Regulation 13

Every non-exclusive insurance scheme and all trust deeds, rules and other instruments made for the purposes thereof shall, as from the date of the relevant event, be deemed in all respects to be and shall be administered as two separate schemes, being as to the one part a scheme for the provision of pensions to or in respect of officers and servants employed in the undertaking or part of the undertaking which is transferred to the Commission in the relevant manner (hereinafter referred to as “the Commission's part”) and as to the other part a scheme for the provision of pensions to or in respect of persons not being such officers or servants (hereinafter referred to as “the transferor's part”).

The funds, assets and liabilities of every non-exclusive insurance scheme as at the date of the relevant event shall, as soon as practicable after that date, be apportioned between the Commission's part and the transferor's part. Every such apportionment shall, in default of agreement between the parties concerned, be determined by an actuary appointed by the President of the Institute of Actuaries or the President of the Faculty of Actuaries in Scotland. The fees of any actuary appointed for the purposes of this paragraph shall be defrayed by the Commission.

Where the funds and assets held for the purposes of a non-exclusive insurance scheme were so held by the transferor with or without any other person, all necessary steps shall forthwith be taken after the said apportionment has been agreed or determined to secure that the part of the funds and assets apportioned to the Commission's part shall thereafter be so held by the Commission in place of the transferor and, where the funds and assets were held by any person (being a director, officer, servant or agent of the transferor or a person appointed by the transferor for the purpose) with or without the transferor or any other person similar steps shall forthwith be taken after the said apportionment has been agreed or determined to secure that the part of the funds and assets apportioned to the Commission's part shall thereafter be so held by such person as the Commission may appoint for the purpose in place of the first mentioned person.

Where under the foregoing provisions of this Regulation any part of the liabilities of a non-exclusive insurance scheme has been apportioned to the Commission's part, the part so apportioned shall, as from the date on which the apportionment was agreed or determined, become a liability of the Commission's part and shall be enforceable accordingly.

Where any policy issued by an insurance company forms part of the assets of a non-exclusive insurance scheme and under the foregoing provisions of this Regulation the benefits and liabilities thereunder have been apportioned between the Commission's part and the transferor's part, the insurance company shall issue in substitution for such policy two policies to give effect to the apportionment so made, one in favour of the person or persons by whom the assets held for the purposes of the Commission's part are so held and the other in favour of the person or persons in whose favour the said policy stood at the date when the said apportionment was agreed or determined.

Subject to the foregoing provisions of this Regulation the Commission's part shall continue subject to the modification thereof provided for in paragraph (7) of this Regulation.

The provisions of Regulations 10 to 12 of these Regulations shall apply in relation to the Commission's part and to a participant therein as they apply in relation to an exclusive insurance scheme and to a participant therein.