
PART I
1 

(1) These Rules may
be cited as the National Insurance and Civil Service (Superannuation) Rules,
1948, and shall come into operation on the 16th November, 1948.
(2) In these Rules,
unless the context otherwise requires—
 “the Act” means the Superannuation (Miscellaneous
Provisions) Act, 1948;
 “the Superannuation Acts”
 means the Superannuation Acts, 1834
to 1946;
 “the National Insurance Act”
 means the National Insurance Act, 1946;

 “the Unemployment Insurance Act”
 means the Unemployment Insurance Act, 1935;

 “the Health Insurance Act”
 means the National Health Insurance Act, 1936;

 “the Minister” means the Minister of National Insurance;
 “former employment” and “former
emoluments” have the meanings given
to those expressions in Rule 3;

 “health insurance business”
 means business under the Health Insurance
Act;
 “the appointed day” means the appointed day for the purposes of the National Insurance Act;
 “transferor” means, in relation to any fund or assets which, as at the appointed day,
are transferred by virtue of, or in accordance with, these Rules, the person
in whom such fund or assets were vested immediately before that day;
and 
“transferee” means, in relation
to any such fund or assets, the person to whom such fund or assets are so
transferred;
 “Civil Service retiring age”
 has the same meaning as “retiring
age” in the Superannuation Act, 1935;

 “tribunal” means a referee or board of referees appointed by the Minister of Labour
and National Service, after consultation with the Lord Chancellor, or, where
the proceedings are to be held in Scotland, after consultation with the Secretary
of State;
 “number of years” includes a fractional number;
 “war service” has the meaning given to that expression in paragraph 4 of the First Schedule
to these Rules;
 “pension,” “ pension
rights” and “pensionable employment,”
 and (subject to the provisions of the next following paragraph) “pension
scheme” and “pension fund” have the same meanings as in the Act;and other expressions have the same meanings as in the Act, the
Superannuation Acts or the National Insurance Act, as the case may be.
(3) Subject to the
provisions of Rule 23,
references in these Rules to a pension scheme or pension fund shall not apply
to any such scheme or fund unless provision is made, either by statute relating
to the scheme or fund or by trust deed, rules or other instrument made for
the purposes thereof, as to the conditions upon which—
(a) in the case
of a contributory scheme or fund, persons may become and cease to be contributors;
and
(b) in every case,
persons may become and cease to be entitled to benefits.
(4) References in these
Rules to any enactment, rules or regulations shall include references to such
enactment, rules or regulations as amended by any subsequent enactment, order,
rules or regulations.
(5) The Interpretation Act, 1889,
applies to the interpretation of these Rules as it applies to the interpretation
of an Act of Parliament.
PART II
2 

(1) Subject to the
provisions of these Rules, where a person has been employed full time—

(a) by an Approved
Society; or
(b) by some other
body (including a body of which the Society is a branch or section) administering
the affairs of an Approved Society; or
(c) by a body
administering a special scheme under Section 73
of the Unemployment Insurance Act (which section relates to special schemes);
and, whether before or after the passing of the Act but before
the 5th July, 1949, becomes a civil servant, then, if his employment by such
Society or body was such as to satisfy the conditions provided in Rule 3, such employment shall
be treated for the purposes of the Superannuation Acts in the manner provided
by Rule 4 or, as
the case may be, Rule 5.

(2) If a person who
otherwise satisfies the provisions of the last preceding paragraph is unable
to become a civil servant before the 5th July, 1949, by reason only of his
failing on account of ill health or disablement to satisfy the Civil Service
Commissioners, but commences to serve the State in an unestablished capacity
before that date, and after continuous service in such a capacity becomes
a civil servant at some later date, the Minister, with the consent of the
Treasury, may direct that he shall be treated as having satisfied those provisions,
and these Rules shall apply accordingly in his case but subject to such modifications
as the Treasury may determine.
3 

(1) For the purposes
of the last preceding rule and of Rule 10,
the following conditions are to be satisfied in relation to a person's employment
by such Society or body as is mentioned in the last preceding rule:—

(a) that the person—

(i) was continuously
in full time employment by such Society or body from the 1st January, 1946,
until the relevant date, and had on the said 1st January, 1946, pension rights
in a pension scheme associated with that employment, or was then by the terms
of his employment eligible to have such rights at a specified future date
if he remained in the employment; or
(ii) on the
5th July, 1940, was employed full time by such Society or body in a permanent
capacity or in a capacity having a recognised and considerable expectation
of permanency, and was continuously so employed until the relevant date; and

(b) (except in
the case of employment by a body administering a special scheme under Section 73 of the Unemployment
Insurance Act) that during at least half of the person's working time from
the 5th July, 1940 (or, if that is more favourable to the person, from the
1st January, 1946) until the relevant date, he was engaged in health insurance
business.
(2) The provisions
of this rule shall, in relation to any person who was engaged in war service
at any time during the period from the 5th July, 1940, to the relevant date,
apply subject to the provisions of the First Schedule
to these Rules.
(3) Where in any particular
case the foregoing conditions are not completely satisfied, but the facts
of the case are such as in the opinion of the Minister show a substantial
degree of satisfaction of the conditions and justify the treatment of the
person as having satisfied them, the Minister may direct that the person shall
be so treated, and these Rules shall apply accordingly.
(4) In this rule the
expression “the relevant date” means—
(a) 
in the case of a person who becomes a civil servant, the date on which he
last ceased to be employed by such Society or body;
(b) in
the case of a person who suffers a loss of employment to which Rule 10 applies, the date of that
loss of employment.
(5) In these Rules—

(a) the expression “former
employment” means employment in
relation to which the provisions of this rule are satisfied, and any earlier
full time employment by such Society or body of which it is in continuation,
and any reference to the period of a person's former employment shall be construed
as referring to a continuous period ending with the relevant date, employment
under successive employers being aggregated, so, however, that a period may
in the discretion of the Minister be deemed to be continuous notwithstanding
breaks in the employment due to sickness, unemployment or other reasonable
cause, and the period or periods of any such breaks shall in that discretion
be disregarded in computing the period of former employment;

(b) the expression “former
emoluments” means, in relation
to a person's former employment, the normal annual rate immediately before
the relevant date of his salary or wages, and the amount received during the
twelve months before the relevant date by way of commission, fees and other
similar payments, and bonus, allowance or overtime pay incorporated in the
general wages structure, including any regularly recurring overtime, and the
money value during those twelve months of any personal travel privileges appertaining
to the employment, but does not include payments for travelling on duty, subsistence,
clerical assistance, office accommodation or overtime pay not incorporated
as aforesaid.
4 

(1) In the case of
a person to whom Rule 2
applies, who did not on the 1st January, 1946, or at any time thereafter have
pension rights in a pension scheme associated with his former employment,
the period of his former employment shall, subject to the following provisions
of this rule, be treated for the purposes of the Superannuation Acts as if
it had been continuous service in an unestablished capacity ending immediately
before the date on which the said person became a civil servant.
(2) The foregoing
provisions of this rule shall not apply to any person unless, not later than
the 5th July, 1949, he pays into the Exchequer a sum equal to two per cent.
of his former emoluments multiplied by one half of the number of years of
the period of his former employment:Provided that—

(a) 
a person may, with the consent of the Treasury, be permitted to pay the said
sum by equal instalments to be deducted from his emoluments as a civil servant
throughout the period of his service as a civil servant;
(b) 
where a person dies or ceases to be employed as a civil servant before he
attains Civil Service retiring age and no allowance or gratuity under the
Superannuation Acts is payable in his case, an amount equal to the sum so
paid (or, if he has been permitted to pay by instalments, an amount equal
to the aggregate of the instalments he has paid) shall be repaid out of the
Exchequer; and
(c) 
where a person who has been permitted to pay by instalments dies or ceases
to be employed as a civil servant before he attains Civil Service retiring
age, and an allowance or gratuity under the Superannuation Acts is payable
in his case, an amount equal to the aggregate of the instalments remaining
unpaid shall be recoverable by deduction from that allowance or gratuity,
either in one sum or in such instalments as the Treasury may determine.
(3) For the purposes
of the foregoing paragraphs of this rule, any person the period of whose former
employment exceeds twenty years shall be treated as if that period were twenty
years.
(4) Where a person
to whom this rule applies had at some time before the 1st January, 1946, pension
rights in a pension scheme associated with his former employment, there shall
for the purposes of this rule be excluded from the period of his former employment
any part of that period which was pensionable employment for the purposes
of that pension scheme:Provided that the Minister
may with the consent of the Treasury in any particular case direct that this
paragraph shall not apply, or shall apply to part only of the pensionable
employment.
(5) For the purposes
of this rule, if the period of a person's former employment was not an exact
number of years, any part of a year which is less than six months shall be
ignored and any part which is six months or more shall be treated as one year.

5 

(1) In the case of
a person to whom Rule 2
applies, who, on the 1st January, 1946, or at any time thereafter, had pension
rights in a pension scheme associated with his former employment, the period
of his former employment shall be taken into account for the purposes of the
Superannuation Acts subject to, and to the extent provided by, the following
provisions of this rule.
(2) Such part of the
period of his former employment as was pensionable employment for the purposes
of that pension scheme shall—
(a) where in the
opinion of the Minister after consultation with the Government Actuary the
rights conferred by that scheme were not substantially inferior in value to
the benefits conferred on civil servants by the Superannuation Acts, be treated
as service as a civil servant; and
(b) where in the
opinion of the Minister after such consultation the said rights were substantially
inferior in value to those benefits, be reduced by such proportion as appears
to the Minister to be just, having regard to the value of the said rights,
and the remainder treated as service as a civil servant:Provided that—

(i) 
where the period treated as service as a civil servant under this paragraph
is less than one-half of the period of his former employment (and for the
purpose of this proviso, if the period of his former employment was not an
exact number of years, any part of a year which is less than six months shall
be ignored and any part which is six months or more shall be treated as one
year, and, if the period of his former employment exceeded twenty years, it
shall be treated as being twenty years), the person may in manner provided
by paragraph (2)
of the last preceding rule pay into the Exchequer a sum equal to two per cent.
of his former emoluments multiplied by the number of years by which the period
so treated as service as a civil servant falls short of one-half of the period
of his former employment, and in that event the said number of years shall
be added to the period treated as service as a civil servant;
(ii) 
where the aggregate of the period treated as service as a civil servant in
a case to which sub-paragraph (b) of this
paragraph applies (including any years added in accordance with the immediately
preceding provision of this proviso) and of his actual period of service as
a civil servant is less than the minimum period of service required by the
Superannuation Acts for the payment of an allowance or gratuity, but the said
aggregate period would, but for the reduction made in accordance with the
sub-paragraph (b), have been sufficient
for an allowance or gratuity to be granted, such allowance or gratuity may
be granted as though the said aggregate period had been equal to that minimum
period, so, however, that its amount shall be reduced by a proportion equal
to the proportion which the number of years by which the said aggregate period
falls short of the minimum period bears to the number of year in the minimum
period.
(3) Where it appears
to the Minister—
(a) that the benefits
conferred by a pension scheme are of a value or kind commonly provided by
a friendly society or savings bank and do not make adequate provision for
retirement; and
(b) that the contributions
deducted from the salaries of those having rights in that scheme are less
than two and one-half per cent. of such salaries;he may direct that rights in that pension scheme shall be disregarded
for the purposes of these Rules.
(4) If—
(a) any person
to whom paragraph (1) of this rule applies has, before these Rules come into
operation or before he becomes a civil servant (whichever is the later), ceased
to have the pension rights to in that paragraph; or
(b) any such pension
rights have, in connection with any provision made by the Act or by the National
Insurance Act, or in anticipation of the making of any such provision, been
created otherwise than in the ordinary course; or
(c) there has
been default in making any transfer in whole or part of any pension fund or
assets held for the purpose of the pension scheme in accordance with Part IV of these Rules;the rights conferred by these Rules may be so modified or extinguished
as may appear to the Minister to be appropriate, and the Minister may, in
particular, in the case of a person to whom sub-paragraph (
a) of this paragraph applies, require the payment into the Exchequer
by that person of the amount of any payment received by him in respect of
his pension rights.
(5) If a person to
whom paragraph (1) of this rule applies (not being a person who under the
pension scheme associated with his former employment was entitled, without
the consent of his employer in that employment or of any other person, to
retire with a pension at the age of sixty or any earlier age) retires from
the Civil Service at his own request before he attains the age at which he
was, under that scheme, entitled without such consent to retire with a pension,
or the age of sixty-five, if that is earlier, the Minister may direct that
the reckoning of the period of his former employment for the purposes of the
Superannuation Acts in accordance with these Rules shall be subject to such
adjustment as he may, with the consent of the Treasury, determine.
6 
Where, in the case of a person to whom Rule 2
applies who at any time on or after the 1st January, 1946, had pension rights
in a pension scheme associated with his former employment, those pension rights
are secured under a policy of insurance, then, if that person, not later than
the 31st March, 1949 (or such later date as the Minister may in his discretion
allow in a particular case) gives notice in writing to the Minister, in a
form approved by the Minister for the purpose, that he elects to continue
to be subject to that policy, he shall continue to be so subject, and the
Minister shall have power to pay the premiums authorised or required under
the policy to be paid by that person's employer in respect of him, and in
that event neither the period of his former employment nor any period in respect
of which the Minister so pays premiums shall be taken into account for the
purposes of the Superannuation Acts:
Provided that if in the
opinion of the Minister the cost in any particular case would be unreasonably
high in relation either to the benefits secured or to the cost of the provision
which would be made for the person under these Rules but for his election,
or if in the opinion of the Minister the benefits secured by way of superannuation
would be inadequate, he may within six months of receiving the notice of election
give notice in writing to the person that he declines to allow him so to elect,
and in that event the person shall be treated as if this rule had never applied
in his case.
7 

(1) Where, in the
case of a person to whom Rule 5
applies (but who has not elected to continue to be subject to a policy under Rule 6 or whose election has been
declined by the Minister), his accrued rights under the pension scheme associated
with his former employment in relation to any contingency which has occurred
are greater than the allowance or gratuity paid to or in respect of him under
the Superannuation Acts in relation to that contingency (or there are such
accrued rights but no such allowance or gratuity is paid), the Treasury may
make payments to or in respect of him equal to the value of those accrued
rights less the amount of any allowance or gratuity paid in relation to that
contingency.
(2) Where any payment
is made by the Treasury under the foregoing paragraph to or in respect of
any such person, and that person continues to be employed as a civil servant
after such payment, the rights conferred on that person by Rule 5 may be so modified or extinguished
as the Minister, with the consent of the Treasury, may determine to be appropriate.

(3) Any such payments
shall be made to the person or persons who would, but for these Rules or the
passing of the National Insurance Act, have had the right to payment under
the pension scheme concerned.
(4) Where this rule
would require the deduction of a lump sum from a periodical payment or of
a periodical payment from a lump sum, the Minister shall, with the consent
of the Treasury and after consultation with the Government Actuary, determine
what adjustment is proper to be made.
(5) The accrued rights
in any case shall be ascertained for the purpose of this rule in accordance
with the provisions of the Second Schedule
to these Rules.
(6) Notwithstanding
the foregoing provisions of this rule, no payment shall be made in respect
of a contingency occurring not later than the appointed day and giving a right
to the return of contributions unless the person concerned gives notice in
writing to the Minister not later than the 5th July, 1949, that he desires
such payment to be made.
(7) If payment in
respect of such a contingency as is mentioned in the last preceding paragraph
is duly made, no further payment in respect of accrued rights shall thereafter
be made to or in respect of that person under these Rules and no increase
in the length of his service shall be made hereunder for any purpose of the
Superannuation Acts.
(8) No payment of
a lump sum shall be made under this rule in respect of accrued rights to a
periodical payment:Provided that, in the
case of a person who ceases to be employed as a civil servant, the Treasury
may, where the capital value of the accrued rights when added to the capital
value of any compensation due to that person under Section 67 of the National Insurance
Act (which section relates to compensation for displaced employees) does not
exceed two hundred and fifty pounds, make a lump sum payment equal to the
capital value of the accrued rights.
8 

(1) Where, in the
case of a person to whom Rule 5
applies (but who has not elected to continue to be subject to a policy under Rule 6 or whose election has been
declined by the Minister), a contingency arises, or may arise, in relation
to which an allowance or gratuity may be paid to or in respect of him under
the Superannuation Acts, he may, either before or after the arising of the
contingency, but not later than six weeks after it has arisen, give notice
in writing to the Minister that he elects that the provisions of the next
following paragraph shall apply in relation to that contingency:Provided that, if the
person is unavoidably prevented from giving such notice before the expiration
of the said six weeks, the Minister may in his discretion extend the period
for giving such notice.
(2) Where such a notice
has been received by the Minister, such portion of the said allowance or gratuity
as the Minister, with the consent of the Treasury, may determine to be attributable
to the period of his former employment (but no other portion thereof) shall,
notwithstanding anything in the Superannuation Acts, be subject to the like
conditions as were applicable under the pension scheme associated with his
former employment as to payment, allocation or otherwise, but with such modifications
as the Minister, with the consent of the Treasury, may determine to be necessary
to adapt those conditions to payment under those Acts.
9 

(1) In the case of
a person to whom Rule 5
would apply but for the provisions of this rule, where under the pension scheme
associated with his former employment he was entitled to retire at an earlier
age than the age of sixty, and received a pension other than a return of contributions
on such retirement, then, if he becomes a civil servant while under that age,
the period of his former employment shall not be taken into account for the
purposes of the Superannuation Acts:Provided that, if his
actual period of service as a civil servant is less than the minimum period
of service required by the Superannuation Acts for the payment of an allowance
or gratuity, but the said period would, but for this rule, have been sufficient,
when added to the period treated as service as a civil servant in accordance
with Rule 5, for
an allowance or gratuity to be granted, such allowance or gratuity may be
granted as though his period of service had been equal to that minimum period,
so, however, that its amount shall be reduced by a proportion equal to the
proportion which the number of years by which the actual period falls short
of the minimum period bears to the number of years in the minimum period.

(2) A person to whom
this rule applies shall not be entitled to any payment in respect of accrued
rights under Rule 7,
and the pension (including any right to payments after his death) to which
he became so entitled shall remain a liability under the pension scheme and,
in the case of a scheme to which Rule 12
applies, be transferred to the Minister under that rule, but except for that
pension the trustees and managers of that scheme and any other persons having
or having had custody or control of the assets (including, in the case of
a scheme to which Rule 12
applies, the Minister) shall be under no liability to him in respect of pension
rights arising from his former employment.
PART III
10 

(1) The following provisions of this rule apply to persons in respect
of whom the following conditions are fulfilled (hereafter in these Rules called “discharged
employees”) that is to say—
(a) that they have been employed full time by any
such Society or body as is mentioned in Rule 2;

(b) 
that they have lost that employment;
(c) 
that the loss of employment is directly attributable to the passing of the
National Insurance Act or the making of any regulations thereunder;
(d) 
that they are not, or do not, before the 5th July, 1949, become, civil servants;
and
(e) 
that they have pension rights under any pension scheme or are interested in
any pension fund under which scheme or in which fund other persons to whom Rule 2 applies have such rights
or interest.
(2) Where in the
case of a discharged employee there are accrued rights in relation to any
contingency which has occurred, and either—
(a) the employment
which he lost was such as to satisfy the conditions in Rule 3; or
(b) he is entitled
to receive compensation for that loss of employment under Section 67 of the National Insurance
Act; or
(c) the pension
scheme or fund in relation to which he satisfies the condition in sub-paragraph (e) of the last
preceding paragraph is a fund wholly transferred by Rule 12;the Treasury may make payments to or in respect of him equal to
the value of those accrued rights.
(3) Any such payment
shall be made to the person or persons who would, but for these Rules or the
passing of the National Insurance Act, have had the right to payment under
the pension scheme concerned.
(4) Notwithstanding
the foregoing provisions of this rule, no payment shall be made in respect
of a contingency occurring not later than the appointed day and giving a right
to the return of contributions unless the person concerned gives notice in
writing to the Minister not later than the 5th July, 1949, that he desires
such payment to be made.
(5) If payment in
respect of such a contingency as is mentioned in the last preceding paragraph
is duly made, no further payment in respect of accrued rights shall thereafter
be made to or in respect of that person under these Rules.
(6) No payment of
a lump sum shall be made under this rule in respect of accrued rights to a
periodical payment:Provided that where
the capital value of the accrued rights, when added to the capital value of
any compensation due to the discharged employee under Section 67 of the National Insurance
Act does not exceed two hundred and fifty pounds, the Treasury may make a
lump sum payment equal to the capital value of the accrued rights.
(7) The accrued
rights in any case shall, subject to the provisions of the next following
paragraph, be ascertained for the purpose of this rule in accordance with
the provisions of the Second Schedule
to these Rules.
(8) If under any
regulations made under Section 67
of the National Insurance Act the Minister has power for the purpose of assessing
compensation under those regulations to credit a discharged employee with
additional years of service, then, in determining accrued rights under these
Rules upon the death of such employee to whom additional years of service
may be so credited, the Minister may direct that the like number of years
shall be added for the purpose of paragraph 3 of the Second Schedule
 to these Rules to that part of the period
of that discharged employee's former employment which was pensionable employment.

(9) Any payments
authorised by these Rules in respect of the pension rights of discharged employees
shall be made out of moneys provided by Parliament.
PART IV
11 

(1) The provisions
of this Part of these Rules apply to—
(a) any pension
scheme under which any person to whom Rule 2 or Rule 10
applies has pension rights; and
(b) any pension
fund held for the purposes of any such scheme.
(2) In this and the
next succeeding Part of these Rules—
 “affected scheme” means a pension scheme to which the provisions of this Part apply;

 “affected fund” means a pension fund to which the provisions of this Part apply;

 “affected person” means a person to whom Rule 2 or Rule 10
applies;
 “pensioner” means a person to whom a pension is payable under an affected scheme or
out of an affected fund in respect of a period which includes the appointed
day.
12 
Subject to the provisions of Rule 15,
where on the 25th June, 1948, the persons interested in an affected fund or
having pension rights under an affected scheme included no persons who were
not affected persons or pensioners or other persons who before that date were
employed either—
(a) by an Approved
Society (including any branch thereof) transacting only health insurance business,
or any separate section established for the purposes of the Health Insurance
Act; or
(b) by a body administering
a special scheme under Section 73
of the Unemployment Insurance Act;
the whole of that fund or of the assets of that scheme shall,
as at the appointed day, by virtue of these Rules—
(i) in so far as
such fund or assets consist of annuities, bills, stocks, shares, debentures,
bonds, loans and other securities (except any policy of insurance, securing
pension rights and any security, not being a debenture, by way of a charge
or mortgage of land) be transferred to the National Debt Commissioners; and

(ii) in so far as
such fund or assets consist of any property which is not, in accordance with
the foregoing provisions of this rule, transferred to the National Debt Commissioners,
be transferred to the Minister;
and any liabilities under that scheme shall as at that day
be transferred to the Minister.
13 

(1) Where, on the
25th June, 1948, the persons interested in an affected fund or having pension
rights under an affected scheme included one or more persons who were neither
affected persons nor pensioners nor such other persons as are mentioned in Rule 12, there shall, subject
to the provisions of Rule 15,
be transferred, as at the appointed day, such part of that fund or of the
assets held for the purposes of that scheme as the Minister, after consultation
with the Government Actuary, shall determine to be proper in respect of affected
persons:Provided that the Minister
may after such consultation make further determinations under this rule in
respect of affected persons not taken into account at the first determination,
and transfers of further parts of the fund or assets shall be made accordingly.

(2) Any part of a
fund or assets transferred in accordance with this rule shall—
(a) in so far
as such part consists of annuities, bills, stocks, shares, debentures, bonds,
loans and other securities (except any policy of insurance securing pension
rights and any security, not being a debenture, by way of a charge or mortgage
of land) be transferred to the National Debt Commissioners; and
(b) in so far
as such part consists of any property which is not, in accordance with the
foregoing provisions of this rule, transferred to the National Debt Commissioners,
be transferred to the Minister.
(3) In the case of
a fund or scheme to which the provisions of this rule apply, the following
provisions shall apply during any period before the making of the first determination
of the Minister in relation thereto:—
(a) No dissolution
of the fund or distribution of the assets of the scheme and no surrender or
disposal of a policy of insurance whereby the pension rights of affected persons
thereunder are secured shall be made without the consent of the Minister in
writing, and no payments shall, without such consent, be made to affected
persons in respect of their interest in, or rights under, the fund or scheme.

(b) The Minister
may, in giving such consent, state in writing any conditions subject to which
it is given, and the dissolution, distribution, surrender, disposal or payment
shall, as regards the interest or pension rights of affected persons, be subject
to those conditions.
(c) Nothing in
the foregoing provisions of this paragraph shall prevent the payment to pensioners
of any payment payable to them in respect of retirement or incapacity.
14 
Where, at any time on or after the 1st January, 1946, an affected
person was interested in an affected fund or had pension rights under an affected
scheme, but such interest or rights have been determined before these Rules
come into operation (or, in the case of a civil servant, before he becomes
a civil servant, if that is later) by the payment to him of a sum in respect
of such interest or rights, the Minister, with the consent of the Treasury,
may, as a condition of applying to his case any provision of these Rules providing
for payments by the Treasury in respect of accrued rights, require—

(a) the payment into
the Exchequer by that person of the sum so received by him; and
(b) the transfer
under Rule 13
of the amount which, in the opinion of the Minister after consultation with
the Government Actuary, would, apart from this rule, have been required to
be so transferred in respect of that affected person but for the payment so
made to him, less the amount of that payment;
and in default of such payment or transfer any payments
by the Treasury in respect of accrued rights may be so modified or extinguished
as the Minister, with the consent of the Treasury, may determine to be appropriate.

15 

(1) In relation to
affected persons, the liabilities of an affected fund, or under an affected
scheme, shall, subject to the provisions of Rules 7, 9 and 10,
be extinguished.
(2) The transfers
made under Rules 12 and 13
shall be subject to the further provisions contained in the Third Schedule to these Rules.

(3) In the case of
a fund or scheme to which Rule 12
applies, the Minister shall make such arrangements as appear to him to be
requisite for securing the payment of the liabilities under the scheme to
pensioners and such other persons as are mentioned in Rule 12 or to other persons in
respect of them after their death and shall, in particular, make provision
for the payment of pensions due to be paid out of the fund or assets at the
next date of payment after the appointed day, so, however, that such arrangements
shall not, by reason of any alteration in the method or source of payment
or otherwise, in any way modify the pension rights of any of those persons
and shall not, in particular, be deemed to convert any pension payable to
those persons into a pension payable under the Superannuation Acts:Provided that in any
case in which, in connection with any provision made by the Act or by the
National Insurance Act, or in anticipation of the making of any such provision,
pension rights have been created otherwise than in the ordinary course, such
adjustments shall be made in the calculation of the liabilities resulting
from such creation as may appear to the Minister to be appropriate.
(4) The provisions
of the Fourth Schedule
to these Rules shall apply to the arrangements made in accordance with the
last preceding paragraph.
16 
Notwithstanding anything in these Rules, in the case of a discharged
employee in respect of whom the following conditions are fulfilled, that is
to say:—
(a) such transfer
of a fund or assets and such payment (if any) into the Exchequer has been
made as is required in his case by this Part of these Rules;
(b) 
he has entered, or intends to enter, employment with which a pension scheme
(in this paragraph called “the new pension scheme”)
 is associated, or in connection with which his employer intends
to make provision for the payment to him of a pension, and he has shown to
the satisfaction of the Minister that upon the payment to the trustees or
managers of the new pension scheme, or to his employer, of such transfer value
as is provided by this rule he will, either under the rules of the new pension
scheme or under an undertaking entered into by his employer, have pension
rights in respect of the whole or part of his former employment;
(c) he has made a
request to the Minister in writing for the payment of such transfer value,
and has undertaken in such request to accept the making of such payment in
full satisfaction of all claims he may have upon the Minister in respect of
his pension rights; and
(d) the Minister
sees no reason why the payment of such transfer value should not be made;

the Treasury shall pay to the trustees or managers of the
new pension scheme, or to his employer, a transfer value in respect of his
accrued rights as certified by the Government Actuary, and after such transfer
value has been paid no further payment in respect of accrued rights shall
be made to or in respect of the discharged employee under these Rules.
17 

(1) Any policies
of insurance under which the pension rights of affected persons are secured
shall be included in the assets to which Rules 12 and 13
apply.
(2) In the case of
policies transferred to him, the Minister may, from such date as he shall
determine—
(a) assume all
or any of the rights in relation to such policies of the employers of the
affected persons or of the trustees or managers of the affected funds or schemes;

(b) continue
the policies in force in cases to which Rule 6
applies;
(c) require the
issue of paid-up policies in respect of the premiums already paid;
(d) (with the
consent of the persons granting the policies) transfer them to other persons,
including, if he deems it appropriate, the persons having pension rights thereunder.

(3) The persons granting
such policies shall do all things necessary to enable these Rules to be complied
with, and shall in particular issue any new policies that may be required:
Provided that—

(a) 
the stamp duty on any new policies issued in substitution for existing policies
shall be borne by the Minister; and
(b) 
the said persons shall, in cases where new policies are required under an
affected scheme in order to provide increased benefits, have the right in
accordance with the terms of the scheme to decline, on health grounds, to
grant an assurance or to require an increased premium.
(4) Where a policy
of insurance is transferred under paragraph (2) of this rule to a person having
pension rights under that policy, he shall be deemed to have received all
payments due or to become due to him under these Rules in respect of his accrued
rights.
18 
Nothing in any statutory provision relating to an affected fund
or scheme, or in any trust deed, rules or other instrument made for the purposes
thereof shall authorise anything that is contrary to these Rules.
19 
Every employer or past employer of an affected person, and every
trustee or manager of an affected fund or scheme, and the servants or agents
of any such employer, trustee or manager, and every affected person—

(a) shall furnish
to the Treasury, the Minister, the Government Actuary, the tribunal or any
officer of any of them all such information and produce for inspection all
such documents as may reasonably be required for the purpose of ascertaining
the service and pension rights of an affected person, and the nature, extent
and location of funds and assets (and liabilities attaching thereto) to be
transferred under these Rules; and
(b) in the case of
a transfer under Rule 12
shall (unless excused by the Minister from so doing) hand over, and in the
case of a transfer under Rule 13
shall (unless so excused) either hand over, or furnish certified copies of,
all books, records, papers and documents appertaining to the scheme or fund.

20 
The National Insurance and Civil Service
(Superannuation) (Schemes and Funds) Rules, 1948,
are hereby revoked, but without prejudice to anything duly done or suffered,
or to any right, privilege, obligation or liability acquired, accrued or incurred
thereunder, so, however, that any transfer of a pension fund or of the assets
held for the purposes of a pension scheme made by virtue thereof shall be
treated as if it were a transfer made under Rule 12.

PART V
21 
Any person who claims to be entitled:—
(a) to be a discharged
employee for the purposes of Rule 10
by reason of having suffered a loss of employment which is directly attributable
to the passing of the National Insurance Act or the making of any regulations
thereunder; or
(b) to have, either
immediately or upon the happening of some future contingency, accrued rights
for the purposes of Rule 7 or Rule 10;

and who has not, before the 31st December, 1949, been notified
in writing of a decision of the Minister as to whether or not he is such a
person or possesses such rights, shall, not later than the 5th July, 1950,
give notice of his claim to the Minister in a form approved by him for the
purpose:
Provided that—
(a) any
claim to compensation made in accordance with regulations under Section 67 of the National Insurance
Act shall be deemed to be a notice under this rule; and
(b) the
Minister may in his discretion in any particular case extend the time for
giving such notice.
22 

(1) Subject to the
provisions of this Part of these Rules, any question arising under these Rules
shall be decided by the Minister.
(2) A claimant may,
if he is dissatisfied with a decision by the Minister on any of the following
matters, that is to say:—
(a) whether a
loss of employment is directly attributable to the passing of the National
Insurance Act or the making of any regulations thereunder; or
(b) the existence,
nature or amount of accrued rights; or
(c) the existence
of a reasonable expectation of receiving a pension, or the nature or amount
of such pension or of any special award in respect thereof;within three months after the date on which he was notified of
the decision, require the matter to be referred to the tribunal, and the matter
shall be referred accordingly.
(3) The Minister,
when notifying any decision in respect of any of the matters referred to in
paragraph (2) of this rule to the claimant, shall inform him in writing of
his right to require the matter to be referred to the tribunal.
(4) The tribunal shall
consider any matter so referred in accordance with the provisions of these
Rules, and shall determine whether the decision of the Minister shall be confirmed,
reversed or varied, and the Minister shall give effect to the determination
of the tribunal.
(5) Nothing in these
Rules shall affect the discretion of the Treasury in making awards under the
Superannuation Acts.
PART VI
23 

(1) Where in the
case of any person—
(a) that person
has enjoyed since not later than the 1st January, 1946, by customary practice
or otherwise, a reasonable expectation of receiving a pension on retiring
from his former employment (whether or not accompanied by a reasonable expectation
of some payment by way of pension to him in the event of retirement through
ill-health or incapacity or in respect of him upon his death); and
(b) the arrangements for the payment of such pension (hereafter in this
rule called “the said pension”), whether subsisting
by virtue of Act of Parliament, trust, contract or otherwise, do not comply
with the requirements of paragraph (3) of Rule 1,
but that person would, but for that paragraph, be a person to whom Rule 7 or Rule 10 would
apply; and
(c) he has applied
to the Minister not later than the 31st March, 1949 (or such later date as
the Minister may for special reasons allow in a particular case) for the grant
of a special award under this rule, and has proved his enjoyment of that expectation
to the satisfaction of the Minister within a reasonable time thereafter;the Minister, with the consent of the Treasury, may grant a special
award under this rule equal to such proportion of the said pension as he considers
equitable having regard to that person's age, the length of the period of
his former employment, the provisions of these rules governing the ascertainment
of accrued rights which would have applied in his case if the said pension
had been payable under a pension scheme complying with the requirements of paragraph (3) of Rule 1 and not
being a scheme to which paragraphs 4 and 5 of the Second Schedule
 to these Rules apply, and all other circumstances
of his case.
(2) Any such award
shall specify the contingency or contingencies on the happening of which payment
under the award is to be made and the Treasury may, on the happening of any
such contingency, make payments to or in respect of that person in accordance
with the award, and for the purpose of this rule the provisions of paragraph 1 of the Second Schedule
to these Rules shall apply to any contingency as though it were a contingency
giving rise to accrued rights in the case of a person to whom Rule 7 or rule 10 applied:
Provided that the said
payments may be reduced or extinguished as the Minister, with the consent
of the Treasury, may determine to be appropriate having regard to any gratuity
or allowance payable to the person under the Superannuation Acts and to any
payments received or to be received by him from his employer in the former
employment.
24 
Where, under any trust deed, rules or other
instrument made for the purposes of any affected fund or scheme, provision
is made for the voluntary payment by persons interested therein or having
pension rights thereunder of contributions additional to those required by
such trust deed, rules or other instrument, and those additional contributions
are paid into a separate fund or account (hereinafter called “a
supplemental fund”) into which no contributions are paid
by the employers of those persons and out of which increased or additional
benefits by way of pension are payable—
(a) neither Part IV
of these Rules nor Rule 25
shall apply to a supplemental fund;
(b) pension
rights in a supplemental fund shall not be taken into account in determining
accrued rights for any purpose of these Rules; and
(c) the payment
of contributions into a supplemental fund in respect of any period of former
employment shall not constitute that period a period of pensionable employment.

25 

(1) 
Where on the appointed day the persons interested in an affected fund or having
rights under an affected scheme included
one or more persons (hereinafter called “Northern Ireland employees”
) in respect of whom the following conditions
are fulfilled, that is to say:—
(a) that they
have been employed full time by any such Society or body as is mentioned in Rule 2 or by a body administering
a special scheme under Section 77 of the Unemployment Insurance Act (Northern Ireland),
1936 (which section relates to special schemes);

(b) that they
have lost that employment; and
(c) that either—

(i) they
are entitled to receive compensation for that loss of employment under Section 64 of the National Insurance Act (Northern Ireland),
1946 (which section relates to compensation
for displaced employees); or
(ii) that
it is certified by the Ministry of Finance for Northern Ireland that they
are persons towards whom the liabilities of that fund or under that scheme
have been or will be assumed by a Government department for Northern Ireland;
there shall be transferred to the Ministry of Finance for Northern
Ireland such part of that fund or of the assets held for the purposes of that
scheme as the Minister, after consultation with that Ministry, shall determine
to be proper in respect of Northern Ireland employees:Provided that—

(a) 
the Minister may, after such consultation, make further determinations under
this rule in respect of Northern Ireland employees not taken into account
at the first determination, and transfers of further parts of the fund or
assets shall be made accordingly;
(b) 
where anything that is to be transferred under this rule has already been
transferred under Part IV
of these Rules, it shall be transferred by the transferee to the said Ministry
in accordance with this rule.
(2) In relation to
Northern Ireland employees, the liabilities of an affected fund, or under
an affected scheme, shall, subject to any obligations of any Government department
for Northern Ireland (and, if they are affected persons, to the provisions
of Rules 7, 9 and 10),
be extinguished.
(3) In the case of
Northern Ireland employees who are also affected persons, any transfers to
be made under this rule or under Rule 13
shall be so adjusted as may appear to the Minister, after such consultation
as aforesaid, to be appropriate, having regard to the liabilities undertaken
in Great Britain and Northern Ireland respectively towards those persons.

Dated this 10th day of November, 1948.
Fames Griffiths
Minister of National Insurance
We consent.
R. F. Taylor
Foseph Henderson
Two of the Lords Commissioners of His Majesty's Treasury

FIRST SCHEDULE
Rule 3 (2)
1 
Any person who was engaged
in war service at any time during the period from the 26th May, 1939, to the
relevant date and who, but for his being so engaged, would have been a person
in relation to whose employment the conditions in paragraph (1) of Rule 3
would have been satisfied (hereinafter called “an employee on war service”
) shall be deemed to satisfy those conditions.

2 
A person shall not be treated as satisfying
the requirements of the preceding paragraph unless he had a right to (or,
under a promise given to him by his employer, a reasonable expectation of)
reinstatement in the employment last held by him before his war service, and,
in the case of a person who ceases to be engaged in war service on or after
the appointed day, he gives notice in writing to the Minister, within a period
of two months after he ceases to be so engaged (or within such longer period
as the Minister may for special reasons allow in a particular case), that
he claims to be an employee on war service for the purpose of these Rules
or of regulations made under Section 67
of the National Insurance Act.
3 

(1) An employee on war
service who satisfies the requirements of paragraph 1
of this Schedule shall, for the purpose of these Rules, be treated as if he
had remained in the employment of his last employer before his war service
throughout that service and for any period thereafter during which he would,
but for his war service, have been so employed, not being a period during
which he was in other employment to which the said conditions in paragraph (1) of Rule 3 apply:
Provided that he shall
only be so treated if and to the extent that he was, or would but for the
passing of the National Insurance Act have been, so treated by that employer,
and he shall not in any case be so treated in respect of any period after
the appointed day.
(2) The calculation of
the period of his former employment or of his accrued rights and any other
calculation required by these Rules in relation to a former employment or
to pension rights conferred or preserved by these Rules shall, in the case
of such an employee on war service, be made on the basis of the preceding
sub-paragraph.
4 
For the purpose of these Rules, the expression “war service”
 means—
(a) service in any of His Majesty's forces or the
nursing and auxiliary services thereof;
(b) service in
the Merchant Navy, including the sea fishing service, the pilotage and light
vessel services, or as a salvage worker;
(c) full time
service in the civil defence services (including the National Fire Service),
the Royal Observer Corps, the Police War Reserve, the nursing and first aid
services, and the Women's Land Army;
(d) any full time
employment into which a person entered by direction of the Minister of Labour
and National Service;
(e) detention
by the enemy as a prisoner, military or civil, in any enemy or enemy-occupied
country or internment in any enemy or enemy-occupied or neutral country in
consequence of the war;
(f) such other
employment as the Minister, with the consent of the Treasury, approves in
writing;
such service, employment, detention or internment being on or after
the 26th May, 1939, but not including any voluntary extension of war service
or voluntary enlistment after the cessation of hostilities otherwise than
with the consent of the employer in whose service the person was, both at
the time of the consent and immediately before the commencement of his war
service.
SECOND SCHEDULE
Rules 7 and 10
1 
The following provisions of this Schedule shall
apply to the ascertainment of accrued rights upon the happening of a contingency
in the case of a person who, on the 1st January, 1946, or at any time thereafter,
had pension rights in a pension scheme associated with his former employment,
and for this purpose the expression “contingency” shall be construed as meaning retirement from his former employment
or any other contingency upon the happening of which any payment by way of
pension is due under that pension scheme, so, however, that, subject to the
said provisions—
(a) 
in the case of a person to whom Rule 7
applies, any contingency occurring during, after or in relation to his employment
as a civil servant which, had it occurred during, after or in relation to
his former employment, would have been a contingency upon the happening of
which any payment by way of pension would have been due under that pension
scheme shall be treated as being such a contingency;
(b) in the case
of a person to whom Rule 10
applies, the contingencies of incapacity, disablement, marriage or death shall,
subject to their being proved to the satisfaction of the Minister, be treated
as occurring when they arise, and the contingency of retirement shall be deemed
to occur when the person attains the age at which he was, under the pension
scheme, entitled, without the consent of his employer in his former employment
or of any other person, to retire with a pension other than a return of contributions:
Provided that—
(i) if
the pension scheme contained an option for him to retire at any earlier age
with a reduced pension, the contingency of retirement at such earlier age
shall be deemed to occur at that age if the person gives notice in writing
to the Minister (not later than three months after attaining that age) that
he elects to be treated as having retired at that age; and
(ii) 
where a person to whom Rule 7
applies retires from the Civil Service before Civil Service retiring age otherwise
than upon such medical certificate as is mentioned in Section 10 of the Superannuation Act, 1859
 (which section relates to evidence of incapacity),
he shall, unless he gives notice in writing of his desire to the contrary
to the Minister within six months of such retirement, be treated as though
sub-paragraph (b) of this paragraph were
applicable to his case, and, in particular, the contingency of retirement
shall not be deemed to occur in his case except in accordance with that paragraph.

2 
The accrued rights upon the happening of a contingency
in the case of a person who, on the 1st January, 1946, or at any time thereafter,
had pension rights in a pension scheme associated with his former employment
shall, subject to the following provisions of this Schedule, be deemed to
be equal to such payments as would have been payable under that scheme to
or in respect of the person in relation to that contingency if he had remained
in his former employment without increase of emoluments until the age at which
he was under that scheme entitled to retire with a pension other than a return
of contributions or until the happening of the contingency, whichever is the
earlier:
Provided that—
(a) any provision
in that scheme whereby any payments thereunder are calculated by reference
to average emoluments over any period shall be construed as referring to the
rate of emoluments at the end of that period; and
(b) where
a person to whom Rule 5
applies either retires from the Civil Service at or after Civil Service retiring
age or retires from the Civil Service upon such medical certificate as is
mentioned in Section 10
of the Superannuation
Act, 1859, his accrued rights on such retirement
shall be deemed to be equal to such payments as would have been payable to
him under that scheme (as modified where it applies, by the foregoing provision
of this proviso) on retirement from his former employment if he had remained
in his former employment until the age at which he retired from the Civil
Service at the same salary (or on the same salary scale) as was applicable
to him when his former employment ceased, and, in the case of retirement upon
medical certificate, had been compelled then to retire from his former employment
by reason of ill-health.
3 
Where such part of the period of a person's
former employment as was pensionable employment for the purpose of the pension
scheme associated with it was shorter than the period of pensionable employment
required by him under that pension scheme to secure the maximum payment for
which he could qualify under that scheme in relation to any contingency, the
accrued rights in relation to that contingency shall (except in a case to
which paragraph (b) of the proviso to
paragraph 2 applies) be reduced by a proportion
corresponding to the degree by which the former period falls short of the
latter.
4 
Where the amount of the pension rights was ascertainable
by reference to the pension value of the contributions paid by or in respect
of a person, the accrued rights shall be limited to those accrued by virtue
of the contributions paid by or in respect of him up to the date of termination
of his former employment.
5 
Where the pension rights were secured under
a policy of insurance, the accrued rights shall (except in a case to which
the preceding paragraph applies) be limited to those accrued by virtue of
the premiums paid by or in respect of him up to the date of termination of
his former employment.
6 
Where the contingency is one giving a right
to the return of contributions, the accrued rights shall be calculated as
though the contingency had occurred at the date of termination of his former
employment:
Provided that, where the right
is to a return of contributions with interest, the interest shall be calculated,
in the case of a person to whom Rule 10
applies, as though the date of the contingency were ascertained in accordance
with the provisions of sub-paragraph (b) of paragraph
1 of this Schedule.
7 
In determining the accrued rights in the case
of any person in respect of whom the following conditions are fulfilled:—

(a) that on the appointed
day no person had pension rights under the pension scheme associated with
his former employment, other than persons employed or formerly employed by
an Approved Society (including any branch thereof) transacting only health
insurance business, or any separate section established for the purposes of
the Health Insurance Act;
(b) 
that his former emoluments included a bonus or other additional payment paid
on account of war-time conditions and not then consolidated with his emoluments
(hereafter in this paragraph called “war payments”), and
no part of his pension rights under the pension scheme was in respect of war
payments;
(c) that, if the Society
or body employing him had, on the 1st August, 1946, consolidated war payments
with the emoluments of persons then in their employment, he would under the
pension scheme have had pension rights in respect of war payments; and
(d) that it is proved
to the satisfaction of the Minister that the said Society refrained from so
consolidating war payments in such circumstances that their failure to do
so is directly attributable to the passing of the National Insurance Act;

that person shall be treated as if the Society had so consolidated
war payments.
8 
In the calculation of accrued rights any sums
paid by way of compensation in respect of the same rights or in respect of
the same period under Section 67
of the National Insurance Act shall be taken into account.
9 
In any case in which either—
(a) in connection with
any provision made by the Act or by the National Insurance Act, or in anticipation
of the making of any such provision, pension rights have been created otherwise
than in the ordinary course; or
(b) there has been default
in making any transfer, in whole or part of any pension fund or of the assets
held for the purposes of a pension scheme in accordance with Part IV of these Rules;
such adjustment shall be made in the calculation of accrued
rights which result from such creation or which are a liability of such fund
or under such scheme as may appear to the Minister to be appropriate.
THIRD SCHEDULE
Rules 12 and 13
1 
Every asset which is transferred by virtue of,
or in accordance with, these Rules shall vest free of any trust existing immediately
before the appointed day.
2 
Every transferor of any asset which is transferred
by virtue of, or in accordance with, these Rules shall, on the request of
the transferee, execute and do all such lawful assurances and things as may
be necessary for perfecting the title thereto.
3 

(1) Without prejudice
to the generality of the provisions of Rules 12 and 13,
every transferor, and every person who is responsible for keeping any register
or book in which there is registered or inscribed any asset transferred by
virtue of, or in accordance with, these Rules, shall do all such things as
are necessary, or as the transferee may direct, to be done for the purpose
of securing the due registration or inscription of the title of the transferee
to that asset and the delivery to the transferee of any document constituting
evidence of the said registration or inscription.
(2) The duty imposed
on any transferor or other person by the preceding sub-paragraph of this paragraph
in relation to any asset shall include a duty to do all such things as are
within his power to secure that any dividend or interest payable in respect
of that asset on or after the appointed day will be paid to the transferee.

(3) A certificate that
any specified asset is an asset which has been transferred to the transferee
by virtue of, or in accordance with, these Rules shall, if it is signed by
the Minister or on behalf of the Minister by any person authorised for that
purpose by him, be treated by any person responsible or concerned as aforesaid
as evidence that that asset has been so transferred.
4 
Where any estate or interest in land is transferred
by virtue of, or in accordance with, these Rules, that transfer shall not
give rise to any forfeiture or determination of that estate or interest.
5 

(1) Where, by virtue
of, or in accordance with, these Rules, any estate or interest in a part only
of any land held under a lease or under an agreement for tenancy is transferred,
and the lease or agreement does not reserve separate rents for the several
parts of the land so held, then, as from the appointed day, the rent shall
be apportioned between the several parts thereof according to their value,
and the covenants, agreements and conditions contained in the lease or agreement
shall be severed.
(2) As from the severance
on the appointed day, no liability arising on or after that day for any apportioned
rent or any breach of any covenant, agreement or condition contained in the
lease or agreement in respect of any part of the land transferred to the transferee
shall attach to the transferor or to the successors in title of the transferor,
and no liability so arising for any such rent or breach in respect of any
part of the land not so transferred shall attach to the transferee or to the
successors in title of the transferee.
6 
Where, on or after the appointed day, any person
retains possession of any document relating to the title to, or to the control
or management of, any asset transferred by virtue of, or in accordance with,
these Rules, that person shall be deemed to have given to the transferee an
acknowledgment in writing of the right of the transferee to production of
that document and to delivery of copies thereof, and Section 64
of the Law
of Property Act, 1925 (which relates to the
production and safe custody of documents) shall apply as if the acknowledgment
had been given without any such expression of contrary intention as is referred
to in subsection (13)
of that section.
7 
Every agreement, whether in writing or not,
and every document not being an agreement, under which, immediately before
the appointed day, any asset transferred by virtue of, or in accordance with,
these Rules is held shall, unless any property not so transferred is held
thereunder, as from the appointed day, have effect as if a reference to the
transferee were substituted for any reference therein (however worded and
whether express or implied) to the transferor.
8 
Any proceedings affecting any asset transferred
by virtue of, or in accordance with, these Rules which, on the appointed day,
are pending shall not be prejudicially affected by reason of that transfer,
but any such proceedings may be amended in such manner as may appear necessary
or proper for enabling them to be prosecuted or enforced by or against the
transferee or any other person or persons concerned, as the case may be.
9 
References in this Schedule to an asset shall
include references to the whole or part of any fund transferred by these Rules,
and references to an asset transferred shall, where appropriate, include references
to an asset to be transferred.
10 

(1) The following provisions
of this paragraph shall have effect for the purpose of the application of Rules 12 and 13 and this Schedule
to Scotland.
(2) “Mortgage”
means a heritable security and “mortgagee”
 means the creditor in a heritable security
; 
“trust” has the meaning assigned
to it by the Trusts (Scotland) Act, 1921;
and a “heritable security” 
has the like meaning as in the Conveyancing (Scotland) Act, 1924,
except that it includes a security constituted by 
ex facie absolute disposition but does not include a real burden ad factum praestandum.
(3) For paragraph 2 of this Schedule there
shall be substituted the following paragraph:—“
2 
Every transferor of any asset which is
transferred by virtue of these Rules shall on the request of the transferee
execute all deeds and documents necessary for the completion of the title
of the transferee to that asset.”
(4) Paragraph 6 of this Schedule shall
have effect as though the words occurring after the words 
“of copies thereof” were omitted.
FOURTH SCHEDULE
Rule 15
1 

(1) 
There shall be a fund called “the National Insurance (Existing
Pensioners) Fund,” which shall be under the control and
management of the Minister, and there shall be carried to that Fund the funds
and assets transferred under Part IV
of these Rules, and such part thereof shall be retained in that Fund as the
Minister, with the consent of the Treasury, determines to be requisite for
securing the payment of the liabilities transferred to the Minister by Rule 12, and the remainder thereof
shall be realised and transferred to the Exchequer.
(2) Where any of the
said funds and assets are, in the opinion of the Minister, unsuitable for
retention in that Fund, they may be sold or otherwise disposed of in such
manner as he may, with the consent of the Treasury, determine.
(3) There shall be paid
out of that Fund, subject to and in accordance with these Rules, such sums
as are from time to time required to meet the said liabilities as they accrue.

(4) Accounts of that
Fund shall be prepared in such form, in such manner and at such times as the
Treasury may direct, and the Comptroller and Auditor General shall examine
and certify every such account and shall lay copies thereof, together with
his report thereon, before Parliament.
(5) Any moneys forming
part of that Fund may from time to time be paid over to the National Debt
Commissioners and by them invested, in accordance with such directions as
may be given by the Treasury, in any securities which are for the time being
authorised by Parliament as investments for savings banks funds.
(6) The National Debt
Commissioners shall present to Parliament annually an account of the securities
in which moneys forming part of that Fund are for the time being invested.

(7) If, in the opinion
of the Minister, the balance of that Fund at any time exceeds the amount necessary
for securing payment of the said liabilities, any surplus shall be realised
and transferred to the Exchequer, and there shall be so realised and transferred
any balance remaining after all the said liabilities have been discharged.

2 
Every person (hereafter
in this Schedule called “the payee”) by whom or on whose behalf
any payment in respect of any liability transferred to the Minister by Rule 12 is receivable, shall furnish
in such manner and at such times as the Minister may determine such certificates
and other documents and such information of facts affecting the right to payment
as the Minister may require, and in particular shall notify the Minister in
writing of any change of circumstances which the payee might reasonably be
expected to know might affect the right to payment as soon as reasonably practicable
after the occurrence thereof.
3 
Where the payee is certified by a justice or
minister of religion, and by a medical practitioner, to be unable by reason
of mental disability to manage his affairs, the Minister may pay so much of
any payment in respect of any liability transferred to the Minister by Rule 12 as he may think fit to
the institution or person having the care of the payee, and may pay the surplus,
if any, or such part thereof as he may think fit, for or towards the maintenance
and benefit of the wife or husband and relatives of the payee, and the Minister
shall be discharged from all liability in respect of any sums so paid.
4 
Where the payee dies before any payment in respect
of any liability transferred to the Minister by Rule 12
is made and the amount unpaid does not exceed one hundred pounds, the amount
so unpaid may be paid to the personal representative of the payee without
probate or other proof of title, or may be paid or distributed to or among
the persons appearing to the Minister to be the persons beneficially entitled
to the personal estate of the payee, and, in determining the persons to whom,
and the proportions in which, the amount so unpaid shall be paid or distributed,
the Minister may have regard to any payments made or expenses incurred by
any such person for or on account of the funeral of the payee.