The Mineworkers' Pension Scheme (Modification) Regulations 1994

• Citation: S.I. 1994/2577
• Sections: 171

Section 1 Citation and Commencement

These Regulations may be cited as the Mineworkers' Pension Scheme (Modification) Regulations 1994 and shall come into force on 31st October 1994.

Section 2 Interpretation

In these Regulations

“the 1946 Act ” means the Coal Industry Nationalisation Act 1946 ;

“the 1994 Act ” means the Coal Industry Act 1994;

“ the Scheme ” means the Mineworkers' Pension Scheme which was established under the Coal Industry Nationalisation (Superannuation) Regulations 1950 made under section 37 of the 1946 Act on 1 January 1952 by a resolution of 25 October 1951 of the National Coal Board and which was amended by subsequent resolutions of that Board the name of which was changed to the British Coal Corporation by section 1(1) of the Coal Industry Act 1987 .

Section 3 Continuance in Force of the Scheme

The Scheme, being an existing scheme within the meaning of Schedule 5 to the 1994 Act, shall continue in force notwithstanding the repeal by the 1994 Act of section 37 of the 1946 Act and of the enactments modifying that section.

Section 4 Modification of the Scheme

The Scheme shall be modified so as to have effect as set out in the Schedule hereto by the omission of the provisions thereof which are crossed out in that Schedule and the insertion of the provisions which appear therein in italics.

Section 1 PRELIMINARY

The Scheme shall be deemed to have been established on 1st January 1952 by the National Coal Board by the Resolution numbered 1 in the Third Schedule to the Rules annexed hereto and shall be deemed to have been governed by the terms of the Scheme and Rules annexed to the said Resolution (“the Original Scheme”) as amended from time to time by the Resolutions listed in the Third Schedule. The provisions of the Scheme (other than Clause 41 and the Rules) as set out in these presents shall constitute the Scheme with effect from the 1994 Amendment Date. The provisions of the Rules (and Clause 41) as set out in these presents shall apply in respect of all contributing members as at the 1994 Amendment Date and the entitlement of persons ceasing to be contributing members prior to the 1994 Amendment Date shall be determined by those provisions of the rules comprised in the Original Scheme as amended by those of the resolutions listed in the Third Schedule as were in force on or subsequently made and put into force so as to be effective on the date each such person ceased to be a contributing member.

Section 1 ELIGIBILITY

(1) On and after 6th April 1975 and before the Transfer Date the following persons shall if they are under Pensionable Age, be eligible to become members of the Scheme, that is to say—

(a) Every person who is employed by the Principal Employer or with effect from 1st October 1977 a Subsidiary, otherwise than in a grade eligible for the Staff Scheme, not being a person who is contributing to the Staff Scheme;

(b) Every person who is employed by a Small Mine Licensee, being a person employed in Coal Industry Activities who is not in a grade in which, if he were employed by the Principal Employer he would be eligible for the Staff Scheme; and

(c) Every person who is employed as a Branch Secretary.

(2) For the purposes of paragraph (1) of this Rule—

(a) “employed” in relation to any person means employed in regular whole-time employment, including employment which would have been regular whole-time employment had that person not been engaged in Trade Union Activities or Inspection Activities or both; and

(b) “Coal Industry Activities” has the meaning assigned thereto by section 63 of the Coal Industry Nationalisation Act 1946.

(3) Notwithstanding the foregoing provisions of this Rule, if a member shall cease to be eligible for membership in accordance with the provisions of paragraph (1) of this Rule by reason of his becoming an employee of an employer which is not or has ceased to be an Employer as defined in Clause 41(2) as a consequence of the sale of the business in which or the company by which he is employed, he may, subject to compliance with the provisions of Clause 4A(1) and with the consent of the Principal Employer (which may be given subject to such conditions as the Principal Employer imposes) and of his employer continue to be a member of the Scheme as the Inland Revenue may approve.

(3) Notwithstanding the foregoing provisions of this Rule, if a member ceases to be eligible for membership in accordance with the provisions of paragraph (1) of this Rule by reason of his becoming an employee of an employer which is not or has ceased to be an Employer as defined in Clause 41(2) as a consequence of a sale of the business in which or the company by which he is employed, with effect from the Guarantee Date the Committee of Management with the consent of the Guarantor may at its discretion direct, that the employer of such contributing member and the contributing member may participate or continue to participate in the Scheme until the First Transfer Date provided such participation does not prejudice continued approval of the Scheme by the Board of Inland Revenue for the purposes of Chapter 1 of Part XIV of the Income and Corporation Taxes Act 1988.

(4) With effect from the Guarantee Date until the Closure Date the provisions of this Rule shall continue to have effect but no person shall become eligible to become a member of the Scheme after the Guarantee Date without the consent of the Guarantor.

(5) No person shall become eligible to become a member of the Scheme after the Closure Date.

Section 1

Resolution

Section 1

Where in any provision of the Rules an amount is specified by reference to an item number in Part I of this Schedule relating to that provision, that amount shall in respect of the periods specified in column (2) and any subsequent column of Part I of this Schedule, be the weekly amount shown in those columns respectively against such item number and where applicable against the period of Qualifying Service or degree of disablement specified in column (1) of Part I of this Schedule of the person in relation to whom such amount falls to be computed.

Section 1

The amount in respect of a refund of the deceased’s contributions and (if and insofar as shall be applicable) of units standing to the deceased’s credit referred to in sub-paragraph (a) of paragraph (3) of Rule 21 shall consist of the aggregate of such of the following amounts as shall be applicable—

(a) The total amount of contributions payable by or in respect of him under Rules 3 and 4 and of any other contributions specified in sub-paragraph (b) of paragraph (5) of Rule 15 (excluding the amount of any contributions previously refunded under paragraph (5) of Rule 15 before any reduction under sub-paragraph (c) of that paragraph.

(b) The total amount of the deceased’s contributions for the period referred to in paragraph (1) of Rule 5 of the Rules as they had effect before 6th April 1975 and for any part of the period beginning on 3rd April 1961 and ending on 5th April 1975 in respect of which he is entitled to a pension under the Rules or would have been or become entitled to a pension under the Rules had he retired on the day before the date of his death but on or after 6th April 1975 in such circumstances that a pension was or would had he survived have become payable to him under Rule 10 (whether or not increased under Rule 11) or Rule 12 but under no other Rule; and

(c) If the deceased has units standing to his credit, representing service before 3rd April 1961, the amount of the lump sum specified in column (2) of the Second Schedule, according to the number of units standing to his credit.

Section 1

The aggregate of the Transferable Sums in relation to those members who elect under Rule 28A(2) to transfer to IWS-MPS their accrued pension rights as at the Transfer Date, will be calculated using the projected accrued benefit method with allowance for future increases in (a) earnings until the assumed date of retirement, death or withdrawal from membership and (b) pensions. The allowance for pension increases to be made in the calculation of the Transferable Sums will be by reference to the Retail Prices Index.

Section 1A CEASING NORMAL CONTRIBUTIONS

(1) A member who, while remaining in Eligible Employment, wishes to cease to pay Normal Contributions in accordance with the provisions of Rule 4, shall give written notice to the Pensions Officer. On the giving of such notice his service in Eligible Employment and Contributing Service shall be deemed to terminate pursuant to the provisions of Rule 9B with effect from such date as Normal Contributions to the Scheme cease to be deducted from his Earnings.

(2) A person who has given written notice pursuant to paragraph (1) of this Rule and who has ceased to pay Normal Contributions as required by Rule 4, may before the Transfer Date be permitted to re-commence payment of Normal Contributions from such date and on such terms and subject to such conditions as the Committee of Management, in their absolute discretion, may think fit.

Section 2 CONTRIBUTIONS

(1) Before the Closure Date every Employer shall pay as Standard Contributions a sum equal to 9.75% of the Earnings paid by him to members employed or deemed to be employed by him in respect of any period during which a member is in Contributing Service Provided that

(i) the Principal Employer shall not be required to pay Standard Contributions equal to 9.75% of such Earnings in respect of such period during the period which commenced on 26th March 1989 and terminates on 28th October 2000; and

(ii) every Employer other than the Principal Employer shall not be required to pay Standard Contributions equal to 9.75% of such Earnings in respect of such period during the period which commenced on 1st April 1990 and terminates on 27th October 2001.

(2) Before the Closure Date the Principal Employer shall pay as Deficiency Contributions after the coming into operation of any determination of Deficiency Contributions made by the Actuary under Clause 17, such payments as may become payable by them thereunder or as may be necessary on the advice of the Actuary.

(3) Before the Closure Date every Employer other than the Principal Employer or Employers of Branch Secretaries shall pay as Deficiency Contributions after the coming into operation of any determination of Deficiency Contributions made by the Actuary under Clause 17 such payments as may become payable by him thereunder or as may be necessary on the advice of the Actuary.

(4)

(a) The total amount of any Standard Contributions or Deficiency Contributions payable by an Employer during any period shall be reduced by an amount equal to the difference between the total amount of any Contributions Equivalent Premiums paid by that Employer during that period insofar as they relate to periods of service in respect of which a pension would or might otherwise have become payable under Rule 9A and the total of the amounts recovered by that Employer during that period under or by virtue of section 47 of the Pensions Act.

(b) The total amount of any Standard Contributions or Deficiency Contributions payable by the Principal Employer shall be reduced by such sum as may from time to time be agreed by the Principal Employer and the Committee of Management as being fair and reasonable, having regard to the costs of managing and administering the Scheme (other than such costs as are referred to in paragraph (c) of Clause 7) and the cost to the Principal Employer of services rendered by the Principal Employer in connection with or for the purposes of the Scheme, or in default of agreement as shall be determined to be fair and reasonable having regard to such costs or cost by a chartered accountant who shall be agreed by the Principal Employer and the Committee of Management or, in default of agreement, nominated by the President for the time being of the Institute of Chartered Accountants in England and Wales.

(5)

(a) Before the Closure Date every Employer, other than the Principal Employer shall pay to the Principal Employer on the last day of every month (or on such other dates as may from time to time be determined by the Principal Employer) the following amounts in respect of the period since the last preceding payment made under this paragraph.

(i) the amount of contributions payable under the Rules by or in respect of members employed or deemed to be employed by such Employer insofar in the case of contributions payable under the Rules as they have effect on and after 6th April 1975 as they are calculated on the basis of Earnings paid or deemed to be paid by that Employer; and

(ii) the amount of all sums payable by that Employer as Standard Contributions and Deficiency Contributions.

(b) Every payment made under sub-paragraph (a) of this paragraph shall be accompanied by a statement in writing of how the amount paid is made up, and if it shall subsequently be discovered that the amount so shown and paid was greater or less than the true amount payable the over-payment or under-payment shall be adjusted by a deduction from or addition to the next succeeding payment required to be made under sub-paragraph (a) of this paragraph insofar in the case of an over-payment as it is sufficient for that purpose, and if in such case that payment is not so sufficient, the excess shall be payable in cash by the Principal Employer on demand.

(6) The obligations of an Employer under this Clause to make contributions to the Scheme by reference to the Earnings of members of the Scheme employed by it shall cease in respect of any member upon that member’s Transfer Date.

Section 2 RETIREMENT AND TERMINATION OF EMPLOYMENT AND SERVICE

(1)

(a) Where for the purposes of the Rules reference is made to a member’s Retirement from Eligible Employment, such Retirement shall be deemed to take effect on the termination otherwise than by reason of death of his service in Eligible Employment, and “retire” shall be construed accordingly.

(b) The service in Eligible Employment of a member who would but for this sub-paragraph be treated as remaining in Eligible Employment on or after 6th April 1975 and after the expiration of a period of five years after he attains Pensionable Age shall for all the purposes of the Rules be deemed to terminate, and he shall for those purposes be deemed to retire from Eligible Employment, upon that date or the expiration of that period, whichever is the later.

(c) Where for the purposes of the Rules reference is made to a member’s service in Eligible Employment terminating on or after 1st April 1990, such reference shall be deemed to include a member whose service in Eligible Employment actually terminated prior to such date but which would have terminated after such date if the member had been given the full period of notice of termination to which he was entitled under his contract of employment.

(d) A member who on the day immediately before the Transfer Date has attained Pensionable Age but is continuing in Eligible Employment shall be deemed to retire from Eligible Employment on that day.

(2) For the purposes of awarding or determining the amount of benefits on or subsequent to Retirement or termination of service in Eligible Employment under the Rules in relation to any person and for the purposes of determining whether a person’s service in Eligible Employment or employment by an Associated Undertaking or Contributing Service is continuous or comprises consecutive periods within the meaning of the Rules that person’s service in Eligible Employment shall be deemed not to have terminated and his service in Eligible Employment or employment by an Associated Undertaking or Contributing Service, as the case may be, shall be deemed to have been continous and to have comprised consecutive periods if—

(a) Notwithstanding that such service has ceased—

(i) before the Transfer Date he re-enters Eligible Employment or employment by an Associated Undertaking or his Contributing Service re-commences, as the case may be, within not more than one Month after such cessation or pursuant to the exercise of a right to return to work under section 48(1) of the Employment Protection Act 1975; or

(ii) such cessation takes place on or after 6th April 1978 and within not more than six Months (or such longer period as the Secretary of State allows in a particular case under Regulation 10(3)(a)(ii) of the Occupational Pension Schemes (Contracting-out) Regulations 1975) and before attaining Pensionable Age and before the Transfer Date he re-enters Eligible Employment or employment by an Associated Undertaking or his Contributing Service recommences, as the case may be, and either no Contributions Equivalent Premium has been paid in respect of him in connection with such cessation or any Contributions Equivalent Premium so paid is refunded; or

(b) Such Service has ceased on the commencement of a Scholarship Period in relation to him and he re-enters Eligible Employment or employment by an Associated Undertaking or his Contributing Service re-commences, as the case may be, within not more than one Month after the termination of such Scholarship Period and before the Transfer Date ; or

(c) Notwithstanding that a person’s period of Contributing Service ceases by reason of any Period of Strike Absence and his Contributing Service recommences more than six months later and immediately after any such Period of Strike Absence and before the Transfer Date Provided that in the case of any Period of Strike Absence after February 1984 and before 1st January 1987 he makes an election under Rule 3.

Provided that no period between such cessation and such re-entry or re-commencement shall be taken into account as a period of Eligible Employment or employment by an Associated Undertaking or Contributing Service as the case may be by virtue of this paragraph.

(3) A person who on or after 6th April 1975 and before the Transfer Date enters Eligible Employment being employment by an Associated Undertaking other than a Wholly-Owned Subsidiary of the Principal Employer unless he was within not more than one Month immediately before the date of such entry employed by—

(a) Another Associated Undertaking other than a Wholly-Owned Subsidiary of the Principal Employer into the employment of which he entered on or after 6th April 1975 and during which employment he did not exercise the option provided for in this paragraph; or

(b) Another Associated Undertaking by whom he was continuously employed since before 6th April 1975;

may terminate his obligation to pay contributions under the Rules with effect from the date of his entering the employment of the first-mentioned Associated Undertaking if within one Month he exercised in writing an option to do so and the Principal Employer and that Associated Undertaking agree to his doing so. Upon the exercise of such option that person’s employment in Eligible Employment and Contributing Service shall for the purposes of the Rules and subject to the provisions of paragraph (2) of this Rule be deemed to have terminated upon the date of his entering the employment of the first-mentioned Associated Undertaking.

Section 2

Resolution

Section 2

The amounts specified in column (2) and any subsequent column by reference to items numbered (1) to (5) inclusive in Part I of this Schedule are based in the case of a member whose service in Eligible Employment terminates on and after 4 July 1994 on a complete election having been made in accordance with the provisions of paragraph (5) of Rule 10. In the event of such a complete election not being made, the said amounts shall be adjusted in such manner as the Committee of Management may determine on the advice of the Actuary.

Section 2

For the purposes of paragraph 1(b) of this Schedule—

(a) The number of the deceased’s contributions for the period referred to in paragraph (1) of Rule 5 of the Rules as they had effect before 6th April 1975 shall be deemed to be equal to the number of weeks of his service in Eligible Employment during that period, calculated in accordance with Rule 9 of the Rules as they had effect immediately before 6th April 1975.

(b) The number of the deceased’s contributions for any part of the period beginning on 3rd April 1961 and ending on 5th April 1975 in respect of which he is or would had he retired as specified in sub-paragraph (b) of paragraph 1 of this Schedule and if applicable survived have been or become entitled to a pension shall be deemed to be equal to the number of weeks of his service in Eligible Employment by reference to which such pension was or would have been calculated; and

(c) The amount of the deceased’s contributions for the periods referred to in sub-paragraphs (a) and (b) of this paragraph shall not include the amount of any contributions referred to in paragraph (10) of Rule 5 of the Rules as they had effect immediately before 6th April 1975.

Section 2

The actuarial basis and assumptions that will be used to calculate the Transferable Sums are set out in Sections A and B of Part II of this Appendix. Section A describes the financial assumptions which will be adopted and the adjustments which will be made between the Transfer Date of the members concerned and the date or dates of payment of the Transferable Sum or Sums to IWS-MPS. Section B contains the demographic assumptions to be used for members of the Scheme. Pensionable Age is 60 but the Scheme provides for early retirement on full accrued pension at age 59 and all surviving employees are assumed to retire at age 59.

Section 3 CONTRIBUTIONS

With effect from 6th April 1975, for the purposes of Clause 2—

(a) A member shall be deemed to be employed by any person or persons (including any body of persons incorporated or unincorporated) who is or are an Employer in relation to him;

(b) During any Scholarship Period in relation to a member, that member shall be deemed to be employed by the Principal Employer and the Earnings which are deemed to be his Earnings under the Rules shall be deemed to be paid to him by the Principal Employer and

(c) Such Earnings of a member engaged in Inspection Activities as consist of Payments made to him in relation to such Inspection Activities shall be deemed to be paid to him by the persons (including any body of persons incorporated or unincorporated) who are his Employer for the purposes of such Inspection Activities in the same proportions as the proportions of such Payments or of the funds from which such Payments are made which those persons are respectively responsible for making or providing.

Section 3

(1) Any person in Eligible Employment may elect to pay special contributions in respect of any Period of Strike Absence in accordance with the following provisions of this Rule.

(2) In respect of a Period of Strike Absence commencing on or after 1st January 1987 the Pensions Officer shall determine the total amount of such special contributions by reference to such person’s Estimated Earnings and the Normal Contributions he would have paid pursuant to Rule 4 if his Estimated Earnings had been Earnings. He shall further determine the weekly amounts of special contributions and the number of Weeks over which such weekly amounts shall be payable. Such determinations shall be notified to such person.

(3) Within four weeks of such notification and before the Transfer Date such person may elect to pay such special contributions by notifying the Pensions Officer in writing. Upon the making of such an election he shall pay to the Scheme (subject to paragraph s(8) and (9) of this Rule) the weekly amounts of special contributions over the number of weeks determined by the Pensions Officer under paragraph (2) of this Rule.

(5) When any such person shall make an election in accordance with paragraph (3) of this Rule, then notwithstanding any other provisions of the Scheme and Rules:—

(a) subject to paragraph (9) of this Rule such Period of Strike Absence shall be deemed to be included in his total period of Contributing Service, and

(b) such Estimated Earnings shall be deemed to be his Earnings during the period of Strike Absence.

(7) For the purpose of determining the Employer’s obligation to pay Standard Contributions under Clause 2 the amount of special contributions in accordance with this Rule shall not be treated as contributions payable under the Rules by or in respect of the members or persons concerned. Provided that:—

(ii) the Principal Employer shall not be required to make payments under this paragraph in respect of a Period of Strike Absence commencing prior to 28th October 2000;

(iii) no Employer other than the Principal Employer shall be required to make payments under this paragraph in respect of a Period of Strike Absence commencing prior to 27th October 2001; and

(iv) an Employer shall pay to the Scheme amounts which bear the same proportion to such special contributions and weekly amounts as the member’s Normal Contributions payable under paragraph (1) of the Rule 4 bear to the Standard Contributions payable by an Employer under paragraph (1) of Clause 2.

Such amounts shall be paid by the Employer at the times the special contributions are paid and the weekly amounts deducted or at the Employer’s option may be paid in capitalised amounts at such times, over such periods and in such manner as may be agreed with the Actuary.

(8) Where any person is making payments of weekly amounts of special contributions under sub-paragraph (3) of this Rule when his service in Eligible Employment terminates ( otherwise than by reason of the Transfer Date having arrived ) or he dies the Pensions Officer shall on the advice of the Actuary determine the total amount of the special contributions remaining unpaid to the Scheme at the date of such termination or death. This amount shall be deducted from any payment of lump sum benefit or Transfer Payment to or in respect of that person under the Rules.

(9) Where any person is making payment of weekly amounts of special contributions under sub-paragraph (3) of this Rule when his service in Eligible Employment terminates by reason of the Transfer Date having arrived the payments shall cease and the Pensions Officer shall on the advice of the Actuary determine the extent to which the Period of Strike Absence is to be deemed to be included in his total period of Contributing Service.

Section 3

Resolution

Section 3A CONTRIBUTIONS

With effect from the Closure Date all obligations under Clauses 2 and 3 regarding the payment of Standard Contributions and Deficiency Contributions other than in respect of the additional cost of benefits payable in respect of members made redundant prior to March 1981 shall cease.

Section 4 CONTRIBUTIONS

Before the Transfer Date each member shall contribute such sums as may from time to time be provided under the Rules. The Principal Employer shall be responsible for the collection of all contributions payable by or in respect of members and for the payment of all such contributions to the Scheme.

Section 4 NORMAL CONTRIBUTIONS

(1) Subject to the provisions of paragraph (1) of Rule 1A every member shall pay contributions (in the Rules called “Normal Contributions”) at the rate of 5.1/4 per cent of the amount of the member’s Earnings in respect of any period during which he is in Eligible Employment and made to him not earlier than 1st January 1979 and not later than whichever is the earlier earliest of the Week in which his period of Contributing Service totals 40 complete years, or the Week in which he attains Pensionable Age or the Transfer Date.

(2) If after entering Eligible Employment any person is not engaged in work in the course of such employment during the period of any scholarship approved by the Principal Employer for the purposes of this paragraph (in the Rules called a “Scholarship Period”), Normal Contributions shall be paid in respect of him by the Principal Employer at the rate specified in paragraph (1) of this Rule in relation to any part of such Scholarship Period which begins not earlier than the Week including 6th April 1975 and ends with the Week in which he attains Pensionable Age.

Section 4

Resolution

Section 4A ADMISSION OF OTHER EMPLOYERS AND NEW MEMBERS

(1) With the consent of ( before the Guarantee Date ) the Committee of Management or (on and after the Guarantee Date) the Committee of Management and the Guarantor , employees of any Employer which was not participating in the Scheme as at 16th July 1991 and who before the Closure Date are eligible to become members under the provisions of Rule 1 shall be eligible for membership of the Scheme Provided that

(i) any such Employer shall enter into a deed by which it covenants with the Committee of Management to comply with and observe the provisions of the Scheme so far as they are applicable to it as an Employer; and

(ii) the participation of any such Employer will not prejudice approval of the Scheme by the Commissioners of Inland Revenue; and

(iii) the Committee of Management shall not be entitled to give their consent unless any such Employer covenants to pay such contributions as the Actuary shall determine to be fair and reasonable and unless the Actuary gives an opinion to the effect that the admission to the Scheme of the existing employees (if any) of any such Employer on the terms proposed is unlikely within the following five years to prejudice significantly the rights or interests of any person already a member at the date of such admission.

Provided also that sub-paragraphs (i) and (iii) of the said proviso shall not apply to Small Mine Licensees or Subsidiaries of the British Coal Corporation.

(2)

(a) New employees of Employers (subject to the exceptions mentioned in sub-paragraph (b) of this paragraph) shall not be eligible for membership of the Scheme without the consent of (before the Guarantee Date ) without the consent of the Committee of Management or (on and after the Guarantee Date) the Committee of Management and the Guarantor ) Provided that the Committee of Management shall not be entitled to give their consent unless the Actuary gives an opinion to the effect that the admission of such new employees to the Scheme on the terms proposed is unlikely within the following five years to prejudice significantly the rights or interests of any person already a member at the date of such admission.

(b) The following categories of new employees shall be excluded from the provisions of sub-paragraph (a) of this paragraph:

(i) new employees of the British Coal Corporation and of any Employer which at the time of the new employee accepting employment is a Subsidiary of the British Coal Corporation;

(ii) new employees of the Principal Employer other than the British Coal Corporation who accept employment in the ordinary course of that part of its business which such Principal Employer shall have acquired from the British Coal Corporation; and

(iii) new employees of any other Employer who accept employment in the ordinary course of that Employer’s business.

(3) After the Closure Date the powers of admission of Employers and new Members under this Clause 4A shall cease.

Section 5 CONSTITUTION OF FUNDS

(1) With effect from 1st October 1974 the monies of the Scheme shall constitute the Mineworkers' Pension Fund, hereinafter called “the Pension Fund”.

(2) With effect from 6th April 1975 the members for the time being of the committee of management shall, subject as hereinafter provided, be the trustees of the Scheme and of its monies.

Section 5 ADDITIONAL VOLUNTARY CONTRIBUTIONS

(1) This Rule sets out the terms upon which a member may elect to make additional voluntary contributions to the AVC Scheme in order to secure additional benefits.

(2) In this Rule

(a) “AVC Scheme” means the scheme embodied in this Rule for the provision of certain additional benefits

(b) “the AVC Interest” shall mean in relation to a member contributing to the AVC Scheme his interest in the AVC Scheme in respect of his contributions to the AVC Scheme as determined by the Committee of Management where appropriate on such advice as they think fit.

(3) No member may elect in accordance with paragraph (4) of this Rule if he is then subject to notice to terminate his employment.

(4)

(a) Subject to paragraph (3) of this Rule a member may elect to pay additional voluntary contributions at any time prior to Pensionable Age and prior to the Transfer Date.

(b) In no circumstances shall any additional voluntary contributions be of such an amount that they would (when aggregated with any Normal or any special contributions payable under Rule 3) in any year exceed 15 per cent, or such higher percentage as the Commissioners of Inland Revenue may in a particular case prescribe, of his total remuneration from the Employer for that year.

(c) Contributions will be deducted from the Earnings becoming payable to a member.

(d) A member may, on giving reasonable notice not exceeding 12 months to the Pensions Officer reduce, increase or terminate his additional voluntary contributions provided that a reduction in his additional voluntary contributions must not result in the payment of contributions of less than such amount as the Committee of Management may from time to time determine having regard to paragraph (8) of Regulation 2 of the Pension Schemes (Voluntary Contributions Requirements and Voluntary and Compulsory Membership) Regulations 1987.

(5) Additional voluntary contributions shall be payable promptly in such manner (consistent with Inland Revenue approval) as the member and the Employer shall agree and shall be applied by the Committee of Management to provide additional benefits in respect of the member in such form as the member shall, with the consent of the Committee of Management, determine Provided that no part of the additional benefit shall take the form of a cash payment payable to the member during his lifetime. Such additional benefits must be reasonable having regard to the amount of the additional voluntary contributions and to the value of the other benefits under the Scheme.

(6) On the death of a member who has paid additional voluntary contributions pursuant to this Rule before his AVC Interest shall be applied pursuant to paragraph (7) of this Rule the member’s AVC Interest shall be held by the Committee of Management upon trust with power to pay or apply the same within two years from the date of the member’s death to or for the benefit of (or by way of settlement or otherwise to trustees for the benefit of) such one or more of the member’s Dependants or Relatives in such shares and proportions (if more than one) upon such trusts and in such manner (including the provision of annuities) as the Committee of Management shall in their discretion think fit. Any part of the AVC Interest not so paid or applied within such period of two years shall be paid to the legal personal representatives of the member except that if the member’s AVC Interest would vest in the Crown as bona vacantia, the Committee of Management shall hold such AVC Interest under the trusts of the Scheme to apply the same to such of the purposes thereof as they shall decide. The Committee of Management may, but without being in any way bound to do so, have regard to any document signed by the member concerned expressing his wishes relating to the disposal of his AVC Interest.

(7) On a member becoming entitled to benefit under Rule 10 (whether or not increased under Rule 11), Rule 12, Rule 13, Rule 14, Rule 14A, Rule 14B or Rule 15 his AVC Interest shall be applied by the Committee of Management in accordance with the wishes of the member expressed to the Committee of Management in writing Provided that:—

(a) if the member has not expressed any wishes in writing to the Committee of Management they shall be entitled to apply the AVC Interest in providing such benefits within the Inland Revenue Limits for the member, his Dependants or Relatives as the Committee of Management in their absolute discretion shall think appropriate

(b) if the wishes of the member expressed pursuant to this paragraph would result in any of the benefits for which the member has elected exceeding the Inland Revenue Limits then the surplus of the money in the AVC Interest shall be applied by the Committee of Management at their discretion in providing such other benefits within the Inland Revenue Limits for his Dependants or Relatives as the Committee of Management in their absolute discretion shall deem appropriate and if the Committee of Management have provided the maximum benefits to or in respect of a member which they may provide under the Inland Revenue Limits then any remaining surplus of the money in the AVC Interest shall be paid in accordance with the provisions of paragraphs 33 and 34 of Schedule 6 to the Finance Act 1989.

(8) Any benefit provided pursuant to paragraph (7) of this Rule shall be secured by the Committee of Management by contracts or policies taken out in the United Kingdom with a Recognised Insurance Company.

(9) On a member ceasing to be in Eligible Employment before attaining Pensionable Age without becoming entitled to an immediate pension then

(a) the additional voluntary contributions payable by such member shall cease forthwith;

(b) if the member to whom this paragraph applies takes a refund of his Normal Contributions his AVC Interest shall be returned to him subject to deduction of tax pursuant to Rule 43;

(c) if a transfer is made to another retirement benefits fund, scheme or arrangement in respect of part or all of a member’s benefit under the Scheme a like transfer shall be made in respect of the AVC Interest; and

(d) subject to the preceding provisions the AVC Interest shall be applied in providing benefits in accordance with paragraph (7) of this Rule at Pensionable Age or such earlier date on which any benefits under Rule 12, Rule 13, Rule 14, Rule 14A or Rule 14B commence to be payable.

Section 5

Resolution

Section 5A CONSTITUTION OF FUNDS

(1) With effect from the Guarantee Date the Guarantor shall have power subject to paragraphs (2) and (3) of this Clause exercisable by notice in writing (sent to the person to be appointed) signed on behalf of the Guarantor and having effect from the date specified in such notice to appoint a new trustee of the Scheme and of the Pension Fund in place of any trustee who ceases to be a trustee and the Guarantor shall also have power exercisable in like manner to remove a trustee of the Scheme and of the Pension Fund from office.

(2) With effect from the Guarantee Date the Guarantor will appoint Mineworkers' Pension Scheme Trustees Limited or such other person as shall be appointed by the Guarantor under the power mentioned in paragraph (1) of this Clause as sole trustee of the Scheme and the Pension Fund.

(3) In the event of Mineworkers' Pension Scheme Trustees Limited or any other trustee appointed in accordance with paragraph (1) of this Clause ceasing after the Guarantee Date for any reason to be the trustee of the Scheme and of the Pension Fund, the Guarantor shall forthwith appoint a new trustee or trustees of the Scheme and of the Pension Fund comprising either: —

(i) a new corporate trustee whose Articles of Association would be in a form corresponding as closely as possible to those of Mineworkers' Pension Scheme Trustees Limited at the time it ceases to be a trustee and would provide for the appointment of a committee of management consisting of ten persons, of whom five would be appointed by and would be subject to removal by the Guarantor, and five would be appointed by and would be subject to removal in accordance with rules to be agreed between the Guarantor and such organisations as represented substantial proportions of the classes of the employees and former employees of the Principal Employer who are Members of the Scheme Provided that

(a) in the event that it is not possible to agree such rules or there is a dispute as to which organisations represent substantial proportions of the classes of the Principal Employer’s employees who were Members of the Scheme the matter shall be referred to a single Arbitrator to be named by the President for the time being of the Law Society. The Arbitrator so named shall have all the powers conferred on Arbitrators by the Arbitration Acts 1950 and 1979;

(b) With effect from 1st October 1995 two of the persons appointed by organisations referred to above (one from each organisation) shall (subject to the appointment of replacements) cease to be members of the committee of management and shall be replaced by two persons elected to represent the members of the Scheme in accordance with procedures identical to those set out in the Appendix to the Articles of Association of Mineworkers' Pension Scheme Trustees Limited;

(c) With effect from 1st April 1996 the remaining three persons appointed by the organisations referred to above shall (subject to the appointment of replacements) cease to be members of the committee of management and shall be replaced by three persons elected to represent the members of the Scheme in accordance with the procedures identical to those set out in the Appendix to the Articles of Association of Mineworkers' Pension Scheme Trustees Limited; or

(ii) ten individual trustees the selection appointment and removal of whom would be carried out in a manner corresponding to that referred to in (i) above in respect of the committee of management of a new corporate trustee.

(4) With effect from the Guarantee Date the Guarantor shall appoint the Chairman of the Committee of Management and the Chairman so appointed shall have, in the case of an equality of votes, a second or casting vote. Provided that any person appointed as Chairman may not be a Crown Servant or a member of the Scheme and will only be appointed by the Guarantor after consultation with the Committee of Management.

(5) With effect from the Guarantee Date: —

(i) All powers expressed by the Scheme, in whatever terms, to be vested in, conferred on or exercisable or to be exercised by the Committee of Management shall be vested in the Trustee;

(ii) Such powers and all other powers vested in, conferred on or exercisable or to be exercised by the Trustee under or by virtue of the Scheme shall be exercised by it and on its behalf by and through the Committee of Management in their capacity as the Committee of the Trustee within the meaning of the Articles of Association of the Trustee (hereinafter called “the Articles”) or any other person or body of persons required, authorised or empowered to exercise such powers or any of them by or under any provision of the Scheme and by or under the Articles; and

(iii) Save in relation to Clause 39 and the meanings assigned to “the Commitee of Management” by Clause 41(2), any reference in the Scheme, in whatever terms, to the Committee of Management shall be construed as a reference to the Trustee acting by and through the Committee of Management in the capacity specified in sub-paragraph (ii) of this paragraph or any other person or body of persons required, authorised or empowered to act for it or on its behalf for that purpose by or under any provision of the Scheme and by or under the Articles.

Provided that except insofar as is otherwise expressly provided therein, neither the Articles, any amendment to the Scheme taking effect from the Guarantee Date, nor any act or thing done in consequence or pursuance of or in connection with the Articles or any such amendment or deed shall affect the validity, operation or effect of anything done or omitted to be done before the Guarantee Date by, for or on behalf of the Committee of Management, any sub-committee of such Committee of Management so constituted, or the Joint Secretaries (within the meaning of the Scheme as it had effect from time to time before that date).

Section 6 CONSTITUTION OF FUNDS

There shall be paid into or held to the credit of the Pension Fund—

(a) All Standard Contributions and Deficiency Contributions payable by the Principal Employer;

(b) All sums received by the Principal Employer from other Employers in respect of Standard Contributions and Deficiency Contributions payable by such Employers and in respect of members' contributions;

(c) All sums collected by the Principal Employer as members' contributions;

(d) All sums received by way of Transfer Value Payments or received before 6th April 1975 as payments by way of transfer from any other superannuation scheme, and all sums accepted by the Scheme on or after 6th April 1975 by way of Transfer Payments from any other Occupational Pension Scheme;

(f) All dividends, interest and benefits arising out of the investment or employment of the Pension Fund or any part thereof;

(g) All other sums received or held by the Principal Employer or the Committee of Management in connection with or for the purposes of the Scheme.

Section 6 PAYMENT OF CONTRIBUTIONS

(1) The amount of any Normal Contributions payable by a member under Rule 4 shall be deducted from any payment of Earnings made to that member.

(2) In assessing the amount of any Normal Contributions payable in relation to any Week any half or greater fraction of a new penny shall be treated as a whole new penny and any smaller fraction of a new penny shall be ignored.

Section 6

Resolution

Section 7 CONSTITUTION OF FUNDS

There shall be paid out of the Pension Fund—

(a) All benefits payable to any person under the Rules;

(b) All costs and expenses of the administration of the Scheme incurred before 1st October 1975 or on or after 31st December 1994;

(c) All costs and expenses incurred by virtue of the exercise of the powers conferred by paragraph (2) of Clause 10;

(d) Any sums payable under the Rules as they have effect from time to time by way of Transfer Value Payments, Transfer Payments or other payments by way of transfer to any other Occupational Pension Scheme or other superannuation scheme;

(e) All sums payable by law out of the Pension Fund or by the Committee of Management in their capacity as trustees or administrators of the Pension Fund or of the Scheme.

Provided that no such payments shall be made out of the Investment Reserve except pursuant to Clauses 18A, 18B or 40.

Section 7 QUALIFYING SERVICE

(1) Subject as hereinafter provided, where under the Rules provision is made for benefits to be awarded by reference to Qualifying Service such service shall be credited to a person as follows—

(a) For any service by him in Eligible Employment on or after 6th April 1975 and before whichever is the earlier of the Transfer Date and the date on which he attains Pensionable Age (excluding, except on the termination of that period of service, any period of service in respect of which a Contributions Equivalent Premium has been paid and has not been refunded or in respect of which a refund of contributions is, subject to sub-paragraph (c) of paragraph (5) of Rule 15, paid or payable to him under sub-paragraph (b)(i) of that paragraph, or both) he shall be credited with Qualifying Service equal to the length of such service in Eligible Employment;

Provided that in respect of any period of service in Eligible Employment on or after 6th April 1988 he shall not be credited with Qualifying Service if he has given written notice pursuant to paragraph (1) of Rule 1A and Normal Contributions have ceased to be deducted from his Earnings.

For any service by him in Eligible Employment during the period beginning on 3rd April 1961 and ending on 5th April 1975 he shall be credited with Qualifying Service equal to the length of that service calculated in accordance with Rule 9 of the Rules as they had effect immediately before 6th April 1975.

For any service by him in Eligible Employment during the period beginning on 3rd April 1961 and ending on 5th April 1975 in respect of which a payment in lieu of contributions has been made in pursuance of the National Insurance Act or any statutory provisions directly or indirectly replaced by it he shall, for the purposes of entitlement to benefit by virtue of—

Retirement from or termination of service in Eligible Employment before 6th April 1978; or

Retirement from or termination of service in Eligible Employment on or after 6th April 1978 on the termination of a continuous period of such service commencing before that date;

but (subject to paragraph (4) of Rule 23 and sub-paragraph (e)(ii) of paragraph 3 of Rule 27) not further or otherwise, be credited with Qualifying Service equal to the length of such service by reference to which such payment was calculated;

For any service by him in Eligible Employment during the period beginning on 3rd April 1961 and ending on 5th April 1975 in respect of which that person is entitled to a pension under the Rules, he shall be credited with Qualifying Service equal to the length of such service by reference to which such pension was calculated;

For every 78 units with which he is credited in respect of service before 3rd April 1961 other than past service within the meaning assigned to that term by Clause 42 of the Scheme as it had effect immediately before 3rd April 1961 he shall be credited with one year’s Qualifying Service, and for any units not thus taken into account he shall be credited with a fraction of a year’s Qualifying Service equal to the fraction which the number of units not thus taken into account bears to 78;

For any back service credit (within the meaning of Clause 42 of the Scheme as it had effect before 3rd April 1961) with which he is credited he shall be credited with the number of years' Qualifying Service which is equal to the number of years of past service (within the meaning of Clause 42 of the Scheme as it had effect before 3rd April 1961) shown in the case of a man in the Second Schedule to the Rules as they had effect before 3rd April 1961 or in the case of a woman in the Third Schedule thereto opposite the number of units comprised in the back service credit;

Where a Transfer Payment is made to the Scheme from another Occupational Pension Scheme in respect of the person under Rule 28 he shall be credited in accordance with the terms referred to in paragraph (2) of that Rule with any period of Qualifying Service provided for by those terms.

(2) Where the total of the Qualifying Service to be credited to a person in accordance with paragraph (1) of this Rule includes a fraction of a year, the said fraction, if it is equal to one-half or more, shall be deemed to be a complete year, and if it is less than one-half shall be ignored.

(3) For the purposes of paragraph (2) of this Rule a year shall be deemed to consist of exactly 52 weeks.

Section 7

Resolution

Section 7A CONSTITUTION OF FUNDS

With effect from the Guarantee Date all payments of Bonus Augmentations or Crystallised Augmentations other than Guaranteed Crystallised Augmentations shall be made only from the Bonus Augmentation Fund.

Section 8 MANAGEMENT OF PENSION FUND

(1) So much of the moneys of the Scheme as shall not from time to time be required for application in the payment of pensions or other benefits or otherwise shall as soon as practicable be invested by the Committee of Management in or upon the security of such investments whatsoever and wheresoever situate whether or not involving liability or whether or not producing income and whether or not otherwise authorised by law for the investment of trust funds as the Committee of Management shall in their absolute discretion think fit to the intent that the Committee of Management shall have the same unrestricted powers of making, varying, managing and transposing investments as if they were absolutely entitled to such moneys beneficially.

(2) Without prejudice to the generality of the foregoing powers the Committee shall have power:—

(a) to effect and maintain policies of insurance;

(b) to retain or place any such moneys on deposit or current account with any bank or on deposit with any company, local authority, building society or insurance company in any part of the world and for such periods as they shall think fit; and

(c) to carry out any improvements of any kind to land or buildings in which the Scheme has an interest including the erection demolition and reconstruction of any buildings and the development of land and other property.

(3) The Committee of Management shall have power to appoint one or more nominees or custodian trustees to hold investments on behalf of the Committee of Management.

(4) The Committee of Management shall have power to raise or borrow any sum or sums of money and to secure the repayment thereof in such manner and upon such terms as they think fit and to charge the sums so raised or borrowed or any part thereof on all or any part of the Scheme Fund.

(5) The Committee of Management shall have power to enter into any transaction which is not authorised by any of the other provisions of the Scheme or otherwise by law and which in their opinion is beneficial to the Scheme and, without prejudice to the generality of the foregoing, the Committee of Management shall have power:—

(a) to lend any investments of the Scheme Fund to any person or corporation on such terms and for such purposes as the Committee of Management may think fit;

(b) to underwrite, sub-underwrite or guarantee the subscription of any stocks, shares, debenture stocks or other investments; and

(c) to give any warranty or indemnity in connection with the exercise of their powers under this Clause.

(6) Moneys may be invested or laid out in or upon any investment or transaction of any nature hereby authorised notwithstanding that the same may be acquired or entered into by the Committee of Management jointly or in common with any other person or corporation.

Section 8 PENSIONABLE EARNINGS

(1) Subject as hereinafter provided, for the purpose of the Rules “Pensionable Earnings” in relation to any person means—

(a) The amount of that person’s average total weekly Earnings during a period of 3 consecutive years falling within the final continuous period not exceeding 13 consecutive years of his Contributing Service, such period of 3 consecutive years being the period during which the amount of his average total weekly Earnings equals or exceeds the amount of his average total weekly Earnings during any other period of 3 consecutive years during such final continuous period; or

(b) If that person’s total final continuous period of Contributing Service comprises less than 3 consecutive years, the amount of his average total weekly Earnings during such final continuous period.

(2) Any amount of Earnings of any person taken into account for the purpose of calculating that person’s Pensionable Earnings shall be adjusted by reference to changes in the Index of Retail Prices if and insofar as is provided by Rule 26.

(3) For the purposes of this Rule “year” means Income Tax Year.

Provided that if, in respect of a year commenced on or after 6th April 1993, a person’s Pensionable Earnings for the purposes of paragraph (1) of this Rule would be increased by taking into account his total weekly Earnings during the period commenced on 6th April preceding that date of termination of his service in Eligible Employment and expiring on that date, that period shall be deemed to be a year for the purposes of this Rule.

Section 8

Resolution

Section 8A MANAGEMENT OF PENSION FUND

(1) Notwithstanding the provisions of Clause 8 no part of the Pension Fund shall at any time be invested in employer-related investments as defined in paragraph (2) of this Clause save that the Pension Fund may at any time be invested in not more than 3 per cent of any class of any securities issued by an Employer or any such company as is referred to in sub-paragraph (a)(i) of paragraph (2) of this Clause which are listed or permitted to be dealt in on any recognised stock exchange.

(2) For the purposes of this Clause:—

(a) “employer-related investments” means—

(i) shares or other securities issued by an Employer or by any holding company as defined in section 736 of the Companies Act 1985 of an Employer or by any company in which an Employer or such holding company holds a majority of the voting rights;

(ii) property (other than land) which is used for the purposes of any business carried on by an Employer or any such company as is referred to in sub-paragraph (a)(i); and

(iii) loans to an Employer or any such company as is referred to in sub-paragraph (a)(i); and

(b) “securities” means any asset, right or interest falling within paragraph 1, 2, 4 or 5 of Schedule 1 to the Financial Services Act 1986.

Section 9 MANAGEMENT OF PENSION FUND

(1) The Committee of Management by themselves or any nominee on their behalf shall have power to do all or any of the following:—

(a) to carry on any business or other activity in partnership whether in the United Kingdom or elsewhere;

(b) to enter into any business or other partnership with others whether in the United Kingdom or elsewhere, or to acquire by subscription or otherwise an interest whether freely transferable or not in any such partnership;

(c) from time to time to finance or provide funds whether by way of loan or further investment or otherwise for any partnership or proposed partnership of which they or their nominee may for the time being be partners or propose to become partners; and

(d) from time to time to enter into any arrangement or agreement whether by way of substitution for or modification of any then subsisting arrangement or agreement or otherwise with all or any of the other partners or proposed partners in any partnership or proposed partnership of which they or their nominee may for the time being be partners or propose to become partners.

(2) The Committee of Management or any nominee on their behalf shall have power without being liable for any loss occasioned thereby to leave the entire management of any business or activity carried on by any partnership of which they or such nominee may for the time being be partners to any other partners or partner without any obligations on their or such nominee’s part to attend thereto further than to require such other partners or partner to render an account thereof from time to time as the Committee of Management or such nominee may think appropriate.

(3) For the avoidance of doubt the Committee of Management shall have power:—

(i) to employ any moneys of the Scheme not required for payment of pensions or other benefits; and

(ii) to enter into transactions in connection with such a partnership

as though such a partnership were an investment authorised under paragraph (1) of Clause 8.

(4) For the purposes of this Clause “business” includes any trade, profession or occupation.

Section 9 INLAND REVENUE LIMITS

(1) Notwithstanding anything to the contrary in the provisions of the Scheme, the benefits payable to a member or to any person in respect of him shall not, when aggregated with all benefits of a like nature provided under all Relevant Schemes providing benefits in respect of Relevant Service, exceed the limits set out in the following paragraphs of this Rule or such greater limits as the Board of Inland Revenue may in writing from time to time agree.

(2) The member’s Aggregate Retirement Benefit shall not exceed:—

(a) in respect of a Pre 1987 member or a 1987 member:

(i) on retirement at or before Pensionable Age, except before Pensionable Age on grounds of ill-health under Rule 12, a pension of 1/60th of Final Remuneration for each year of Relevant Service (not exceeding 40 years) or such greater amount as will not prejudice Approval;

(ii) on retirement on grounds of ill-health under Rule 12, the amount calculated in accordance with sub-paragraph (a)(i) of this paragraph as if the member had remained in Relevant Service until Pensionable Age, Final Remuneration being computed as at the actual date of retirement;

(iii) on retirement after Pensionable Age, a pension of the greatest of:

(I) the amount calculated in accordance with sub-paragraph (a)(i) of this paragraph on the basis that the actual date of retirement was the member’s Pensionable Age;

(II) the amount which could have been provided at Pensionable Age in accordance with sub-paragraph (a)(i) of this paragraph increased either actuarially in respect of the period of deferment or in proportion to any increase in the Index during that period; and

(III) where the member’s total Relevant Service has exceeded 40 years, the aggregate of 1/60th of Final Remuneration for each year of Relevant Service before Pensionable Age (not exceeding 40 such years) and of a further 1/60th of Final Remuneration for each year of Relevant Service after Pensionable Age, with an overall maximum of 45 reckonable years.

Final Remuneration being computed in respect of (I) and (III) as at the actual date of retirement; or

on ceasing to be in Eligible Employment before Pensionable Age, a pension of 1/60th of Final Remuneration for each year of Relevant Service up to the date of such cessation (not exceeding 40 years) or such greater amount as will not prejudice Approval. The amount computed as aforesaid may be increased at the rate of 5 per cent compound for each complete year or, if greater, in proportion to any increase in the Index which has occurred between the date of such cessation and the date on which the pension begins to be payable and may be further increased so as to comply with the requirements of the Department of Social Security.

in respect of a New Tax Regime member or a 1989 member:

on retirement at any time between attaining age 50 and attaining age 75, except before Pensionable Age on grounds of ill-health under Rule 22, a pension of 1/60th of Final Remuneration for each year of Relevant Service (not exceeding 40 years) or such greater amount as will not prejudice Approval;

on retirement at any time before Pensionable Age on grounds of ill-health under Rule 12 a pension of the amount which could have been provided at Pensionable Age in accordance with sub-paragraph (b)(i) of this paragraph, Final Remuneration being computed as at the actual date of retirement; or

on ceasing to be in Eligible Employment before attaining age 75, a pension of 1/60th of Final Remuneration for each year of Relevant Service up to the date of such cessation (not exceeding 40 years) or such greater amount as will not prejudice Approval. The amount computed as aforesaid may be increased at the rate of 5 per cent compound for each complete year or, if greater, in proportion to any increase in the Index which has occurred between the date the member ceased to be in Eligible Employment and the date on which the pension begins to be payable and may be further increased so as to comply with the requirements of the Department of Social Security.

Benefits for a New Tax Regime member or a 1989 member are further restricted to ensure that his total retirement benefit from the Scheme and from any Associated Scheme or Connected Scheme does not exceed a pension of 1/30th of the Permitted Maximum for each year of Relevant Service, subject to a maximum of 20/30ths.

For the purpose of calculating the Aggregate Retirement Benefit or the total retirement benefit in sub-paragraphs (b)(i) to (iv) above, the pension equivalent of any Lump Sum Retirement Benefit is 1/12th of its total cash value.

(3) The member’s Lump Sum Retirement Benefit shall not exceed:

(a) in respect of a Pre 1987 member or a 1987 member:

(i) on retirement at or before Pensionable Age, except before Pensionable Age on grounds of ill-health under Rule 12, 3/80ths of Final Remuneration for each year of Relevant Service (not exceeding 40 years) or such greater amount as will not prejudice Approval;

(ii) on retirement on the grounds of ill-health under Rule 12 the amount calculated in accordance with sub-paragraph (a)(i) of this paragraph as if the member had remained in Relevant Service until Pensionable Age, Final Remuneration being computed as at the actual date of retirement;

(iii) on retirement after Pensionable Age, the greatest of:

(I) the amount calculated in accordance with sub-paragraph (a)(i) of this paragraph on the basis that the actual date of retirement was the member’s Pensionable Age;

(II) the amount which could have been provided at Pensionable Age in accordance with sub-paragraph (a)(i) of this paragraph together with an amount representing interest thereon; and

(III) where the member’s total Relevant Service has exceeded 40 years, the aggregate of 3/80ths of Final Remuneration for each year of Relevant Service before Pensionable Age (not exceeding 40 such years) and of a further 3/80ths of Final Remuneration for each year of Relevant Service after Pensionable Age, with an overall maximum of 45 reckonable years.

Final Remuneration being computed in respect of (I) and (III) as at the actual date of retirement; or

on ceasing to be in Eligible Employment before Pensionable Age, a lump sum of 3/80ths of Final Remuneration for each year of Relevant Service prior to such cessation (not exceeding 40 years) or such greater amount as will not prejudice Approval. The amount computed as aforesaid may be increased in proportion to any increase in the Index which has occurred between the date the member ceased to be in Eligible Employment and the date on which the benefit is first paid but only if and to the same extent as the total benefits have been increased under sub-paragraph (b)(iii) of paragraph (2).

in respect of a New Tax Regime member or a 1989 member:

on retirement at any time between attaining age 50 and attaining age 75, except before Pensionable Age on grounds of ill-health under Rule 22, 3/80ths of Final Remuneration for each year of Relevant Service (not exceeding 40 years) or such greater amount as will not prejudice Approval;

on retirement at any time before Pensionable Age on grounds of ill-health under Rule 12 the amount which could have been provided at Pensionable Age in accordance with sub-paragraph (b)(i) of this paragraph, Final Remuneration being computed as at the actual date of retirement;

on ceasing to be in Eligible Employment before attaining age 75, a lump sum of 3/80ths of Final Remuneration for each year of Relevant Service prior to such cessation (not exceeding 40 years) or such greater amount as will not prejudice Approval. The amount computed as aforesaid may be increased in proportion to any increase in the Index which has occurred between the date the member ceased to be in Eligible Employment and the date on which the benefit is first paid.

(4) The lump sum benefit (exclusive of any refund of the member’s own contributions and any interest thereon) payable on the death of a member while in Relevant Service or (having left Relevant Service with a deferred pension) before the commencement of his pension, shall not, when aggregated with all like benefits under Associated Schemes, exceed the greater of:

(i) £5,000; and

(ii) four times the greater of the annual rate of the member’s Remuneration at the date of death and his Final Remuneration.

(5) Any pension for a Dependant (excluding any pension resulting from Relevant Service by that Dependant), when aggregated with the pensions payable to that Dependant under all Associated Schemes, shall not exceed an amount equal to 2/3rds of the Aggregate Retirement Benefit:—

(a) being paid to the member at the date of his death (including any pension increases given under the Rules); or

(b) being a deferred benefit payable to the member at Pensionable Age in the case of a pre 1987 member or a 1987 member or between attaining age 50 and attaining age 75 in the case of a New Tax Regime member or a 1989 member (including any pension increases given under the Rules); or

(c) prospectively payable to the member who dies in Relevant Service had he remained in Relevant Service up to pensionable Age at the rate of pay in force immediately before his death; or

(d) prospectively payable to the member who dies in Relevant Service after Pensionable Age on the basis that he had retired on the day before he died or such greater amount as will not prejudice Approval.

If such pensions are payable to more than one person in respect of a member the aggregate of all such pensions payable in respect of him under this and all Associated Schemes shall not exceed the full amount of whichever is the appropriate Aggregate Retirement Benefit under sub-paragraph (a), (b), (c) or (d) above or such greater sum as will not prejudice Approval.

(6) In calculating any benefits under the Scheme deductions shall be made in respect of any Retained Benefits to such extent as the Board of Inland Revenue may from time to time require.

(7) The maximum amount of a pension ascertained in accordance with this Rule less any pension which has been commuted for a cash sum or the pension equivalent of any benefits in lump sum form and any pension surrendered to provide a Dependant’s pension may be increased at the rate of 3 per cent compound for each complete year or such higher percentage as the Department of Social Security may from time to time prescribe by regulations or, if greater, in proportion to the increase in the Index since the pension commenced to be paid.

(8) The preceding provisions of this Rule shall be modified in their application to a member who is a Special Director or is or has been a Controlling Director as follows:

(a) the amount of the maximum Aggregate Retirement Benefit in paragraph (2) and of the maximum Lump Sum Retirement Benefit in paragraph (3) shall be reduced, where necessary to ensure that Approval will not be prejudiced thereby, so as to take account of any corresponding benefits under either a retirement annuity contract or trust scheme approved under Chapter III of Part XIV of the 1988 Act or a personal pension scheme approved under Chapter IV of Part XIV of the 1988 Act; and

(b) in relation to a member who is a Special Director at his Pensionable Age, where retirement takes place after Pensionable Age but not later than the member’s 70th birthday, sub-paragraphs (a)(iii)(II) and (III) of paragraph (2) and sub-paragraphs (a)(iii)(II) and (III) of paragraph (3) shall not apply, if the retirement is later than the attainment of that age the said sub-paragraphs shall apply as if the member’s 70th birthday had been specified in the Rules as his Pensionable Age, so as not to treat as service after Pensionable Age any service before the member reaches the age of 70.

(9) The total contributions paid by a member in a year of assessment to the Scheme and any Relevant Scheme providing benefits by virtue of Relevant Service shall not exceed 15 per cent of the member’s Remuneration for that year in respect of that Relevant Service.

(10) A member may elect to become a New Tax Regime member at any time prior to the date on which benefits commence, are bought-out or otherwise transferred from the Scheme or the attainment of age 75 whichever first occurs by serving written notice on the Committee in such form as they shall from time to time prescribe.

(11) In this Rule the following terms shall have the following meanings:—

(a) “the 1988 Act” means the Income and Corporation Taxes Act 1988.

(b) “Aggregate Retirement Benefit” means the aggregate of

(i) the member’s pension under the Scheme and any Associated Scheme, and

(ii) the pension equivalent of the member’s Lump Sum Retirement Benefit.

(c) “Approval” means approval of the Scheme by the Board of Inland Revenue under Chapter I of Part XIV of the 1988 Act.

(d) “Associated Employer” means an employer which is associated with another employer either by being controlled by that other or by both employers being controlled by a third party. Control has the meaning in Section 840 of the 1988 Act.

(e) “Associated Schemes” means any Relevant Scheme providing benefits in respect of Relevant Service or in respect of a 1989 member or New Tax Regime member any Relevant Scheme which is a Connected Scheme or which provides benefits in respect of Relevant Service.

(f) “Connected Scheme” means any Relevant Scheme which is connected with the Scheme in relation to the member. For this purpose a Relevant Scheme is connected with the Scheme if:

(i) there is a period during which the member has been the employee of two Associated Employers;

(ii) that period counts under both schemes as a period in respect of which benefits are payable; and

(iii) the period counts under one scheme for service with one employer and under the other for service with the other employer.

(g) “Controlling Director” means a director of an Employer who was before 6th April 1973 a Controlling Director (as defined in Section 624(3) of the 1988 Act) of that Employer.

(h) “Final Remuneration” means the greater of:

(I) the highest remuneration upon which tax liability has been determined for any one of the five years preceding the Relevant Date being the aggregate of:

(i) the basic pay for the year in question; and

(ii) the yearly average over three or more consecutive years ending with the expiry of the corresponding basic pay year of any Fluctuating Emoluments Provided that Fluctuating Emoluments of a year other than the basic pay year may be increased in proportion to the increase in the Index from the last day of that year up to the last day of the basic pay year. Remuneration that is received after the Relevant Date and upon which tax liability has been determined will be treated as a Fluctuating Emolument (providing it was earned or qualified for prior to the Relevant Date). In these circumstances it may be included provided the yearly average of three or more consecutive years begins no later than the commencement of the basic pay year; or

(II) the yearly average of the total emoluments from the Employer which are assessable to income tax under Case I or II of Schedule E and upon which tax liability has been determined for any three or more consecutive years ending not earlier than ten years before the Relevant Date. Where such emoluments are received after the Relevant Date but are earned or qualified for prior to that date, they may be included Provided that in these circumstances the yearly average of three or more consecutive years begins no later than the commencement of the year ending with the Relevant Date.

Provided that:

remuneration and total emoluments do not include any amounts which arise from the acquisition or disposal of shares or any interest in shares or from a right to acquire shares (except where the shares or right to or interest in shares which give rise to such an amount liable to tax under Schedule E had been acquired before 17th March 1987) or anything in respect of which tax is chargeable by virtue of Section 148 of the 1988 Act;

in relation to a Special Director, Final Remuneration shall be the amount ascertained in accordance with sub-paragraph (II) above and sub-paragraph (I) above shall not apply;

in relation to any other member whose Remuneration in any year subsequent to 5th April 1987 used for the purpose of calculating benefits has exceeded £100,000 (or such other figure as may be prescribed by the Treasury), Final Remuneration shall not exceed the amount ascertained in accordance with sub-paragraph (II) above and sub-paragraph (I) above shall not apply, unless the individual chooses to adopt £100,000 (or such other figure as may be prescribed by the Treasury);

where Final Remuneration is computed by reference to any year other than the last complete year ending on the Relevant Date the member’s remuneration or total emoluments of any year may be increased in proportion to any increase in the Index from the last day of that year up to the Relevant Date but this proviso shall not apply to the calculation of the maximum Lump Sum Retirement Benefit in accordance with paragraph (3) of this Rule unless (and subject to proviso (v) below) the member’s Aggregate Retirement Benefit is similarly increased beyond the maximum amount which could be paid but for this proviso and/or the proviso to sub-paragraph (I)(ii) above, and then only to the same proportionate extent;

for 1989 members or New Tax Regime members Final Remuneration shall not exceed the Permitted Maximum;

for the purpose of calculating the maximum Lump Sum Retirement Benefit of a 1987 member, Final Remuneration shall not in any event exceed £100,000 (or such other figure as may be prescribed by the Treasury);

an employee who remains, or is treated as remaining, in service but by reason of incapacity is in receipt of a much reduced remuneration, such as under a sick pay or permanent health insurance scheme, for more than ten years up to the Relevant Date, may calculate Final Remuneration under sub-paragraph (I) or (II) above with the Final Remuneration calculated at the cessation of normal pay and increased in accordance with the Index;

the total amount of any profit related pay (whether relieved from income tax or not) may be classed as pensionable remuneration and treated as a Fluctuating Emolument;

an early retirement pension in payment from the Employer may not be included in Final Remuneration;

“Fluctuating Emoluments” means any part of an employee’s earnings which are not paid on a fixed basis and are additional to the basic wage or salary. They include overtime, commission, bonuses or benefits in kind as long as they are assessable to tax under Case I or II of Schedule E and profit related pay. Directors' fees may rank as Fluctuating Emoluments according to the basis on which they are voted.

“Index” means the Index of retail prices published by the Department of Employment or any other index approved for the purposes of the Scheme by the Board of Inland Revenue.

“Lump Sum Retirement Benefit” means the total value of all retirement benefits payable in any form other than non-commutable pension under the Scheme and any Associated Scheme.

“New Tax Regime member” means a member who has given notice pursuant to paragraph (10) of this Rule.

“Permitted Maximum” means the figure specified in respect of the relevant year of assessment pursuant to Section 590C of the 1988 Act.

“Pre 1987 member” means a member who was a member on 16 March 1987 or is deemed pursuant to regulations made by the Board of Inland Revenue to have been a member on that date and who, in either case, has not elected pursuant to paragraph (10) of this Rule to become a New Tax Regime member.

“Relevant Date” means the date of retirement, leaving service in Eligible Employment or death as the case may be.

“Relevant Scheme” means any other scheme approved or seeking approval under Chapter I of Part XIV of the 1988 Act and in respect of a New Tax Regime member or a 1989 member who is a Controlling Director also any retirement annuity contract or trust scheme approved under Chapter III of Part XIV or any personal pension scheme as approved under Chapter IV of Part XIV of the 1988 Act insofar as it provides benefits secured by contributions in respect of Relevant Service.

“Relevant Service” means

in relation to a New Tax Regime member or a 1989 member the aggregate of:

all periods of service with an Employer and;

all other periods which count in respect of any Associated Employment or any Connected Scheme;

in relation to a Pre 1987 member or a 1987 member service with an Employer;

“Remuneration” means in relation to any year the aggregate of the total emoluments for the year in question from the Employer and which are assessable to income tax under Schedule E but excluding any amounts which arise from the acquisition or disposal of shares or any interest in shares or a right to acquire shares or anything in respect of which tax is chargeable by virtue of Section 148 of the 1988 Act Provided that for a New Tax Regime member or a 1989 member there shall be disregarded any emoluments in excess of the Permitted Maximum.

“Retained Benefits” means any benefit payable on retirement or death to a member from:—

retirement benefits schemes approved or seeking approval under Chapter I of Part XIV of the 1988 Act or relevant statutory schemes as defined in Section 611A thereof;

funds to which Section 608 of the 1988 Act applies;

retirement benefits schemes which have been accepted by the Inland Revenue as “corresponding” in respect of a claim made on behalf of the member for the purposes of Section 596(2)(b) of the 1988 Act;

retirement annuity contracts approved under Chapter III of Part XIV of the 1988 Act;

personal pension schemes approved under Chapter IV of Part XIV of the 1988 Act; or

transfer payments from overseas schemes held in a type of arrangement defined in sub-paragraph (i), (iv) or (v) above

in respect of previous employments or periods of self-employment (whether alone or in partnership).

“Special Director” means a member who, at any time on or after 17th March 1987 and in the last ten years before the Relevant Date has, in relation to the Employer, been both within the definition of a director in Section 612(1) of the 1988 Act and within paragraph (b) of Section 417(5) of that Act.

“1987 member” means a member who became a member on or after 17 March 1987 and before 1 June 1989, and any member deemed pursuant to regulations made by the Board of Inland Revenue to have become a member during that period who has not elected to become a New Tax Regime member pursuant to paragraph (10) of this Rule or a 1989 member pursuant to paragraph 29 of Part II of Schedule 6 to the Finance Act 1989.

“1989 member” means a member who became a member on or after 1st June 1989 and is not deemed pursuant to regulations made by the Board of Inland Revenue to have been a member at any time prior to that date or a 1987 member who has elected pursuant to paragraph 29 of Part II of Schedule 6 to the Finance Act 1989.

Section 9

Resolution

Section 9A MANAGEMENT OF PENSION FUND

The Committee of Management shall with effect from the Guarantee Date exercise and perform their powers and duties under Clauses 8, 8A and 9 in accordance with and subject to any directions as the Guarantor may from time to time make. Provided that the Guarantor will only make such directions after consultation with the Committee of Management unless in exceptional circumstances such consultation is impracticable.

Section 9A GUARANTEED MINIMUM PENSIONS

(1) This Rule shall apply if any employment becomes contracted-out employment by reference to the Scheme, and it shall then override any other provisions of the Scheme, the Rules and the Schedules to the Rules (and in particular, but without prejudice to the generality of the foregoing, or sub-paragraph (a) of paragraph (3) and paragraph (6) of Rule 16, sub-paragraph (a)(i) of paragraph (2) and paragraph (5) of Rule 33, Rule 34 and paragraphs (4) and (5) of Rule 41) if and insofar as they are inconsistent with it.

(2) The words and expressions used in this Rule shall have the same meanings as in the Pensions Act.

(3) Subject to the provisions of paragraph (4) of Rule 19, any entitlement of a member and or alternatively, as the case may be, any other beneficiary concerned under the provisions of this Rule shall be inclusive of any entitlement under any other provisions of the Scheme, the Rules or the Schedules to the Rules other than any entitlement to equivalent pension benefits for the purposes of Part III of the National Insurance Act 1965 and the previous corresponding enactments.

(4) If an earner has a guaranteed minimum in relation to the pension provided for him under the Scheme in accordance with section 35 of the Pensions Act:—

(a) the weekly rate of the pension from age 65 for a man and 60 for a woman shall not be less than the guaranteed minimum;

(b) if the earner is a man and dies at any time leaving a widow, the weekly rate of the pension provided for her under the Scheme unless and until she re-marries under the age of 60 shall not be less than half that earner’s guaranteed minimum;

(c) if the earner is a woman and dies on or after 6th April 1989 leaving a widower, he shall be entitled, unless and until he re-marries under the age of 65, to a pension at a weekly rate of not less than half of that part of the earner’s guaranteed minimum, which is attributable to earnings for the tax year 1988/89 and subsequent tax years.

(4A) The guaranteed minimum pensions referred to in paragraph (4) shall, insofar as they are attributable to earnings in the tax years from (and including) 1988/89, be increased on becoming payable in accordance with Section 37A of the Pensions Act and to the extent of any orders made thereunder.

(5) Commencement or payment of an earner’s guaranteed minimum pension shall be postponed or suspended as the case may be for any period during which he is under the age of 70 for a man or 65 for a woman and is in employment to which the Scheme applies.

(6) Where the commencement or payment of an earner’s guaranteed minimum pension is postponed or suspended for any period in accordance with paragraph (5) of this Rule, his guaranteed minimum pension shall be increased to the extent, if any, specified in Sections 35(6), (6A) and (6B) of the Pensions Act.

(7)

(a) A guaranteed minimum pension payable by virtue of this Rule shall be capable of being forfeited, terminated or suspended during the life-time of the person to whom it is payable in accordance with sub-paragraph (b) of paragraph (4) or paragraph (5) of this Rule or otherwise in such circumstances as are for the time being prescribed by Regulations made under section 39(4)(b) of the Pensions Act but in no other circumstances.

(b) The liability of the Scheme to pay any such guaranteed minimum pension shall during that lifetime be capable of being terminated or suspended in such circumstances as are from time to time permitted or otherwise provided for by the Pensions Act but in no other circumstances.

(c) Notwithstanding anything in Rule 23, where an earner who has become entitled to a guaranteed minimum pension by virtue of this Rule re-enters employment to which the Scheme applies his rights to such pension shall not be terminated but shall have effect subject to the provisions of paragraphs (5) and (6) of this Rule.

(d) Section 48 of the Pensions Act shall apply in relation to any guaranteed minimum pension payable by virtue of this Rule.

(8) If an employer or from 6th April 1987 the Committee of Management makes an election under section 42 of the Pensions Act he or they shall be bound to pay a Contributions Equivalent Premium with a view to extinguishing accrued rights to guaranteed minimum pensions or a guaranteed minimum pension in any case where the Pensions Act so permits Provided that—

(a) The employer or the Committee of Management (as the case may be) may but shall not be bound so to do—

(i) where the amount of the Contributions Equivalent Premium would not exceed £5; or

(ii) in any case for the time being prescribed for the purposes of section 43(4) of the Pensions Act, but

(b) In respect of any of the cases mentioned in proviso (a)(ii) above the employer shall not discriminate between different earners falling within the same class of case.

(9) If a state scheme premium is paid in respect of a member under section 43(4) of the Pensions Act and the Scheme’s liability to provide guaranteed minimum pension benefits in respect of such member is cancelled, the benefits in respect of the member under the Scheme shall be reduced accordingly, and any ancillary benefits (contingent on death or otherwise) which are related to the amount of guaranteed minimum pension benefits concerned shall cease to be payable except insofar as the Principal Employer in their discretion decide otherwise.

Section 9B CESSATION OF MEMBERSHIP

If a member exercises his right to discontinue his membership of the Scheme, in accordance with the provisions of Rule 1A his service in Eligible Employment and Contributing Service shall be deemed for the purposes of the Rules as having terminated on the date of such discontinuance in accordance with the provisions of Rule 15. This Rule shall override any other provisions of the Scheme, the Rules and the Schedules to the Rules insofar as they are inconsistent with it.

Section 10 MANAGEMENT OF PENSION FUND

(1) Without prejudice to the provisions of or to any powers conferred by Section 23 of the Trustee Act 1925 or Clauses 8, 9, 31 and 32, the Committee of Management shall have power (such power to be exercisable with effect from the Guarantee Date only with the consent of the Guarantor) to employ such nominees or agents as the Committee of Management may think fit in the transaction of any business of the Scheme (including the payment of pensions and other benefits) and any valid receipt therefor given to or by such nominee or agent shall be a good and sufficient discharge to the Committee of Management.

(2) Without prejudice to the generality of the foregoing and the provisions of Clauses 31 and 32, the Committee of Management shall have power (such power to be exercisable with effect from the Guarantee Date only with the consent of the Guarantor) to appoint and remove one or more investment managers to the Scheme and to authorise any such investment manager to exercise all or any of their powers set out in Clauses 8, 9 and paragraph (1) of this Clause on such terms as to remuneration and otherwise as shall from time to time be agreed between the Committee of Management (with effect from the Guarantee Date with the consent of the Guarantor) and such investment manager or managers.

Section 10 NORMAL RETIREMENT

(1) Subject as hereinafter provided, benefit shall be payable under this Rule to a member on Retirement from Eligible Employment on or after 6th April 1975 on or after attaining Pensionable Age and before the Transfer Date.

(2) Subject as hereinafter provided, the benefit payable under this Rule to a member having Qualifying Service of 5 years or more shall be a pension comprising the aggregate of such of the following weekly amounts as shall be applicable—

(aaa) A weekly amount consisting of one-sixtieth of the amount of the member’s Pensionable Earnings for each complete year of the member’s Contributing Service and one-fifty-second part of one-sixtieth of the amount of the member’s Pensionable Earnings for each week of such Contributing Service not thus taken into account Provided that the maximum period of Contributing Service to be taken into account for the purpose of this sub-paragraph in relation to a member shall be forty complete years with the option of electing to take a lump sum payment in accordance with the provisions of paragraph (5) of this Rule;

(c) A weekly amount consisting in respect of the periods specified in column (2) and any subsequent column of the Seventh Schedule of the amounts shown in those columns respectively against item (1) of that Schedule for each complete year of the member’s service in Eligible Employment during the period from 6th January 1964 to 5th April 1975 and of the amounts so shown divided by 52 for each week of such service not thus taken into account.

(d) A weekly amount consisting in respect of the periods specified in column (2) and any subsequent column of the Seventh Schedule of the amounts shown in those columns respectively against item (2) of that Schedule for each complete year of the member’s service in Eligible Employment during the period from 3rd April 1961 to 5th January 1964 and of the amounts so shown divided by 52 for each week of such service not thus taken into account.

(e) If the member has units standing to his credit, representing service before 3rd April 1961, a weekly amount consisting in respect of the periods specified in column (2) and any subsequent column of the Seventh Schedule of the amounts shown in those columns respectively against item (3) of that Schedule for every such unit.

(f) If the total of:—

(i) The aggregate of the weekly amounts ascertained in accordance with sub-paragraphs (a) to (e) of this paragraph; and

(ii) the weekly rate of any graduated pension payable to the member under the Social Security Legislation so far as such pension is attributable to the member’s having been treated under Section 58 of the National Insurance Act as having paid graduated contributions to the National Insurance Fund in respect of service with an Employer in Eligible Employment or service in respect of which the member has paid contributions to the Staff Scheme; and

(iii) the weekly amount of any other pension payable to the member under the Rules (other than Rule 9A), so far as such pension is in respect of service in Eligible Employment on or after 3rd April 1961; and

(iv) in the case of a member who, having been a contributor to the Staff Scheme, transfers to Eligible Employment on or after 3rd April 1961, the weekly amount of any pension payable to the member under the Staff Scheme;

is in respect of the periods specified in column (2) and any subsequent column of Part I of the Fifth Schedule, less than the weekly amounts shown in those columns respectively against item (2) of Part I of that Schedule in relation to the member’s period of Qualifying Service, the difference between the said total and that amount.

(3) Subject as hereinafter provided, the benefit payable under this Rule to a member having Qualifying Service of less than 5 years shall be a pension comprising the aggregate of such of the following weekly amounts as shall be applicable—

(a) a weekly amount calculated in accordance with sub-paragraphs (aaa), (c) and (d) of paragraph (2) of this Rule; and

(b) If the member has units standing to his credit, representing service before 3rd April 1961, a weekly amount representing the weekly pension payable to the member Actuarially Equivalent to the lump sum (if any) of the amount shown in the Second Schedule according to the number of units standing to his credit, with Compound Interest at 3% per annum from 3rd April 1961 to the date on which the member attains Pensionable Age.

(5) A member whose service in Eligible Employment terminates on or after 1st March 1992 may prior to his pension becoming payable, elect to commute within the Inland Revenue Limits up to 25% of his pension for a lump sum payment on the basis of £9 for each £1 of pension commuted.

Section 10

Resolution

Section 11 DEFERRED RETIREMENT

(1) Subject as hereinafter provided, a member who on or after 1st April 1990 remains in Eligible Employment after attaining Pensionable Age shall on Retirement from Eligible Employment be entitled to receive the same benefits in all respects as he would have received if he had retired on attaining Pensionable Age but increased by such amount as the Committtee of Management acting on the advice of the Actuary may determine.

(1A) A member who attained Pensionable Age before the Transfer Date and who is in Eligible Employment on the day immediately before the Transfer Date and does not retire on that day shall be deemed to retire on that day and shall receive benefits calculated in accordance with Rule 10 (increased with effect from the Transfer Date in accordance with the provisions of this Rule if appropriate).

(2) No increase in benefit shall be provided by this Rule unless the member’s Retirement from Eligible Employment shall be deferred by at least one complete year after Pensionable Age and thereafter shall be increased by such further amount as the Committee of Management acting on the advice of the Actuary may determine in respect of each complete week of deferment.

(3) In calculating any increase of benefit under this Rule—

(a) the period of deferment in relation to a member shall be deemed to commence on the date on which the member attains Pensionable Age and to terminate on the date on which his service in Eligible Employment terminates or is deemed to terminate; and

(b) not more than five years of deferment shall be taken into account in relation to any member.

(4) A member who shall have attained either the age of 62 on or before 1st April 1990 or the age of 60 on or before 1st March 1992 and who shall continue in Eligible Employment after those respective dates shall be entitled on the termination of his service in Eligible Employment to receive a pension calculated in accordance with paragraph (2) of Rule 10 but increased in accordance with the provisions of this Rule.