1 Citation and commencement

This Order may be cited as the Railway Pensions (Transfer of Pension Schemes) Order 2007 and shall come into force on 1st August 2007.

NOTES
Initial Commencement
Specified date

Specified date: 1 August 2007: see above.

2 Interpretation

2Interpretation

In this Order—

“1974 Fund” means the BR (1974) Pension Fund;

“Schedule 11” means Schedule 11 to the Railways Act 1993;

“transfer date” means the date on which this Order comes into force;

“transferee scheme” means the 1994 Pensioners Section of the Railways Pension Scheme;

“transferor scheme” means any one of the following schemes and “transferor schemes” means all of such schemes—

(a)    the 1974 Fund;

(b)    The London and North Western Railway Provident Society for providing pensions for widows and orphans of the salaried staff;

(c)    Great Western Railway Supplemental Pensions Reserve Fund;

(d)    The Great Western Railway Salaried Staff Widows' and Orphans' Pension Society;

(e)    The Great Northern Railway Superannuation Fund;

(f)    Great Western Railway Inspectors and Foremen's Special Pension Fund;

(g)    The Southern Railway (South Eastern and Chatham Section) Enginemen & Motormen's Pension Fund Society .

“transferring member” means a person who immediately before the transfer date—

(a)    has pension rights under a transferor scheme; but

(b)    does not include persons who have pension rights under the 1974 Fund unless that person also has pension rights under at least one of the other transferor schemes; and

“transferring members” means all such members.

NOTES
Initial Commencement
Specified date

Specified date: 1 August 2007: see art 1.

3 Transfer of pension rights

3Transfer of pension rights

On the transfer date—

(a)    each transferring member shall—

(i)    become a member of the transferee scheme; and

(ii)    cease to be a member of each transferor scheme of which he was a member immediately before the transfer date; and

(b)    all of the pension rights of the transferring members under the transferor schemes shall be transferred so as to become pension rights under the transferee scheme.

NOTES
Initial Commencement
Specified date

Specified date: 1 August 2007: see art 1.

4 Transfer of assets and liabilities

4Transfer of assets and liabilities

(1)    In consequence of the transfer of pension rights under article 3, on the transfer date—

(a)    all of the assets held by the trustees of the transferor schemes for the purposes of those schemes, except those assets held by the trustees of the 1974 Fund; and

(b)    subject to paragraph (3), all of the liabilities of the trustees under or in relation to each transferor scheme;

shall be transferred to the trustees of the transferee scheme and shall become assets of, or as the case may be, liabilities under or in relation to, the transferee scheme.

(2)    In consequence of the transfer of pension rights under article 3, on the transfer date the liability of any employer participating in a transferor scheme to pay contributions in respect of the transferring members shall be transferred to the employer participating in the transferee scheme.

(3)    Paragraph (1)(b) shall only transfer liabilities under or in relation to the 1974 Fund which relate to transferring members.

NOTES
Initial Commencement
Specified date

Specified date: 1 August 2007: see art 1.

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5 Operation of the Railway Pensions (Protection and Designation of Schemes) Order 1994

5Operation of the Railway Pensions (Protection and Designation of Schemes) Order 1994

The provisions of articles 6(2) and 7(4) of the Railway Pensions (Protection and Designation of Schemes) Order 1994 shall not operate to require any payment to be made or secured to the trustees of the transferee scheme in respect of the transfer of pension rights or liabilities under the 1974 Fund made by article 3(b) or 4(1)(b) or (2) of this Order.

NOTES
Initial Commencement
Specified date

Specified date: 1 August 2007: see art 1.

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6 Winding up of certain transferor schemes

6Winding up of certain transferor schemes

(1)    Subject to paragraph (2) the transferor schemes shall be treated as fully wound up, and the trustees thereof discharged, from the transfer date.

(2)    Paragraph (1) shall not apply to the 1974 Fund.

NOTES
Initial Commencement
Specified date

Specified date: 1 August 2007: see art 1.

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Signature

Signed by the authority of the Secretary of State

Tom Harris

Parliamentary Under Secretary of State

Department for Transport

25th July 2007

EXPLANATORY NOTE

EXPLANATORY NOTE (This note is not part of the Order)

Article 3 of this Order makes provision for persons who are members of various pension schemes to be members of the 1994 Pensioners Section of the Railways Pension Scheme (the “transferee scheme”). The pension schemes in question (the “transferor schemes”) are:

(a)    BR (1974) Pension Fund (the “1974 Fund”);

(b)    The London and North Western Railway Provident Society for providing pensions for widows and orphans of the salaried staff;

(c)    Great Western Railway Supplemental Pensions Reserve Fund;

(d)    The Great Western Railway Salaried Staff Widows' and Orphans' Pension Society;

(e)    The Great Northern Railway Superannuation Fund;

(f)    Great Western Railway Inspectors and Foremen's Special Pension Fund;

(g)    The Southern Railway (South Eastern and Chatham Section) Enginemen & Motormen's Pension Fund Society.

Article 3 of the Order also provides that on the date on which the Order comes into force each transferring member (which in relation to the 1974 Fund only includes those persons who have rights under that Fund and at least one of the other transferor schemes) becomes a member of the transferee scheme and ceases to be a member of any transferor scheme of which he was previously a member. All of the member's pension rights under the transferor schemes are transferred so as to become rights under the transferee scheme.

Article 4 of the Order provides for the assets of the transferor schemes (other than those of the 1974 Fund) and the liabilities of the trustees under or in relation to each transferor scheme to be transferred to the transferee scheme. In relation to the 1974 Fund, only those liabilities which relate to the transferring members are transferred to the transferee scheme. On the transfer date, the liability of employers participating in the transferor schemes to pay contributions in respect of the transferring members is transferred to the employer participating in the transferee scheme.

Article 5 modifies the operation of Articles 6(2) and 7(4) of the Railway Pensions (Protection and Designation of Schemes) Order 1994 so that no payment is required to the transferee scheme in respect of the transfer of members and liabilities of the 1974 Fund made by this Order.

Article 6 provides that upon transfer of the assets, the transferor schemes (other than the 1974 Fund) are wound up.

A regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business, charities, voluntary bodies or the private sector.

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