The Railway Pensions (Substitution) Order 1994

4.—(1) Subject to sub-paragraph (3), interest shall accrue from 13 October 1994 to 13 October 1995 and during subsequent relevant periods on the outstanding balance of each Table A amount, on 13 October of each year, at the rate determined in accordance with sub-paragraph (2) in relation to the relevant period.

(2) Subject to sub-paragraph (3), the rate in relation to any relevant period shall be:—

per cent per annum.

(3) Where paragraph 3 requires the Secretary of State to commence payment of a Table A amount during a relevant period, the rate at which interest shall accrue during that period under sub-paragraph (1) on the outstanding balance of the Table A amount in respect of which such payment is required shall be:—

per cent per annum.

(4) In this paragraph—

“relevant period” means a period of twelve months, the first such period being the period from 13 October 1994 to 13 October 1995 and subsequent relevant periods being periods of 12 months starting from the end of the previous relevant period;

“W” means the retail prices index for the month of September in the year before the year in which the relevant period begins;

“Z” means the retail prices index for the month of September immediately before the date on which the relevant period begins; and

shall be calculated to three decimal places and, if is less than one, it shall be treated as one.