article, any person who is on 1st October 1994 the employer of a person whose pension rights are transferred by this article shall—

(a) participate in the transferee scheme in accordance with the rules of that scheme for such period as he remains the employer of that person and that person remains a participant in that scheme, and

(b) pay contributions in respect of that person in accordance with the rules of that scheme.

(9) Paragraph (8) of this article shall not impose a duty to participate or pay contributions on the employer of a person where the employer is under a duty under article 3 of the British Transport (Pensions of Employees) (No. 1) Order 1969(1) in respect of that person.

(10) Where pension rights are transferred by this article, articles 4 (obligation to provide a scheme) and 6 (scheme amendment, transfer and winding up) of the Railway Pensions (Protection and Designation of Schemes) Order 1994(2) shall have effect as if the assets transferred by paragraph (2) of this article in respect of those pension rights constituted the payment of a transfer value in respect of those rights in accordance with that Order, and accordingly—

(a) nothing in article 6(2) to (4) or 7(4) (contributions) of that Order shall require the payment of any sum in respect of that transfer; and

(b) article 7(2)(a) of that Order shall have effect as if those pension rights had been transferred in accordance with article 6 of that Order.

(11) The transferor scheme shall be treated for all purposes as wound up.

(1)

S.I. 1969/1824, amended by S.I. 1980/1351. Article 3 was extended by S.I. 1971/116 and S.I. 1971/117.

(2)

S.I. 1994/1432.