The Railway Pensions (Designation, Substitution and Miscellaneous Provisions) Order 2001

6.—(1) 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”) interest shall accrue, on 13th 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 (2) in relation to the relevant Table B amount and in relation to the relevant period.

(2) The rate shall be—

per cent per annum.

(3) 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 per cent inflation) as at the close of business on the 14th day of each month (or, where that day is not a business day, 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 price 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 in the year in which the relevant period begins;

• Z/W shall be calculated to three decimal places and, if Z/W is less than one, it shall be treated as one;

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

• “relevant period” means the period of 12 months during which interest accrues under sub-paragraph (1), beginning on 14th October in any year.