The Railway Pensions (Substitution) (Amendment) Order 2017

Statutory Instruments

2017 No. 153

Transport

The Railway Pensions (Substitution) (Amendment) Order 2017

Made

15th February 2017

Laid before Parliament

17th February 2017

Coming into force

12th March 2017

The Secretary of State, in exercise of the powers conferred by sections 52B and 52D of the Transport Act 1980(1), and after consultation with the trustees of the guaranteed pension scheme to which this Order relates in accordance with section 52D(1) of that Act, makes the following Order:

Citation and commencement

1.  This Order may be cited as the Railway Pensions (Substitution) (Amendment) Order 2017 and comes into force on 12th March 2017.

Amendments to the Railway Pensions (Substitution) Order 1994

2.  The Railway Pensions (Substitution) Order 1994(2) is amended as follows.

3.  In Schedule 2 (payments of capital and interest in respect of the remaining one half of the sum of the capital values specified in articles 3 and 5)—

(a) in paragraphs 2(1), 3(1) and 11(1), for “2003” substitute “2030”;

(b) in paragraph 2(3), in paragraphs (a), (b), (c)(i), (c)(ii), (d)(i) and (d)(ii) of the definition of “relevant amounts”, for “7(1)” substitute “7(A1) or (1)”;

(c) in paragraph 3(1), for “7(1)” substitute “7(A1) or (1)”;

(d) in paragraph 3(7), in paragraphs (a), (b), (c)(i), (c)(ii), (d)(i) and (d)(ii) of the definition of “relevant amounts”, for “7(1)” substitute “7(A1) or (1)”;

(e) in paragraph 4(2), for “7(1)” substitute “7(A1) or (1)”; and

(f) in paragraph 7—

(i) before sub-paragraph (1) insert—

“(A1) Any interest which has accrued under paragraph 6 on 13th October in any year prior to and including 2030 on the outstanding balance of any Table B amount shall, on the day after it has accrued, be added to the outstanding balance of the amount specified in column 2 of Table B in relation to the year 10 years later than that year.”;

(ii) in sub-paragraph (1), after “any year” insert “after 2030”;

(iii) in sub-paragraph (2), in paragraphs (a), (b), (c)(i), (c)(ii), (d)(i) and d(ii) of the definition of “Y”, for “7(1)” substitute “7(A1) or (1)”; and

(iv) in sub-paragraph (4), for “sub-paragraph (1) requires” substitute “sub-paragraph (A1) or (1) requires interest or”.

Amendments to the Railway Pensions (Substitution and Miscellaneous Provisions) Order 1995

4.  The Railway Pensions (Substitution and Miscellaneous Provisions) Order 1995(3) is amended as follows.

5.  In Schedule 2 (payments of capital and interest in respect of the remaining one half of the sum of the capital values specified in articles 3 and 5)—

(a) in paragraphs 2(1), 3(1) and 11(1), for “2004” substitute “2030”;

(b) in paragraph 2(3), in paragraphs (a), (b), (c)(i), (c)(ii), (d)(i) and (d)(ii) of the definition of “relevant amounts”, for “7(1)” substitute “7(A1) or (1)”;

(c) in paragraph 3(1), for “7(1)” substitute “7(A1) or (1)”;

(d) in paragraph 3(7), in paragraphs (a), (b), (c)(i), (c)(ii), (d)(i) and (d)(ii) of the definition of “relevant amounts”, for “7(1)” substitute “7(A1) or (1)”;

(e) in paragraph 4(2), for “7(1)” substitute “7(A1) or (1)”; and

(f) in paragraph 7—

(i) before sub-paragraph (1) insert—

“(A1) Any interest which has accrued under paragraph 6 on 13th October in any year prior to and including 2030 on the outstanding balance of any Table B amount shall, on the day after it has accrued, be added to the outstanding balance of the amount specified in column 2 of Table B in relation to the year 10 years later than that year.”;

(ii) in sub-paragraph (1), after “any year” insert “after 2030”;

(iii) in sub-paragraph (2), in paragraphs (a), (b), (c)(i), (c)(ii), (d)(i) and d(ii) of the definition of “Y”, for “7(1)” substitute “7(A1) or (1)”; and

(iv) in sub-paragraph (5), for “sub-paragraph (1) requires” substitute “sub-paragraph (A1) or (1) requires interest or”.

Amendments to the Railway Pensions (Designation, Substitution and Miscellaneous Provisions) Order 2001

6.  The Railway Pensions (Designation, Substitution and Miscellaneous Provisions) Order 2001(4) is amended as follows.

7.  In Schedule 1 (payments of capital and interest in respect of the sum of the capital values specified in article 4(2) and (4))—

(a) in paragraph 2(1), for “2010” substitute “2030”;

(b) in paragraph 2(3), in paragraphs (a), (b), (c)(i), (c)(ii), (d)(i) and (d)(ii) of the definition of “relevant amounts”, for “7(1)” substitute “7(A1) or (1)”;

(c) in paragraphs 3(1) and 11(1), for “2004” substitute “2030”; and

(d) in paragraph 3(1), for “7(1)” substitute “7(A1) or (1)”;

(e) in paragraph 3(7), in paragraphs (a), (b), (c)(i), (c)(ii), (d)(i) and (d)(ii) of the definition of “relevant amounts”, for “7(1)” substitute “7(A1) or (1)”;

(f) in paragraph 4(2), for “7(1)” substitute “7(A1) or (1)”; and

(g) in paragraph 7—

(i) before sub-paragraph (1) insert—

“(A1) Any interest which has accrued under paragraph 6 on 13th October in any year prior to and including 2030 on the outstanding balance of any Table B amount shall, on the day after it has accrued, be added to the outstanding balance of the amount specified in column 2 of Table B in relation to the year 10 years later than that year.”;

(ii) in sub-paragraph (1), after “any year” insert “after 2030”;

(iii) in sub-paragraph (2), in paragraphs (a), (b), (c)(i), (c)(ii), (d)(i) and d(ii) of the definition of “Y”, for “7(1)” substitute “7(A1) or (1)”; and

(iv) in sub-paragraph (5), for “sub-paragraph (1) requires” substitute “sub-paragraph (A1) or (1) requires interest or”.

Signed by authority of the Secretary of State for Transport

Ahmad of Wimbledon

Parliamentary Under Secretary of State

Department for Transport

15th February 2017

EXPLANATORY NOTE

(This note is not part of the Order)

The Railway Pensions (Substitution) Order 1994 (S.I. 1994/2388) (“the 1994 Order”), the Railway Pensions (Substitution and Miscellaneous Provisions) Order 1995 (S.I. 1995/430) (“the 1995 Order”) and the Railway Pensions (Designation, Substitution and Miscellaneous Provisions) Order 2001 (S.I. 2001/2264) (“the 2001 Order”) terminated the liability of the Secretary of State to make payments under section 52(1) of the Transport Act 1980 (c. 34) in respect of an unfunded obligation for two sections of the Railways Pension Scheme, and instead substituted schedules of payments.

Schedules of payments known as “Table B amounts” were established requiring the Secretary of State to make payments in respect of the capital values of the unfunded obligations and providing for the accrual and payment of interest on the outstanding balance of those capital values. The payments were deferred for at least 10 years, or longer if the sections were sufficiently funded.

This Order defers the payment of Table B amounts, and interest, under the 1994, 1995 and 2001 Orders until after 2030.

Article 3 provides for the amendment of Schedule 2 to the 1994 Order.

Article 5 provides for the amendment of Schedule 2 to the 1995 Order.

Article 7 provides for the amendment of Schedule 1 to the 2001 Order.

This Order does not impose any costs on business. An Explanatory Memorandum for this Order is published alongside the instrument at www.legislation.gov.uk.

(1)

1980 c. 34. Sections 52B and 52D were inserted by paragraph 9(3) of Schedule 11 to the Railways Act 1993 (c. 43) and section 52B was subsequently amended by paragraph 11 of Schedule 27 to the Transport Act 2000 (c. 38).

(2)

S.I. 1994/2388, as amended by S.I. 1995/430 and S.I. 2001/2264.

(3)

S.I. 1995/430, as amended by S.I. 2001/2264.

(4)

S.I. 2001/2264.