Statutory Instruments
TRANSPORT
PENSIONS
Made
21st August 1964
Laid before Parliament
28th August 1964
Coming into Operation
31st August 1964
The Minister of Transport, in exercise of his powers under section 74 of the Transport Act 1962 and of all other enabling powers, hereby makes the following Order:-
1.-(1) This Order shall come into operation on the 31st August 1964, and shall have effect from the vesting date.
(2) This Order may be cited as the British Transport Reorganisation (Pensions of Employees) (No. 1) Order 1964.
(3) In this Order unless the context otherwise requires-
"the Act" means
"appropriate Transfer Order" , as respects an existing scheme, means
is the Order by which liabilities and functions in relation to that scheme were transferred, and, where the scheme is an arrangement to which the former of the above Orders applies, any reference (whether in this definition or elsewhere in this Order) to the transfer by such an Order of liabilities or functions in relation to a scheme includes a reference to the placing (by virtue of the Scheme made by the Commission under that Order) of the responsibility for making payments under that arrangement, and any reference to liabilities or functions, or to the rights, liabilities and functions of the Commission, in connection with such a transfer as aforesaid includes a reference to such responsibility
"a Board" means
the British Railways Board,
the London Transport Board,
the British Transport Docks Board, and
the British Waterways Board;
"the Commission" means
"employing body" means
"existing scheme"
"former employment" and "new employment"
"the Holding Company" means
"insurance scheme" means
"intervening period" means
"the Minister" means
"nationalised transport body" means
a Board,
the Holding Company,
a subsidiary of a Board or of the Holding Company;
"pensionable service" means
"successor body", in relation to an existing scheme, means
"term", in relation to a pension scheme,
"the vesting date" means
"withdrawal benefits" means
(4) The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament.
2.-(1) This Order shall have effect as respects every existing scheme, that is to say, every pension scheme which relates in whole or in part to the provision of pensions in respect of service rendered in the employment of the Commission or of a subsidiary of the Commission or in the employment of a nationalised transport body and is either-
(a)a pension scheme in relation to which the rights, liabilities and functions of the Commission were transferred on the vesting date to a Board or to the Holding Company by the British Transport Reorganisation (Pensions of Employees) (No. 3) Order 1962, or
(b)an arrangement in relation to which the responsibility for making payments was placed on a Board or the Holding Company by the Scheme made by the Commission under the British Transport Reorganisation (Pensions of Employees) (No. 2) Order 1962.
(2) Every existing scheme shall, subject to the provisions of paragraph (3) of this Article, be construed and have effect as if the provisions of this Order were terms of the scheme, any other term thereof, whether express or implied, to the contrary notwithstanding, and each nationalised transport body shall, for the purposes of giving effect to this Order, be bound by the terms of every such scheme.
(3) The rights to continue to participate in, and to re-enter, an existing scheme given by this Order shall be additional to any similar rights subsisting under the terms of that scheme apart from the provisions of this Order and nothing in this Order shall derogate from such similar rights where they subsist.
3.-(1) This Article shall apply to any person who-
(a)participates in an existing scheme in connection with his employment by a nationalised transport body,
(b)at any time after the vesting date ceases to be in the employment of that nationalised transport body, and
(c)enters the employment of another nationalised transport body immediately after the cessation of his former employment.
(2) Subject to the provisions of paragraphs (3) and (4) of this Article, any person to whom this Article applies shall not be required, solely by reason of the cessation of his former employment, to cease to participate in the existing scheme in which he participated in connection with that employment, but shall, if the terms of the scheme (other than the terms which would require participation to cease for the reason aforesaid) so permit, continue to participate in that scheme in connection with his new employment upon and subject to the terms of that scheme (which shall have effect in relation to his new employment as it had effect in relation to his former employment), and for the purposes of that scheme the former employment and the new employment shall be treated as continuous, and so long as he continues to participate in that existing scheme by virtue of the provisions of this paragraph the terms of any other pension scheme of the new employing body which require employees of that body to participate therein shall not apply to him.
(3) If a person to whom this Article applies, within three months of the date of his entering the new employment or the date of the coming into operation of this Order (whichever date is later), gives notice in writing to the former employing body, the new employing body and the trustees of, or the persons administering, the relevant scheme, that he does not desire to continue to participate in that scheme (each such notice to be given on the same date), then, upon the giving of that notice, the provisions of paragraph (2) of this Article shall be deemed never to have applied in relation to that person and his participation in the relevant scheme (in so far as it depends on the provisions of this Article) shall be deemed to have ceased when he ceased to be in the employment of the former employing body.
(4) Where in connection with the cessation of his former employment any withdrawal benefits are paid from the relevant scheme to or in respect of a person to whom this Article applies, the provisions of paragraph (2) of this Article shall not apply in relation to him and his participation in the relevant scheme (in so far as it depends on the provisions of this Article) shall be deemed to have ceased when his former employment ceased, unless within three months of the date of entering his new employment or the date of the coming into operation of this Order (whichever date is later), or such longer period as the trustees of, or the persons administering, that scheme may allow in relation to him, he pays to them a sum equivalent to the amount of such withdrawal benefits, together with (where the trustees or the persons aforesaid so require) the amount of any income tax deducted therefrom when those benefits were paid.
4.-(1) This Article shall apply to any person who-
(a)participates in an existing scheme in connection with his employment by a nationalised transport body,
(b)at any time after the vesting date ceases to be in the employment of that nationalised transport body, and
(c)re-enters the employment of that nationalised transport body, or enters the employment of another nationalised transport body, after an intervening period not exceeding twelve months.
(2) Subject as hereinafter provided, the trustees of, or the persons administering, the relevant scheme shall have power, with the consent of the former employing body and the new employing body, and, where the scheme is an insurance scheme, the insurance company, to grant to a person to whom this Article applies permission, in accordance with the provisions of this Article, to re-enter that scheme in connection with his new employment upon the terms hereinafter mentioned.
(3) A person desiring to re-enter an existing scheme under the provisions of this Article shall, within three months of the date of his entering the new employment or the date of the coming into operation of this Order (whichever date is later), make application in writing to the trustees of, or the persons administering, that scheme for permission to re-enter it, and the trustees or the persons aforesaid shall consider that application and may, if they think fit, and subject to the consents specified in paragraph (2) of this Article, decide to grant that application, or they may decide to reject that application, and in any case they shall, as soon as may be after making their decision, notify the applicant thereof in writing.
(4) The terms upon which a person may be permitted to re-enter an existing scheme under the provisions of this Article shall, subject as hereinafter provided, be such terms (including terms for the repayment of any withdrawal benefits) as the trustees of, or the persons administering, that scheme may prescribe.
(5) The terms referred to in the last preceding paragraph of this Article may (to the extent specified thereby) provide, in respect of the person concerned, for the periods of his former employment and his new employment to be aggregated for the purposes of the relevant scheme and may also (to the extent specified thereby) provide for the intervening period to be taken into account in calculating any minimum qualifying period of service under the terms of that scheme, but except as aforesaid, and except also in so far as any transfer value from another pension scheme may (under reciprocal arrangements for the preservation of pension rights) be received in respect of the intervening period by the trustees of, or the persons administering, the relevant scheme, such terms shall not provide for any part of the intervening period to be regarded as a period of pensionable service for the purposes of that scheme nor shall they permit the person concerned to acquire pension rights in respect of that period by making payments (whether calculated on the basis of employer's or employee's contributions or otherwise) to the trustees of, or the persons administering, that scheme.
5.-(1) This Article shall apply to any person who-
(a)participated in an existing scheme in connection with his employment by the Commission, or by a subsidiary of the Commission, before the vesting date,
(b)before the vesting date ceased to be in such employment, and
(c)enters the employment of a nationalised transport body after the vesting date and after an intervening period not exceeding twelve months.
(2) Subject as hereinafter provided, the provisions of paragraphs (2) to (5) of Article 4 of this Order shall apply in relation to a person to whom this Article applies.
(3) For the purpose of this Article and of paragraphs (2) to (5) of Article 4 of this Order as applied by paragraph (2) of this Article (including the inpretation of any expressions therein which are defined in Article 1 of this Order)-
(a)the expression "nationalised transport body"
(b)the expression "former employing body" shall, in relation to a person to whom this Article applies,
6. Where by virtue of a person's employment by a nationalised transport body on or after the vesting date or by the Commission or a subsidiary of the Commission before that date pension rights accrue or have accrued to him under an existing scheme without his having himself contributed under the scheme, and that scheme is a scheme from which the benefits are or will be receivable as of right, the provisions of this Order shall apply in relation to that person as if he had been a participant in that scheme, and the references in this Order to participation shall be construed accordingly.
7. Where in consequence of the provisions of this Order an existing scheme includes among its participants any person whose employing body is not the successor body, or one of the successor bodies, for that scheme, then-
(a)any sums required by the terms of that scheme to be paid by that person as his contributions to the scheme shall be deducted by the employing body from his salary or wages and shall be paid by that body in accordance with those terms to the trustees of, or the persons administering, the scheme; and
(b)any sums required by the terms of that scheme to be paid in respect of that person by his employer as the employer's contributions to the scheme shall be paid by the employing body in accordance with those terms to the trustees of, or the persons administering, the scheme.
8.-(1) Where in consequence of the provisions of this Order-
(i)an existing scheme includes among its participants any person whose employing body is not the successor body, or one of the successor bodies, for that scheme, or
(ii)an existing scheme has included among its participants any person whose employing body was not the successor body, or one of the successor bodies, for that scheme, and a pension or other benefit is payable thereunder in respect of that person's service in the employment of that employing body,
the following provisions shall apply in relation to that scheme-
(a)the employing body aforesaid shall make such payments to the successor body or successor bodies by way of contributions towards the administrative expenses of the scheme or (subject to the provisions of paragraph (2) of this Article) towards any payments which any successor body is obliged to make in the discharge of the liabilities, or in the performance of the functions, transferred to it by the appropriate Transfer Order in relation to the scheme, or to implement any guarantee given by such successor body or binding upon it by virtue of the provisions of that Order in relation to the scheme, as may be equitable having regard to all the circumstances of the case, including the number of participants, or former participants, who are or were in the employment of that employing body (being participants whose continuing or resumed participation depends, or has depended, upon the provisions of this Order), and in the case of any disagreement between the employing body and any successor body, or between the successor bodies themselves, as to their obligations under this Article, the matter shall on the application of any of the bodies concerned be determined by the Minister whose decision shall be final; and
(b)the Minister may, on the application of the employing body aforesaid or of any successor body, direct that any power in relation to that scheme (whether a power of appointing trustees, amending rules, approving the admission of members, or otherwise howsoever in relation to that scheme) exercisable by any successor body shall be exercisable by the employing body to such extent (whether instead of such successor body or jointly with that body) and in such manner as may appear to the Minister to be appropriate, and where any such direction is so given the terms of the scheme shall, whilst the direction remains in force, have effect subject to the provisions of the direction.
(2) Except in pursuance of an agreement made, with the consent of the Minister, between the employing body and the successor body concerned, the employing body shall not by virtue of paragraph (1) of this Article be required to make any payment to any successor body by way of a contribution towards any payments which the successor body is obliged to make in the discharge of any liability transferred to it by the appropriate Transfer Order, being a liability in connection with any pension fund monies which were deposited with the Commission before the vesting date for the purposes of any existing scheme.
Given under the Official Seal of the Minister of Transport the 21st August 1964.
L.S.
T. Padmore
Secretary to the Ministry of Transport
This Order provides for staff of the nationalised transport bodies (the British Railways Board, the London Transport Board, the British Transport Docks Board, the British Waterways Board, the Transport Holding Company and their subsidiaries), who move from one body to another within the nationalised transport industry, to continue in membership of their pension schemes.
A person who leaves a nationalised transport body and immediately enters the employment of another such body is entitled to remain in membership of his pension scheme unless he gives notice to the contrary within three months of the date of transfer, and provided the terms of the scheme (other than those requiring membership to cease on transfer) permit (Article 3). Where there is an intervening period, not exceeding twelve months, between a person's leaving a nationalised transport body and his re-entering the employment of that body or entering the employment of another such body, the trustees of, or the persons administering, the appropriate pension scheme are empowered to re-admit that person to membership on such terms and conditions as they may prescribe (Article 4). These provisions apply to all persons who transfer after the vesting date (the date on which all the property, rights and liabilities of the British Transport Commission were vested in the British Railways Board, the London Transport Board, the British Transport Docks Board, the British Waterways Board and the Transport Holding Company) (Article 1), and also to those persons who left the British Transport Commission before that date but who, before the expiry of a period of twelve months, enter the employment of a nationalised transport body (Article 5). Members of non-contributory pension schemes are included (Article 6).
Provision is also made for the nationalised transport body to whose employment a person moves to make appropriate contributions for the purposes of the pension scheme to which that person belongs (Article 7). In addition, certain adjustments can be made in relation to the administration of pension schemes (Article 8).
(1962 III, p. 3692).
(1962 III, p. 3866)