The Railways Pension Scheme Order 1994
1Citation, commencement and interpretation
2Establishment of the Railways Pension Scheme
3Designation of the joint industry scheme
THE SCHEDULEPENSION TRUST OF THE RAILWAYS PENSION SCHEME
1MEANING OF WORDS USED
2TRUSTEE
2AConstitution
2BDelegation
2CExpenses and Charges
2DLimit of Liability
2ETrustee Insurance
2FTrustee Indemnity
2GFiduciary Duty
3THE SCHEME SECTIONS
3AParticipation of Participating Employers
3BParticipating Employer establishing or participating in a Section
3CArrangements
3DDefined Benefit Arrangement
The Trustee may add to the above options subject to Clause 13 (Changing the Pension Trust and Rules) and to Revenue Approval.
3EDefined Contribution Arrangement
3FParticipating Employer establishing more than one Section
3GChange of Terms
3HNew Designated Employer
4PENSIONS COMMITTEE
4ASetting up a Pensions Committee
4BDelegation
4CExpenses
5ASSETS OF THE SCHEME
5AContributions by Participating Employers
5BPayment of Participating Employers' Contributions
5CPayment of Members' Contributions
5DInterest on Late Payment
5EAssets held on Trust
5FApplication of Assets
5GConsultation with Pensions Committees
6ACCOUNTS, ACTUARIAL VALUATIONS AND ANNUAL REPORTS
6AAccounts
6BActuarial Valuations
6CAnnual Reports
7GENERAL PROVISIONS ABOUT SCHEME BENEFITS
7APayment of Benefits
7BDeduction of Tax
7CBeneficiary who is Incapable
7DBenefits not Assignable
7EForfeiture of Benefits
7FNotices
7GInland Revenue Limits
7HProtected Persons
8SCHEME BENEFITS — POWERS OF TRUSTEE
8ACommutation Triviality
8BTransfers–in
8CTransfers–out
1Transfers to another scheme or other arrangement or to a Section which has adopted the rules of the Defined Contribution Arrangement
2Transfers between Sections which have adopted the rules of the Shared Cost Arrangement or of the Defined Benefit Arrangement
3Initial transfers to Sections as a consequence of Transfer Schemes
4Pensioners and Deferred Pensioners
5Definition of Past Service Reserve
6Notification by Actuary
7General Provisions on Transfers
8DBuy–Outs
9CONTRACTING–OUT
9AOverrides other Provisions
9BGMPs
9CLate Retirement
9DEarly Leavers
9EAnti–Franking
9FTransferred GMPs
9GOther Contracting–out Requirements
10CEASING TO PARTICIPATE
10AWhen Participation Ceases
10BOne Participating Employer in a Section ceases to Participate
10CAll Participating Employers in a Section cease to Participate
10DParticipating Employer transfers between Sections
11WINDING–UP A SECTION WHERE ALL EMPLOYERS CEASE TO PARTICIPATE
11AAll Participating Employers in a Section cease to Participate
11BExpenses and Sums Due
11CBuying Annuities
11DAdditional Voluntary Contributions
11ETransfers
11FSurplus Assets on Winding–up
11GGMPs
11HTrivial Benefits
11IDefined Contribution Arrangement
12CHANGE OF FRANCHISE OPERATOR OR SALE OF BUSINESS
12AParticipating in a Section
12BChange of Franchise Operator
13CHANGING THE PENSION TRUST AND RULES
13AChanging the Pension Trust or Rules generally
13BChanging only the Rules of a Section
13CRestrictions on Changes
14GOVERNING LAW
Appendix 1
PART IRULES OF THE 1994 PENSIONERS “A” SECTION
1MEANING OF WORDS USED
2MEMBERSHIP OF THE SECTION
3CONTRIBUTIONS BY MEMBERS
4BENEFITS
5DEATH AFTER RETIREMENT
5ALump Sum and Pension
5BLump Sum
5CPensions for Eligible Spouse and Eligible Children
5DPensions for Legal Spouse and Eligible Dependants
6EARLY LEAVERS
6ADeferred Benefits
6BIncreases
6CBenefits on the death of an Early Leaver
7RIGHT TO TRANSFER OR “BUY–OUT”
7AMember’s Right to Transfer or “Buy–Out”
7BRequirements for “Buy–Out” Policies
7CRequirements for Transfers
8OTHER CHOICES FOR EARLY LEAVERS
8AEarly Benefits
8BAdditional Pension
8CAdditional Lump Sum
8DJoint Annuitant’s Pension
8EEarly Retirement Level Pension Option
9SPECIAL PROVISIONS FOR CERTAIN MEMBERS
9AMember who joined the BR Pension Scheme before 1st June 1989
9BPension for spouse of a Member who ceased to contribute to the BR Pension Scheme before 1st July 1986 and dies on or after 1st July 1988
9CPension for widow of a Member who ceased to contribute to the BR Pension Scheme before 1st July 1986 and dies on or after 16th September 1991
9DMember who ceased to contribute to the BR Pension Scheme between 1st July 1986 and 30th June 1988 and dies after 16th September 1991
9ESpecial Lump Sum for Members who left the BR Pension Scheme with preserved benefits between 1st July 1988 and 30th June 1992
10PENSION INCREASES
10AGeneral
10BMembers who left Employment or reach Minimum Pension Age before 1st July 1986
10CBR Pension Scheme increases on 1st July 1988
10DBR Pension Scheme increases on 16th September 1991
11GENERAL RULES ABOUT BENEFITS
11AOff–Set for Crime or Fraud
11BDiscretionary Death Benefit Trusts
11CMembers with no Personal Representatives
12CONTRACTING–OUT AND STATE GRADUATED RETIREMENT BENEFITS
12AOverride
12BGMP Increase
12CState Graduated Retirement Benefits
13SURPLUS ASSETS
14SHORTFALL
15APPLICATION OF ASSETS
16WINDING–UP THE SECTION
16ATime of Termination
16BUse of Assets on Termination
17GUARANTEE
18CHANGING THE RULES
Schedule to Appendix 1
PENSIONS COMMITTEE
Composition
Appointees
Chairman and Deputy Chairman of the Committee
Secretary
Procedure at Committee Meetings
Appendix 1 PART 2RULES OF THE 1994 PENSIONERS “B” SECTION
1MEANING OF WORDS USED
2MEMBERSHIP OF THE SECTION
17TRANSFER TO THE 1994 PENSIONERS “A” SECTION (“the “A” Section”)
Appendix 2THE ARRANGEMENTS AND RULES GOVERNING THE ARRANGEMENTS
PART 1RULES OF THE SHARED COST ARRANGEMENT
1MEANING OF WORDS USED
2JOINING THE SECTION
2AJoining
2BEvidence of Health
3NORMAL CONTRIBUTIONS BY PARTICIPATING EMPLOYERS AND MEMBERS
3ANormal Contributions by Participating Employers
3BNormal Contributions by Members
4ADDITIONAL CONTRIBUTIONS BY MEMBERS AND PARTICIPATING EMPLOYERS
4AAdditional Voluntary Contributions by Members
4BAdditional Contributions by Participating Employers
4CAdditional Contributions by Protected Persons who transferred from certain railway pension schemes to the New Section
4DAdditional Contributions by Members who are Protected Persons for Antedating Membership
4EAdditional Contributions from Professionals and Senior Officers
4FAdditional Contributions for Senior Officers who were members of BRASS–SO
5BENEFITS FOR MEMBERS AT RETIREMENT
5ARetirement between Minimum Pension Age and Age 65
5BLump Sum on Retirement between Minimum Pension Age and Age 65
5CMembers in Service after Age 65
5DEarly Retirement through Incapacity
6ELECTIONS AT RETIREMENT
6AAdditional Pension
6BAdditional Lump Sum
6CJoint Annuitant’s Pension
6DEarly Retirement Level Pension Option
7DEATH IN SERVICE ON OR BEFORE AGE 65
7ALump Sum and Pension
7BLump Sum
7CPensions for Eligible Spouse and Eligible Children
7DPensions for Legal Spouse and Eligible Dependants
8DEATH AFTER RETIREMENT
8ALump Sum and Pension
8BLump Sum
8CPensions for Eligible Spouse and Eligible Children
8DPensions for Legal Spouse and Eligible Dependants
9EARLY LEAVERS
9ADeferred Benefits
9BGMP
9CBenefits on the death of an Early Leaver
10RIGHT TO TRANSFER OR “BUY–OUT”
10AMember’s Right to Transfer or “Buy–Out”
10BRequirements for Buy–Out Policies
10CRequirements for Transfer
11OTHER CHOICES FOR EARLY LEAVERS
11AEarly Benefits
11BChoices at Retirement
12EARLY LEAVERS REJOINING
13MEMBERS AWAY FROM WORK
13AGeneral Principle
13BTemporary Absence through Injury or Ill–Health
13CSecondment
13DBenefits for Members away from Work
14MATERNITY
15CEASING TO BE ELIGIBLE
16OPTING OUT
17SPECIAL PROVISIONS FOR CERTAIN MEMBERS
17AMembers who joined the BR Pension Scheme before 1st June 1989
17BMembers who were members of the BR Pension Scheme on 16th September 1991
17CBR Members who transferred from certain railway pension schemes to the New Section
17DBR Members who joined the British Railways (Wages Grades) Pension Fund on 14th August 1967, 7th April 1975 or 6th April 1978
18GENERAL RULES ABOUT BENEFITS
18APension Increases
18BOff–Set for Crime or Fraud
18CDiscretionary Death Benefit Trusts
18DMembers with no Personal Representatives
18EDiscretionary Benefits
19CONTRACTING–OUT AND STATE GRADUATED RETIREMENT BENEFITS
19AOverride
19BGMP Increase
19CState Graduated Retirement Benefits
20SURPLUS ASSETS
21SHORTFALL
22WINDING–UP THE SECTION
22ATime and manner of winding–up
22BPriority of Benefits
22CSurplus Assets on winding–up
23CHANGING THE RULES
SCHEDULE 1 TO THE RULES OF THE SHARED COST ARRANGEMENTBR MEMBERS WHO TRANSFERRED FROM CERTAIN RAILWAYS PENSION SCHEMES TO THE NEW SECTION
SCHEDULE 2 TO THE RULES OF THE SHARED COST ARRANGEMENTBR MEMBERS WHO JOINED THE BRITISH RAILWAYS (WAGES GRADES) PENSION FUND (“THE WAGES FUND”) ON 14TH AUGUST 1967, 7TH APRIL 1975 OR 6TH APRIL 1978
1A Member who joined the Wages Fund on 14th August...
2A Member who immediately prior to joining the Wages Fund...
3(a) This paragraph applies to a Member who immediately prior...
4A Member who immediately before joining the Wages Fund on...
5(a) (i) This paragraph applies to Members who immediately prior...
SCHEDULE 3 TO THE RULES OF THE SHARED COST ARRANGEMENTBRASS 2 POLICY
1The Trustee shall immediately pay to the Insurer all contributions...
2The benefits under the Policy shall become payable only when...
3When a Member who leaves Service with deferred benefits exercises...
4When as a consequence of the death of a Member...
5When a Member becomes entitled to the proceeds of the...
6If a benefit becomes payable from the Section to or...
SCHEDULE 4 TO THE RULES OF THE SHARED COST ARRANGEMENTBRASS–SO
1The Member shall contribute at the rate which is specified...
2The Participating Employer shall deduct contributions payable under paragraph 1...
3The Participating Employer shall contribute such amounts as it determines...
4Following a Member’s election under Rule 4F his Participating Employer...
5Subject to the following paragraphs of this Schedule whenever a...
6When benefits (other than a refund of contributions) become payable...
7Subject to the following paragraphs of this Schedule the proceeds...
8The Member may elect, within 4 weeks of the proceeds...
9The Member shall be deemed to have made an election...
10Following the death of any Member in respect of whom...
11Subject to the following paragraphs of this Schedule the proceeds...
12The Person Entitled may, however, within 4 weeks of the...
13The Person Entitled shall be deemed to have made an...
14If a Member ceases to contribute under paragraph 1 before...
SCHEDULE 5 TO THE RULES OF THE SHARED COST ARRANGEMENTJOINT ANNUITY FACTORS
SCHEDULE 6 TO THE RULES OF THE SHARED COST ARRANGEMENTMEMBERS WHO WERE MEMBERS OF THE BRITISH RAILWAYS (WAGES GRADES) PENSION FUND AND ELECTED FOR A JOINT PENSION
FACTOR A
FACTOR B
1Notes:
2For age differences outside the range of the tables, the...
SCHEDULE 7 TO THE RULES OF THE SHARED COST ARRANGEMENTEARLY RETIREMENT LEVEL PENSION OPTION FACTORS
SCHEDULE 8 TO THE RULES OF THE SHARED COST ARRANGEMENTEARLY RETIREMENT FACTORS
SCHEDULE 9 TO THE RULES OF THE SHARED COST ARRANGEMENTADDITIONAL CONTRIBUTIONS FOR ANTEDATING MEMBERSHIP
SCHEDULE 10 TO THE RULES OF THE SHARED COST ARRANGEMENTSPECIAL TERMS FOR CERTAIN MEMBERS OF THE BRITISH RAILWAYS (WAGES GRADES) PENSION FUND (“WAGES GRADES MEMBERS”)
PART 1
1This schedule applies to Wages Grades Members who immediately before...
2A Wages Grades Member to whom this schedule applies by...
3The lump sum payable under Rule 7 (Death in Service...
4The pension payable under or by analogy with Rule 5A(2)...
PART 2
NOTE:
PART 3
PART 4
SCHEDULE 11 TO THE RULES OF THE SHARED COST ARRANGEMENTMEANING OF “PRESERVED BENEFITS”
1In respect of a Member who joined the British Railways...
2In respect of a Member who joined the British Railways...
3In respect of a Member who immediately prior to 1st...
4In respect of a Member who immediately prior to 1st...
1Note:
2In the case of a Member who immediately prior to...
PART 2RULES OF THE DEFINED BENEFIT ARRANGEMENT
1MEANING OF WORDS USED
2JOINING THE SECTION
2AJoining
2BEvidence of Health
3CONTRIBUTIONS BY PARTICIPATING EMPLOYERS AND MEMBERS
3AContributions by Participating Employers
3BContributions by Members
4ADDITIONAL VOLUNTARY CONTRIBUTIONS BY MEMBERS
5BENEFITS FOR MEMBERS AT RETIREMENT
5AMinimum Pension Age
5BLate Retirement
5CEarly Retirement (not Incapacity)
5DEarly Retirement through Incapacity
6ELECTIONS AT RETIREMENT
6ALump Sum
6BDependant’s Pension
6CEarly Retirement Level Pension Option
7LUMP SUM PAYABLE ON MEMBER'S DEATH
7AMember dies in Service before Pension starts
7BMember dies within 5 years after Pension starts
7CMember with Preserved Pension
7DDiscretionary Trusts
8PENSIONS FOR SPOUSES, CHILDREN AND DEPENDANTS
8ASpouse’s and Children’s Pension
8BOther Dependant’s Pension
8CMember dies in Service before Pension starts
8DMember dies after Pension starts
8EMember with Preserved Pension
8FYoung Spouse
9EARLY LEAVERS
9APreserved Pension
9BRefund of Contributions and Preserved GMPs
9CQualifying Service
10RIGHT TO TRANSFER OR “BUY–OUT”
10AMember’s Right to Transfer or “Buy–Out”
10BRequirements for Buy–Out Policies
10CRequirements for Transfers
11OTHER CHOICES FOR EARLY LEAVERS
11AEarly Pension
11BLate Pension
11CChoices at Retirement
12EARLY LEAVERS REJOINING
12APeriods of Service treated Separately
12BQualifying Service
13MEMBERS AWAY FROM WORK
13AGeneral Principle
13BTemporary Absence through Injury or Ill–Health
13CSecondment
13DBenefits for Members away from Work
14MATERNITY
15PART–TIME EMPLOYMENT
16CEASING TO BE ELIGIBLE
17OPTING OUT
18GENERAL RULES ABOUT BENEFITS
18APension Increases
18BOff–Set for Crime, Fraud or Negligence
18CDiscretionary Benefits
18DSerious Ill–Health
19CONTRACTING–OUT OVERRIDE
20SURPLUS ASSETS
21WINDING UP THE SECTION
21ATime and manner of winding–up
21BSurplus Assets
22CHANGING THE RULES
PART 3RULES OF THE DEFINED CONTRIBUTION ARRANGEMENT
1MEANING OF WORDS USED
2JOINING THE SECTION
2AJoining
2BEvidence of Health
3CONTRIBUTIONS BY PARTICIPATING EMPLOYERS AND MEMBERS
3AContributions by Participating Employers
3BContributions by Members
4ADDITIONAL VOLUNTARY CONTRIBUTIONS BY MEMBERS
5MEMBER'S ACCUMULATED FUND
6RETIREMENT BENEFITS
6ABenefit Date
6BUsing the Member’s Accumulated Fund
6CMaximum Lump Sum
7DEATH BENEFITS
7AUsing the Members Accumulated Fund
7BDiscretionary Trusts
8ADDITIONAL BENEFITS
9EARLY LEAVERS
9APreserved Benefits
9BRefund of Contributions and Preserved GMPs
9CPreservation Requirements
9DBreaks in Qualifying Service
10RIGHT TO TRANSFER OR “BUY–OUT”
10AMember’s Right to Transfer or “Buy–Out”
10BRequirements for “Buy–Out” Policies
10CRequirements for Transfers
11MEMBERS AWAY FROM WORK
12MATERNITY
13CEASING TO BE ELIGIBLE
14OPTING OUT
15GENERAL RULES ABOUT BENEFITS
15APurchase of Pensions
15BPension Increases
15CDuration of Member’s Pension
15DDuration of Survivor’s Pension
15EOff–Set for Crime, Fraud or Negligence
15FDiscretionary Benefits
15GSerious Ill–health
15HTrustee’s Discretion to accept Transfers–in
15ITrustee’s Discretion to Transfer–out
15JTrustee’s Discretion to “Buy–out”
16CONTRACTING–OUT OVERRIDE
17SURPLUS ASSETS
18WINDING UP THE SECTION WHERE ALL PARTICIPATING EMPLOYERS CEASE TO PARTICIPATE
18AAll Participating Employers in a Section cease to Participate
18BExpenses and Sums Due
18CBuying Annuities
18DAdditional Voluntary Contributions
18ESurplus
18FTransfers
18GGMPs
18HTrivial Benefits
19CHANGING THE RULES
Appendix 3DEED OF ESTABLISHMENT AND PARTICIPATION
PART 1
PART 2
Appendix 4PENSIONS COMMITTEE
Establishment
Composition
Appointees
Chairman and Deputy Chairman of the Committee
Procedure at Committee Meetings
Appendix 5MODEL SCHEME OF DELEGATION
Appendix 6INLAND REVENUE LIMITS
1For the purposes of this Pension Trust and the Rules...
1NOTES
2Clause 9 (Contracting–out) overrides any provisions which are inconsistent with...
3Where in addition to being a member of this Scheme...
2MAXIMUM BENEFITS ON RETIREMENT FOR CLASS A AND CLASS B MEMBERS
3MAXIMUM BENEFITS ON RETIREMENT FOR CLASS C MEMBERS
4MAXIMUM LUMP SUM FOR CLASS A AND CLASS B MEMBERS
5MAXIMUM LUMP SUM FOR CLASS C MEMBERS
6MAXIMUM LUMP SUM ON DEATH IN SERVICE
7MAXIMUM SPOUSE'S, ELIGIBLE DEPENDANT'S AND DEPENDANT'S PENSIONS
8SURPLUS CONTRIBUTIONS
Appendix 7AMENDMENT RESTRICTIONS — SHARED COST SECTIONS
Appendix 8PROVISIONS ENTRENCHED BY CLAUSE 13 — SHARED COST SECTIONS

1994 No. 1433

TRANSPORT

The Railways Pension Scheme Order 1994

Made

Coming into force

Whereas a draft of this Order was laid before Parliament and approved by resolution of each House of Parliament;

Now, therefore, the Secretary of State, in exercise of the power conferred on him by section 143(3) and (4) of, and paragraphs 1(1) and 2 of Schedule 11 to, the Railways Act 19931 hereby makes the following Order: