The Railway Pensions (Substitution) Order 1994

5.—(1) From 13 October 1994 to 31 December 1994 interest shall accrue on the outstanding balance of the amount specified first in column 2 of Table B, on 1 January 1995, at the rate of 4¼ per cent per annum, and such interest shall be added to the outstanding balance of that Table B amount.

(2) Subject to the provisions of paragraph 8, during each relevant period from 13 October 1994 to 13 October in the year 10 years earlier than the year specified in column 1 in relation to any Table B amount (“the relevant Table B amount”) (except the amount referred to in sub-paragraph (1)) interest shall accrue on 13 October in each year on the outstanding balance for the time being of the relevant Table B amount at the rate determined in accordance with sub-paragraph (4) in relation to the relevant period.

(3) Interest which has accrued under sub-paragraph (2) shall be added to the outstanding balance of the relevant Table B amount.

(4) The rate in relation to any period shall be—

per cent per annum, where

“W” means the retail prices index for the month of September in the year before the 14 October on which the relevant period begins;

“Z” means the retail prices index for the month of September immediately before the 14 October on which the relevant period begins;

and for the purpose of this paragraph

shall be calculated to three decimal places and, if

is less than one, it shall be treated as one.

(5) In this paragraph “relevant period” means the period of 12 months during which interest accrues under sub-paragraph (2) beginning on 14 October in any year.