Exhibit 10.36
CONFORMED COPY
DATED 21 December 1999
________________________________________________________________________________
PERSON SERVICES LIMITED (1)
- AND -
XXXXXXX GROUP PENSION TRUSTEE LIMITED (2)
________________________________________________________________________________
DEED OF ADOPTION OF NEW RULES
IN RESPECT OF
THE EXTEL SECTION
OF
THE XXXXXXX GROUP PENSION PLAN
________________________________________________________________________________
Xxxxxx Xxxxx Xxxxxxx
00 Xxxxxxx Xxxxxxx
Xxxxxx XX0X 0XX
B2/JM/RAS
Stamp (pound) 5.00
12.01.00
THIS DEED OF ADOPTION OF NEW RULES is made 21 December 1999
BETWEEN:
(1) XXXXXXX SERVICES LIMITED (registered in England No. 1341060) whose
registered office is at 0 Xxxxxxxxxx Xxxxxxx Xxxxxx X0X 0XX (the "Principal
Company"); and
(2) XXXXXXX GROUP PENSION TRUSTEE LIMITED (registered in England No. 1765290)
whose registered office is at 0 Xxxxxxxxxx Xxxxxxx xxxxxxxxx (the
"Trustee").
WHEREAS:
(A) The Xxxxxxx Group Pension Plan (the "Plan") is at the date hereof governed
by a trust deed made on 10 October 1997 (the "Trust Deed").
(B) The Trustee is the present trustee of the Plan.
(C) By clause A.4 of the Trust Deed the Trustee may at any time with the
consent of the Principal Company alter or modify all or any of the
provisions of the Plan subject as therein mentioned.
(D) The Trustee wishes to alter the Rules of The Extel Section in the way set
out below and the Principal Company consents to the alteration, as is shown
by its execution of this deed.
NOW THIS DEED WITNESSES that the rules set out in the schedule to the Deed of
Adoption of Rules in respect of The Extel Section of the Plan dated 8 September
1998 shall cease to have effect and the rules set out in the schedule to this
deed are substituted in their place as the Rules of The Extel Section with
effect on and from the date of this deed SAVE AND EXCEPT that (unless
explicitly stated to the contrary in the Rules set out in the schedule to this
deed) in respect of the rights and benefits under the Plan of all persons who
were not active Members on the date of this deed the provisions of the rules of
the Plan in force prior to the date of this deed shall (where appropriate)
continue to apply PROVIDED HOWEVER that the Trustee and the Principal Company
shall not hereby be precluded from making any specific alteration or
modification within their powers under the Trust Deed relating to such Members
or any of them.
EXECUTED AS A DEED the day and year first above written.
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SCHEDULE
THE RULES OF THE EXTEL SECTION OF
THE XXXXXXX GROUP PENSION PLAN
CONTENTS
Rule Page
A. DEFINITIONS 4
B. ADMINISTRATION OF SECTION
B.1 LEAD COMPANY 9
B.2 INVESTMENT COMMITTEE 9
B.3 TRANSITIONAL ARRANGEMENTS 9
B.4 EMPLOYMENTS TO WHICH THESE RULES RELATE 9
B.5 EQUAL TREATMENT 9
C. MEMBERSHIP AND CONTRIBUTIONS
C.1 MEMBERSHIP 10
C.2 ABSENCE FROM WORK 10
C.3 PART-TIME EMPLOYMENT 11
C.4 MEMBERS' CONTRIBUTIONS 12
C.5 CHANGE OF EMPLOYER 12
C.6 LINKED PENSIONABLE SERVICE 12
C.7 SECONDMENT 13
D. BENEFITS ON RETIREMENT
D.1 PENSION RETIREMENT AT NORMAL RETIREMENT DATE 14
D.2 LATE RETIREMENT 14
D.3 EARLY RETIREMENT DUE TO INCAPACITY 14
D.4 EARLY RETIREMENT FOR REASONS OTHER THAN INCAPACITY 15
D.5 OPTIONAL PENSION FOR DEPENDANTS 16
D.6 COMMUTATION 17
E. BENEFITS ON DEATH
E.1 DEATH OF A MEMBER IN SERVICE 18
E.2 DEATH WHILST ENTITLED TO A DEFERRED PENSION 19
E.3 DEATH IN RETIREMENT 19
E.4 DEPENDANTS' PENSIONS 20
E.5 REDUCTION FOR YOUNG SPOUSE 20
E.6 RECENT MARRIAGE OF A MEMBER 20
Rule Page
F. BENEFITS ON WITHDRAWAL
F.1 BENEFITS ON WITHDRAWAL 21
F.2 RETURN OF CONTRIBUTIONS 21
F.3 DEFERRED PENSION 21
F.4 LATE PAYMENT 22
F.5 EARLY PAYMENT 22
F.6 MINIMUM AMOUNTS ON EARLY OR LATE PAYMENT 23
F.7 TRANSFERS 24
G. ADDITIONAL BENEFITS
G.1 PENSION INCREASES 25
H. PAYMENT OF BENEFITS
H.1 PENSIONS 26
H.2 METHOD OF PAYMENT 26
H.3 INTEREST ON LATE PAYMENT 26
H.4 DISPUTES 26
H.5 PROVISION OF INFORMATION 27
H.6 DEDUCTION OF TAX 27
H.7 MINORS 27
H.8 PROTECTION FOR THE TRUSTEE 27
H.9 DISTRIBUTION OF LUMP SUM DEATH BENEFITS 28
APPENDIX
SPECIAL PROVISIONS IN RESPECT OF MEMBERS OF THE OLD
PLAN WHOSE PENSIONABLE SERVICE ENDED PRIOR TO
1 FEBRUARY 1995 29
A. DEFINITIONS
A.1.1 Unless the context otherwise requires:
(a) the definitions contained in paragraph 1 of Schedule 5 to the Trust
Deed shall apply to these Rules, except where Rule A.1.2 below
gives a different meaning to any of the terms used in Schedule 5 or
adds to those terms;
(b) the provisions as to interpretation in paragraphs 2, 3 and 4 of
Schedule 5 to the Trust Deed shall apply to these Rules; and
(c) the Appendix shall form part of these Rules.
A.1.2 The terms set out below shall have the following meanings:
"AVERAGE REVALUED FLUCTUATING EARNINGS"
a Member's Revalued Fluctuating Earnings divided by the number of
complete years (and a fraction for complete months) of Pensionable
Service after 6 April 1978. If a Member has been in Pensionable Service
for less than 12 months it means the amount of Fluctuating Earnings in
excess of the amount of Salary paid to him or her during the period of
his or her Pensionable Service. This amount is revalued as described in
the definition of Revalued Fluctuating Earnings only if a 5 April falls
in the period of his or her Pensionable Service;
"CHILD"
in relation to a Member, a child of the Member (including a stepchild or
adopted child) and from the date of his or her birth any such child
conceived but not born before the Member's death and any other child
who is in the opinion of the Trustee financially dependent on the
Member. Such child must be under age 18 of under age 23 and receiving
full-time education or unpaid vocational training;
"COMMENCEMENT DATE"
1 February 1995;
"DEPENDENT"
in relation to a Member, any natural person who in the opinion of the
Trustee is (or was at the date of the Member's death) financially
dependent on the Member;
"EMPLOYEE"
a permanent employee, or a director, in Service with any of the
Employers to which these Rules relate;
"FINAL PENSIONABLE SALARY"
in relation to a Member the greater of:
(a) the highest Salary paid to the Member in any consecutive period of
12 months in the five years immediately before the termination of
the Member's Pensionable Service. If a Member has been in
Pensionable Service for less than 12 months, the amount of Salary
paid to him or her during Pensionable Service is converted to an
annual amount on an appropriate basis as advised by the Actuary; and
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(b) the highest time-weighted annual average rate of the Member's Salary
calculations made for the purposes of the Rules in any period of three
consecutive years ending in the ten years immediately before the
termination of the Member's Pensionable Service;
For the purposes of this definition Salary is interpreted as if the words "the
annual rate of" were omitted;
"FLUCTUATING EARNINGS"
the annual amount of all emoluments paid to a Member by his or her Employer
which are treated for tax purposes as emoluments of an office or employment,
less the Member's Salary;
"GROSS PAY"
the annual rate of all a Member's emoluments from his or her Employer which are
treated for tax purposes as emoluments from an office or employment other than
any amounts paid to the Member by the Employer to reimburse expenses which he
or she has properly incurred in respect of his or her Employment or as an
allowance in respect of such expenses. It also includes any pay which the Lead
Company has declared to be profit related pay;
"INCAPACITY"
either that a Member is prevented by physical or mental deterioration from
following his or her normal employment with the Employer or that his or her
earning capacity is seriously impaired. The decision whether or not a Member is
incapacitated is for the Lead Company on the basis of opinions from not fewer
than two qualified medical practitioners;
"LEAD COMPANY"
Exshare Financial Limited (previously called Extel Financial Limited)
registered in England No. 949387);
"LIMITED MEMBER"
See Rule C.1.3;
"LOWER TIER MEMBER"
a Member who is paying contributions to the Plan at the lower rate described in
Rule C.4.1;
"LOWER TIER SERVICE CREDIT"
in respect of a Member who:
(a) joined The Extel Section with effect from Commencement Date;
(b) was not in receipt of a pension at Commencement Date; and
(c) had not ceased on or before Commencement date to Accrue benefits under
the Old Plan with entitlement to deferred pension under the Plan at
Commencement Date
the number of months of additional notional pensionable service calculated as
follows:
(i) for a Member who had not attained age 62 on Commencement
Date,
N x 36
-
NS
where
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N = the number of calendar months of the Member's Pensionable Service
completed after Commencement Date but before Normal Retirement
Date as a Lower Tier Member;
NS = the number of calendar months of the Member's potential
Pensionable Service from Commencement Date to Normal Retirement
Date
Provided that should any of the Member's potential Pensionable Service
be part-time employment, the Member's benefits shall be adjusted
appropriately as the Trustee acting on the advice of the Actuary shall
decide; and
(ii) for a Member who had attained age 62 on Commencement Date and was a
Lower Tier Member on that date, the actual number of months'
difference between Commencement Date and that Member's 65th birthday,
"MEMBER"
a person in membership of The Extel Section of the Plan so long as any benefits
are or may be payable to or in respect of him or her under the Plan;
"NORMAL RETIREMENT DATE"
in respect of all Members admitted as active Members of The Extel Section on or
after the Commencement Date, the 62nd birthday;
"OLD PLAN"
the Extel Pension Fund established by a trust deed dated 1 March 1929;
"PENSIONABLE SERVICE"
in respect of a Member the period calculated in complete years and months (with
each month counted as one-twelfth of a year) equal to the aggregate of (i) the
only or last period of Service as a Member of The Extel Section of the Plan up
to Normal Retirement Date (subject to Rule D.2.1) or, if earlier, the effective
date of any notice given under Rule C.1.4 and (ii) a period equal to the
Member's pensionable service accrued or credited under the Old Plan as at
Commencement Date. Where the Member was an active member of the Old Plan on the
day immediately before Commencement Date and became an active Member of The
Extel Section on Commencement Date, this second period shall be increased by 10
per cent. Where a Member has paid additional voluntary contributions under the
Old Plan before the Commencement Date on the basis of additional years of
Pensionable Service the period of such additional years:
(a) shall not be included when calculating the 10 per cent increase referred to
above; and
(b) shall be actuarially adjusted to take account of the earlier Normal
Retirement Date from which they will be payable.
"PRICES INDEX"
the general index of retail prices as published by the Central Statistical
Office or such other index as may from time to time be selected by the Trustee
with the consent of the Principal Company and approved for use in this behalf
by the Commissioners of Inland Revenue;
"PROTECTED 1989 MEMBER"
a Member in relation to whom restrictions of the type set out in paragraphs 20
and 22 to 26 of Schedule 6 to the Finance Act 1989 do not apply because of the
Retirement Benefits Schemes
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(Continuation of Rights of Members of Approved Schemes) Regulations 1990 or a
decision of the Commissioners of Inland Revenue;
"REVALUED FLUCTUATING EARNINGS"
at the date he or she ceases to be in Pensionable Service, a Member's total
Fluctuating Earnings paid by an Employer after the date he or she became a
Member (or, if later, 6 April 1978) revalued on 5 April each year up to 5 April
before the date he or she ceases to be in Pensionable Service in the same way
(as far as practicable) as earnings factors are revalued in accordance with
orders made under s16(1) 1993 Act. If s16(1) or the orders made under it are
amended or re-enacted resulting in the method of revaluation becoming
inappropriate in the opinion of the Principal Company and the Trustee they may
agree to substitute another method of revaluation;
"SALARY"
the annual rate of a Member's basic remuneration from the Employers excluding
bonuses, commissions, overtime payments, shift pay, fees, travelling expenses
and any other fixed or fluctuating emoluments. It includes pay which the Lead
Company has declared to be profit related pay;
"SCALE PENSION"
in relation to a Member, the sum of:
(i) 1/60th of his or her Final Pensionable Salary multiplied by the period
of his or her Pensionable Service before 6 April 1978;
(ii) 1/60th of his or her Final Pensionable Salary multiplied by the
aggregate period of his or her Pensionable Service on and after 6
April 1978 as an Upper Tier Member and his or her Upper Tier Service
Credit;
(iii) 1/60th of that part of his or her Revalued Fluctuating Earnings which
relates to his or her Pensionable Service on and after 6 April 1978 as
an Upper Tier Member;
(iv) 1/100th of his or her Final Pensionable Salary multiplied by the
aggregate period of his or her Pensionable Service on and after 6
April 1978 as a Lower Tier Member and his or her Lower Tier Service
Credit;
(v) 1/100th of that part of his or her Revalued Fluctuating Earnings which
relates to his or her Pensionable Service on and after 6 April 1978 as
a Lower Tier Member.
If, when his or her Pensionable Service ends, the GMP of an Upper Tier Member
is greater than the sum of (iv) and (v) above, the sum of (i) to (v) above
must not be less than his or her GMP plus 1/150th of his or her Final
Pensionable Salary multiplied by the period of his or her Pensionable Service
on and after 6 April 1978 as an Upper Tier Member plus 1/150th of that part of
his or her Revalued Fluctuating Earnings which relates to his or her
Pensionable Service on and after 6 April 1978 as an Upper Tier Member.
"SPECIAL DIRECTOR"
a Member who, at any time in the ten years immediately before his or her Service
ends, has been a director of any of the Employers as defined in s612 1988 Act
and who is within s417(5)(b)1988 Act;
"UPPER TIER MEMBER"
a Member who is paying contributions to the Plan at the higher rate described
in Rule C.4.1;
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"UPPER TIER SERVICE CREDIT"
in respect of a Member who:
(a) joined The Extel Section with effect from Commencement Date;
(b) was not in receipt of a pension at Commencement Date; and
(c) had not ceased on or before Commencement Date to accrue benefits under the
Old Plan with entitlement to deferred pension under the Plan at
Commencement Date
the number of months of additional notional pensionable service calculated as
follows:
(i) for a Member who had not attained age 62 on Commencement Date,
N x 36
--
NS
where
N = the number of calendar months of the Member's Pensionable Service
completed after Commencement Date but before Normal Retirement
Date as an Upper Tier Member;
NS= the number of calendar months of the Member's potential
Pensionable Service from Commencement Date to Normal Retirement
Date
Provided that should any of the Member's potential Pensionable Service
be part-time employment, the Member's benefits shall be adjusted
appropriately as the Trustee acting on the advice of the Actuary
shall decide; and
(ii) for a Member who had attained age 62 on Commencement Date and was an
Upper Tier Member on that date, the actual number of months'
difference between Commencement Date and that Member's 65th birthday;
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B. ADMINISTRATION OF SECTION
B.1 LEAD COMPANY
Exshare Financial Limited (previously called Extel Financial Limited)
registered in England No. 949387 is the Lead Company of The Extel Section.
B.2 INVESTMENT COMMITTEE
See Trust Deed clause C.6.
B.3 TRANSITIONAL ARRANGEMENT
On the occurrence of any event specified in Schedule 3B to the Trust Deed
any Member entitled to an adjustment of all or part of his or her benefits
from (or by reference to) The Extel Section shall have his or her benefits
increased in such manner as the trustee shall determine by an amount equal
in value to 54.43 per cent of the benefits which are to be adjusted. On the
occurrence of any event specified in Schedule 3 to the Trust Deed (which
could be relevant if a Member who was a Member of another Section on 1
August 1988 transfers to The Extel Section) then the provisions of Schedule
3 to the Trust Deed shall apply.
B.4 EMPLOYMENTS TO WHICH THESE RULES RELATE
These Rules shall apply to employments with the following Employers:
NAME OF EMPLOYER REGISTERED NUMBER
Exshare Financial Limited 949387
The Financial Times Limited 227590
Financial Times Information Limited 980896
AFX News Limited 2505735
These Rules shall also apply to employments with such other of the
Employers as the Principal Company with the consent of the Trustee
may allow.
B.5. EQUAL TREATMENT
To the extent required by law the Rules shall be subject to an overriding
equal treatment rule as set out in s62 1995 Act.
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C. MEMBERSHIP AND CONTRIBUTIONS
C.1 MEMBERSHIP
C.1.1 Every Employee who was a Lower Tier Member of The Extel Section on 31
March 1995 shall subject to Rules C.1.4 and C.1.5 remain a Lower Tier
Member and every Employee who was an Upper Tier Member on 31 March
1995 shall, subject to Rules C.1.4 and C.1.5 remain an Upper Tier
Member.
C.1.2 No Employee shall be admitted as a Member after 31 March 1995.
C.1.3 An Employee who was a Limited Member on 31 March 1995 and who did not
on 1 April 1995 leave Service or become an FP Member or an MP Member
of the Xxxxxxx Group Sections became an Original Section Life
Assurance Member of the Xxxxxxx Group Sections on 1 April 1995 and
shall not be entitled to any benefits under The Extel Section after 1
April 1995.
C.1.4 A Member may terminate his or her Pensionable Service whilst remaining
in Service by giving to the Lead Company not less than one month's
notice or such shorter period as may (subject to any statutory
requirements) be agreed by it. The Member will then become entitled to
the withdrawal benefits as specified in Rule F.2.1 or F.3 (as
appropriate).
C.1.5 A Member who is a Lower Tier Member may elect by notice in writing to
the Trustee to become an Upper Tier Member with effect from the 6
April next following the date of the election but subject to that
Member paying contributions under Rule C.4.1 at the rate of Upper Tier
Members.
C.2 ABSENCE FROM WORK
C.2.1 Subject to Rule C.2.4 below, if a Member is absent from work for a
reason approved by his or her Employer for the purpose of this Rule
(whether or not remaining in Service) he or she shall be deemed to
remain a Member provided there is, in the opinion of his or her
Employer, a definite expectation of his or her return to work or the
absence is because of incapacity and he or she is receiving pay under
a sick pay or permanent health insurance scheme of the Employer. The
period for which membership shall be deemed to continue shall be:
(a) the period of absence, if the absence is due to incapacity; or
(b) if the absence is due to any other reason, 36 months or such
shorter period as there remains a definite expectation of his or
her return to work
unless the Lead Company (with the consent of the Commissioners of
Inland Revenue if appropriate) allows a longer period of absence to
count as membership.
C.2.2 Subject to this Rule C.2.2 and to Rule C.2.4, a period of absence will
only count as Pensionable Service if the Member continues to pay
contributions to the Plan during a period of absence or makes up the
arrears on his or her return to work; this is subject to the exception
in the case of a Member who is receiving contractual pay or statutory
maternity pay during maternity absence as specified in Rule C.2.4
below.
If (and for so long as) a Member's remuneration during a period of
absence is, in the opinion of the Trustee less than it would have been
but for the absence, or if the Trustee agrees for any other reason:
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(a) he or she may elect to suspend payment of contributions. He or
she may pay those contributions later on a basis agreed with the
Trustee; or
(b) he or she may elect to pay contributions on the basis of his or
her remuneration immediately before the date it was reduced (the
date and the amount of the reduction being decided by the
Trustee) in which case his or her benefits will be calculated by
reference to his or her remuneration immediately before it was
reduced; or
(c) he or she may elect to pay contributions on the basis of his or
her reduced remuneration in which case his or her new benefits
will be calculated by reference to his or her reduced
remuneration unless the Trustee decides that in fairness some
addition should be made to his or her pension (subject to
Approval) because he or she has paid contributions in the past on
greater remuneration.
C.2.3 All Members will continue to be covered for the death benefits set out
in Rules E.1.1 and E.1.2 during any period of absence which counts as
Service.
C.2.4 A female Member who is absent from work due to pregnancy or confinement
and who gives notice of her intention to return to work under s33
Employment Protection (Consolidation) Act 1978 shall not be treated as
leaving Service and the period of absence shall subject to Rule C.2.2
be treated as Pensionable Service. She shall be covered for the death
benefits set out in Rule E1.1 unless and until she has failed to
return to work on the last day on which she could return to work under
the provisions of that Act, but she shall then become entitled to the
withdrawal benefits set out in Rule F.2 or F.3 (as appropriate). If she
returns to work before such last day she shall not be entitled to the
withdrawal benefits as she will continue to be in Pensionable Service.
During any period of maternity absence where the female Member
continues to receive contractual pay or statutory maternity pay and the
provisions of Schedule 5 Social Security Act 1989 apply, she shall be
obliged to pay contributions not on Gross Pay but on her basic
remuneration at the rate in payment to her for the time being but she
shall receive benefits based on the pay she would have received if she
had been working normally.
C.3 PART-TIME EMPLOYMENT
C.3.1 This Rule applies to a Member who is required by his or her contract of
employment to work fewer hours than the standard full-time working
hours. The decision of his or her Employer as to the standard full-time
working hours and the amount of remuneration which would have applied
if the Member had been employed full-time is final.
C.3.2 The Member's Pensionable Service is adjusted for the purpose of
calculating his or her Scale Pension. The adjustment is made by
multiplying his or her Pensionable Service by the fraction PT/FT where:
PT is the number of hours each week (or other period selected by the
Employer for this purpose) which the Member is from time to time
required by his or her contract of employment to work; and
FT is the standard full-time number of hours as decided from time to
time by the Employer.
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C.3.3 The Member's basic remuneration is notionally increased by
multiplying it by the fraction FT/PT which terms have the same meaning
as in Rule C.3.2.
C.3.4 If the number of hours which the Member is required by his contract
of employment to work for the period used in calculating PT changes,
the Trustees will apply a new fraction to the Member's period of
Pensionable Service following the effective date of the change to
take account of that change. The fraction will also change if the
standard full-time number of hours changes unless the part-time
employee receives, in the opinion of his or her Employer, a
commensurate adjustment to his or her basic remuneration.
C.4 MEMBER'S CONTRIBUTIONS
C.4.1 Subject to Rule C.4.2, each Member shall contribute to the Plan until
his or her Pensionable Service ends. The annual rate of contributions
shall be 6 per cent of an Upper Tier Member's Gross Pay (unless he or
she became a Member before 1 January 1971, when under the age of 35,
in which case his or her contributions shall be at the rate of 5 per
cent) or 3.5 per cent of a Lower Tier Member's Gross Pay.
C.4.2 No Member will be required to contribute to the Plan under Rule C.4.1
after completion of 40 years of Pensionable Service. A Member's
Service thereafter does not count towards Pensionable Service. For
the purposes of this Rule C.4.2, only 3/5ths of his or her
Pensionable Service as a Lower Tier Member counts towards a Member's
40 years.
C.4.3 Members may make Additional Voluntary Contributions on a money
purchase basis or on the basis of his or her being awarded an
additional period of Pensionable Service, and in either case in
accordance with clause F.1 of the Trust Deed. The Trustee's consent
is required in the case of a Member who wishes to pay Additional
Voluntary Contributions on the latter basis if he did not pay them to
the Old Plan on that basis.
C.4.4 Each Member's contributions shall be collected by the Employer by
deduction from the Member's remuneration or in such other manner as
the Trustee shall decide. All such contributions shall be paid by the
Employers forthwith to the Trustee or as the Trustee shall otherwise
direct.
C.5 CHANGE OF EMPLOYER
If any Member transfers from the Service of one Employer to the
Service of another Employer and these Rules apply to employment with
both Employers, the Member shall not be treated as leaving
Pensionable Service on the transfer.
C.6 LINKED PENSIONABLE SERVICE
C.6.1 Subject to Rules C.2.2, C.2.4 and C.6.2 and to clause H.2 and
Schedule 4 of the Trust Deed, a Member who leaves and re-enters
Pensionable Service or whose Pensionable Service is interrupted shall
receive benefits in respect of each period of Pensionable Service as
if he or she had not previously been in Pensionable Service.
C.6.2 Where a Member leaves and re-enters Pensionable Service or a Member's
Pensionable Service is interrupted in circumstances where the Member
has retained a right to pension benefits under The
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Extel Section of the Plan in respect of the first period of Pensionable
Service the Member may, with the consent of the Lead Company, elect to
surrender his or her entitlement to pension benefits in respect of the
first period of Pensionable Service on terms that the two periods of
Pensionable Service be aggregated for the purpose of calculating his or
her entitlement to benefits under the Plan.
C.7 SECONDMENT
Any Member who is seconded or transferred by his or her Employer to work
for another employer (whether or not in the United Kingdom and including
any government agency) may, by written agreement between the Member and
his or her Employer, be deemed to remain a Member in Pensionable Service
for a period which is determined by the Employer and will not prejudice
Approval.
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D. BENEFITS ON RETIREMENT
D.1.1 PENSION ON RETIREMENT AT NORMAL RETIREMENT DATE
Each Member who retires from Pensionable Service at Normal Retirement
Date shall receive an immediate annual pension equal to his or her
Scale Pension.
D.1.2 No pension under Rule D.1.1 shall exceed Inland Revenue Limits or be
less than required by the Contracted-out Requirements.
D.2.1 LATE RETIREMENT
If, with the consent of the Employer, a Member remains in Service
after Normal Retirement Date his or her Pensionable Service shall be
deemed to continue and the Member shall continue to contribute
subject to Rule C.4.2. Unless Rule C.4.2 applies the annual rate of
the Member's pension shall be calculated under Rule D.1.1 as if the
date he or she ceased to contribute to the Plan under Rule C.4.1 was
his or her Normal Retirement Date. If this pension is not paid to the
Member with effect from the date he or she ceases to contribute
under Rule C.4.1 it shall be increased until it does commence by a
percentage decided by the Trustee after consulting the Actuary. If
Rule C.4.2 applies the Member's pension is calculated using
Pensionable Service up to the date Rule C.4.2 applies but Final
Pensionable Salary and Revalued Fluctuating Earnings at the date of
the Member's late retirement are used if they are higher than at the
date Rule C.4.2 applied.
D.2.2 If a Member remains in Service after Normal Retirement Date he or she
may, if the Trustee agrees, exercise option (a), (b) or (c) below:
(a) take an immediate pension calculated under Rule D.2.1 from a date
(the "agreed date") he or she agrees with the Trustee (but not
later than his or her retirement from Service);
(b) take a cash sum under Rule D.6.1 on, and the balance of his or
her pension under Rule D.2.1 from, the agreed date;
(c) take a cash sum under Rule D.6.1 on the agreed date, and the
balance of his or her pension under Rule D.2.1 from a later date
he or she agrees with the Trustee (but not later than his or her
retirement from Service).
A Member who exercises any of the above options is deemed to have
retired on the agreed date. These options do not apply to a Member
who joined the Old Plan or the Plan on or after 1 June 1989 and who
is not a Protected 1989 Member.
D.2.3 No pension under Rules D.2.1 or D.2.2 shall exceed Inland Revenue
Limits or be less than required by the Contracted-out Requirements.
D.3.1 EARLY RETIREMENT DUE TO INCAPACITY
If a Member retires from Pensionable Service with the consent of the
Lead Company at any time before Normal Retirement Date on account of
Incapacity the Member shall be entitled to receive an immediate
pension equal to 50 per cent of his or her Scale Pension calculated
on the basis of the following assumptions:
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(a) that the Member had remained in Pensionable Service until Normal
Retirement Date without change in his or her Salary;
(b) that his or her Fluctuating Earnings stopped at and were revalued
up to the 5 April before the date of early retirement;
(c) that his on her Pensionable Service from the date of early
retirement until Normal Retirement Date is comprised of Upper Tier
membership and Lower Tier membership in the same ratio as his or her
completed Pensionable Service after 6 April 1978;
Provided that the Scale Pension so calculated will not be less than the
Member's Scale Pension calculated as at the date his or her Pensionable
Service ends without taking any account of prospective Pensionable
Service.
D.3.2 No pension under Rule D.3.1 shall exceed Inland Revenue Limits or be
less than required by the Contracted-out Requirements.
D.4.1 EARLY RETIREMENT FOR REASONS OTHER THAN INCAPACITY
If a Member not entitled to a pension under Rule D.3.1 retires from
Pensionable Service with the consent of the Lead Company on or after
age 50 and before Normal Retirement Date, he or she may, if the Lead
Company agrees, elect to receive an immediate pension calculated as in
Rule D.1.1 but based on Final Pensionable Salary and Revalued
Fluctuating Earnings at, and Pensionable Service up to, the date of
retirement and the pension shall then be reduced by multiplying it by
the factor shown in the following table:
EXACT AGE AT EARLY RETIREMENT FACTOR
60 and above 1
59 0.970
58 0.941
57 0.913
56 0.885
55 0.859
54 0.833
53 0.808
52 0.784
51 0.760
50 0.737
This table is interpolated to take account of complete months of age
attained at the date of early retirement.
In the case of a Member who was in Pensionable Service on 31 August
1991, however, the early retirement pension payable in the circumstances
described in this Rule D.4.1 must not be less than the pension which
would have been payable in these circumstances under the rules of the
Old Plan in force on August 1991.
D.4.2 No pension under Rule D.4.1 shall exceed Inland Revenue Limits or be
less than required by the Contracted-out Requirements.
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D.4.3 Where a pension payable to a Member is to be increased after the Member
reaches State Pensionable Age by reason of Rules D.4.2 or D.3.2, the
pension payable to the Member before the Member reaches that age may be
decreased by such amount as the Actuary prescribes but not so that the
actuarial value of the pension payable is less than the actuarial value
of the pension that would have been payable but for this Rule. The
acturial value must be certified as reasonable by the Actuary.
D.4.4 The Trustee shall be reasonably satisfied that, on the date when the
pension under Rule D.4.1 becomes payable, its value, together with the
value of my benefit payable on the Member's death, is not less than the
value on that date of any benefits which have accrued to or in respect
of the Member, including for this purpose any increases in benefit which
the Trustee estimates would accrue in accordance with the 1993 Act and
taking into account the preservation requirements under the 1993 Act, if
the Member elected to take a deferred pension under Rule F.3.
D.5.1 OPTIONAL PENSION FOR DEPENDANTS
A Member may elect in writing to surrender part of his or her pension in
order to provide one or more pensions payable on the Member's death to
the Member's spouse and/or any Dependants nominated by the Member.
D.5.2 The option in D.5.1 above is subject to the following conditions:
(a) it must be exercised within 12 months before the Member's pension
becomes payable;
(b) the aggregate of the pensions so provided shall be equal in value
to the part of the Member's pension surrendered, calculated on a
basis certified as reasonable by the Actuary;
(c) the option may not be exercised so that the annual amount of a
spouse's or Dependant's pension would be less than the limit
specified in Rule D.6.3 at the time of surrender, or more than the
Member's pension (including any part of it paid or payable in the
form of cash under Rule D.6.1 but ignoring any reduction under Rule
D.4.3) as reduced by the part surrendered;
(d) the aggregate annual amount of the spouse's and Dependants'
reversionary pensions together with any pension contingently
payable in respect of the Member shall not exceed the annual amount
of the Member's pension after surrender but before commutation
under Rule D.6.1 and ignoring any reduction under Rule D.4.3;
(e) if the spouse or nominated Dependant dies before the Member but
after the Member's pension has commenced, the Member's pension
after surrender shall not be affected, but if the spouse or
nominated Xxxxxxxxx dies before the Member's pension becomes
payable, the election under this Rule D.5.2 will be cancelled
automatically and deemed not to have been exercised; and
(f) the exercise of the option shall be subject to such restrictions as
the Trustee considers appropriate to ensure that the Member's
pension is not less than required by the Contracted-out
Requirements.
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D.6.1 COMMUTATION
A member may (subject to any restrictions pursuant to clause F.1 and
clause G.1 of the Trust Deed and to the Contracted-out Requirements)
commute the whole or part of his or her pension for a lump sum by giving
written notice to the Trustee. The lump sum shall not exceed Inland
Revenue Limits. The amount of the pension foregone shall be such as the
Trustee shall determine calculated on a basis certified as reasonable
by the Actuary. This option must be exercised, and shall not take
effect, before the date when the Member's pension under the Plan
commences or (if earlier) the Member's Normal Retirement Date. This Rule
D.6.1 shall not apply if Rule D.6.2 or Rule D.6.3 applies.
D.6.2 If a Member becomes entitled to payment of a pension in exceptional
circumstances of serious ill-health, the Trustee may pay the Member in
lieu of the whole or any part of that pension in excess of his or her GMP
a lump sum of such amount as it shall determine, calculated on a basis
certified as reasonable by the Actuary. Such sum may exceed Inland
Revenue Limits applicable to lump sum payments.
D.6.3 The Trustee may pursuant to this Rule D.6.3 pay a Beneficiary in lieu of
his or her pension or of any benefits payable on his or her death a lump
sum of such amount as the Trustee shall determine, calculated on a basis
certified as reasonable by the Actuary. This power may be exercised only
if the aggregate annual amount of the pensions and pension equivalent of
any lump sums to which that person is entitled under the Plan and under
all other Retirement Benefits Schemes to which any of the Employers
contributes or has contributed does not exceed L260 or any such other
amount as may be prescribed under s21(1) and s77(6) 1993 Act and shall
not prejudice Approval. For this purpose, where a Member's pension is due
to commence prior to reaching State Pensionable Age, commutation under
this Rule D.6.3 shall only be available where (i) a state scheme premium
has been paid (or is treated as having been paid) in respect of the
Member pursuant to the 1993 Act or the Member's benefits accrued pursuant
to the Contracted-out Requirements are determined on the basis set out in
Schedule 4 to the Trust Deed using (in the case of the Member's
prospective GMP) the fixed rate revaluation method, and (ii) the Member
is treated by all other schemes relating to his employment by the
Employer as having retired or all of them are being wound up and the
provisions of (i) apply to those schemes. On payment of a lump sum under
this Rule, all entitlements to benefits payable to or in respect of the
Member cease.
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E. BENEFITS OF DEATH
E.1.1 DEATH OF A MEMBER IN SERVICE
On the death of any Member (other than a Member who has terminated
Pensionable Service under Rule C.1.4) in Service the Trustee shall pay:
(a) if the Member dies before Normal Retirement Date,
(i) a lump sum equal to, in the case of an Upper Tier
Member, the sum of four times his or her Salary and
four times his or her Average Revalued Fluctuating
Earnings both calculated as at the date of death, or in
the case of a Lower Tier Member, 240 per cent of the
sum of his or her Salary and Average Revalued
Fluctuating Earnings both calculated as at the date of
death; and
(ii) the amount of his or her contributions to the Plan and
to the Old Plan other than Additional Voluntary
Contributions paid on a money-purchase basis; and
(iii) the value of his or her benefits as determined under
Clause F.1.4(a) of the Trust Deed; or
(b) if the Member dies after Normal Retirement Date, a lump sum of
five times the pension which he or she would have received had he
or she retired on the day before death ignoring any increases
which would have applied while in payment;
and in either case
(c) to the Member's spouse, an annual pension equal to 50 per cent of
the Member's Scale Pension calculated as if he or she had
remained in Pensionable Service until Normal Retirement Date
without change in his or her Salary and assuming that his or her
Fluctuating Earnings stopped at the date of his or her death and
also that his or her Pensionable Service from the date of death
until Normal Retirement Date is comprised of Upper Tier
membership and Lower Tier membership in the same ratio as his or
her completed Pensionable Service after 6 April 1978. However,
the spouse's pension must not be less than the greater of (a) the
spouse's GMP plus 50 per cent of the Member's pension in respect
of Pensionable Service before 6 April 1978 and (b) 1/160th of the
Member's Salary at death multiplied by his or her period of
Contracted-out Employment; and
(d) if the Member leaves one or more Children, an annual pension to
each Child of one sixth of the Member's Scale Pension (calculated
as in (c) above) Provided that if the Member leaves more than
three Children the total annual amount of the pensions payable to
the Children is limited to 50 per cent of the Member's Scale
Pension (payable to the Children in equal shares).
E.1.2 The benefits payable under Rule E.1.1 shall not exceed Inland Revenue
Limits nor shall any pension payable to a Member's surviving spouse be
less than required by the Contracted-out Requirements.
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E.2.1 DEATH WHILST ENTITLED TO A DEFERRED PENSION
On the death of a Member whose Pensionable Service has terminated and
who is entitled to a deferred pension from the Plan in excess of his
or her GMP the Trustee shall pay:
(a) the value of his or her benefits as determined under Clause
F.1.4(a) of the Trust Deed; and
(b) (i) subject to Rule E.2.2, a lump sum equal to the Member's
contributions to the Plan and to the Old Plan (other than
Additional Voluntary Contributions paid on a money-purchase
basis) together with compound interest at the rate of 3 per
cent per annum with yearly rests (or such higher rate
determined by the Lead Company) calculated on the 31
December each year. No interest runs for the period from the
31 December preceding the date of the Member's death, if
this is not a complete year. There is then deducted an
amount advised by the Actuary to be equal to the capital
value of the spouse's GMP; or
(ii) subject to Rule E.2.3 to the Member's spouse, if the spouse
so elects, a pension equal to 50 per cent of the Member's
deferred pension under Rule F.3 revalued to his or her date
of death in accordance with Rule F.3(a).
E.2.2 Any lump sum payable under Rule E.2.1(b)(i) must be at least eleven
times the amount by which the spouse's Requisite Benefit is greater
than the spouse's GMP. Requisite Benefit means a pension payable to
the spouse for life equal to 1/160th of the Member's Salary multiplied
by the period of his or her Pensionable Service.
E.2.3 (i) Any spouse's pension payable under Rule E.2.1(b)(ii) must be at
least equal to the spouse's GMP plus 50 per cent of the Member's
deferred pension in respect of Pensionable Service before 6 April
1978;
(ii) On the death of a spouse entitled to a pension under Rule
E.2.1(b)(ii), the Trustee may pay to one or more Dependants of
the Member in such shares as they decide, a sum equal to the
amount (if any) by which the lump sum in Rule E.2.1(b)(i) (but
ignoring the deduction mentioned in that Rule) exceeds the amount
of the spouse's pension which has been paid under Rule
E.2.1(b)(ii).
E.2.4 The benefits payable under Rule E.2. shall not exceed Inland Revenue
Limits nor shall any pension payable to a Member's surviving spouse be
less than required by the Contracted-out Requirements.
E.3.1 DEATH IN RETIREMENT
On the death in retirement of a Member the Trustee shall pay:
(a) if the Member dies within five years of the commencement of his
or her pension, a lump sum in accordance with Rule H.9.1 equal to
the unpaid balance of 60 monthly instalments of the Member's
pension under Rules D.1 to D.4 at the rate in force at the date
of the Member's death ignoring any increases which would have
applied while in payment. If a Member who has exercised option
(c) in Rule D.2.2 dies before his or her pension starts, a lump
sum in accordance with Rule H.9.1 equal to five times the annual
pension which would have been payable if it had started on the
date of his or her death ignoring any increases which would have
applied while in payment;
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(b) to the Member's surviving spouse, a pension equal to 50 per
cent of the pension under Rules D.1 to D.4 which the Member
would have been receiving at the date of his or her death
ignoring the exercise of any option to allocate, commute or
reallocate under Rule D.5.1, Rule D.6.1 or Rule D.4.3; and
(c) if the Member (except a Member in receipt of a pension who
was only entitled to a GMP) leaves a Child or Children, a
pension to each of the Member's Children equal to one-sixth
of the Member's pension under Rules D.1 to D.4 calculated
as in (b) above Provided that if the Member leaves more than
three Children the total annual amount of the pensions
payable to the Children is limited to 50 per cent of the
Member's Scale Pension (payable to the Children in equal
shares.)
E.3.2 The benefits payable under Rule E.3.1 shall not exceed Inland
Revenue Limits and shall comply with the Contracted-out
Requirements. Subject thereto no pension payable to a Member's
surviving spouse shall be less than the greater of 1/160th of the
Member's Salary at the date his or her Contracted-out Employment
ended multiplied by the period of Contracted-out Employment and
the spouse's GMP.
E.3.3 No pension shall be payable to a spouse or Child if a Member has
received a lump sum under Rule D.6.3 instead of all of his or
her pension.
E.4 DEPENDANTS' PENSIONS
If when the Member dies he or she is not survived by a spouse,
the Trustee may in its discretion apply all or part of the
pension which would have been payable had there been a surviving
spouse to or for the benefit of the Member's Dependants in such
shares as the Trustee in its discretion thinks fit, in which case
the pension so payable shall (unless the Trustee otherwise
determines) cease upon the death of the Dependant concerned
except where the Dependent is a Child in which case it shall
cease when the Child ceases to be a Child.
E.5 REDUCTION FOR YOUNG SPOUSE
If a Member's spouse is more than ten years younger than that
Member at the date of the Member's death, then the Trustee may
(subject to the Contracted-out Requirements) reduce the spouse's
pension by an amount determined by the Trustee after consulting
the Actuary (such amount not to be greater than 2.5 per cent in
respect of each complete year in excess of ten and so in
proportion for completed months).
E.6 RECENT MARRIAGE OF A MEMBER
If the spouse's marriage to the Member took place after he or
she ceased to be in Pensionable Service and the Member dies
within six months of the marriage, the spouse's pension is
restricted to the spouse's GMP (or such greater amount as the
Lead Company may decide) and its will cease on the spouse's
remarriage before State Pensionable Age.
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F. BENEFITS ON WITHDRAWAL
F.1 BENEFITS ON WITHDRAWAL
On the termination of Pensionable Service of a Member before Normal
Retirement Date otherwise than by death or where the Member does not
elect to receive the benefits payable on early retirement under Rule
D.3.1 or D.4.1 if those Rules apply, the Member shall be entitled to
receive the benefits specified in either Rule F.2.1 or F.3 (as
appropriate).
F.2.1 RETURN ON CONTRIBUTIONS
Subject to Rule F.2.2, if the Member has not completed two years of
Qualifying Service and no transfer payment has been received in respect
of the Member's rights from a Personal Pension Scheme under clause G.1 of
the Trust Deed, the Trustee shall pay a lump sum equal to:
(a) the amount of contributions (excluding Additional Voluntary
Contributions paid on a money-purchase basis) which the Member has
made or is deemed to have made to the Plan plus interest at 3 per
cent per annum compound with yearly rests (or any higher rate
decided by the Lead Company). Interest is calculated at 31 December
each year. Interest does not run for the period after the 31
December preceding the date the Member's Pensionable Service ends if
this is not a complete year; plus
(b) the value of this benefits as determined under clause F.1.4(a) of
the Trust Deed; less
(c) the amount in relation to any contributions equivalent premium paid
in respect of the Member as defined by and in accordance with s61(2)
1993 Act; less
(d) the amount of tax or duty for which the Trustee is liable in respect
thereof.
F.2.2 As an alternative to Rule F.2.1, the Member may notify the Trustee
in writing within one month after his or her Pensionable Service ends
that instead of receiving a return of his or her contributions, he or she
wishes Rule F.3 or F.5 to apply to him or her.
F.3 DEFERRED PENSION
If the Member has completed two years or more of Qualifying Service or a
transfer payment in respect of the Member's rights under a Personal
Pension Scheme has been received under clause G.1 of the Trust Deed, the
Member shall be granted at the Member's option either of the benefits
specified at (a) or (b) below. If the Member fails to notify the Trustee
in writing of his or her choice within six months of ceasing to be in
Pensionable Service, the Member will be deemed to have chosen option
(a). (This is without prejudice to the Member's right under s95 1993
Act).
(a) A deferred pension commencing at Normal Retirement Date at an annual
rate equal to the greater of:
(i) A x B; and
(ii) (A x (B - C)) + D
where:
-22-
A= the revaluation percentage referred to in paragraph 1 of
Schedule 3 to the 1993 Act;
B= the Scale Pension (except that this is calculated using his
or her Salary at the date of leaving Pensionable Service
instead of Final Pensionable Salary);
C= any part of the Scale Pension which consists of the GMP
applicable to the Member on the day after the day his or
her Pensionable Service ends; and
D= any part of the Scale Pension which consists of the GMP as
revalued in accordance with Schedule 4 of the Trust Deed.
However, the deferred pension must be increased, if necessary, so
that its value will, to the reasonable satisfaction of the
Trustee exceed or compare reasonably with the Member's
contributions to the Plan and the Old Plan (other than his or her
Additional Voluntary Contributions).
(b) if the right conferred by Chapter IV of Part IV of the 1993 Act
summarised in clause G.2 of the Trust Deed applies to the Member,
a transfer payment in accordance with such right.
F.4 LATE PAYMENT
A Member entitled to a deferred pension under Rule F.3 who remains in
employment after Normal Retirement Date may, on attaining Normal
Retirement Date, elect by notice in writing to the Trustee to postpone
payment of his or her pension beyond that date. If the payment of a
Member's pension is postponed it shall commence on a date no later than
the date of the Member's actual retirement from employment or his or
her 70th birthday (if earlier). If the deferred pension is postponed it
shall be increased when it becomes payable by such amount as the
Trustee on the advice of the Actuary shall decide in order to comply
with Rule F.6.2 and also to take account of the later date on which the
pension comes into payment.
F.5.1 EARLY PAYMENT
A Member who is aged 50 or more and who is entitled to a deferred
pension under Rule F.3 may make a request to the Trustee (subject to
Rule F.5.2), that his or her pension should commence before Normal
Retirement Date. The Trustee may accept or reject the request. The
amount of the deferred pension shall be reduced for each year and
proportionately for each complete month by which the date it starts to
be paid is before Normal Retirement Date (the "Shortfall Period") as
follows:
(a) if the Member's contributions had ceased due to the application
of Rule C.4.2. the reduction is 2.5 per cent;
(b) if the period of further Pensionable Service (after any
adjustment required in respect of Lower Tier membership under
Rule C.4.2) which he or she had to complete, on the day his or
her Pensionable Service ended, to achieve the Pensionable Service
limit under Rule C.4.2 (the "Accrual Period") is greater than or
equal to the Shortfall Period, the reduction is 5 per cent;
- 23 -
(c) if the Accrual Period is less than the Shortfall Period, the
reduction is 5 per cent for the balance of the Accrual Period and
2.5 per cent for the remainder of the Shortfall Period
thereafter;
For the purpose of the Rule F.5.1, Rule C.4.2 is applied as if the
Member had remained in the same Tier of membership as applied at the
date he or she ceased to be in Pensionable Service.
F.5.2 Where Rule F.5.1 applies to a female Member who was a member of the Old
Plan on 31 August 1991 and who joined the Plan on Commencement Date the
pension shall:
(a) in respect of Pensionable Service before 31 August 1991 be
reduced only if she is under age 60 and if so the pension shall
be calculated as if her 60th birthday was her Normal Retirement
Date;
(b) in respect of Pensionable Service from 31 August 1991 be reduced
and calculated by reference to Normal Retirement Date.
F.5.3 Where Rule F.5.1 applies to a male Member who was a member of the Old
Plan on 31 August 1991 and who joined the Plan on Commencement Date the
pension shall:
(a) in respect of Pensionable Service before 17 May 1990 be reduced
and calculated by reference to Normal Retirement Date;
(b) in respect of Pensionable Service from 17 May 1990 and before 31
August 1991 be reduced only if he is under age 60 and if so the
pension shall be calculated as if his 60th birthday was his
Normal Retirement Date;
(c) in respect of Pensionable Service from 31 August 1991 shall be
reduced and calculated by reference to Normal Retirement Date.
F.6.1 MINIMUM AMOUNTS ON EARLY OR LATE PAYMENT
Any pension payable under Rules F.4 or F.5.1 shall not be less than
required by the Contracted-out Requirements.
F.6.2 The Trustee shall, after consulting the Actuary, ensure to its
reasonable satisfaction that on the date when a pension becomes payable
under Rule F.4 or Rule F.5, its value, together with the value of any
benefits payable on the Member's death, is not less than the value on
that date of any benefits which have accrued to or in respect of the
Member, including for this purpose any increases in benefits which have
accrued or which the Trustee estimates would accrue (as appropriate) in
accordance with the 1993 Act taking account of the preservation
requirements in the Act.
F.6.3 Where a pension payable to any Member is to be increased after the
Member reaches State Pensionable Age by reason of Rule F.6.1, the
pension payable before the Member reaches that age shall be decreased
by such amount as the Actuary prescribes but not so that the actuarial
value of the pension payable is less than the actuarial value of the
pension that would have been payable but for this Rule. The actuarial
value must be certified as reasonable by the Actuary.
-24-
F.7 TRANSFERS
In any case where a Member's accrued benefits are transferred out of the
Plan the transfer payment in respect of the Member must not be less than an
amount equal to 110 per cent of the Member's contributions other than
Additional Voluntary Contributions paid on a money purchase basis plus
interest at the rate of 3 per cent per annum compounded with yearly rests
and calculated at 31 December each year. No interest runs for the period
from 31 December preceding the date the Member's Pensionable Service ends,
if this is not a complete year.
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G. ADDITIONAL BENEFITS
G.1.1 PENSION INCREASES
On each 1 January that part of each pension in payment which is in excess
of the GMP shall (subject to Rule G.1.2) be increased by the percentage
increase in the Prices Index during the year ending on the previous 30
September. A proportionate increase shall be made to any pension which
commenced after the previous 1 January except where the pension is payable
to a spouse, Child or Dependant and commenced on the termination of the
Member's own pension.
G.1.2 Pension increases under Rule G.1.1 shall not apply to pensions
provided by Additional Voluntary Contributions paid on a money-purchase
basis by a Member after 31 January 1995 and shall only apply to pensions
provided by transfer payments received by the Plan (rather than the Old
Plan) and to discretionary benefits and discretionary increases to the
extent (if any) that the Lead Company with the consent of the Trustee has
agreed.
H. PAYMENT OF BENEFITS
H.1 PENSIONS
All pensions payable under the Rules are annual pensions accruing from
day to day payable for life unless the contrary is stated and, unless the
Trustee otherwise decides, shall be paid by equal monthly installments in
advance on such day in each calendar month as may be selected by the
Trustee.
H.2 METHOD OF PAYMENT
All payments shall be made by bank credit transfer but at the payee's
request the Trustee may in any case make payments at the payee's risk by
cheque through letter post to the payee's last known address in the
British Isles or by other means. The Trustee may, but shall not be
obliged to, pay benefits in any currency other than sterling on terms to
be agreed between the Trustee and the Member. Where the emoluments of a
Member are payable in another currency, they shall for the purpose of
determining their amount on any date at which a calculation of the
Members emoluments is to be made be converted into sterling at the rate
of exchange obtainable from the bankers of the Trustee or its agents on
that date.
H.3 INTEREST ON LATE PAYMENT
The Trustee may in its absolute discretion pay interest on any sums
payable to any person if such sums are not paid within 28 days of the
date on which payment is due and at such rate as the Trustee may in any
particular case decide.
H.4.1 DISPUTES
The Trustee, whose decision shall be final and binding, shall decide all
questions and matters of doubt arising in connection with the amount of
any pension or lump sum, or the amount of any increase or reduction or
the amount which is equivalent or of equal value to any pension or
instalment of pension and in doing so the Trustee shall have regard to
the advice of the Actuary who shall be entitled to make such assumptions
as the Actuary deems appropriate and to take into account any other
benefits prospectively payable in respect of the Member who is entitled
to the benefit in question.
H.4.2 Any dispute shall be resolved in accordance with the Dispute Resolution
Procedure.
H.4.3 Where two or more persons have a claim to be the surviving spouse
of any Member then any benefit payable under the Rules to or for the
benefit of the surviving spouse shall in the absolute discretion of the
Trustee be paid or applied to or for the benefit of such one or more of
the claimants and in such proportions as it thinks fit, save that the
benefits (if any) payable to a surviving spouse pursuant to the
Contracted-out Requirements shall only be payable to the person entitled
under the Contracted-out Requirements to receive the same.
-27-
H.5 PROVISION OF INFORMATION
If any Member fails to furnish to the Trustee or the Lead Company any
particulars required by them when required to do so or if any evidence
of health furnished by such person is unsatisfactory to the Trustee or
to the Lead Company (as appropriate), or if such particulars as have
been furnished to the Trustee or to the Lead Company (whether or not
requested by them) are found to be false, the Trustee may (subject to
the preservation requirements of the 1993 Act) modify the benefits
provided or to be provided in respect of such Member under the Rules
in such manner as it considers to be appropriate after consulting the
Actuary, but not so that the benefits would be less than required by
the Contracted-out Requirements.
H.6 DEDUCTION OF TAX
The Trustee shall be entitled to deduct from any benefit payable any
tax or duty for which the Trustee is liable in respect of the benefit
concerned.
H.7.1 MINORS
Where a pension is payable for the benefit of any minor the Trustee
may at its discretion:
(a) pay the pension to the minor's guardian or to any person with
whom the minor resides or under whose care and control the minor
is or appears to be, without being obliged to ascertain whether
such guardian or other person has any right to the care and
control of that minor or to supervise the application of the
pension by such guardian or other person and without being
responsible for any misapplication, and the receipt of the
guardian or such other person to whom any moneys are paid shall
be conclusive evidence that the Trustee has applied those moneys
for the benefit of the minor; or
(b) apply the pension or any part of it towards the education or
other benefit of the minor in any other way as the Trustee sees
fit and the receipt of the person to whom any moneys are paid
shall be conclusive evidence that the Trustee has applied those
moneys for the benefit of the minor.
H.7.2 Any pension payable to a Child of a Member shall be payable until the
Child ceases to be a Child.
H.8 PROTECTION FOR THE TRUSTEE
The Trustee shall not be accountable in respect of, or obliged to see
to, the application of any payment which is otherwise made in
accordance with the Rules if it is made:
(a) to a minor direct or to his or her parent or guardian or to the
person with whom he or she resides; or
(b) to any person who appears to the Trustee after reasonable
enquiry to be a spouse to whom the payment may be made under the
Rules, notwithstanding that such person is not such a spouse; or
(c) to any individual or institution who or which is or appears to be
responsible for the care of a person to whom the payment may be
made under the Rules if the Trustee considers that that person's
incapacity does not warrant its making the payment to him or her
direct.
H.9.1 DISTRIBUTION OF LUMP SUM DEATH BENEFITS
Subject to the remaining provisions of this Rule, any lump sum death
benefit becoming payable under the Rules shall be held by the Trustee
upon trust with power to pay or apply the same to or for the benefit
of all or any one or more of a class consisting of:
(a) the children, parents and grandparents of the Member and the
Member's spouse or cohabitee;
(b) the issue of any such individuals (including stepchildren and
adopted children);
(c) the spouses of any individuals in (a) and (b) and their issue;
(d) the Member's Dependants;
(e) any individual or body of persons (whether or not natural
persons) nominated by the Member by notice in writing addressed
to and received by the Trustee (or addressed to the trustee of
the Old Plan and notified to the Trustee) during the Member's
lifetime to receive the whole or any part of such benefit;
(f) any persons entitled to any interest in his or her estate
(including unincorporated associations and trusts) under any
valid testamentary disposition made by him or her or upon his or
her intestacy; and
(g) the Member's legal personal representatives;
in such shares and proportions (if more than one) as the Trustee in
its absolute discretion decides.
H.9.2 The Trustee may also apply the whole or any part of such lump sum
benefit by transferring it to trustees to be held by such trustees for
any individual and/or body of persons referred to in (a) to (e) of
Rule H.9.1 upon such trusts and powers (including discretionary trusts
or powers exercisable by such trustees, including the power to charge
remuneration) as the Trustee shall decide. Any expenses, fees or other
outgoings incurred in connection with any payment, application or
transfer pursuant to this Rule may, if the Trustee so decides, be
deducted from or paid out of such benefits.
H.9.3 If any part of such lump sum benefit is not applied in accordance
with Rule H.9.1 or Rule H.9.2 within a period of 24 months after the
date of the Member's death it shall be paid to the Member's legal
personal representatives.
H.9.4 The whole or any part of any lump sum death benefit shall be retained
as part of the Fund if the Crown, the Duchy of Lancaster or the Duke
of Cornwall would otherwise benefit therefrom.
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APPENDIX
SPECIAL PROVISIONS IN RESPECT OF MEMBERS OF THE OLD PLAN
WHOSE PENSIONABLE SERVICE ENDED PRIOR TO 1 FEBRUARY 1995
In accordance with clause 2.2 of the Deed of Adherence and Adoption of Rules
dated 31 January 1995, the improvements to the benefits of persons who
immediately before the Commencement Date were deferred pensioners or pensioners
under the Old Plan, are as follows:
(1) DEFERRED PENSIONERS:
The annual rate of the qualifying part of the deferred pension
entitlement, including statutory revaluation and any discretionary
increases in respect of that part up to the day before the
Commencement Date, shall be increased with effect from the
Commencement Date by 20 per cent. For this purpose the qualifying part
means the whole of the deferred pension but excluding any part of the
deferred pension attributable to Additional Voluntary Contributions
(whether paid on an added years or money-purchase basis), any pension
which only represents Equivalent Pension Benefits and any benefits
derived from a transfer-in of assets to the Old Plan.
The above improvement will be taken into account in calculating
benefits for spouses and children.
The normal retirement date for deferred pensioners is unchanged from
that which applied under the Old Plan.
(2) PENSIONERS
The annual rate of the qualifying part of the pension entitlement of a
pensioner, including any discretionary increases in respect of that
part up to the day before the Commencement Date, shall be increased
with effect from the Commencement Date by 20 per cent. For this
purpose the qualifying part means the whole of the pension but
excluding any part of the pension attributable to Additional Voluntary
Contributions (whether paid on an added years or money-purchase
basis), any pension which only represents Equivalent Pension Benefits
and any pension derived from a transfer-in of assets to the Old Plan.
The above improvement will be taken into account into calculating
benefits for spouses and children.
This 20 per cent increase will also apply to the qualifying part of
pensions in payment on the Commencement Date to spouses, children and
dependants.
(3) ANNUAL PENSION INCREASES
In future, where there is a right under the relevant provisions of the
rules of the Old Plan to annual increases while pensions are in
payment, or where pensions thereunder have received discretionary
increases under the Old Plan the pension will be increased in all
respects in accordance with Rule G.1 of the Extel Section. These
increases shall also apply to those ex gratia pensions in payment
under the Old Plan on the day before Commencement Date.
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( EXECUTED as a deed under the
LS ( Common Seal of Xxxxxxx Services
( Limited in the presence of:
Xxxxx Xxxx
Director
X. Xxxxxx
Secretary
LS ( EXECUTED as a deed under the
( Common Seal of XXXXXXX GROUP
( PENSION TRUSTEE LIMITED in the
( presence of:
Xxxxx Xxxx
Director
X Xxxxxxx
Secretary
DATED 21 December 1999
-------------------------------------------------
XXXXXXX SERVICES LIMITED (1)
- and -
XXXXXXX GROUP PENSION
TRUSTEE LIMITED (2)
------------------------------------------------
DEED OF ADOPTION OF NEW RULES
in respect of
THE EXTEL SECTION
of
THE XXXXXXX GROUP PENSION PLAN
------------------------------------------------
Xxxxxx Xxxxx Xxxxxxx
00 Xxxxxxx Xxxxxxx
Xxxxxx XX0X 0XX
B2/JM/RAS