Paragraph 6

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch. 1 para. 2(1) word substituted by Railway Pensions (Substitution) 2017 art. 7(a)
Sch. 1 para. 2(3) words substituted by Railway Pensions (Substitution) 2017 art. 7(b)
Sch. 1 para. 3(1) word substituted by Railway Pensions (Substitution) 2017 art. 7(c)
Sch. 1 para. 11(1) word substituted by Railway Pensions (Substitution) 2017 art. 7(c)
Sch. 1 para. 3(1) words substituted by Railway Pensions (Substitution) 2017 art. 7(d)
Sch. 1 para. 3(7) words substituted by Railway Pensions (Substitution) 2017 art. 7(e)
Sch. 1 para. 4(2) words substituted by Railway Pensions (Substitution) 2017 art. 7(f)
Sch. 1 para. 7(A1) inserted by Railway Pensions (Substitution) 2017 art. 7(g)(i)
Sch. 1 para. 7(1) words inserted by Railway Pensions (Substitution) 2017 art. 7(g)(ii)
Sch. 1 para. 7(2) words substituted by Railway Pensions (Substitution) 2017 art. 7(g)(iii)
Sch. 1 para. 7(5) words substituted by Railway Pensions (Substitution) 2017 art. 7(g)(iv)

(1)

Subject to the provisions of paragraph 8, during each relevant period from the relevant date in relation to any Table B amount (“the relevant Table B amount”) interest shall accrue, on 13th October in each year, on the outstanding balance for the time being of the relevant Table B amount at the rate determined in accordance with sub-paragraph (2) in relation to the relevant Table B amount and in relation to the relevant period.

(2)

The rate shall be—

((1 + \frac{P}{100}) \times 1.005 \times (\frac{Z}{W}) - 1) \times 100

per cent per annum.

(3)

In this paragraph—

"P" equals
$({(1 + \frac{Q}{2400})}^{2} - 1) \times 100;$
“Q”, in relation to any Table B amount, equals the total of the real gross redemption yields on the FT actuaries index-linked gilt edged investment index for stocks over 5-years maturity (5 per cent inflation) as at the close of business on the 14th day of each month (or, where that day is not a business day, the next following business day) in the period of 12 months starting 18 months before the relevant date in relation to that Table B amount;
“W” means the retail price index for the month of September in the year before the year in which the relevant period begins;
“Z” means the retail prices index for the month of September in the year in which the relevant period begins;
Z/W shall be calculated to three decimal places and, if Z/W is less than one, it shall be treated as one;
“relevant date”, in relation to the relevant Table B amount, means 13th October in the year 10 years earlier than the year specified in column 1 of Table B in relation to that amount; and
“relevant period” means the period of 12 months during which interest accrues under sub-paragraph (1), beginning on 14th October in any year.