The Postal Services Act 2011 (Transfer of Accrued Pension Rights) Order 2012

• (a) a trivial commutation lump sum or other commutation payment on grounds of triviality under the Finance Act 2004¹⁹;

• (b) a serious ill-health commutation lump sum;

• (c) a winding-up lump sum;

• (d) a refund of excess contributions lump sum;

• (e) a lifetime allowance excess lump sum;

• (f) a contributions refund lump sum; and

• (g) any other lump sum the payment of which would be an authorised payment under the Finance Act 2004,

where the terms “trivial commutation lump sum”, “serious ill-health lump sum”, “winding-up lump sum”, “refund of excess contributions lump sum” and “lifetime allowance excess lump sum” have the meanings given to them under the Finance Act 2004 and the term “contributions refund lump sum” has the meaning given to it in the Finance Act 2009²⁰. The Secretary of State may reduce the amount of the payment by that of any tax or charge for which they may be accountable.

• (3) If the Secretary of State is satisfied that a beneficiary is unable by reason of minority, mental incapacity or other cause to manage his or her own affairs the Secretary of State may at its discretion pay any benefits to which the beneficiary is entitled to any other person for the benefit of that beneficiary, and payment to such other person shall be a complete discharge of the Secretary of State who shall not be under any obligation or liability to see to the application of any sums so paid. The Secretary of State may also make for the beneficiary any choice which he has under the RMSPS but shall be under no obligation to do so. In neither event shall the Secretary of State incur any consequential liability to the beneficiary or to anyone else.

• (4) Where the Secretary of State is due to pay, or has exercised his discretion under General Rule 6(2)(a) (Member’s power to place benefits within the Secretary of State’s discretion) or Rule 10 (Discretionary trusts) of the Section C Rules to pay, any amount to the personal representatives of a Member, and no grant of representation to the Member’s estate is produced to the Secretary of State, the Secretary of State may if in his discretion he thinks fit pay any such amount to any person showing himself or herself to the Secretary of State’s satisfaction to be entitled, otherwise than as a creditor, to take out such a grant or to any person appearing to the Secretary of State’s satisfaction to be entitled otherwise than as a creditor to share in the estate of the deceased. The Secretary of State may also at his discretion deduct the cost of funeral expenses from the lump sum death benefits and pay it to the person who incurred the funeral expenses.

Non-assignability of benefits and forfeiture

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• (1) Benefits under the RMSPS cannot be assigned or charged; subject to General Rules 4(3) and (4), they will not be paid to anyone except the person entitled under these Rules. Subject to the Surrender and Forfeiture Laws as applied to the RMSPS under Clause 19 (Surrender and Forfeiture Laws) a benefit will cease to be payable if—

• (a) the person entitled to the benefit under these Rules tries to assign or charge it or becomes bankrupt; or

• (b) any other event occurs by which all or part of the benefits would become payable to some other person.

• (2) If a benefit ceases to be payable under sub-paragraph (1) above, the Secretary of State shall be at liberty in his absolute discretion to pay an equivalent benefit to, or for the benefit of, one or more of—

• (a) the person who was entitled to the original benefit; and

• (b) that person’s spouse and dependants.

If the Secretary of State decides to pay the benefit to more than one person, he will pay it in such shares as he decides.

• (3) Sub-paragraphs (1) and (2) above do not apply to GMPs since, by law, they cannot be assigned; any attempt to assign GMPs is void and will be ignored. Nor do these Rules apply to any lump sum or instalment of pension that falls due for payment before the benefit otherwise ceases to be payable.

• (4) The Secretary of State may, in accordance with Section 92(5)(b) of the Pensions Act 1995 as applied to the RMSPS under Clause 19 (Surrender and Forfeiture Laws), forfeit a claim for pension or other benefits under the RMSPS where such pension or benefits are not claimed by the Member or beneficiary within 6 years of the pension or benefit becoming due. The Secretary of State shall have full powers to determine the circumstances in which he shall exercise this power.

• (5) A Member’s benefits may also be set-off in accordance with Clause 16 (Set-off for crime, fraud or negligence).

Member’s power to place benefits within the Secretary of State’s discretion

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• (1) In this Rule the expression the “designated sum” shall mean any death benefit and/or any lump sum retirement benefit and/or any arrears of pension benefits which may be payable under the Section A or Section B Rules and which in the absence of any direction by a Member under this Rule would be payable to the personal representatives of the Member.

• (2) Subject to sub-paragraph (5) below, a Member may at any time by notice in writing to the Secretary of State in such form as the Secretary of State shall approve direct that—

• (a) the designated sum shall be payable to that Member’s personal representatives only at the discretion of the Secretary of State; or

• (b) the designated sum shall be paid to such responsible persons (not being less than two nor more than four) as shall be appointed for such purpose by the Secretary of State to be held by the Secretary of State upon the trusts and with and subject to the powers and provisions set out in Part VII (Trusts, Powers and Provisions) of this Schedule hereto at the date of such direction.

• (3) Any direction given in accordance with this Rule shall be effective and if a direction is given under sub-paragraph (2)(b) above the designated sum shall accordingly be paid to such responsible persons and shall be held by them upon the trusts and with and subject to the powers and provisions set out in Part VII (Trusts, Powers and Provisions) of this Schedule hereto at the date of such direction.

• (4) The trusts powers and provisions set out in Part VII (Trusts, Powers and Provisions) of this Schedule hereto may from time to time be varied by the Secretary of State but so that the trusts powers and provisions as so varied shall only apply in relation to directions given to the Secretary of State after the making of such variations.

• (5) Any direction given by the Member to the RMPP Trustees on or before the Cut-Off Date under General Rule 16 (Member’s or Pensioner’s power to place benefits within the Trustees’ discretion) of the RMPP Rules will bind the Secretary of State for the purposes of the RMSPS. No further direction can be given by the Member to the Secretary of State under this Rule.

• (6) Any direction given by a Member to the Secretary of State under this Rule, or given to the RMPP Trustees on or before the Cut-Off Date under the RMPP Rules, shall be irrevocable and binding on such Member and that Member’s estate and all persons interested therein.

Application of Sections A and B – election for Section B benefits

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• (1) Any Section A Active may elect by notice in writing given to the Secretary of State in the form from time to time prescribed and received by him before the relevant date mentioned in sub-paragraph (2) below to be subject to the Section B Rules (in place of the Section A Rules), although remaining a Member of Section A. A Section A Active who, having been enabled at the time by the General Rules then in force to do so, has revoked an election under this sub-paragraph, shall be entitled again to make such an election provided that the provisions of this sub-paragraph can be and are complied with.

• (2) The relevant date is three months before a Section A Active’s benefits commence or, if earlier, the date six months after the Section A Active’s RMPP Exit Date.

• (3) The Secretary of State may extend the period during which an election may be made to such later date as he may specify.

• (4) An election under sub-paragraph (1) of this Rule shall be irrevocable and shall have effect on the date on which it is received by the Secretary of State or on the date on which the Member retired, whichever is the earlier.

• (5) If a Section A Active entitled to make an election under sub-paragraph (1) dies without making such election and within the prescribed period for making an election under that sub-paragraph, the Secretary of State shall pay the benefits (either under the Section A Rules or under the Section B Rules) which in his opinion are the more favourable and his decision shall be final, but the Secretary of State shall be entitled to change his decision where he is of the opinion that such change would enable him to pay benefits which are more favourable.

• (6) If the Secretary of State is satisfied that a Section A Active entitled to make an election under sub-paragraph (1) is by reason of mental incapacity unable to do so within the prescribed period for doing so, the Secretary of State shall pay the benefits (either under the Section A Rules or under the Section B Rules) which in his opinion are the more favourable, and his decision shall be final whether or not the Section A Active recovers his or her capacity to manage his or her own affairs but the Secretary of State shall be entitled to change his decision where he is of the opinion that such change would enable him to pay benefits which are more favourable.

• (7) Where a Section A Active who has received benefits on retirement under the Section A Rules elects to be subject to the Section B Rules, any lump sum to which that Section A Active may be entitled under the Section B Rules shall be reduced by the amount of any lump sum received by that Section A Active under the Section A Rules.

• (8) For the purpose of this Rule a person who has received such benefits or return of contributions as may have been due to that person on retirement shall be deemed to have retired notwithstanding that the person is re-employed by an Employer.

• (9) This Rule applies despite anything in Rule 4 (Payment of RMSPS benefits) of the Section A Rules and Rule 4 (Payment of RMSPS benefits, retirement options and flexible retirement) of the Section B Rules.

Delay in payment

8

If either—

• (a) before the Commencement Date, the RMPP Trustees have deferred payment of any benefit from the RMPP for a period exceeding three months from the due date of the whole or any part of the lump sum or pension due to any person under the contributory part of the RMPP on the ground that they were not satisfied that they could obtain a discharge for such a payment, and the payment remains deferred on the Commencement Date; or

• (b) the Secretary of State defers payment of any benefit from the RMSPS (or continues under the RMSPS any deferral of payment under the RMPP that was commenced by the RMPP Trustees before the Commencement Date) for a period exceeding three months from the due date of the whole or any part of the lump sum or pension due to any person under the RMSPS on the ground that the Secretary of State is not satisfied that he can obtain a discharge for such a payment,

the Secretary of State shall on ultimate payment of the amount so deferred pay Interest for the period from the expiration of the said three months to the date of such payment.

Added Years

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• (1) Up to and including 1 April 2008, with the consent of the RMPP Trustees a Member who was subject to Section A or Section B of the RMPP Rules could elect to purchase a number of added years by making additional annual contributions to the Fund at rates then specified in the RMPP Rules or determined by the RMPP actuary. The RMSPS Reckonable Service of such Members shall include the added years they purchased under that Rule before the end of the Cut-Off Date.

• (2) A number of Members who had made such elections had not completed purchasing such added years as at the Cut-Off Date, such that if such Members had continued in RMPP Reckonable Service after the Cut-Off Date they would have continued to purchase added years by making the required additional contributions after the Cut-Off Date. In the case of each such Member, the number of added years included in RMSPS Reckonable Service shall be calculated according to the amount of contributions paid up to the end of the Cut-Off Date in accordance with the method and assumptions agreed before the Cut-Off Date between the RMPP Trustees and the Principal Employer. Any added years purchased with contributions paid to the “Fund” (as this term is defined for the purposes of the RMPP) after the Cut-Off Date shall not be included in RMSPS Reckonable Service.

• (3) The maximum number of added years which will be included in Members’ RMSPS Reckonable Service under this Rule can in no case exceed—

• (a) the limits set out in Part IX (Overriding Finance Act Provisions) of this Schedule;

• (b) the number of additional years that would enable the Member to complete 45 years’ RMSPS Reckonable Service.

• (4) In respect of Members subject to the Section B Rules, any added years which have been purchased under the RMPP and which count as RMSPS Reckonable Service in accordance with (2) above will be counted as RMSPS NRA60 Benefits (as that term is used for the purposes of the Section B Rules) notwithstanding the fact that such added years may have been purchased by contributions paid by the Members to the RMPP on and after 1 April 2010.

Provisions relating to application of General Rules 11 to 16

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• (1) General Rules 11 (Widows’ pensions: Members’ choices), 12 (Members’ choice of methods of payment of contributions), 13 (Plan M), 14 (Plan U), 15 (Plan L) and 16 (Election for Widower’s pension in respect of service prior to 1 December 1971) shall only apply to those Members who are subject to the Section A or Section B Rules.

• (2) In the Rules referred to in sub-paragraph (1) above, except where the context otherwise requires the expression “widow” and “his widow” shall respectively include “dependent widower” and “her dependent widower”.

Widows’ pensions: Members’ choices

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• (1) A male Member who was excluded from Part III of the Superannuation Act 1965²¹ by such an election as is referred to in Section 58 of that Act (repealed with savings by the Superannuation Act 1972²², Schedule 7, paragraph 2), or a male Member whose “Reckonable Service” in the Civil Service began on or before the 14 July 1949, and who, being on that date unmarried or otherwise ineligible has not elected that the said Part III should not apply to him, may have chosen under the RMPP (in accordance with General Rule 20(2) (Widows’ Pensions: Members’ Choices) of the RMPP Rules) that his widow would receive—

• (a) no annual pension in respect of his RMPP Reckonable Service before he joined the contributory part of the RMPP; or

• (b) an annual pension of ¹/₃ of the Member’s pension in respect of his RMPP Reckonable Service before he joined the contributory part of the RMPP or 1 June 1972, whichever is the earlier, and an annual pension of ¹/₂ of the Member’s pension in respect of his service (if any) from 1 June 1972 and before he joined the contributory part of the RMPP; or

• (c) an annual pension of ¹/₂ the Member’s pension in respect of his RMPP Reckonable Service before he joined the contributory part of the RMPP.

If such a Member had made no choice by such date as was notified to the Member by an Employer under the RMPP Rules, he was deemed to have chosen that his widow should receive no annual pension in respect of his RMPP Reckonable Service before he joined the contributory part of the RMPP.

• (2) A Member who after 14 July 1949 gave notice under Section 10(5) of the Superannuation Act 1949²³ cancelling his election under Section 10 of that Act that Part 1 of that Act should not apply and should be deemed never to have applied to him, or notice under Section 58(5) of the Superannuation Act 1965 (repealed with savings by the Superannuation Act 1972²⁴, Schedule 7, paragraph 2) cancelling his election under Section 58 of that Act that Part III of that Act should not apply and should be deemed never to have applied to him, may have chosen under the RMPP (in accordance with General Rule 20(3) (Widows’ Pensions: Members’ Choices) of the RMPP Rules) that his widow shall receive either—

• (a) an annual pension of ¹/₃ of the Member’s pension; or

• (b) an annual pension of ¹/₂ of the Member’s pension in respect of his RMPP Reckonable Service before he joined the contributory part of the RMPP or 1 June 1972, whichever is the earlier.

If such a Member made no choice by such date as was notified to the Member by an Employer under the RMPP Rules, he was deemed to have chosen that his widow should receive an annual pension of ¹/₃ of the Member’s pension in respect of such service.

• (3) A female Member who has a dependent husband may have chosen under the RMPP (in accordance with General Rule 20(4) (Widows’ Pensions: Members’ Choices) of the RMPP Rules) before the end of the Cut-Off Date that her dependent widower should receive either—

• (a) an annual pension of ¹/₃ of the Member’s pension; or

• (b) an annual pension of ¹/₂ of the Member’s pension in respect of her RMPP Reckonable Service before she joined the contributory part of the RMPP or 1 June 1972, whichever is the earlier.

If such a Member made no such choice before the end of the Cut-Off Date, her dependent widower shall receive no annual pension from the RMSPS in respect of such service.

• (4) Any other Member may have chosen under the RMPP (in accordance with General Rule 20(5) of the RMPP Rules) that his widow shall receive either—

• (a) an annual pension of ¹/₃ of the Member’s pension; or

• (b) an annual pension of ¹/₂ of the Member’s pension in respect of his RMPP Reckonable Service before he joined the contributory part of the RMPP or 1 June 1972, whichever is the earlier.

If such a Member made no choice by such date as was notified to the Member by an Employer under the RMPP Rules, he was deemed to have chosen that his widow should receive an annual pension of ¹/₃ of the Member’s pension in respect of such service.

• (5) A Member’s choice under any of the provisions of the RMPP Rules referred to in sub-paragraphs (1), (2), (3) or (4) of this Rule shall be final unless the Secretary of State agrees otherwise.

Members’ choice of methods of payment of contributions

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A Member was required to pay contributions due to the RMPP for the widow’s pension that Member had chosen in respect of that Member’s RMPP Reckonable Service before that Member joined the contributory part of the RMPP (and contributions which were payable to the RMPP under General Rule 21(2)(a) (Contributions for widow’s pensions) of the RMPP Rules) and must have paid those contributions by any one of the three methods (designated Plan M, Plan U or Plan L) set out in General Rules 23 (Plan M), 24 (Plan U) and 25 (Plan L) of the RMPP Rules. If no choice had been made by such date as shall be notified to the Member by an Employer under the RMPP Rules, the Member would have been deemed to have chosen Plan L. Once a Member had started to make payments by the method of that Member’s choice, such payments continued under the RMPP until the earlier of the end of the Cut-Off Date (subject to the Member’s ability to meet the obligation to pay contributions under Plan L under the RMSPS by using the methods set out in General Rule 25 (Plan L) of the RMPP Rules) or the Member’s outstanding liability to the Fund was discharged.

Plan M

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• (1) A Member who was in post on both 30 November 1971 and 1 December 1971 and not having retired at or after age 60 on or before 30 November 1971 may have elected to pay to the Fund the contributions due in respect of that Member’s RMPP Reckonable Service before that Member joined the contributory part of the RMPP in accordance with “Plan M” under General Rule 23 (Plan M) of the RMPP Rules. Such contributions were required to be paid to the Fund either (a) in full in one amount, or (b) payment were required to have been made over a minimum of 5 years, or until age 60 if this is earlier, with a maximum of 25 years for such payment, and subject to the limits on contributions in paragraph 7(c) of Schedule 13 (Overriding Finance Act Provisions) to the RMPP Rules.

• (2) The amounts due to the Fund were required to be paid in full by age 60 unless the limits on contributions in paragraph 7(c) of Schedule 13 (Overriding Finance Act Provisions) to the RMPP Rules precluded this. The lump sum or death benefit (as the case may be) under the RMSPS of a Member who had not paid in full by the end of the Cut-Off Date will be reduced by the amount (if any) which the Secretary of State calculates to be outstanding.

• (3) If a Member ceased to have a spouse before he or she joined the contributory part of the RMPP and that Member did not remarry, the amount due to the RMPP would have been recalculated by the RMPP Trustees to the date when that Member last had a spouse before joining the contributory part of the RMPP. The difference (if any) between the amount paid to the Fund by the Member and the amount due on such recalculation will be refunded to the Member with Interest on that Member’s retirement under the RMSPS, provided that if the Member was serving in the designated category of service similar to service in Civil Service in an unestablished capacity on the date that Member joined the contributory part of the RMPP or the 1 June 1972, whichever is the earlier, and that Member ceased to have a spouse before that date and that Member did not remarry before retirement, no contributions would have been payable and any amount paid to the Fund by the Member shall be refunded to that Member with Interest on that Member’s retirement under the RMSPS.

• (4) A Member who never had a spouse before joining the contributory part of the RMPP and who did not marry before the end of the Cut-Off Date will be entitled to a refund of contributions with Interest on that Member’s retirement under the RMSPS.

Plan U

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• (1) A Member may have elected to pay the contributions due in respect of that Member’s RMPP Reckonable Service before joining the contributory part of the RMPP in accordance with “Plan U” under General Rule 24 (Plan U) of the RMPP Rules, in units of 1 ¹/₂% of that Member’s salary subject to the limits on contributions in paragraph 7(c) of Schedule 13 (Overriding Finance Act Provisions) to the RMPP Rules.

• (2) A Member who never had a spouse before joining the contributory part of the RMPP and who did not marry before the end of the Cut-Off Date will be entitled to a refund of contributions with Interest on that Member’s retirement under the RMSPS.

• (3) If a Member ceased to have a spouse before joining the contributory part of the RMPP and that Member did not re-marry before the end of the Cut-Off Date, the amount previously due to the RMPP shall be recalculated to the date when that Member last had a spouse before joining the contributory part of the RMPP, and the difference (if any) between the amount paid to the Fund by the Member and the amount due on such recalculation shall be refunded to the Member with Interest on that Member’s retirement under the RMSPS; provided that if the Member was serving in the designated category of service similar to service in the Civil Service in an unestablished capacity on the date that Member joined the contributory part of the RMPP or 1 June 1972, whichever is the earlier, and that Member ceased to have a spouse before that date and that Member did not remarry before the end of the Cut-Off Date, no contributions would have been payable at that time, and any amount paid to the Fund by the Member will be refunded to that Member with Interest on that Member’s retirement under the RMSPS.

Plan L

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• (1) Where a Member (being a Plan L Member) elected under the RMPP to pay the contributions due in respect of that Member’s RMPP Reckonable Service before that Member joined the contributory part of the RMPP by reduction of that Member’s lump sum or that Member’s death benefit and/or by the application of that Member’s additional voluntary contributions made to the RMPP under General Rule 19A (Additional Voluntary Contributions) of the RMPP Rules, then that Member will have accrued an obligation to pay the amount of contributions due to the RMPP under the RMPP Rules. The amount of that obligation, as had accrued as at the end of the Cut-Off Date and then revalued under the RMSPS as if it were a benefit payable to that Member under the RMSPS, is an Accrued Plan L Amount.

• (2) The Plan L Member will be treated as owing an obligation to the RMSPS in respect of the Accrued Plan L Amount, to be discharged by one or both of the methods set out in Paragraphs (a) and (b) below. Where both methods are available, the Member will choose the proportion of the amount that will be met by each method, unless the Member has died, in which case the Secretary of State will use the method set out in Paragraph (a) below—

• (a) Under the method set out in this Paragraph, as at the beginning of the Commencement Date (before any revaluation is applied) any lump sum benefits payable in respect of the Member from the RMSPS (including any lump sum payable on that Member’s death) will be treated as if reduced by the Accrued Plan L Amount or (if the Member also chose to use the method set out in Paragraph (b) below) the appropriate share of the Accrued Plan L Amount under the RMSPS.

• (b) Under the method set out in this Paragraph, the Member’s Transferred AVC Fund will, as provided for in Clause 10 (Additional voluntary contributions transferred from the RMPP), be applied for the purpose of meeting some or (if the Member also chose to use the method set out in Paragraph (a) above) the appropriate share of the Accrued Plan L Amount.

Election for Widower’s pension in respect of service prior to 1 December 1971

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• (1) With the consent of the RMPP Trustees a female Member could, at any time before the end of the Cut-Off Date whilst she was an active Member of the RMPP have elected that the spouse to whom she was married at the time of her retirement at or before normal retirement age or when she otherwise left Employer employment or on her death in service with an Employer, and who did not have a dependent widower’s entitlement would be eligible for benefit under Section B Rule 12 (Spouse’s pension for Relevant Members) in respect of any part of her RMPP Reckonable Service before becoming a Member of the contributory part of the RMPP. Such election would also entitle her children to benefit under Section B Rule 14(1) (Children’s pensions) in respect of the same period of service.

• (2) Where the election referred to in sub-paragraph (1) of this Rule was made under the RMPP, the Member was required to pay additional annual contributions to the Fund up to Normal Retiring Age in accordance with the RMPP Rules. The additional benefit payable under the RMSPS shall be calculated according to the actual amount of additional annual contributions paid to the Fund before the end of the Cut-Off Date.

PART III — SECTION A RULES OF THE SCHEME

Application

1

These Section A Rules shall only apply to Members who are Section A Actives, and they do not apply to Members who are Cut-Off Date Non-Actives or to any other Wholly Transferred Beneficiaries. References to Member in these Section A Rules shall be read accordingly.

Benefits of Section A Actives under the RMSPS

2

• (1) Subject to Rule 3 (Pensions increase) and Rule 4 (Payment of RMSPS benefits), and to General Rule 7 (Application of Sections A and B – election for Section B benefits), the benefits in respect of a Section A Active are calculated as the benefits that would have been provided in respect of such a Member under the RMPP, as if such Member had opted-out of membership of the RMPP under General Rule 1A (Optional membership) of the RMPP Rules at the end of the Cut-Off Date.

• (2) For the purposes of determining the rights and entitlements of Section A Actives under this Rule—

• (a) any duty of the RMPP Trustees or an employer under the RMPP, or any power or discretion which may be exercisable by the RMPP Trustees or such employer, howsoever expressed, shall be a duty, power or discretion of the Secretary of State; and

• (b) any role or function which would under the RMPP have been performed by the “Actuary” (as defined in the RMPP) shall be, to the extent relevant to the RMSPS, performed by the Secretary of State on the advice of the Actuary.

• (3) Where a pension or lump sum benefit payable under these Section A Rules following a Member’s death is calculated by reference to the Member’s actual or prospective entitlement under these Section A Rules, that actual or prospective entitlement shall be determined applying the principles set out in sub-paragraphs (2) and (3) above and Rule 3 (Pensions increase) and Rule 4 (Payment of RMSPS benefits) below.

Pensions increase

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• (1) Any pension payable under the Section A Rules shall be increased from time to time in accordance with the 1971 Act and Sections 59 and 59A of the 1975 Act, as if it was a pension beginning on the Member’s COD Beginning Date and it were payable under the Principal Civil Service Pension Scheme 1974 and any amendment or replacement thereof, subject to the modifications set out in and the additional provisions of this Rule.

• (2) Where the Member’s COD Beginning Date is before the start of the Member’s RMPP Terminal Revaluation Year, in respect of the period from the Member’s COD Beginning Date to the start of that Member’s RMPP Terminal Revaluation Year, the Member’s benefit shall be increased by the percentage specified in each Pension Increase Order coming into force on or before the Member’s RMPP Beginning Date.

• (3) In respect of the period from the start of the Member’s RMPP Terminal Revaluation Year to that Member’s RMPP Beginning Date, the Member’s benefit shall be revalued by the factor of (1+A%) divided by (1+B%), or by a factor of one, if greater, where—

• A%= the percentage increase (if any) specified in the Pension Increase Order which came into force at the end of the Member’s Applicable Revaluation Year; and

• B%= (A% multiplied by: ((i) the number of complete months in the period from the Member’s RMPP Beginning Date to the end of that Member’s RMPP Terminal Revaluation Year; plus (but only where the Member’s RMPP Beginning Date falls in the same Revaluation Year as that Member’s COD Beginning Date) (ii) the number of complete months in the period from the start of that Member’s RMPP Terminal Revaluation Year to that Member’s COD Beginning Date)) divided by 12,

• and an incomplete month is to be treated as a complete month if it would have been so treated for the purposes of the Pension Increase Order coming into force at the end of the Member’s Applicable Revaluation Year.

• (4) In respect of the period from the Member’s RMPP Beginning Date, the Member’s benefit shall be increased in accordance with the 1971 Act as if it were a pension beginning on the Member’s RMPP Beginning Date.

• (5) Where different parts of the Member’s benefits are for the purposes of Section 8(2) of the 1971 Act deemed to begin on different days, then for the avoidance of doubt—

• (a) the revaluation process under this paragraph will apply separately to the Member’s benefit in respect of each such part, as will the definitions of “Applicable Revaluation Year”, “COD Beginning Date” and “RMPP Terminal Revaluation Year”;

• (b) in respect of each such part of the RMSPS benefit, the “RMPP Beginning Date” will refer to the date on which the Member’s Relevant RMPP Margin Benefit in respect of that part of the RMSPS benefit is deemed to begin under Section 8(2) of the 1971 Act; where—

• (i) the “Relevant RMPP Margin Benefit” means, in respect of a part of the Member’s RMSPS benefit, the part of the Member’s RMPP benefit in the calculation of which the Corresponding RMPP Amount in relation to that part of the RMSPS benefit is being used; and

• (ii) “Corresponding RMPP Amount” means, in respect of a part of the Member’s RMSPS benefit, the corresponding part of the “RMSPS Deductible” (as that term is defined in Rule 1XA(3) (Overriding provision) of Section A of the RMPP Rules) in respect of the Member’s RMPP benefit.

• (6) Any pension payable prior to Normal Retiring Age will receive annual increases (where payable) as if it were a pension payable on or after Normal Retiring Age.

• (7) In this Rule—

• “1971 Act” means the Pensions (Increase) Act 1971²⁵;

• “1975 Act” means the Social Security Pensions Act 1975²⁶;

• “1992 Act” means the Social Security Administration Act 1992²⁷;

• “Applicable Revaluation Year” means the Revaluation Year ending immediately before a Member’s RMPP Terminal Revaluation Year unless the Member’s RMPP Beginning Date falls in a Revaluation Year before the Revaluation Year in which the Member’s RMPP Exit Date falls, in which case references to that Member’s “Applicable Revaluation Year” should be read as references to that Member’s RMPP Terminal Revaluation Year;

• “COD Beginning Date” means the date on which a Member’s pension under the RMSPS is deemed to begin for the purposes of Section 8(2) of the 1971 Act, which is the date that his or her corresponding Section B pension under the RMPP would have been deemed to begin for the purposes of that section if that Member had opted out of the RMPP under General Rule 1A (Optional Membership) of the RMPP Rules at the end of the Cut-Off Date;

• “pension” has the same meaning as it has in the 1971 Act;

• “Pension Increase Order” means an order made under Section 59 of the 1975 Act, by virtue of a direction given under Section 151 of the 1992 Act that the sums mentioned in Section 150(1)(c) of the 1992 Act are to be increased by a specified percentage;

• “Revaluation Year” means, in respect of a Member’s benefit under the RMSPS, the “base period” in relation to any Pension Increase Order, as defined in section 59 of the 1975 Act;

• “RMPP Beginning Date” means the date a Member’s benefit under the RMPP is deemed to begin under Section 8(2) of the 1971 Act;

• “RMPP Terminal Revaluation Year” means the Revaluation Year during which a Member’s RMPP Beginning Date falls.

Payment of RMSPS benefits

4

• (1) Despite any other provision of these Section A Rules but subject to General Rule 7 (Application of Sections A and B – election for Section B benefits) and to sub-paragraph (3) below, the benefits of a Section A Active under the RMSPS—

• (a) will come into payment automatically under the RMSPS when that Member draws or is paid his or her benefits from the RMPP; and

• (b) may not come into payment under the RMSPS until that Member draws or is paid his or her benefits from the RMPP.

• (2) Where the benefits of a Section A Active under the RMSPS—

• (a) should have come into payment automatically under sub-paragraph (1) but have not come into payment, the Member shall be paid the relevant RMSPS benefits in arrears, with such Interest, if any, as the Secretary of State considers appropriate; and

• (b) have come into payment but the RMPP benefits have not come into payment, the relevant RMSPS benefits will be treated as having been paid in error, and the Secretary of State must take whatever action he deems appropriate in his absolute discretion to correct the error.

• (3) In the event that a Section A Active ceases to be a member of the RMPP by reason of a transfer of that Member’s benefits out of the RMPP or a discharge of the Trustee’s obligations to provide benefits to that Member (in either case, other than money purchase benefits)—

• (a) sub-paragraphs (1) and (2) above will not apply in respect of that Member if and to the extent that any benefit under the RMSPS has not yet or should have) come into payment under sub-paragraph (1); and

• (b) the Member may or will draw his or her benefits in the circumstances provided for in the provisions applicable under Rule 2(1) (Benefits of Section A Actives under the RMSPS) above.

• (4) While the Member remains in employment to which the RMPP relates, the Member’s consent will not be required to defer payment of that Member’s GMP after age 65 (being the expiration of five years from the date on which that Member attains Normal Retiring Age in respect of his or her Section A benefits). Section 13(5)(b) of the Pension Schemes Act 1993 (as applied to the RMSPS by the Contracting-out Laws) shall apply accordingly.

PART IV — SECTION B RULES OF THE SCHEME

Application

1

These Section B Rules shall only apply to Members who are Section B Actives, and they do not apply to Members who are Cut-Off Date Non-Actives or to any other Wholly Transferred Beneficiaries. References to Member, RMPP Active and RMPP Leaver in these Section B Rules shall be read accordingly.

Definitions and interpretation

2

• (1) In the Section B Rules the following expressions have the following meanings—

• “Children” (and the term “Child”) in relation to a Member means— legitimate and legitimated children of a Member or his or her spouse; children adopted by the Member and/or his or her spouse; illegitimate children of the Member or his or her spouse; step-children of the Member or his or her spouse; children of a deceased brother or half brother, of a deceased sister or half sister or of deceased children of the Member; a brother or half brother, or sister or half sister of the Member, other than children (not being children of a Member) who become children of a woman after the termination of her marriage to a Member, being in cases (a), (b), (c), (d), (e) and (f) above persons who are under 18 or if over that age (but not over age 25), subject to Part IX (Overriding Finance Act Provisions) of this Schedule, are receiving full-time education or undergoing full-time training of not less than two years’ duration for any trade, profession or vocation during which they receive not more than the maximum allowable remuneration which term, for this purpose, means £312 per annum (excluding returns of premiums), increased from time to time by the amount of increase that would be applied under the Pensions (Increases) Act 1971 to a pension of £312 per annum first awarded on 1 December 1971.

• At the discretion of the Secretary of State any other child may be treated as within this definition of “children” provided that— such child is under 18 or if over that age (but not over age 25) is receiving such full-time education or training as is referred to above and on those conditions (subject to Part IX (Overriding Finance Act Provisions) of this Schedule); and the Secretary of State is satisfied that at the time of the Member’s retirement or death either the child was wholly or mainly dependent on the Member or the Member had formed the intention of legally adopting the child;

• “CSDB Pensionable Salary” means, in relation to each RMSPS Pension Block and RMSPS Lump Sum Block, the amount which would have been the “CSDB Pensionable Salary” of a Member (as recognised for the purposes of the RMPP under Rule 1 of Section B of the RMPP Cut-Off Date Rules) during the 12 months up to and including the Renewal Date that is applicable to that RMSPS Pension Block and RMSPS Lump Sum Block, had that Member opted out of the RMPP under General Rule 1A (Optional membership) of the RMPP Cut-Off Date Rules at the end of the Cut-Off Date;

• “CWU Represented Member” means a Member who works for an Employer in an administrative or operational grade that is represented by the Communication Workers Union (CWU) whether or not that Member is a member of the CWU;

• “Dependant” means anyone who is financially dependent on the Member or was so dependent at the time of that person’s death. This includes anyone who shares living expenses with, or receives financial support from, the Member, and whose standard of living would be affected by the loss of that person’s contribution or support. The Secretary of State’s decision as to whether someone is another person’s Dependant will be final;

• “Discharged RMPP Benefit” has the meaning given in Rule 4(4) (Payment of RMSPS benefits, retirement options and flexible retirement);

• “Minimum Pension Age” means age 50 up to and including 5 April 2010 and age 55 on and from 6 April 2010 and MPA has the same meaning;

• “Nil Margin Member” has the meaning given in Rule 4(5) (Payment of RMSPS benefits, retirement options and flexible retirement);

• “Partially Discharged RMPP Member” has the meaning given in Rule 4(4) (Payment of RMSPS benefits, retirement options and flexible retirement);

• “Relevant Date means”, in respect of a Relevant Member, the earlier of: (a) the date that Member joined the contributory part of the RMPP; and (b) 1 June 1972;

• “Relevant Member” means any Member who has any RMSPS Reckonable Service attributable to a period of time before that Member’s Relevant Date;

• “Relevant RMSPS Benefit” means the RMSPS benefit of a Partially Discharged RMPP Member (being either that Member’s RMSPS NRA60 Benefits or RMSPS NRA65 Benefits) which corresponds to that Member’s Discharged RMPP Benefit;

• “Renewal Date” means 31 March of each year following 1 April 2008;

• “Retired on RMPP Ill Health Grounds” means— subject to Paragraph (b) below, in relation to a Member, the cessation of the Member’s employment as a result of serious physical or mental ill health (not simply a decline in energy or ability) such that, in the opinion of the Employer, the Member is permanently incapable of— carrying out that Member’s current duties; carrying out such other duties for the Employer as the Employer might reasonably expect the Member to perform; and engaging in employment with any other employer of a type which, in the opinion of that Member’s present Employer, would be reasonable and appropriate for the Member; and in relation to an RMPP Leaver who was in RMPP Reckonable Service on 31 March 2000, retirement because the Member’s Employer is satisfied that the Member concerned is likely, through physical or mental disablement, to be permanently unable to give regular and efficient service on the duties of that Member’s post;

• “RMPP NRA60 Benefits” means, in respect of a Member, the “NRA60 Benefits” of the Member under the RMPP as defined by the RMPP Rules;

• “RMPP NRA65 Benefits” means, in respect of a Member, the “NRA65 Benefits” of the Member under the RMPP as defined by the RMPP Rules;

• “RMSPS Lump Sum Block” has the meaning assigned to it in Rule 3(7)(b)(ii) (Benefits payable to Members on retirement);

• “RMSPS NRA60 Benefits” means a Member’s RMSPS NRA60 Pension and RMSPS NRA60 Lump Sum;

• “RMSPS NRA60 Lump Sum” means that part of a Member’s lump sum which accrued under Rule 3(1)(b) (Benefits payable to Members on retirement) in respect of RMSPS Reckonable Service on or before 31 March 2010 (and so, for the avoidance of doubt, in respect of which the Member’s Normal Retiring Age is 60);

• “RMSPS NRA60 Pension” means that part of a Member’s pension which accrued under Rule 3(1)(a) (Benefits payable to Members on retirement) in respect of RMSPS Reckonable Service on or before 31 March 2010 (and so, for the avoidance of doubt, in respect of which the Member’s Normal Retiring Age is 60);

• “RMSPS NRA65 Benefits” means a Member’s RMSPS NRA65 Pension and RMSPS NRA65 Lump Sum;

• “RMSPS NRA65 Lump Sum” means that part of a Member’s lump sum which accrued under Rule 3(2)(b) (Benefits payable to Members on retirement) in respect of RMSPS Reckonable Service on or after 1 April 2010 (and so, for the avoidance of doubt, in respect of which the Member’s Normal Retiring Age is 65);

• “RMSPS NRA65 Pension” means that part of a Member’s pension which accrued under Rule 3(2)(a) (Benefits payable to Members on retirement) in respect of RMSPS Reckonable Service on or after 1 April 2010 (and so, for the avoidance of doubt, in respect of which the Member’s Normal Retiring Age is 65);

• “RMSPS Pensionable Salary” means the amount which would have been a Member’s “Pensionable Salary” under the RMPP had that Member opted-out of the RMPP under General Rule 1A (Optional membership) of the RMPP Cut-Off Date Rules at the end of the Cut-Off Date;

• “RMSPS Pension Block” has the meaning assigned to it in Rule 3(7)(b)(i) (Benefits payable to Members on retirement);

• “RMSPS Reckonable Service” has the meaning assigned to it in General Rule 2 (RMSPS Reckonable Service);

• “RMSPS Revalued Lump Sum Block” has the meaning assigned to it in Rule 3(7)(d) (Benefits payable to Members on retirement);

• “RMSPS Revalued Pension Block” has the meaning assigned to it in Rule 3(7)(d) (Benefits payable to Members on retirement);

• “Senior Manager Member” means a Member who was invited before the Cut-Off Date by the Principal Employer to become a Senior Manager Member under the Section B Rules of the RMPP Rules and who has accepted that invitation by applying in writing to the RMPP Trustees to become a Senior Manager Member and, in that application, has agreed that he or she shall be entitled to benefits in accordance with the Section B Rules of the RMPP Rules (provided that, in the event that person is made redundant under the RMPP by an Employer, that person shall not be entitled to immediate payment of his or her RMPP pension before his or her Normal Retiring Age without reduction for early payment, or to any enhancement to his or her RMPP Reckonable Service on account of his or her redundancy under Rule 8 (Retirement on Redundancy) of Section B of the RMPP Rules and no lump sum compensation shall be payable to the person on account of his or her redundancy); and

• “Wholly Discharged RMPP Member” has the meaning given in Rule 4(4) (Payment of RMSPS benefits, retirement, options and flexible retirement).

• (2) Except where the context requires otherwise—

• (a) words importing the masculine include the feminine gender; and

• (b) references to particular Rules are references to those Rules in the Section B Rules.

Benefits payable to Members on retirement

3

• (1) The following benefits (RMSPS NRA60 Benefits) will be paid to every Member on retirement after the Cut-Off Date at or after age 60—

• (a) an annual pension (RMSPS NRA60 Pension) for life of the sum of—

• (i) ¹/₈₀th of the Member’s RMSPS Pensionable Salary for each year and proportionately for part of a year of RMSPS Reckonable Service before 1 April 2008; and

• (ii) the sum of the Member’s RMSPS Revalued Pension Blocks, as calculated under sub-paragraph (7) below, for RMSPS Reckonable Service on and after 1 April 2008 but before 1 April 2010,

subject to sub-paragraph (3) below; and

• (b) a lump sum (RMSPS NRA60 Lump Sum) of the sum of—

• (i) ³/₈₀ths of the Member’s RMSPS Pensionable Salary for each year and proportionately for part of a year of RMSPS Reckonable Service before 1 April 2008; and

• (ii) the sum of the Member’s RMSPS Revalued Lump Sum Blocks, as calculated under sub-paragraph (7) below, for RMSPS Reckonable Service on and after 1 April 2008 but before 1 April 2010,

subject to sub-paragraph (4) below.

• (2) The following benefits (RMSPS NRA65 Benefits) will be paid to every Member on retirement after the Cut-Off Date at or after age 65—

• (a) an annual pension (RMSPS NRA65 Pension) for life of the sum of the Member’s RMSPS Revalued Pension Blocks, as calculated under sub-paragraph (7) below, for RMSPS Reckonable Service on and after 1 April 2010 up to the end of the Cut-Off Date, subject to sub-paragraph (3) below; and

• (b) a lump sum (RMSPS NRA65 Lump Sum) of the sum of the Member’s RMSPS Revalued Lump Sum Blocks, as calculated under sub-paragraph (7) below, for RMSPS Reckonable Service on and after 1 April 2010 up to the end of the Cut-Off Date, subject to sub-paragraph (4) below.

• (3) For the purpose of calculating the Member’s pension under this Rule 3, the total amount of RMSPS Reckonable Service for Paragraphs (1)(a)(i), (1)(a)(ii) and (2)(a) above combined shall not exceed 45 years, including for these purposes the Member’s “Pre-Cut-Off Date AVC FS Added Years Service” (if any) as referred to in General Rule 2 (RMSPS Reckonable Service).

• (4) For the purpose of calculating the Member’s lump sum under this Rule 3, the total amount of RMSPS Reckonable Service for Paragraphs (1)(b)(i), (1)(b)(ii) and (2)(b) above combined shall not exceed 45 years, including for these purposes the Member’s “Pre-Cut-Off Date AVC FS Added Years Service” (if any) as referred to in General Rule 2 (RMSPS Reckonable Service).

• (5) All Members will be entitled to both RMSPS NRA60 Benefits in respect of RMSPS Reckonable Service on or before 31 March 2010 (calculated in accordance with sub-paragraph (1) above) and RMSPS NRA65 Benefits in respect of RMSPS Reckonable Service on and after 1 April 2010 (calculated in accordance with sub-paragraph (2) above).

• (6) The lump sum of a Member will, where applicable, be reduced in accordance with General Rule 12 (Members’ choice of methods of payment of contributions) and General Rule 13 (Plan M), General Rule 14 (Plan U) or General Rule 15 (Plan L) (as applicable).

• (7)

• (a) In respect of RMSPS Reckonable Service on or after 1 April 2008 to the earlier of completion of 45 years’ RMSPS Reckonable Service and the Cut-Off Date (inclusive), the benefits of each Member shall be determined on the following basis.

• (b) At each Renewal Date up to and including the Cut-Off Date—

• (i) the Member accrued under the RMPP a pension of ¹/₈₀th of the Member’s CSDB Pensionable Salary for the year up to and including the Renewal Date (an RMSPS Pension Block) coinciding with the Cut-Off Date; and

• (ii) the Member accrued under the RMPP a lump sum of ³/₈₀ths of the Member’s CSDB Pensionable Salary for the year up to and including the Renewal Date (an RMSPS Lump Sum Block) coinciding with the Cut-Off Date.

• (c) The RMSPS Pension Block and the RMSPS Lump Sum Block accrued at each Renewal Date were revalued under the RMPP, first at the Renewal Date at the end of the subsequent year and then at each subsequent Renewal Date thereafter up to and including the Cut-Off Date by the annual increase in the Government index of retail prices for all items for the 12 months to the preceding September subject to a maximum increase of 5% and a minimum increase of 0% a year.

• (d) Each RMSPS Pension Block, as successively revalued under Paragraph (c) above, will be an RMSPS Revalued Pension Block. Each RMSPS Lump Sum Block, as successively revalued under Paragraph (c) above, will be an RMSPS Revalued Lump Sum Block.

• (8) The benefits payable under this Rule 3 will be deferred until the Member reaches the Normal Retiring Age applicable to them at which point they will (subject to any increases applicable under Rule 19 (Pensions increase)) be brought into payment, subject to Rule 4 (Payment of RMSPS benefits, retirement options and flexible retirement) and to the following—

• (a) If the Member dies before payment (whether of RMSPS NRA60 Benefits, RMSPS NRA65 Benefits, or both) the death, family and Dependants’ benefits will be paid under—

• (i) Rules 9(2), (3) or (4) (Lump sum benefits payable on death of a Member);

• (ii) Rule 11 (Spouse’s pension) and, where applicable, Rule 12 (Spouse’s pension for Relevant Members);

• (iii) Rule 14 (Children’s pensions); and

• (iv) Rule 15 (Dependants’ pensions).

• (b) A Member whose benefits (whether RMSPS NRA60 Benefits, RMSPS NRA65 Benefits, or both) are deferred under this sub-paragraph (8) will (if the payment of immediate benefits is not contrary to the provisions of Part IX (Overriding Finance Act Provisions) of this Schedule) receive early payment before Normal Retiring Age of either or both of those tranches of benefits in the circumstances set out in—

• (i) Rule 4(2), (4) or (5) (Payment of RMSPS benefits, retirement options and flexible retirement);

• (ii) Rule 5 (Benefits payable to Members who retire on ill-health grounds or compassionate grounds);

• (iii) Rule 6 (Benefits payable to Members who retire under the RMPP in the interests of efficiency);

• (iv) Rule 7 (Benefits payable to Members who retire under the RMPP on redundancy); and

• (v) Rule 8 (Benefits payable to Members who take early voluntary retirement under the RMPP).

• (9) Any benefits paid early under this Rule (including the other Rules referred to in sub-paragraph (8) above) shall, unless these Rules provide otherwise, be reduced for early payment on a basis determined by the Secretary of State on the advice of the Actuary so that, as far as reasonably practicable, they are equal in value to the benefits that would have been paid to the Member at age 60 in respect of RMSPS NRA60 Benefits and age 65 in respect of RMSPS NRA65 Benefits.

• (10) Nothing in this Rule (or the other Rules referred to in sub-paragraph (8) above) shall enable the Secretary of State to reduce a Member’s pension below that Member’s GMP or any widow’s or widower’s pension payable on that Member’s death below the widow or widower’s GMP.

• (11) Rules 9(3)(a)(i), (4)(a)(i) or (5) (Lump sum benefits payable on death of a Member) shall apply to the reduced pension payable under sub-paragraph (9) of this Rule.

Payment of RMSPS benefits, retirement options and flexible retirement

4

• (1) A Member’s RMSPS NRA60 Benefits and RMSPS NRA65 Benefits are separate benefit entitlements, and shall constitute separate arrangements for the purposes of the Finance Act 2004, provided that the Secretary of State has the power to arrange the benefits under the RMSPS (in respect of one or a number of Members) so that RMSPS NRA60 Benefits and RMSPS NRA65 Benefits constitute the same arrangement for the purposes of the Finance Act 2004.

• (2) Despite any other provision of these Section B Rules but subject to General Rule 7 (Application of Sections A and B – election for Section B benefits), sub-paragraph (4) below in relation to Wholly Discharged RMPP Members and Partially Discharged RMPP Members and sub-paragraph (5) below in relation to Nil Margin Members—

• (a) a Member’s RMSPS NRA60 Benefits—

• (i) will come into payment automatically under the RMSPS when that Member draws or is paid RMPP NRA60 Benefits from the RMPP having obtained all necessary consents under the RMPP to do so; and

• (ii) may not come into payment under the RMSPS until that Member draws or is paid RMPP NRA60 Benefits from the RMPP;

• (b) a Member’s RMSPS NRA65 Benefits—

• (i) will come into payment automatically under the RMSPS when that Member draws or is paid RMPP NRA65 Benefits from the RMPP having obtained all necessary consents under the RMPP to do so; and

• (ii) may not come into payment under the RMSPS until that Member draws or is paid RMPP NRA65 Benefits from the RMPP.

Rule 5 (Benefits payable to Members who retire on ill health grounds or compassionate grounds), Rule 6 (Benefits payable to Members who retire under the RMPP in the interests of efficiency), Rule 7 (Benefits payable to Members who retire under the RMPP on redundancy) and Rule 8 (Benefits payable to Members who take early voluntary retirement under the RMPP) will in each case apply on a basis that is consistent with this principle (except that sub-paragraphs (4) and (5) below, and any specific provisions that are set out in each of those Rules, will apply in relation to Wholly Discharged RMPP Members, Partially Discharged RMPP Members and Nil Margin Members).

• (3) Where a Member’s RMSPS NRA60 Benefits or RMSPS NRA65 Benefits—

• (a) should have come into payment automatically under Paragraph (2)(a) or (b)above but have not come into payment, the Member shall be paid the relevant RMSPS NRA60 Benefits or RMSPS NRA65 Benefits in arrears, with such Interest, if any, as the Secretary of State considers appropriate; and

• (b) have come into payment, but the RMPP NRA60 Benefits or RMPP NRA65 Benefits, as appropriate under Paragraph (2)(a) or (b) above, have not come into payment, the relevant RMSPS NRA60 Benefits or RMSPS NRA65 Benefits will be treated as having been paid in error, and the Secretary of State must take whatever action he deems appropriate in his absolute discretion to correct the error.

• (4) In the event that a Member—

• (a) ceases to be a member of the RMPP by reason of a transfer of all of that Member’s benefits out of the RMPP (other than a transfer to a New POL Scheme described in Clause 5 (New POL Scheme)) or a discharge of all the Trustee’s obligations to provide benefits to that Member (in either case, other than money purchase benefits) (such Member being a Wholly Discharged RMPP Member); or

• (b) ceases to have a right or entitlement to either that Member’s RMPP NRA60 Benefits or RMPP NRA 65 Benefits for one of the reasons set out in Paragraph (a) above (such Member being a Partially Discharged RMPP Member and that benefit being a Discharged RMPP Benefit),

the following shall apply instead—

• (i) Sub-paragraphs (2) and (3) above will not apply in respect of a Wholly Discharged RMPP Member or, in the case of a Partially Discharged RMPP Member, that Member’s Relevant RMSPS Benefit, unless and to the extent that any benefit under the RMSPS has not yet (or should have) come into payment under sub-paragraph (2).

• (ii) Rule 5 (Benefits payable to Members who retire on ill health grounds or compassionate grounds), Rule 6 (Benefits payable to Members who retire under the RMPP in the interests of efficiency), Rule 7 (Benefits payable to Members who retire under the RMPP on redundancy) and Rule 8 (Benefits payable to Members who take early voluntary retirement under the RMPP) will apply in respect of a Wholly Discharged RMPP Member or, in the case of a Partially Discharged RMPP Member, that Member’s Relevant RMSPS Benefit, on the basis provided for in that Rule.

• (iii) Any Wholly Discharged RMPP Member whose benefits (or some of them) are deferred under Rule 3(8) (Benefits payable to Members on retirement) may elect, any time after Minimum Pension Age to take that Member’s RMSPS NRA60 Benefits or (if applicable) that Member’s RMSPS NRA65 Benefits, or both.

Similarly, if the Relevant RMSPS Benefit of a Partially Discharged RMPP Member is deferred under Rule 3(8) (Benefits payable to Members on retirement), he or she may elect, any time after Minimum Pension Age to take that RMSPS benefit.

In either case, such election shall require the consent of the Secretary of State (provided that such consent shall not be required in respect of RMSPS NRA60 Benefits if the Member has reached age 60, and shall not be required in respect of RMSPS NRA65 Benefits if the Member has reached age 65). In the case of a Wholly Discharged RMPP Member, if only one tranche of benefit is taken, the other shall continue to be deferred but, for avoidance of doubt, the remaining tranche can subsequently be brought into payment early in accordance with this Rule.

• (iv) Any Wholly Discharged RMPP Member may draw RMSPS NRA60 Benefits and RMSPS NRA65 Benefits at different times in accordance with the provisions of this Rule. However, if either a Wholly Discharged RMPP Member or a Partially Discharged RMPP Member wishes to draw RMSPS NRA60 Benefits, that Member must draw all of his or her RMSPS NRA60 Benefits at the same time and may not draw only part of his or her RMSPS NRA60 Benefits (and the same applies to RMSPS NRA65 Benefits). Provided that where a Wholly Discharged RMPP Member or Partially Discharged RMPP Member had at the end of the Cut-Off Date two or more periods of RMPP Reckonable Service which were treated separately in accordance with the RMPP Cut-Off Date Rules, the Wholly Discharged RMPP Member or Partially Discharged RMPP Member (as appropriate) may draw benefits from the RMSPS in respect of each period separately on the same basis as applied under the RMPP before 1 April 2010.

• (5) This sub-paragraph applies to a Member (not being either a Partially Discharged RMPP Member whose Relevant RMSPS Benefit is that Member’s RMSPS NRA60 Benefits or a Wholly Discharged RMPP Member) whose RMSPS NRA60 Benefits have not yet been brought into payment and who has a prospective RMPP NRA60 Pension under Rule 4(1)(a) (Retirement at or after Normal Retiring Age) of Section B of the RMPP Rules of nil and a prospective RMPP NRA60 Lump Sum under Rule 4(1)(b) of Section B of the RMPP Rules of nil (as described in Rule 4XA (Deemed crystallisation of NRA60 Benefits where no margin over RMSPS NRA60 Benefits) of Section B of the RMPP Rules) on the earliest of the dates specified in Paragraph (d) below (any such Member being a Nil Margin Member).

• (a) Sub-paragraphs (2) and (3) above will not apply in respect of the Nil Margin Member, if and to the extent that any benefit under the RMSPS has not yet (or should have) come into payment under sub-paragraph (2).

• (b) Rule 5 (Benefits payable to Members who retire on ill health grounds or compassionate grounds), Rule 6 (Benefits payable to Members who retire under the RMPP in the interests of efficiency), Rule 7 (Benefits payable to Members who retire under the RMPP on redundancy) and Rule 8 (Benefits payable to Members who take early voluntary retirement under the RMPP) will apply in respect of the Nil Margin Member on the basis provided for in that Rule.

• (c) The Nil Margin Member may elect to take his or her RMSPS NRA60 Benefits at any time after Minimum Pension Age. This election shall require the consent of the Secretary of State (provided that such consent shall not be required if the Nil Margin Member has reached age 60). If only the RMSPS NRA60 Benefits are taken, the RMSPS NRA65 Benefit shall continue to be deferred but, for avoidance of doubt, the RMSPS NRA65 Benefits can subsequently be brought into payment early in accordance with sub-paragraph (2) or (4) above, as appropriate.

• (d) The dates specified for the purposes of this Rule are—

• (i) the Nil Margin Member’s RMPP Exit Date;

• (ii) the effective date of any election by the Nil Margin Member for the purposes of the RMPP under Rule 4A of Section B of the RMPP Rules, which results in the Nil Margin Member ceasing to accrue further benefits under the RMPP or which would require his or her RMPP NRA60 Benefits to be paid immediately; and

• (iii) the date of an election by the Nil Margin Member to receive his or her RMSPS NRA60 Benefits under Paragraph (c) of this Rule.

• (6) Any benefits of a Wholly Discharged RMPP Member or a Nil Margin Member, or the Relevant RMSPS Benefit of a Partially Discharged RMPP Member (as the case may be) that (in any such case) have not come into payment (whether RMSPS NRA60 Benefits, RMSPS NRA65 Benefits or both) must commence payment no later than Normal Retiring Age (provided that no Member will be treated as becoming a Nil Margin Member by the operation of this sub-paragraph if they would not otherwise at that time have become a Nil Margin Member at their Normal Retiring Age).

• (7) While the Member remains in employment to which the RMPP relates, the Member’s consent will not be required to defer payment of his or her GMP after age 65 (being the expiration of five years from the date on which that Member attains Normal Retiring Age in respect of that Member’s RMSPS NRA60 Benefits). Section 13(5)(b) of the Pension Schemes Act 1993 (as applied to the RMSPS by the Contracting-out Laws) shall apply subject to this exemption from its requirements. This sub-paragraph shall not apply to a Wholly Discharged RMPP Member, a Partially Discharged RMPP Member whose Relevant RMSPS Benefit is his or her RMSPS NRA60 Benefits. This sub-paragraph shall apply to a Nil Margin Member who remains in employment with an Employer, notwithstanding that there is at that time no RMPP NRA60 Benefit payable to the Member.

Benefits payable to Members who retire on ill health grounds or compassionate grounds

5

• (1) A Member who is—

• (a) an RMPP Active who is Retired on RMPP Ill Health Grounds (within the meaning of Paragraph (a) of the definition of that term) by that Member’s Employer after the Cut-Off Date; or

• (b) an RMPP Leaver who is Retired on RMPP Ill Health Grounds (whether within the meaning of Paragraph (a) or Paragraph (b) of the definition of that term) by that Member’s Employer after the Cut-Off Date,

will be paid the RMSPS NRA60 Benefits and RMSPS NRA65 Benefits specified in Rule 3 (Benefits payable to Members on retirement) (or, if either benefit is already in payment, the benefit not already in payment) automatically when that Member’s RMPP NRA60 Benefits and/or RMPP NRA65 Benefits come into payment. The reduction set out in Rule 3(9) will not apply to that Member’s RMSPS NRA60 Benefits and/or RMSPS NRA65 Benefits that then come into payment.

• (2) The following shall also apply in relation to an RMPP Leaver who ceases to be in Employer employment—

• (a) If—

• (i) such a Member’s RMSPS NRA60 Benefits and/or RMSPS NRA65 Benefits are being deferred under Rule 3(8) (Benefits payable to Members on retirement); and

• (ii) the RMPP Trustees terminate deferment of that Member’s RMPP NRA60 Benefits and/or RMPP NRA65 Benefits because they are satisfied that the RMPP Leaver could have Retired on RMPP Ill Health Grounds had the RMPP Leaver still been in Employer employment under Rule 21(4) (Preservation of benefits) of Section B of the RMPP Rules,

the Secretary of State shall (subject, in particular to paragraphs 3 and 4 of Part IX (Overriding Finance Act Provisions) of this Schedule) also terminate the deferment of that Member’s RMSPS NRA60 Benefits and/or RMSPS NRA65 Benefits as appropriate. The reduction set out in Rule 3(9) (Benefits payable to Members on retirement) will not apply to that Member’s RMSPS NRA60 Benefits and/or RMSPS NRA65 Benefits that then come into payment.

• (b) If—

• (i) such a Member’s RMSPS NRA60 Benefits and/or RMSPS NRA65 Benefits are being deferred under Rule 3(8) (Benefits payable to Members on retirement) at a time that is within 10 years before that RMPP Leaver reaches Normal Retiring Age;

• (ii) the Member has reached Minimum Pension Age); and

• (iii) the RMPP Trustees at their discretion terminate the deferment of the RMPP Leaver’s RMPP NRA60 Benefits and/or RMPP NRA65 Benefits on other compassionate grounds under Rule 21(4) (Preservation of benefits) of Section B of the RMPP Rules,

the Secretary of State will also terminate the deferment of the RMPP Leaver’s RMSPS NRA60 Benefits and/or RMSPS NRA65 Benefits as appropriate. The reduction set out in Rule 3(9) (Benefits payable to Members on retirement) will not apply to that Member’s RMSPS NRA60 Benefits and/or RMSPS NRA65 Benefits that then come into payment, provided that, to the extent the said benefits relate to periods of RMSPS Reckonable Service on and from 1 December 2006, the benefits shall be reduced on a basis to be determined by the Secretary of State on the advice of the Actuary so that, so far as is reasonably practicable, they are equal in value to the benefits which would have been paid to the RMPP Leaver at Normal Retiring Age.

• (3) Sub-paragraphs (1) and (2) above shall not apply in relation to a Wholly Discharged RMPP Member. The following shall apply instead—

• (a) If at any time when the RMSPS NRA60 Benefits and/or the RMSPS NRA65 Benefits of a Wholly Discharged RMPP Member are being deferred under Rule 3(8) (Benefits payable to Members on retirement), the Secretary of State is satisfied that the Wholly Discharged RMPP Member Retired on RMPP Ill Health Grounds (or could have Retired on RMPP Ill Health Grounds had the Member still been in Employer employment), the Secretary of State shall (subject, in particular to paragraphs 3 and 4 of Part IX (Overriding Finance Act Provisions) of this Schedule) terminate the deferment of that Member’s RMSPS NRA60 Benefits and/or RMSPS NRA65 Benefits as appropriate. The reduction set out in Rule 3(9) (Benefits payable to Members on retirement) will not apply to the RMSPS NRA60 Benefits and/or RMSPS NRA65 Benefits that then come into payment. For avoidance of doubt, Paragraph (b) in the definition of the term Retired on RMPP Ill Health Grounds applies for the purposes of this sub-paragraph (3)(a) in relation to a Wholly Discharged RMPP Member who was in RMPP Reckonable Service on 31 March 2000.

• (b) At any time when the RMSPS NRA60 Benefits and/or the RMSPS NRA65 Benefits of a Wholly Discharged RMPP Member are being deferred under Rule 3(8) (Benefits payable to Members on retirement) that is within 10 years before that Member reaches Normal Retiring Age (but as long as the Member has reached Minimum Pension Age), the Secretary of State may at his discretion terminate the deferment of the said benefits on other compassionate grounds. The reduction set out in Rule 3(9) (Benefits payable to Members on retirement) will not apply to the RMSPS NRA60 Benefits and/or RMSPS NRA65 Benefits that then come into payment, provided that, to the extent the said benefits relate to periods of RMSPS Reckonable Service on and from 1 December 2006, the benefits shall be reduced on a basis to be determined by the Secretary of State on the advice of the Actuary so that, so far as is reasonably practicable, they are equal in value to the benefits which would have been paid to the Member at Normal Retiring Age.

• (4) In relation to a Nil Margin Member, sub-paragraphs (1) and (2) will apply such that the Member’s RMSPS NRA60 Benefits and (if they have not already come into payment) RMSPS NRA65 Benefits both come into payment, notwithstanding that no amount in respect of that Member’s RMPP NRA60 Benefits will at that time come into payment under the RMPP.