Explanatory note

This Order makes provision for certain changes in connection with established pension schemes in the nationalised transport industry consequent on the setting up of the new authorities (the National Freight Corporation, the National Bus Company and the Scottish Transport Group) by the Transport Act 1968.

By Article 3, the Order extends to staff of the new authorities (and their subsidiaries) the same facility to join and re-enter pension schemes as is conferred on the staff of the existing Boards and the Transport Holding Company (and their subsidiaries) by the British Transport Reorganisation (Pensions of Employees) (No. 1) Order 1964.

By Article 4, the Order provides that Articles 13, 14 and 16 of the British Transport Reorganisation (Pensions of Employees) (No. 3) Order 1962 (which make provision for one nationalised transport body to make contributions to another such body and for preserving the pension rights of certain persons who become members or directors of a nationalised transport body) and so much of Article 1 of that Order as contains definitions of expressions used in the said Articles 13, 14 and 16 are to have effect with modifications to meet the new circumstances arising from the provisions of the Act of 1968 and of the present Order.

Provision is made in Articles 5 to 7 to confer on staff of the new authorities (and their subsidiaries) additional eligibility to join pension schemes.

In Articles 8 to 11 the Order provides for the transfer to the new authorities of the property, rights and liabilities of the Transport Holding Company in relation to certain established pension schemes for which that Company is at present responsible.

The Order places an obligation on the new authorities and their subsidiaries to obtain the consent of the Minister of Transport, or the Secretary of State, before entering into any new pension obligations or amending any established pension scheme (Article 12).

The Order, except for Articles 6 and 8 to 12, has effect from 18th November 1968 by virtue of S. 74(7) of the Transport Act 1962.