The Transport Act 2000 (Civil Aviation Authority Pension Scheme) Order 2001

APPENDIX 1—DEFINITIONS

Acceptable Residual Benefits means benefits falling within either of the following categories, viz:

(1)

Benefits for widows or dependants;

(2)

Guaranteed minimum pension benefits under retirement benefits schemes contracted-out in accordance with the Pension Schemes Act 1993(1).

Actuary means the person appointed to be the actuary to the Scheme in accordance with Clause 11 of the Trust Deed.

A D Deferred Pensioner means a Member who was admitted to membership of the Scheme on 1 October 1978 who has an entitlement under the Previous Scheme Provisions to a pension from the Scheme corresponding to a deferred pension to which he became entitled under the A D Scheme.

Administrator means the person or persons who is or are the administrator of the Scheme in accordance with Clause 8.1 of the Trust Deed.

A D Scheme means the Civil Aviation Authority Airworthiness Division Superannuation Scheme.

Approved Policy means an annuity contract or policy issued by an Authorised Insurance Company in a form approved by the Board of Inland Revenue for the purposes of section 591(2)(g) of the Taxes Act(2) under which such Authorised Insurance Company assumes an enforceable obligation to pay the benefits as and when they fall due to or for the benefit of such persons (or to or for the benefit of the widows, widowers, dependants or personal representatives of such persons) in respect of whom such contract or policy is issued and under which the following conditions are met:

(1)

Any annuity benefits provided are non-assignable and except to such extent as may be certified by the Authorised Insurance Company non-commutable; and

(2)

The benefits provided do not exceed the maximum amount approvable under the relevant Section by the Board of Inland Revenue; and

(3)

The maximum amount which can be taken as a lump sum at Normal Pension Date or on previous death is shown in monetary terms.

Associated Company means any body corporate which is or shall hereafter be allied to or associated in business with the Sponsoring Section Employer and is for the time being for the purposes of the Scheme and the relevant Section so designated by the Sponsoring Section Employer.

Associated Employment means an employment which is a relevant associated employment for the purposes of section 590A of the Taxes Act.

Associated Scheme means a retirement benefits scheme approved or seeking approval under Chapter I of Part XIV of the Taxes Act(3) which is a connected scheme or which provides benefits in respect of Service or in respect of Associated Employments.

Authorised Insurance Company means any insurance company to which Part II of the Insurance Companies Act 1982(4) applies and which is authorised by or under section 3 or 4 of that Act to carry on ordinary long-term insurance business as defined in that Act or any other insurance company acceptable for the purposes of section 19 of the Pension Schemes Act 1993.

Averaged Fluctuating Earnings means in respect of a Member for any period the annual average of the Member’s fluctuating earnings (including fluctuating remuneration for overtime and other fluctuating remuneration but excluding Non-Pensionable Earnings) from the Employers for the period of 36 consecutive calendar months which ends on the last day of such period or in the case of a Member who at such date has been a Current Member for less than 36 calendar months over the whole of such lesser period.

CAA means the Civil Aviation Authority, a body corporate established by statute whose chief office is at CAA House, 45/59 Kingsway, London, WC2B 6TE.

CAA Rules means the Rules of the CAA Section, as set out in Appendix 2.

CAA Section means the Section of the Scheme established under Clause 3.1 which is attributable to those persons attributed under Clause 3.3 and persons who join that Section after the Effective Date.

Cash Value means in respect of a Member (1) the cash value, determined by the Trustees with the advice of the Actuary being not less, where appropriate, than an amount required in accordance with the Pension Schemes Act 1993, of the whole or a specified part of the benefits payable or prospectively payable from the relevant Section in respect of him and (2) where the final sentence in Rule 32.1 applies, the amount therein described.

Civil Aviation Act means the Civil Aviation Act 1971(5) or the Civil Aviation Act 1982(6) as the context requires.

Civil Service Scheme means the Principal Civil Service Pension Scheme 1974 made under section 1 of the Superannuation Act 1972(7) and includes the prior civil service superannuation provisions replaced by such scheme.

Class A Member means a Member who has elected the option under Rule 40 whereby he becomes a Member to whom the 1989 Inland Revenue limits regime for occupational pension schemes (which is summarised in Section A of Appendix 4) applies.

Class B Member means a Member who is a Member to whom the pre-1989 Inland Revenue limits regime for occupational pension schemes (which is summarised in Section B of Appendix 4) applies in accordance with Rule 40.1.

Connected Scheme means a retirement benefits scheme which is regarded as being connected with the Scheme in accordance with the provisions of section 590A of the Taxes Act.

Continued Rights Member means:

(1)

a Member who before becoming a Member was before 1 June 1989 a member of a different retirement benefits scheme which commenced prior to 14th March 1989 and who became a Member as a result of either a reconstruction of one or more retirement benefits schemes or a reconstruction or amalgamation of employers, and

(2)

any other Members acceptable to the Board of Inland Revenue as falling within this definition for the purposes of these Rules.

Contracted-out Membership means that part (if any) of a Member’s last or only period of Service during which he was for the purposes of the Pension Schemes Act 1993 in contracted-out employment by reference to the relevant Section; provided that it shall also include any earlier period of such Service which has under the provisions of the Pension Schemes Act 1993 not been treated as terminated, but not so that any part of such Service shall be counted more than once for the purpose of determining the total benefits payable in respect of him under the relevant Section.

Contracting-out Regulations means The Occupational Pension Schemes (Contracting out) Regulations 1996(8) and any other regulations made in relation to contracting out.

Contributions Equivalent Premium means in respect of a Member the premium payable in respect of him in accordance with section 55(2) of the Pension Schemes Act 1993.

Controlling Director means a Member whose Employer is a company and who at any time on or after 17 March 1987 is or in the last ten years of his Service has been both (i) a director as defined in section 612(1) of the Taxes Act, and (ii) within paragraph (b) of section 417(5) of the Taxes Act, in relation to such company.

Current Member means a Member who, having been admitted to membership of the Scheme:

(1)

is within the eligibility category described in Rule 21; and

(2)

has not retired or withdrawn from membership of the relevant Section; and

(3)

is not a Class B Member who has received any benefit from the relevant Section while in Service on or after Normal Pension Date in accordance with Rules 27.3.

Deed of Consolidation means the trust deed dated 20 June 1991 and made between the Principal Employer, Highlands and Islands Airports Limited and the Trustees therein named.

Dependant means in respect of a Member any person who in the opinion of the Trustees is or was at the relevant time dependent on the Member for all or part of the necessaries of life.

Disclosure Regulations means the Occupational Pension Schemes (Disclosure of Information) Regulations 1996(9).

Earnings means in respect of each Member for any period an amount calculated or estimated by the Trustees for that period in such manner and on such basis as they shall determine having regard to the Member’s remuneration from the Employers for that period which is assessable to tax under Schedule E but excluding Non-Pensionable Earnings.

Effective Date means the date of disposal by the Civil Aviation Authority to National Air Traffic Services (No. 2) Limited of the shares it holds in National Air Traffic Services Limited;

Employee means

(1)

a person employed by the Employers under a contract of employment and

(2)

a Member of the Civil Aviation Authority appointed by the Secretary of State under Schedule 1 to the Civil Aviation Act who is treated as if his service as a Member of the Civil Aviation Authority were service in the employment of the Employer.

Employers means the Principal Employer, the Sponsoring Section Employers, HIAL and any Associated Company or Non-Associated Company or Subsidiary Company which enters into an agreement with the Sponsoring Section Employer and the Trustees binding itself to observe and perform the relevant provisions and obligations of the relevant Section or the Scheme, and in relation to any particular person “Employer” means that one or more of the Employers of which he is (or was at the relevant time) an employee or director. In relation to any particular Section, Employer means that one or more of the Employers which participates in that Section in accordance with the Trust Deed and Rules.

Employers' Pensioner Trustee means a Member in receipt of a pension from the Scheme, other than a Members' Trustee, an Employers' Trustee and the Members' Pensioner Trustee, who is appointed by the Principal Employer as a trustee of the Scheme.

Employers' Schemes means all retirement benefits schemes of any of the Employers or to which any of the Employers contributes or has contributed and all other schemes which provide benefits in respect of Service, being schemes approved or seeking approval under Chapter I of Part XIV of the Taxes Act and for the purpose of Appendix 4 includes Associated Schemes but only in respect of Class B Members who became Current Members on or after 1 June 1989 (other than Continued Rights Members).

Employers' Trustees means persons other than Members' Trustees, the Members' Pensioner Trustee and the Employers' Pensioner Trustee, who are appointed by the Principal Employer as trustees of the Scheme.

Existing Trust Deeds means the Interim Deed and any deeds supplemental to it executed prior to the date of the trust deed to which this Appendix is attached.

Family Benefit Contributions means in respect of a Member the aggregate of:

(1)

that part (if any) of the contributions paid by the Member to the Scheme prior to 1st April 1988 which were regarded under the Previous Scheme Provisions as being contributions for family benefits, and

(2)

any voluntary contributions paid by the Member under Rule 23.3 which in the opinion of the Trustees represent the continuation of contributions described in (1) above, and

(3)

any part of the Member’s contributions under Rule 23.1 which are at a rate in excess of 4.5% (6% prior to 1 April 1997) of his Earnings or such reduced amount as the Trustees with the advice of the Actuary shall consider to be appropriate following a reduction or suspension of contributions in accordance with Rule 23.7.

Final Pensionable Earnings means in respect of each Member at any date the greatest of:

(i)

the Member’s remuneration from the Employers for the year ending on that date other than fluctuating earnings together with his Averaged Fluctuating Earnings for that year; and

(ii)

the Member’s highest total remuneration from the Employers for any period of 12 consecutive calendar months as a Current Member within the five years ending on that date, such total remuneration comprising his remuneration other than fluctuating earnings for any such period together with his Average Fluctuating Earnings for that period; and

(iii)

the highest annual average of the Member’s total remuneration other than fluctuating earnings from the Employers over any period of 36 consecutive calendar months as a Current Member ending within the period of 10 years which ends on that date, together with his Averaged Fluctuating Earnings for that 36 month period:

provided always that:

(1)

for the purposes of this definition Non-Pensionable Earnings shall be excluded; and

(2)

the amount to be ascertained for the purposes of this definition in relation to any period of a Member’s absence other than on full pay, shall be determined in relation to the provisions of Rule 36.8; and

(3)

the amount of remuneration (other than fluctuating earnings) from the Employers taken for the purposes of sub-paragraph (i) above in respect of a Member whose Service is less than a year shall be calculated by deeming the Member to have been in Service for a year at the rate of remuneration equal to the average rate of his remuneration (other than fluctuating earnings) for the period of his Service; and

(4)

(a)

the amounts of remuneration (other than fluctuating earnings) in relation to any period of 12 consecutive months taken for the purposes of sub-paragraph (ii) above and in relation to each of the three periods of 12 consecutive calendar months comprising the period of 36 calendar months taken for the purpose of sub-paragraph (iii) above shall be increased in proportion to the increase in the Index over the period commencing at the end of the said period of 12 consecutive months and ending on the date as at which the calculation of amounts in accordance with this definition is made; and

(b)

the amount of Averaged Fluctuating Earnings in relation to any period taken for the purposes of sub-paragraphs (ii) and (iii) above shall be increased in proportion to the increase in the Index over the period commencing at the end of the period of 36 calendar months (or lesser period as appropriate) over which such Averaged Fluctuating Earnings have been calculated in accordance with the definition thereof and ending on the date as at which the calculation of amounts in accordance with this definition is made; and

(5)

in respect of Class A Members and Class B Members who became Current Members on or after 1 Just 1989 (other than Continued Rights Members) any part of the amount calculated in accordance with this definition which exceeds the Permitted Maximum at the relevant date shall be disregarded; and

(6)

in respect of a Member who is a Reclassified Member any amount of his remuneration relating to any period prior to his Transfer Date which is taken into account for the purposes of this definition shall consist of basic annual salary from the Employers with the addition of any pay supplements from the Employers for the time being in payment excluding bonuses, commissions and other fluctuating emoluments.

Final Remuneration has the meanings set out in Section A and Section B of Appendix 4.

Former Civil Servant means a Member who was treated as a former civil servant for the purposes of the Previous Scheme Provisions and any other Member who having been a civil servant immediately before becoming employed by the Principal Employer is notified by the Principal Employer as falling within this definition.

Fund means the monies investments policies of insurance and other property for the time being held by the Trustees subject to the provisions of the Trust Deed and the Rules.

Guaranteed Minimum Pension means in respect of a Member the pension to which he is or is to be entitled from the Scheme in accordance with the provisions of Section B of Appendix 5.

HIAL means Highlands and Islands Airports Limited.

HIAL Member means a Member who is a Current Member in the employment of HIAL on or after 1 April 1995.

Index means the General Index of Retail Prices for “all items” shown in the monthly Digest of Statistics published by the Central Statistical Office or such other index as shall, with the agreement of the Board of Inland Revenue, be determined by the Trustees from time to time to apply to the Scheme and notified by the Trustees to the Members Affected thereby.

Intended Benefits means the benefits to be provided in respect of each Member in accordance with the Rules, and in relation to any particular Section, means the Intended Benefits under that Section.

Interim Deed means the interim deed dated 1 October 1973 and made between the Principal Employer and the then trustees whereby the Principal Employer established the Scheme.

Investment Policy Committee means the committee of Trustees established under Clause 7.2.

Latest Option Date means in respect of a Member whichever is first to occur of the following:

(i)

the date on which his pension from the relevant Section is due to commence or, if earlier, the date of payment to the Member of a cash sum in accordance with Rule 27.3;

(ii)

the date on which the Cash Value of his benefits is applied to provide benefits under an insurance policy in accordance with Rule 33; and

(iii)

the date on which the Member’s entitlement under the relevant Section is transferred to another retirement benefits arrangement in accordance with Rule 34 (other than to any of the Employers' Schemes).

Lower Rate Contributor means a Member whose ordinary contributions to the relevant Section are at the lower of the two rates specified in Rule 23.1 or Rule S4(a) or in accordance with the corresponding terms of the Previous Scheme Provisions.

Medical Adviser means any duly registered medical practitioner appointed by the Trustees for any purpose of the Scheme.

Member means any person who was a member of the Scheme in accordance with the Previous Scheme Provisions at midnight on the day immediately preceding the Effective Date or who joins the relevant Section on or after the Effective Date in accordance with the provisions of the relevant Section applicable from time to time, and includes any such person so long as (but only so long as) any benefit remains payable from the relevant Section to or in respect of him, and in respect of any particular Section, Member shall mean a Member of that Section.

Members' Pensioner Trustee means a Member in receipt of a pension from the Scheme who is appointed by the Principal Employer as a trustee of the Scheme on the joint nomination of the organisation or organisations with which the Authority is under a duty to seek consultation on matters referred to in paragraph 14 of Schedule 1 to the Civil Aviation Act and the organisation or organisations accepted by the Principal Employer as representing the interests of Pensioners.

Members' Trustees means Current Members who are appointed by the Principal Employer as trustees of the Scheme on the nomination of the organisation or organisations with which the Authority is under a duty to seek consultation on the matters referred to in paragraph 14 of Schedule 1 to the Civil Aviation Act and the Principal Employer shall use its best endeavours to ensure that the persons so appointed are as far as practicable representative of all classes of Current Members.

Minor means a person under the age of 18 years.

NATS means National Air Traffic Services Limited, a company registered in England and Wales whose registered office is at 1 Kemble Street, London WC2B 4AP.

NATS Rules means the Rules of the NATS Section, set out in Appendix 3.

NATS Section means the Section of the Scheme established under Clause 3.1 which is attributable to those persons attributed under Clause 3.2 and persons who join that Section after the Effective Date.

1975 Act means the Social Security Pensions Act 1975(10)

Non-Associated Company means any body corporate which is not an Associated Company.

Non-Associated Employer means an Employer which is a Non-Associated Company.

Non-Pensionable Earnings means the aggregate of (1) that part (if any) of a Member’s remuneration from the Employers which is declared by the Employers to the Trustees to be non-pensionable and (2) the value of any benefits in kind received by the Member from the Employers.

Normal Pension Date means in respect of each Member the 60th anniversary of birth or any other date specified in these Rules or notified to a category of employees by the Employer provided that such date is acceptable to the Board of Inland Revenue

Paid Maternity Absence means a period of paid maternity absence as defined in paragraph 5 of Schedule 5 to the Social Security Act 1989(11).

Pensionable Service means in respect of each Member at any date the period of his Service as a Current Member completed by such date (excluding any period under Rule 36) with the addition of:

(a)

any additional period provided in return for the Member’s voluntary contributions to the Scheme; and

(b)

any additional period conferred on the Member as a result of a transfer into the Scheme; and

(c)

any other additional period granted by the Trustees and notified to the Member, whether by way of augmentation in accordance with Rule 12 or otherwise,

provided that:

(i)

for the purpose of calculating any pension benefit payable from the Scheme on the death of a Member any Service in relation to which the Member was a Lower Rate Contributor shall be excluded; and

(ii)

Pensionable Service in the Scheme prior to the Effective Date shall not be deemed to have been terminated by reason of the establishment on the Effective Date of the CAA Section and the NATS Section and the allocation on the Effective Date of the Current Member to one of those Sections and such Pensionable Service shall be treated as continuous with Pensionable Service which commences on the Effective Date in either of the Sections by virtue of this Deed; and

(iii)

on any transfer between Sections Pensionable Service shall not be deemed to be continuous except in respect of a Protected Member whose employment has transferred by operation of law or whose Employer has ceased to be an Associated Company, and the Member transfers between Sections as a consequence of either of those events or where the Trustees determine that such Pensionable Service shall not been deemed to be broken.

Pensioner means any person who is not a Current Member for whom any benefit remains payable from the relevant Section.

Permitted Maximum means at any date the permitted maximum as defined in section 590C(2) of the Taxes Act(12) for the year of assessment in which such date falls.

Personal Pension Scheme means a personal pension scheme as described in Chapter IV of Part XIV of the Taxes Act.

Pooled Fund means a common investment fund established or to be established by the Trustees under Clause 7.

Preservation Regulations means the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991(13).

Previous Definitive Deed means the supplemental deed dated 18 March 1998 which amended the provisions of the Scheme for the purpose of incorporating in it changes deriving principally from the Pensions Act 1995 and other amendments to the Scheme notified to members.

Previous Scheme Provisions means the provisions of the Scheme effective before the Effective Date which are set out in the Existing Trust Deeds and any amendments to such documents (including any alterations to such provisions notified to Members as being effective before the Effective Date in respect of which formal documentation was pending at that date) and at any particular date means those of such provisions which were effective (or pending as described above) at such date.

Principal Employer means the Civil Aviation Authority or its successors in title or any company or body which assumes responsibilities in relation to the Scheme in accordance with the provisions of Clause 20.

Protected Member means a person who was a Current Member employed by NATS on the Effective Date or on the date on which a private public partnership of National Air Traffic Services Limited is effected. The status of Protected Member shall continue after the Effective Date until the earliest of the dates when:

(a)

the Protected Member voluntarily terminates his status of Protected Member;

(b)

the Protected Member voluntarily terminates his Pensionable Service; and

(c)

the Protected Member ceases to be an Employee in circumstances other than where his new employer is eligible to participate in the Scheme pursuant to Clause 19.

Protected Rights means in respect of a Member his protected rights as described in Chapter I of Part III of the Pension Schemes Act 1993 under an appropriate personal pension scheme, a scheme contracted-out on a money purchase basis or a money purchase scheme to which section 53 of the Pension Schemes Act 1993(14) applies.

Qualifying Child means in respect of a Member any child of the Member (except a child born more than nine months after the date on which the Member ceased to be a Current Member) and it includes also his step-child (other than a step-child by reason of a marriage after the date on which the Member ceased to be a Current Member) and a child legally adopted either by the Member alone or jointly by the Member and his spouse, or by the spouse alone (except a child adopted after the date on which the Member ceased to be a Current Member) provided that a child of a female Member who ceased to be a Current Member before 1 April 1995 who had elected in accordance with the Previous Scheme Provisions to accept benefit on restricted terms shall be included in this definition only if such child was also a Dependant of the Member immediately prior to the Members death.

Qualifying Leaver means:

(1)

a Member who at the date of ceasing to be within the eligibility category described in Rule 21 has completed two or more years of Qualifying Service (or in the case of a Member who ceased to be within the eligibility category described in Rule 21 prior to 6 April 1988, five or more years of Qualifying Service); and

(2)

a Member in respect of whom there has been a transfer into the Scheme from a Personal Pension Scheme in respect of a period of employment.

Qualifying Service means in respect of a Member at any date that part of his last or only period of Service up to that date which was pensionable under the Scheme at the time such Service was given together with any period of employment in respect of which he is entitled to benefits under the relevant Section by virtue of a transfer into the relevant Section, provided that for the purposes of this definition:

(1)

any period of his Service which is separated from a succeeding period by one or more of the following:

(a)

an interval not exceeding one month,

(b)

an absence from work wholly or partly because of pregnancy or confinement after which the Member returns to work in exercise of a right under the Employment Rights Act 1996(15) and returns to pensionable service no later than one month after returning to work, and

(c)

an absence from work in furtherance of a trade dispute as defined in section 27(3)(b) of the Social Security Contributions and Benefits Act 1992(16)

shall be deemed to be part of such succeeding period; and

(2)

there shall be included in Service any earlier period of the Member’s Service which gave rise to a leaving Service entitlement to which he has retained an entitlement under the relevant Section; and

(3)

if the Trustees think fit after consultation with the Actuary there shall be included within this definition any period of service not included within Pensionable Service which would have been taken into account for the purpose of determining the Member’s eligibility for benefits under a retirement benefits fund scheme or arrangement of which the Member was a member before admission to membership of the relevant Section; and

(4)

any period during which the Member was deemed to be in Service for the purposes of the Scheme while not actually in the employ of the Employer shall be excluded.

Reclassified Member means a Member who having been an S Category Member has elected the option described in Rule S3 and includes such a Member who in accordance with that Rule is deemed to have elected that option.

Relevant Pension has the meaning set out in Rule 25.4.

Rules means the Rules as described in Clause 2.

S Category Deferred Member means a Member other than an S Category Member who was admitted to membership of the Scheme on 1 October 1978 and who immediately before 1 October 1978 was a member of the A D Scheme.

S Category Member means, subject always to the provisions of Rule S3, a Member who was a Current Member of 1 April 1988 who was admitted to membership of the Scheme on 1 October 1978 and who immediately before 1 October 1978 was a member of the AD Scheme.

Schedule E means Schedule E set out in section 19 of the Taxes Act.

Scheme means the Civil Aviation Authority Pension Scheme.

Secretary means the person appointed for the time being as secretary to the Scheme in accordance with Clause 9.

Section means any section of the Scheme established under Clause 3 or Clause 19.

Sections means the CAA Section and the NATS Section and any other Section or Sections established under Clause 19.

Section Assets means, in relation to a Section, the part or proportion of the Fund in respect of or relating to the Members associated with that Section.

Section Liabilities means, in relation to a Section, the liabilities of the Section in respect of or relating to the Members associated with that Section, and any expenses attributable to that Section in accordance with Clause 13.

Section 53 Scheme means a scheme which the Department of Social Security has the power to supervise under section 53 of the Pension Schemes Act 1993.

Section Strategic Asset Allocation Committee means in respect of a Section, the committee established for that Section in accordance with Clause 7.

Service means service as an Employee in the employment of any of the Employers. For the purpose of these Rules:

(1)

transfer of a person from one to another of the Employers within a Section shall not be construed as termination of his Service;

(2)

a person who leaves the Scheme while actually remaining in the employment of the Employer shall be treated as having left Service to the extent described in Rule 31;

(3)

the provisions of Rule 32.6 shall apply in respect of a Member who has more than one period of Service; and

(4)

where a Member has Service with more than one of the Employers within a Section and one of such Employers is not an Associated Company or a Subsidiary Company the extent to which such Member’s Service shall be treated as one continuous period of Service shall be determined by the Trustees having regard to the requirements of the Board of Inland Revenue.

Special Member means a Member who became a Member before 1 April 1984.

Sponsoring Section Employer means:

(a)

in respect of the CAA Section, the Civil Aviation Authority or its successor appointed under Rule 17 of the CAA Rules;

(b)

in respect of the NATS Section, NATS or its successor appointed under Rule 17 of the NATS Rules; and

(c)

in respect of any other Section, the employer named in the relevant deed of establishment and participation as the Sponsoring Section Employer of that Section or its successor appointed under the rules of that Section.

Spouse means in relation to a deceased Member the widow or widower (if any) of his or her last or only marriage provided that:

(1)

unless the Trustees determine otherwise there can be only one such person for the purposes of this definition in respect of any one deceased Member and in the event of two or more persons claiming to be the widow or widower of the same deceased Member the Trustees shall have absolute discretion to decide which one or more of such persons shall be recognised for the purposes of this definition and if the Trustees exercise their discretion to recognise more than one such person they shall except in respect of benefit described in Appendix 5 have power in respect of benefit from the Scheme which would otherwise have been payable to one person to decide the proportions of such benefit to be payable to the persons so recognised; and

(2)

the widower of a deceased Member who ceased to be a Current Member before 1 April 1995 and who had elected in accordance with the Previous Scheme Provisions to accept benefit on restricted terms shall be included in this definition for benefit in excess of benefit under Appendix 5 only if at the date on which the Member ceased to be a Current Member the widower was:

(a)

married to the Member, and

(b)

either living with the Member or being supported by her, and

(c)

in the opinion of a Medical Adviser disabled by bodily or mental infirmity in such a way as to be incapable of earning his own living and provided that he was by reason of such incapacity wholly or mainly financially dependent upon the Member at the date of the Member’s death.

Spouse’s Guaranteed Minimum Pension means to respect of a Member the pension to which his or her widow or widower is entitled in accordance with the provisions of Section B of Appendix 5.

State Pensionable Age means age 65 in the case of males and 60 in the case of females.

Subsidiary Company means a subsidiary of any Employer within the meaning of section 736 of the Companies Act 1985(17).

Taxes Act means the Income and Corporation Taxes Act 1988(18).

Test Pilot means a person who is or was at the relevant time employed by the Employer in the capacity of test pilot and includes, where the context so admits, such a person who is a Member.

Transfer Date means in respect of each Reclassified Member the effective date at which he became or was deemed to have become a Reclassified Member in accordance with Rule S3.

Transferred Contributions means in relation to any Member in respect of whom the Trustees have accepted a transfer payment to the Scheme that part (if any) thereof which is treated as Member’s contributions (other than voluntary contributions) under Rule 35.4 or under the Previous Scheme Provisions.

Trust Deed means the trust deed to which the Rules are scheduled and any addition or alteration thereto duly made.

Trustees means the trustees or trustee for the time being of the Scheme.

Unitised Section Assets means those Section Assets attributable to a particular Section which are represented by notional units in a Pooled Fund.

(1)

1993 c. 48.

(2)

Section 591(2)(g) was amended by the Finance Act 1994 (c. 9), sections 107 and 258 and Schedule 26, Part V(12).

(3)

1988 c. 1.

(4)

1982 c. 50.

(5)

1971 c. 75.

(6)

1982 c. 16.

(7)

1972 c. 11; section 1 was amended by the Pensions (Miscellaneous Provisions) Act 1990 (c. 7), sections 8(1) and (2) and the Pension Schemes Act 1990 (c. 48), section 190 and Schedule 8, paragraph 6.

(8)

S.I. 1996/1172, amended by S.I. 1996/1577, 1996/1977, 1997/786, 1997/819, 1997/3038, 1998/1397.

(9)

S.I. 1996/1655, amended by S.I. 1997/787, 1997/819, 1997/3038.

(10)

1975 c. 60.

(11)

1989 c. 24.

(12)

1988 c. 1; section 590C was amended by the Finance Act 1993 (c. 9), section 107(1), (4), (5) and (8).

(13)

S.I. 1991/167, amended by S.I. 1992/1531, 1992/1577, 1993/1822, 1994/1062, 1995/35, 1995/3067, 1996/1655, 1996/1847, 1996/2131, 1997/784, 1997/786.

(14)

1993 c. 48; section 53 was amended by the Pensions Act 1995 (c. 26), sections 151 and 177, Schedule 5, paragraphs 18 and 48 and Schedule 7, Part III and the Social Security Contributions (Transfer of Functions, etc) Act 1999 (c. 2), section 1(1) and Schedule 1, paragraphs 52 and 53.

(15)

1996 c. 18.

(16)

1992 c. 4.

(17)

1985 c. 6.

(18)

1988 c. 1.