The Postal Services Act 2011 (Transfer of Accrued Pension Rights) Order 2012

Prevention of discrimination on grounds of age

15.—(1) Subject to sub-paragraphs (2) to (8) where, in respect of a Member’s service under the RMPP on or after 1 December 2006, any of the terms of the RMSPS would, but for this Clause, unlawfully treat a Member or group of Members (the Less Favoured Members) less favourably than another Member or group of Members (the More Favoured Members) on grounds of age, then in respect of a Member’s service under the RMPP on and from 1 December 2006 (or the date on which the term has effect, if later) the term is modified so as to disapply the more favourable treatment in respect of the More Favoured Members, to the extent required to ensure that the application of the term to the More Favoured Members and the Less Favoured Members is not unlawful.

(2) Sub-paragraph (1) shall not apply to the extent that, following any modification of a term pursuant to that clause, any pension under the RMSPS would cease to be equivalent to, or better than, the pension which would be provided under a “reference scheme” as described in Section 12B of the Pension Schemes Act 1993.

(3) If the Secretary of State becomes aware that he or (prior to the Commencement Date) the RMPP Trustees have been—

(a) making payments to or in respect of Members; or

(b) making statements to Members about benefits which will or may become payable to or in respect of Members at a future date,

where payment of those benefits constitutes or would constitute a breach of a term as that term is modified by sub-paragraph (1) then the Secretary of State shall—

(i) make whatever adjustments are necessary to benefits in payment or to statements about the payment of future benefits to ensure that from the date of the adjustment the benefits paid and statements made about benefits accurately reflect the provisions of the Rules and requirements of legislation prohibiting discrimination on the grounds of age; and

(ii) have power to set off any overpayments of benefit made to or in respect of a Member in breach of a modification of a term pursuant to sub-paragraph (1) against any future payments of benefit to or in respect of that Member.

(4) In this Clause, a term means a term under the Rules or (at any time before the end of the Cut-Off Date) under the RMPP Rules and any provision, criterion, action, decision or practice applied by an Employer, the RMPP Trustees or the Secretary of State (as the case may be) as to the terms on which a person becomes a Member or is or was treated as a Member of the RMSPS or the RMPP.

(5) This Clause does not have effect in relation to rights accrued or benefits payable in respect of periods of RMSPS Reckonable Service prior to 1 December 2006 (or the date on which the relevant term has effect, if later).

(6) Notwithstanding the provisions of Clause 13 (Overriding Finance Act 2004 Provisions), General Rule 4 (Payment of benefits) or Part IX (Overriding Finance Act Provisions) of this Schedule (or the equivalent provisions of the RMPP Cut-Off Date Rules, as they apply to Wholly Transferred Beneficiaries under Clause 3 (Benefits payable in respect of Wholly Transferred Beneficiaries)) regarding the making of payments which would not be authorised payments for the purposes of the Finance Act 2004, the Secretary of State shall have power to make a payment that is or may be an unauthorised payment for the purposes of that Act where the payment is made in breach of a term as that term is modified by sub-paragraph (1) and—

(a) the Secretary of State was not aware of the breach at the time the payment was made; or

(b) the Secretary of State was aware of the breach at the time the payment was made but it was not reasonably practicable to prevent the payment being made.

(7) The Secretary of State shall have full power to determine any matters of ambiguity or dispute arising out of the application of this Clause 15 to the terms of the RMSPS.

(8) In this clause, a reference to a Member shall mean a Cut-Off Date Active. For avoidance of doubt, the benefits of Wholly Transferred Beneficiaries shall not be subject to this Clause 15, but instead (in accordance with Clause 3(2) (Benefits payable in respect of Wholly Transferred Beneficiaries)) shall be subject to the equivalent age discrimination provisions that applied to them under the RMPP Cut-Off Date Rules.