§ Mr. BayleyTo ask the Secretary of State for Transport in what circumstances a railway employee transferring from one company to another, but remaining in membership of the railway pension scheme, would receive pension benefits that are less favourable than would have been accrued prior to railway privatisation.
§ Mr. FreemanWhere the transfer is compulsory, the' employee's pension benefits will be protected in full. We have agreed that where an employee who has the right under article 11 of the Railway Pensions (Protection and Designation of Schemes) Order 1994 to remain in the railways pension scheme moves voluntarily to another section within the scheme, there will be automatic credit of the same number of "pension years" provided that his pensionable salary is not increased on transfer by more than 7.5 per cent. A greater figure may be agreed between the trustees and the new employer, and in normal circumstances we would expect them to be able to increase this to around 10 per cent. The new employer may pay into the scheme to augment his benefits. In the few other cases, there may be a credit of fewer years, but this will depend on individual circumstances.