Regulation 6
If in the case of any participant in a funded scheme, in respect of whom the Commission are authorised to make such arrangements as are referred to in the last preceding Regulation, no such arrangements are made, or, if made, have been duly determined, the persons in whom any funds held for the purposes of the scheme are vested shall transfer to the Commission a sum which, subject to the provisions of paragraph (1) of Regulation 8 of these Regulations, equals in amount either—
the transfer value at the date when he loses his employment or the date on which the arrangement is determined, as the case may be, 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 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 from the date when he loses his employment or the date on which the arrangement is determined, as the case may be, until such sum is transferred to the Commission and upon such sum 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 the sum so transferred to the Commission, and without prejudice to their liability under any arrangements made in accordance with Regulation 5 of these Regulations or under the preceding provisions of this Regulation, as from the date on which the participant loses his employment, 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.
The reference in paragraph (1) 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 that paragraph.
The sum to be transferred to the Commission under the provisions of paragraph (1) 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 when the participant loses his employment 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 when the participant loses his employment or within five years after the date on which these Regulations come into operation whichever is the later;
where periodical actuarial valuations of the fund are not made, within six months after the date when the participant loses his employment 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 (b) of paragraph (1) 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 of any actuary appointed for the purposes of this paragraph shall be defrayed by the Commission.