Explanatory note

These Regulations make provision with respect to the pension rights of employees of companies which have become wholly owned subsidiaries of British Shipbuilders, and to those of employees and members of that Corporation.

Pension schemes which related partly to employees of vesting companies and partly to employees of non-vesting companies are split (Regulation 2). The assets and liabilities of such pension schemes referable to employees of vesting companies are transferred to trustees.

All pension schemes providing pensions for employees of wholly owned subsidiaries of British Shipbuilders are modified to enable service as an employee of British Shipbuilders or of any of the Corporation's wholly owned subsidiaries to count as pensionable service with the wholly owned subsidiary in which he previously served as an employee. Such pension schemes are also modified to allow employees who are appointed whole-time members of British Shipbuilders to count their service as service for the purposes of the relevant scheme, subject to any employer's discretionary benefits being conferred on such persons only with the approval of the Secretary of State and the Minister for the Civil Service (Regulation 3).