Divided pension scheme

5.—(1) A pension scheme which relates partly but not exclusively to persons who are or have been officers of a company which comes into public ownership (hereinafter referred to as “a divided pension scheme”) shall be deemed as from the date when that company comes into public ownership in all respects to be, and shall be administered as, two separate pension schemes, being as to one part a scheme for providing pension to or in respect of persons first described in this paragraph (hereinafter referred to as “the publicly-owned company's part”), and as to the other part a scheme for providing pensions to all other persons entitled to benefit under such divided pension scheme (hereinafter referred to as “the other employer's part”).

(2) As soon as practicable after the date when the company comes into public ownership the funds, assets and liabilities as at that date of every divided pension scheme shall be apportioned between the publicly-owned company's part and the other employer's part, and every such apportionment shall, in default of agreement between the parties, be determined by an actuary appointed by the Minister.

(3) The provisions of regulation 3 hereof shall apply to the publicly-owned company's part as if references in those provisions to a publicly-owned company's pension scheme were references to the publicly-owned company's part.

(4) For the purposes of this regulation the expression “actuary” means a person who holds the diploma of Fellowship of the Institute of Actuaries or of the Faculty of Actuaries in Scotland.

6.—(1) Where the divided pension scheme is administered by the publicly-owned company the following provisions of this regulation shall have effect.

(2) The part of such assets and funds as aforesaid apportioned to the other employer's part shall, if vested in the publicly-owned company, be transferred to the other employer and if vested in trustees shall be transferred to the trustees of the other employer's part appointed (or when appointed) as mentioned in paragraph (3) hereof; and the part of such liabilities as aforesaid apportioned to the other employer's part shall have effect as against the other employer or (as the case may be) the trustees of the other employer's part.

(3) If the scheme provides for the appointment of trustees or for the election or appointment of a committee, trustees of the other employer's part shall be appointed or (as the case may be) a committee in respect of the other employer's part shall be elected or appointed as soon as practicable after the date when the publicly-owned company came into public ownership in accordance with such provisions; the existing trustees or (as the case may be) committee shall, until such appointment or election, continue to act in respect of both the publicly-owned company's part and the other employer's part.

(4) Where any policy of assurance forms part of the assets of the scheme and the benefits and liabilities thereunder have been apportioned as aforesaid the assurer shall amend the policy so that it will relate solely to the benefits and liabilities apportioned to the publicly-owned company's part and shall issue in favour of the other employer, or of the trustees of the other employer's part (as the case may be) another policy to provide for the benefits and liabilities apportioned to the other employer's part.

(5) In relation to the other employer's part references in the provisions of the divided pension scheme shall have effect as if references to the other employer were substituted for references to the publicly-owned company.

(6) No amendment made by the provisions of this regulation shall affect any liability of the publicly-owned company which has accrued before the date when the company came into public ownership, and any such liability may be enforced as if such provisions had not been made.

7.—(1) Where the pension scheme is administered by the other employer the following provisions of this regulation shall have effect.

(2) The part of such assets and funds as aforesaid apportioned to the publicly-owned company's part shall, if vested in the other employer, be transferred to the publicly-owned company and if vested in trustees shall be transferred to the trustees of the publicly-owned company's part appointed (or when appointed) as mentioned in paragraph (3) hereof and the part of such liabilities as aforesaid apportioned to the publicly-owned company's part shall have effect as against the publicly-owned company or (as the case may be) the trustees of the publicly-owned company's part.

(3) If the scheme provides for the appointment of trustees or for the election or appointment of a committee, trustees of the publicly-owned company's part shall be appointed or (as the case may be) a committee in respect of that company's part shall be elected or appointed as soon as practicable after the date when the company came into public ownership in accordance with such provisions; the existing trustees or (as the case may be) the committee shall, until such appointment or election, continue to act in respect of both the publicly-owned company's part and the other employer's part.

(4) Where any policy of assurance forms part of the assets of the scheme and the benefits and liabilities thereunder have been apportioned as aforesaid the assurer shall amend the policy so that it will relate solely to the benefits and liabilities apportioned to the other employer's part and shall issue in favour of the publicly-owned company or of the trustees of the publicly-owned company's part (as the case may be) another policy to provide for the benefits and liabilities apportioned to the publicly-owned company's part.

(5) In relation to the publicly-owned company's part references in the provisions of the divided pension scheme shall have effect as if references to the publicly-owned company were substituted for references to the other employer.

(6) No amendment made by the provisions of this regulation shall affect any liability of the other employer which has accrued before the date when the publicly-owned company came into public ownership, and any such liability may be enforced as if such provisions had not been made.