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Paragraph 2

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

(1)

Subject to the provisions of paragraphs 4 and 11, if, on any relevant date in relation to any year after 2003 (“the relevant year”), the circumstances specified in sub-paragraph (2) have arisen in relation to the amount specified in column 2 of Table B in relation to the relevant year (“the specified amount”), from 13 April in the relevant year the Secretary of State shall be under a duty to make 120 payments amounting in aggregate to that amount, the first such payment to be made on 14 April in the relevant year and subsequent payments to be made on the fourteenth day of each following month.

(2)

The circumstances referred to in sub-paragraph (1) are that the total of the relevant amounts in relation to the specified amount is more than

A+B,

where—

  • “A” means the amount determined by the actuaries in the relevant actuarial valuation in relation to the relevant year as being the amount retained in the Special Reserve Fund as at the valuation date in relation to that valuation, and, where in consequence of that valuation the amount retained in that Fund has been increased or reduced pursuant to Rule 13B (Application of Surplus) or 14B (Dealing with Shortfall) within six months after the date of signature of that valuation, so increased or reduced as the case may be; and

  • “B” means 3% of the amount determined by the actuaries in the relevant actuarial valuation in relation to the relevant year as being the total of the value of all the liabilities of the section in respect of pension rights as at the valuation date in relation to that valuation, and, where any change in pension rights has been made pursuant to Rule 13B or 14B in consequence of that valuation, increased or reduced as the case may be by an amount determined by the actuaries, before the date six months after the date of signature of the relevant actuarial valuation, as the change in the value of the liabilities of the section taking account of such change in pension rights.

(3)

In this paragraph—

  • “relevant actuarial valuation”, in relation to any year, means the latest actuarial valuation to have been signed before 14 January of that year

  • “relevant amounts” means, in relation to any specified amount—

    1. (a)

      the specified amount and any interest added thereto under paragraph 5(2) or 7(1); and

    2. (b)

      any amount specified in column 2 of Table B below the specified amount in relation to which there is no subsisting duty to make payments under this paragraph or paragraph 3 (or, where more than nine such amounts are so specified, the nine such amounts immediately following the specified amount) and any interest added under paragraph 5(2) or 7(1) to any such amount;

    excluding any part of any such amount or interest which has been paid; and

  • “relevant date” means any date before 14 April in the relevant year but after 14 April in the previous year, being a date not less than three months after the date of signature of the relevant actuarial valuation in relation to the relevant year.

(4)

The amount of each payment required to be made under this paragraph shall be determined in accordance with paragraph 9.