Regulation 2
This Regulation and the six next succeeding Regulations shall apply in relation to every funded scheme.
In respect of any participant in a funded scheme who becomes employed as an officer or servant by the Commission in consequence of the relevant event, the person in whom any funds held for the purposes of the scheme are vested shall, subject to the provisions of paragraph (1) of Regulation 8 of these Regulations, transfer to the Commission—
a sum which equals in amount either—
the transfer value at the date of the relevant event of his pension rights as defined for the purposes of the scheme; or
in the absence of such a definition, the estimated capital value at that date of his pension rights, being such proportion of all prospective benefits payable to or in respect of him as is attributable to service rendered before that date in respect of which there was a contingent liability on the fund immediately before that date regard being had to the liability to pay any minimum pension in accordance with the provisions of the scheme and to the degree of solvency of the fund;
with compound interest thereon from the date of the relevant event until the date on which the sum is transferred to the Commission:
all sums received by them after the date of the relevant event and before the date on which these Regulations come into operation by way of contributions payable by or in respect of him with compound interest thereon from the date of receipt thereof until the date on which the sums so received are transferred to the Commission;
and upon such sums being transferred, the Commission shall indemnify the persons in whom the said fund is vested against any liability for the payment of income tax in respect of any sum so transferred, and without prejudice to their liability under the preceding provisions of this paragraph as from the date of the relevant event the persons administering the scheme, and the persons in whom the said fund is vested, shall be discharged from all liability under the scheme to or in respect of the participant concerned or to any other person by reason of the transfer.
Any reference in paragraph (2) of this Regulation to compound interest shall be construed as a reference to compound interest at the same interest rate and with the same rests as were applied for the purposes of calculating the transfer value or, as the case may be, the estimated capital value of the pension rights referred to in sub-paragraph (a) of that paragraph.
The sums to be transferred to the Commission under the provisions of paragraph (2) of this Regulation shall be transferred—
where periodical actuarial valuations of the fund are made, within six months of the completion of the next periodical actuarial valuation thereof if made within five years of the date of the coming into operation of these Regulations or within five years of the date of the relevant event whichever is the later or, if the next such valuation is not due to be made within the said period of five years, within five years after the date on which these Regulations come into operation or within five years after the date of the relevant event, whichever is the later;
where periodical actuarial valuations of the fund are not made, within six months after the date of the relevant event or within six months after the date on which these Regulations come into operation whichever is the later.
The sum referred to in sub-paragraph (a) (ii) of paragraph (2) of this Regulation shall be determined by agreement between an actuary appointed by the Commission and an actuary appointed by the persons administering the scheme, or in default of such agreement, by an actuary appointed by the President of the Institute of Actuaries or the President of the Faculty of Actuaries in Scotland. The fees for any actuary appointed for the purposes of this paragraph shall be defrayed by the Commission.