Paragraph 4

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

Sch.1, para.4(2) amended by Railway Pensions (Substitution and Miscellaneous Provisions) 1995 art.8, Sch.3, Pt.II, paras.2,3(a)
Sch.1, para.4(3) substituted by Railway Pensions (Substitution and Miscellaneous Provisions) 1995 art.8, Sch.3, Pt.II, paras.2,3(b)
Sch.1, para.4(3A) added by Railway Pensions (Substitution and Miscellaneous Provisions) 1995 art.8, Sch.3, Pt.II, paras.2,3(c)
Sch.1, para.4(4) (defn. of W and Z) revoked by Railway Pensions (Substitution and Miscellaneous Provisions) 1995 art.8, Sch.3, Pt.II, paras.2,3(d)
Sch.1, para.5 revoked by Railway Pensions (Substitution and Miscellaneous Provisions) 1995 art.8, Sch.3, Pt.II, paras.2,4
Sch.1, para.6(1) amended by Railway Pensions (Substitution and Miscellaneous Provisions) 1995 art.8, Sch.3, Pt.II, paras.2,5(a)
Sch.1, para.6(2)(4) amended by Railway Pensions (Substitution and Miscellaneous Provisions) 1995 art.8, Sch.3, Pt.II, paras.2,5(b)

(1)

Subject to sub-paragraph (3), interest shall accrue from 13 October 1994 to 13 October 1995 and during subsequent relevant periods on the outstanding balance of each Table A amount, on 13 October of each year, at the rate determined in accordance with sub-paragraph (2) in relation to the relevant period.

(2)

Subject to sub-paragraph (3), the rate in relation to any relevant period shall be:—

(1.0425 \times (\frac{Z}{W}) - 1) \times 100

per cent per annum.

(3)

Where paragraph 3 requires the Secretary of State to commence payment of a Table A amount during a relevant period, the rate at which interest shall accrue during that period under sub-paragraph (1) on the outstanding balance of the Table A amount in respect of which such payment is required shall be:—

(1.0425 \times {(\frac{Z}{W})}^{\frac{24}{23}} - 1) \times 100

per cent per annum.

(4)

In this paragraph—

“relevant period” means a period of twelve months, the first such period being the period from 13 October 1994 to 13 October 1995 and subsequent relevant periods being periods of 12 months starting from the end of the previous relevant period;
“W” means the retail prices 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 immediately before the date on which the relevant period begins; and
$\frac{Z}{W}$ shall be calculated to three decimal places and, if $\frac{Z}{W}$ is less than one, it shall be treated as one.