Paragraph 5 Relevant pension scheme

(1)

This paragraph applies to a pension scheme which–

(a)

provides for the payment of contributions by protected employees and for valuations of the scheme on a basis (both as to the rate of such contributions and as to the frequency of valuations and the funding of deficits) which would not cause a protected person to be placed in any worse position than under the corresponding provisions of the rules of the Fund in force immediately before the transfer date;

(b)

is capable of receiving, at the request or with the consent of a protected person,–

(i)

from the Fund, a transfer payment in respect of his accrued pension rights under the rules of the Fund; or

(ii)

from a pension scheme which has itself received from the Fund or from another pension scheme a transfer payment in respect of his accrued pension rights under the rules of the Fund, a transfer payment in respect of his rights under that pension scheme (including–

(A)

pension rights provided by that scheme in respect of his accrued pension rights under the rules of the Fund; and

(B)

pension rights provided by that scheme in respect of accrued pension rights under another such scheme pursuant to the provisions of this Schedule); and

(c)

provides future pension rights for each protected employee who participates in the scheme.

(2)

A scheme to which this paragraph applies may–

(a)

in addition to providing benefits for protected persons, provide benefits for other persons upon such terms as the employer or other person having the right to make or change the provisions of the scheme may determine; and

(b)

include provision for any one or more of the protected persons who participate in the scheme of benefits additional to those provided in pursuance of the provisions of sub- paragraph (1) above, with or without an obligation to pay additional contributions, so however that it may not be a condition of membership of the scheme that a protected person shall be required to pay contributions at a higher percentage rate in relation to his remuneration than he was required to pay under the rules of the fund in force immediately before the transfer date.

(3)

A relevant pension scheme which ceases to conform to the provisions of any paragraph of sub-paragraph (1) above shall cease to be a relevant pension scheme.