Explanatory note

(This note is not part of the Order)

Article 3 of this Order makes provision for persons who are members of various pension schemes to be members of the 1994 Pensioners Section of the Railways Pension Scheme (the “transferee scheme”). The pension schemes in question (the “transferor schemes”) are:

(a)

B.R. (1974) Pension Fund (the “1974 Fund”);

(b)

The London and North Western Railway Provident Society for providing pensions for widows and orphans of the salaried staff;

(c)

Great Western Railway Supplemental Pensions Reserve Fund;

(d)

The Great Western Railway Salaried Staff Widows’ and Orphans’ Pension Society;

(e)

The Great Northern Railway Superannuation Fund;

(f)

Great Western Railway Inspectors and Foremen’s Special Pension Fund;

(g)

The Southern Railway (South Eastern and Chatham Section) Enginemen & Motormen’s Pension Fund Society.

Article 3 of the Order also provides that on the date on which the Order comes into force each transferring member (which in relation to the 1974 Fund only includes those persons who have rights under that Fund and at least one of the other transferor schemes) becomes a member of the transferee scheme and ceases to be a member of any transferor scheme of which he was previously a member. All of the member’s pension rights under the transferor schemes are transferred so as to become rights under the transferee scheme.

Article 4 of the Order provides for the assets of the transferor schemes (other than those of the 1974 Fund) and the liabilities of the trustees under or in relation to each transferor scheme to be transferred to the transferee scheme. In relation to the 1974 Fund, only those liabilities which relate to the transferring members are transferred to the transferee scheme. On the transfer date, the liability of employers participating in the transferor schemes to pay contributions in respect of the transferring members is transferred to the employer participating in the transferee scheme.

Article 5 modifies the operation of Articles 6(2) and 7(4) of the Railway Pensions (Protection and Designation of Schemes) Order 1994 so that no payment is required to the transferee scheme in respect of the transfer of members and liabilities of the 1974 Fund made by this Order.

Article 6 provides that upon transfer of the assets, the transferor schemes (other than the 1974 Fund) are wound up.

A regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business, charities, voluntary bodies or the private sector.