# The Railway Pensions (Substitution) Order 1994, Paragraph 7


(1) A proportion of the interest (“the total of the interest”) which has accrued under paragraph 6 on 13 October in any year (“the relevant year”) on the outstanding balance of any Table B amount (“the relevant Table B amount”), being such proportion as is determined in accordance with sub-paragraph (2), shall be added to the outstanding balance of the amount specified in column 2 of Table B in relation to the year 10 years later than the relevant year, and the remaining interest shall be paid by the Secretary of State on 14 October in the relevant year.
(2) The proportion of the interest which is required by sub-paragraph (1) to be added to the outstanding balance of any Table B amount is that proportion of the total of the interest which X bears to Y, subject to a maximum of 100 per cent, where
“X” 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 or 14B within six months after the date of signature of that valuation, so increased or reduced as the case may be; and
“Y” means the total of the relevant amounts, as defined in paragraph 2(3), in relation to the relevant Table B amount and, for the purposes of this paragraph, any reference in that definition to “the specified amount” shall be taken to be a reference to the relevant Table B amount or, where the relevant Table B amount is comprised in a composite amount as defined in paragraph 4, that composite amount.
(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.
(4) Where, at the time when sub-paragraph (1) requires a proportion of interest to be added to the outstanding balance of an amount specified in a particular place in column 2 of Table B, no amount is so specified, there shall be deemed for the purposes of this paragraph to be such a Table B amount whose value is zero.

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Source: https://www.legislation.gov.uk/uksi/1994/2388/schedule/2/paragraph/7 (the official version)
Page: https://openlegislation.uk/railway-pensions-substitution-order-1994/schedule-2/paragraph-7
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.