The Railway Pensions (Substitution) Order 1994

6.—(1) From 31 December 1994 to 13 October 1995 interest shall accrue on the outstanding balance of the amount first specified in column 2 of Table B, on 13 October 1995, at the rate determined in accordance with sub-paragraphs (3) and (4) as modified by sub-paragraph (5).

(2) Subject to the provisions of paragraph 8, during each relevant period from the relevant date 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 (3) in relation to the relevant Table B amount and in relation to the relevant period.

(3) The rate shall be—

per cent per annum.

(4) In this paragraph—

“P” equals

• “Q”, in relation to any Table B amount equals the total of the real gross redemption yields on the FT actuaries index-linked gilt edged investment index for stocks over 5-years maturity (5% inflation) as at the close of business on the 14th day of each month (or the next following business day) in the period of 12 months starting 18 months before the relevant date in relation to that Table B amount;

• “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

“relevant date”, in relation to the relevant Table B amount, means 13 October in the year 10 years earlier than the year specified in column 1 of Table B in relation to that amount;

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

(5) For the purpose of determining the rate at which interest shall accrue on the outstanding balance of the amount first specified in column 2 of Table B, “W” shall be the retail prices index for the month of September 1993 and “Z” shall be the retail prices index for the month of September 1994.