Article 4 Compensation and superannuation matters

All the functions of the Residuary Body mentioned in paragraph (2) so far as they relate to any contract of employment with the abolished council or a contract of employment with the Residuary Body terminating on or before the transfer date and all rights and liabilities of that Body which arise from any such contract shall on the transfer date become functions of, or vest in, South Tyneside.

The functions referred to in paragraph (1) are —

All the functions of the Residuary Body under the Pensions (Increase) Act 1971 or paragraph 3(2) of Schedule 13 to the 1985 Act shall on the transfer date become functions of South Tyneside.

Regulation 3(3) of the Regulations mentioned in paragraph (2)(b) above shall apply to the exercise by South Tyneside of any discretionary function transferred by paragraph (1) as if references to the appropriate residuary body were references to that council.

Regulation 12 (apportionment of certain costs) of the Local Government Reorganisation (Compensation) Regulations 1986 shall not apply to any costs which are defrayed by virtue of any provision of this Order.