Document:

Trust Deed and Rules of the Vodafone UK Defined Contribution Pension Plan

 Exhibit 10.26 
  

					
		 	 DATED
	  	2009
			
		 	VODAFONE GROUP PLC	  	(1)
			
		 	 and
	  	
			
		 	 VODAFONE DC PENSION TRUSTEE
 COMPANY
LIMITED
	  	(2)
			
		 	 DEFINITIVE DEED
 Vodafone UK Defined Contribution Pension Plan
	  	

 Hammonds 
 7
Devonshire Square Cutlers Gardens London EC2M 4YH DX 136546 Bishopsgate 2 
 Telephone +44 (0)870 839 0000 Fax +44 (0)870 839 1001

 Offices and Associated Offices Aosta Berlin Birmingham Brussels Hong Kong Leeds London Madrid Manchester Milan Munich Paris Rome Turin 

Website www.hammonds.com 
 Reference JD/CLJ/VOD.1-4

 CONTENTS 
  

					
	 1
	  	 DEFINITIONS AND INTERPRETATION
	  	1
			
	 2
	  	 ESTABLISHMENT
	  	2
			
	 3
	  	 APPOINTMENT AND REMOVAL OF ADVISERS
	  	3
			
	 4
	  	 APPOINTMENT AND REMOVAL OF TRUSTEES
	  	3
			
	 5
	  	 TRUSTEES’ MEETINGS
	  	4
			
	 6
	  	 TRUSTEES’ DUTIES
	  	6
			
	 7
	  	 TRUSTEES’ POWERS
	  	7
			
	 8
	  	 PROTECTION OF TRUSTEES
	  	8
			
	 9
	  	 LIMITATION AND EXCLUSION OF PROTECTION
	  	10
			
	 10
	  	 TRUSTEES’ REMUNERATION
	  	10
			
	 11
	  	 PARTICIPATING EMPLOYERS AND EXTENSION OF PLAN
	  	11
			
	 12
	  	 SUBSTITUTION OF PRINCIPAL EMPLOYER
	  	13
			
	 13
	  	 COSTS AND EXPENSES
	  	13
			
	 14
	  	 CONTROL OF THE FUND
	  	14
			
	 15
	  	 INVESTMENT OF THE FUND
	  	16
			
	 16
	  	 RESTRICTIONS ON INVESTMENT
	  	20
			
	 17
	  	 VALUATIONS
	  	20
			
	 18
	  	 AMENDMENT
	  	21
			
	 19
	  	 BULK TRANSFERS IN
	  	22
			
	 20
	  	 BULK TRANSFERS OUT
	  	23
			
	 21
	  	 AMALGAMATION AND RECONSTRUCTION
	  	23
			
	 22
	  	 PARTIAL WIND-UP
	  	24
			
	 23
	  	 FULL WIND-UP
	  	24
			
	 24
	  	 DISSOLUTION
	  	25
			
	 25
	  	 SECURING BENEFITS ON A PARTIAL OR FULL WINDING-UP
	  	26
			
	 26
	  	 SPECIAL POWERS
	  	27

  

 i 

					
	 27
	  	 NOTICES
	  	28
			
	 28
	  	 DETERMINATION OF QUESTIONS AND RESOLUTION OF DISPUTES
	  	28
			
	 29
	  	 GOVERNING LAW
	  	28
		
	 SCHEDULE 1 DEFINITIONS
	  	29
		
	 SCHEDULE 2 THE RULES
	  	37
			
	 1
	  	 ELIGIBILITY
	  	37
			
	 2
	  	 ADMISSION TO MEMBERSHIP
	  	38
			
	 3
	  	 CESSATION OF ACTIVE MEMBERSHIP OR LIFE ASSURANCE ONLY MEMBERSHIP
	  	40
			
	 4
	  	 MEMBER’S NORMAL CONTRIBUTIONS
	  	43
			
	 5
	  	 MEMBER AVCS
	  	45
			
	 6
	  	 PARTICIPATING EMPLOYERS’ CONTRIBUTIONS
	  	46
			
	 7
	  	 NORMAL RETIREMENT
	  	48
			
	 8
	  	 EARLY RETIREMENT
	  	49
			
	 9
	  	 LATE RETIREMENT
	  	49
			
	 10
	  	 WITHDRAWAL
	  	50
			
	 11
	  	 INCREASES TO PENSIONS IN PAYMENT
	  	51
			
	 12
	  	 SECURING BENEFITS
	  	52
			
	 13
	  	 PAYMENT OF BENEFITS
	  	53
			
	 14
	  	 AUGMENTATION
	  	54
			
	 15
	  	 REVALUATION
	  	55
			
	 16
	  	 LUMP SUM BENEFITS
	  	55
			
	 17
	  	 CONVERSION
	  	57
			
	 18
	  	 EVIDENCE OF DEATH
	  	58
			
	 19
	  	 LUMP SUM DEATH BENEFITS
	  	58
			
	 20
	  	 DEPENDANT’S PENSIONS
	  	60
			
	 21
	  	 PENSIONS SHARING ON DIVORCE
	  	61
			
	 22
	  	 INDIVIDUAL TRANSFERS OUT
	  	64

  

 ii 

					
	 23
	  	 INDIVIDUAL TRANSFERS IN
	  	66
			
	 24
	  	 ALTERNATIVE TO SHORT SERVICE BENEFIT
	  	66
			
	 25
	  	 DISCLOSURE OF INFORMATION
	  	67
			
	 26
	  	 BAR ON ASSIGNMENT
	  	67
			
	 27
	  	 TAX LIABILITY AND OVER-PAYMENTS
	  	67
			
	 28
	  	 DETERMINATION OF EMPLOYMENT
	  	68
			
	 29
	  	 FAILURE TO CLAIM BENEFITS
	  	68
			
	 30
	  	 FORFEITURE AND CHARGING
	  	68
			
	 31
	  	 EMPLOYMENT WITH AN OVERSEAS EMPLOYER
	  	70
		
	 SCHEDULE 3 REVENUE LIMITS RULES
	  	73
			
	 1
	  	 DEFINITIONS
	  	73
			
	 2
	  	 CLASS A MEMBERS
	  	79
			
	 3
	  	 CLASS B MEMBERS OR CLASS C MEMBERS
	  	80
			
	 4
	  	 MEMBER’S CONTRIBUTIONS
	  	83
			
	 5
	  	 CONTINUED LIFE COVER
	  	83
			
	 6
	  	 PAYMENT OF RETIREMENT BENEFITS
	  	83
			
	 7
	  	 MEMBER’S CONTRIBUTIONS
	  	84
			
	 8
	  	 TRANSFERS
	  	84
			
	 9
	  	 LUMP SUM DEATH BENEFIT
	  	85
			
	 10
	  	 PENSIONS FOR DEPENDANTS
	  	85
			
	 11
	  	 INCREASES OF PENSIONS IN PAYMENT
	  	85
			
	 12
	  	 SURPLUS AVCS
	  	86
			
	 13
	  	 TRANSFERS
	  	86
			
	 14
	  	 INLAND REVENUE REQUIREMENTS FOR EX-SPOUSE PARTICIPANT
	  	86
			
	 15
	  	 INLAND REVENUE REQUIREMENTS FOR PENSION DEBIT MEMBER
	  	88
			
	 16
	  	 INLAND REVENUE REQUIREMENTS ON DEATH BEFORE DISCHARGE
	  	89
			
	 17
	  	 INLAND REVENUE REQUIREMENTS ON PAYMENT OF PENSIONS ON DEATH
	  	90

  

 iii 

					
	 18
	  	 INLAND REVENUE REQUIREMENTS FOR PENSION CREDIT BENEFIT TO BE KEPT SEPARATE
	  	90
			
	 19
	  	 INLAND REVENUE REQUIREMENTS ON TRANSFERS
	  	90

  

 iv 

 Deed 
  

			
	DATE OF DEED	  	2004

 PARTIES 
  

	(1)	VODAFONE GROUP PLC (Company Number 1833679) whose registered office is at Vodafone House The Connection Newbury Berkshire RG14 2FN (the “Principal Employer”)

  

	(2)	VODAFONE DC PENSION TRUSTEE COMPANY LIMITED (Company Number 05152668) whose registered office is at Vodafone House The Connection Newbury Berkshire RG14 2FN (the
“Current Trustee”) 

 INTRODUCTION 
  

	A	The Principal Employer wishes by this Deed to establish under irrevocable trusts a retirement benefits scheme to be called the Vodafone UK Defined Contribution Pension Plan (the
“Plan”) with effect from 1 July 2004 (the “Commencement Date”). 

  

	B	This Deed constitutes the definitive trust deed for the Plan. It incorporates the Rules. 

  

	C	The Principal Employer and the Current Trustee have agreed to become and are respectively the first principal employer and the first trustees of the Plan. 

THIS DEED WITNESSES THAT: 
  

	1	DEFINITIONS AND INTERPRETATION 

  

	1.1	The Schedules 

 The various attached schedules all
form part of this Deed. 
  

	1.2	Interpretation 

  

	 	(a)	Unless the context requires otherwise: 

  

	 	(i)	words and expressions used in this Deed have the meaning assigned to them in Schedule 1; 

  

	 	(ii)	any reference to a clause, rule or schedule is to the relevant provision of this Deed; and 

  

	 	(iii)	any reference within a schedule to a rule is to a rule within that schedule. 

  

	 	(b)	The headings to this Deed have been inserted for ease of reference only. They will not affect its construction or interpretation. Words in the singular include the plural and vice
versa. Words in the masculine gender include the feminine and vice versa unless the context requires otherwise. 

  

	 	(c)	The expressions “include” and “including” will mean “include, without limitation,” and “including, without limitation,” respectively.

  

	 	(d)	 Any reference to a statute, statutory instrument or other legislative provision includes any amendment or re-enactment of it for the time being in force and any

  

 1 

 Deed 
  

	 	 
regulations made under it. Any reference to a particular section or part of a statute or statutory instrument will be read to include reference to any other
relevant section or part of the statute or statutory instrument. 

  

	 	(e)	Any reference to legislation applicable to only part of the United Kingdom includes a reference to the corresponding legislation (if any) applicable to any other part of the United
Kingdom. 

  

	 	(f)	Any reference to written notice includes notice given by electronic means. 

  

	1.3	Third parties 

 This Deed does not confer on any
third party any right to enforce any provision of the Deed under the Contracts (Rights of Third Parties) Act 1999 and any such right is excluded. This does not affect any right or remedy of a third party which exists or is available as a matter of
trust law or apart from that Act. 
  

	2	ESTABLISHMENT 

  

	2.1	Establishment and purpose of the Plan 

  

	 	(a)	Establishment. This Deed establishes the Plan with effect on and from the Commencement Date. 

  

	 	(b)	Confirmation. For the avoidance of doubt, and with effect from the date of execution of this Deed if the same is prior to the Commencement Date, the Trustees shall have all
such powers and discretions which are necessary or desirable in connection with the establishment and proper administration of the Plan (including those set out in this Deed) and enjoy all the protections available to them under this Deed. All and
any actions and decisions of the Trustees prior to the Commencement Date are immediately ratified with effect from the Commencement Date. 

  

	 	(c)	Amendments required by law for Exempt Approval. The Principal Employer and the Trustees undertake to make any amendments to this Deed or take any other action which may be
required to secure or maintain Exempt Approval or to comply with legislative requirements from time to time. 

  

	 	(d)	Purpose of the Plan. The object of the Plan is the provision of relevant benefits as defined in the Taxes Act for and in respect of Members. 

  

	2.2	Appointment of Trustee 

 The appointment of the
Current Trustee named above as the first Trustee of the Plan is hereby confirmed. 
  

	2.3	Trust 

 The assets of the Plan shall be held by the
Trustees under irrevocable trusts to be applied in accordance with and subject to the provisions of this Deed. 
  

 2 

 Deed 
  

	2.4	Duration of the Plan 

 The Plan will be wound up in
accordance with the Rules no later than eighty years after the Commencement Date unless it can lawfully be continued. 
  

	2.5	Execution of this Deed 

 This Deed may be executed
in as many counterparts as may be deemed an original. All those counterparts will together form one and the same deed. 
  

	3	APPOINTMENT AND REMOVAL OF ADVISERS 

  

	3.1	Appointment of advisers 

  

	 	(a)	The Trustees will (if so required by section 47 of the Pensions Act) appoint the following: 

  

	 	(i)	an Auditor; 

  

	 	(ii)	one or more Fund Managers; and 

  

	 	(iii)	a legal adviser. 

  

	 	(b)	Any person appointed under clause 3.1 will carry out any functions prescribed for them by the Pensions Act. In addition the Trustees may instruct them to carry out such further work
in connection with the Plan as they consider appropriate. 

  

	 	(c)	In addition to any appointments they are required to make under clause 3.1, the Trustees may appoint such persons to assist them in relation to the Plan (including Actuaries,
Auditors, Administrators, Custodians, solicitors, brokers, medical practitioners and investment managers) as they think appropriate. 

  

	3.2	Terms of appointment 

  

	 	(a)	Subject to any relevant requirements of section 47 of the Pensions Act, any appointment made pursuant to this clause will be on such terms (including remuneration) as the Trustees
see fit. 

  

	 	(b)	The power to remove, replace and/or vary the terms of any appointment made under this clause will lie with the Trustees. 

  

	 	(c)	The appointment of any person by the Trustees may be on such terms of business (including any obligation to indemnify that person) which are usually offered to the commercial
customers of that person. 

  

	4	APPOINTMENT AND REMOVAL OF TRUSTEES 

  

	4.1	Member Nominated Directors/Trustees 

 The power to
appoint and remove the Trustees under clause 4 shall be subject to the requirements of sections 16 to 21 of the Pensions Act. 
  

 3 

 Deed 
  

	4.2	Minimum number of Trustees 

 Unless one of the
Trustees is a corporate body there will be no fewer than two Trustees. In such circumstances there will be no minimum number. 
  

	4.3	Corporate trustees 

 A corporate body may act as a
Trustee whether or not it is a Trust Corporation or has been preceded in office by more than one Trustee. 
  

	4.4	Power of appointment and removal 

  

	 	(a)	The power to appoint new Trustees (whether as a replacement for or in addition to any Trustee or Trustees) will be vested in the Principal Employer and exercisable by deed.

  

	 	(b)	The Principal Employer (at its discretion and for any reason) may remove any Trustee by deed. It will be under no obligation to appoint a replacement unless a failure to do so would
give rise to a breach of clause 4.2. 

  

	4.5	Retirement of Trustees 

 A Trustee may retire by
giving one month’s written notice to the Principal Employer and the other Trustees or such lesser period as the Principal Employer and the other Trustees may agree to accept. On service of the notice the Trustee will cease to hold office and
will be discharged even if this would result in the number of remaining Trustees being less than the minimum stated in clause 4.2. 
  

	4.6	Disqualification of a Trustee 

 A Trustee will
immediately cease to act as a trustee of the Plan on disqualification from being a trustee of any trust Plan under section 29 of the Pensions Act. 
  

	4.7	Principal Employer to act 

 If for any reason the
requirements of clause 4.2 are not met then the Principal Employer will act as sole or co-Trustee until such time as a new appointment is made. 
  

	4.8	Execution of documents 

 A departing Trustee will
execute such documents and take such further action as may reasonably be required by the Principal Employer and the other Trustees to implement his retirement or removal. If he fails to do so the Principal Employer may execute such documents and act
on his behalf as his attorney. Each of the Trustees irrevocably authorises and appoints the Principal Employer as such for this purpose. 
  

	5	TRUSTEES’ MEETINGS 

  

	5.1	Notice 

  

	 	(a)	Reasonable notice will be given to all Trustees of any forthcoming meeting. In this respect due regard will be given to the urgency or otherwise of any business to be discussed.

  

 4 

 Deed 
  

	 	(b)	Whenever practicable the meeting will be held at a time and venue reasonably convenient to the Trustees. 

  

	 	(c)	Unless the Trustees agree otherwise or not required by the Pensions Act: 

  

	 	(i)	the notice will be sent to the last known address of each Trustee no later than 10 business days before the meeting; and 

  

	 	(ii)	the notice will specify the date, the time and place of the meeting and the matters to be discussed. 

  

	5.2	Review of responsibilities 

 The Trustees will meet
together at least once a year. They will also review their responsibilities under the Pensions Act at least once a year. 
  

	5.3	Minutes of Trustees’ meetings 

 As soon as
reasonably practicable after a meeting, minutes of the matters discussed and decisions made will be circulated to all the Trustees (including those who were unable to attend). The minutes will comply with the requirements of section 49 of the
Pensions Act as to their form and content. 
  

	5.4	Appointment of a Secretary and a Chairman 

  

	 	(a)	The Trustees may appoint a Secretary who will have primary responsibility for co-ordinating the matters referred to in clauses 5.1 and 5.2. This will not however prevent any Trustee
from convening a meeting in accordance with the above procedures if he considers this appropriate. 

  

	 	(b)	The Trustees will also appoint from among their number a Chairman (who for the avoidance of doubt may also be the Secretary). If they are equally divided on the appointment of a
Chairman, he will be chosen by lot. If for any reason the Chairman is unable to attend a validly convened meeting then the Trustees may appoint another of their number to act in his place at that meeting only. 

  

	 	(c)	The Chairman and the Secretary will each hold office until the earlier of the date upon which: 

  

	 	(i)	he is removed by the Trustees from, or he resigns from, such office; or 

  

	 	(ii)	if he is also a Trustee he resigns, or otherwise ceases to act as a Trustee. 

  

	5.5	Quorum and voting 

  

	 	(a)	The quorum for a meeting of the Trustees will be two, unless there is a sole corporate Trustee. 

  

	 	(b)	The Trustees may act on a majority vote at their meetings. Subject to sections 16 to 21 of the Pensions Act if they are divided equally on any issue the Chairman will have a casting
vote. 

  

 5 

 Deed 
  

	5.6	Resolutions 

 Any resolution signed by a majority of
the Trustees (of which due notice has been given to all the Trustees) will be as binding and effective as if it had been passed at a Trustees’ meeting. The resolution may be passed by the signature of copies whether or not on the same date.

  

	5.7	Form of meeting 

 Provided all other procedural
requirements prescribed by this clause are satisfied, the Trustees may hold meetings by telephone or such other means of communication as they deem appropriate. 
  

	5.8	Personal interests 

 A Trustee (or an officer or
employee of a corporate Trustee) may retain for his own account any benefits relating to his Membership of the Plan. He may if he wishes participate in the discussion and vote on any resolution which may affect any such benefits or in which he
otherwise has a personal interest. No decision of nor exercise of a power by the Trustees will be invalidated or questioned on the grounds that the Trustee (or any officer or employee of a corporate Trustee): 
  

	 	(a)	had a direct or indirect interest in the result of that decision or the exercise of that power; or 

  

	 	(b)	had a conflict of interests or of duties, whether as a consequence of any duty he owes to a Participating Employer or otherwise. 

  

	5.9	Corporate Trustee 

 Where a corporate body acts as a
Trustee clauses 5.1 and 5.3 to 5.7 will not apply but its powers, duties, authorities and discretions will be exercisable either by its board of directors or by any one or more of its duly authorised officers, acting in accordance with its Articles
of Association. 
  

	6	TRUSTEES’ DUTIES 

  

	6.1	Additional duties 

 In addition to any duties which
may exist at law the Trustees will: 
  

	 	(a)	manage the Plan and (subject to clause 6.2) act as its Administrator; 

  

	 	(b)	pay out of the Fund the relevant benefits; 

  

	 	(c)	keep proper records and accounts for the Plan and submit these (together with a supporting balance sheet) to the Auditor following the end of each Plan Year;

  

	 	(d)	prepare and sign a report on the Plan accounts which, together with the Auditor’s report, will be open for inspection by the Beneficiaries and any officer of the Principal
Employer; 

  

 6 

 Deed 
  

	 	(e)	provide any advisers with such information as the Trustees are required to provide under the Pensions Act and take all reasonable steps to enable the Auditor to comply with his
duties under the Pensions Act; and 

  

	 	(f)	provide such other information and make such statements, documents and reports available as necessary to comply with the Pensions Act. 

  

	6.2	Appointment of Administrator 

 The Trustees may
appoint an individual or corporate body to act as Administrator in which event the provisions of clause 3 (Appointment and Removal of Advisers) will apply. 
  

	7	TRUSTEES’ POWERS 

  

	7.1	Delegation 

  

	 	(a)	Subject to section 34 of the Pensions Act, the Trustees may delegate (and authorise the sub-delegation of) any of their duties, powers and discretions as they see fit. They may at
any time revoke any delegations (and/or sub-delegations). 

  

	 	(b)	Such delegation (and/or sub-delegation) may be made to: 

  

	 	(i)	a committee consisting of any one or more of the Trustees (being at least two Trustees if so required by section 34(5)(a) of the Pensions Act in relation to investment);

  

	 	(ii)	a Fund Manager in relation to the Trustees’ powers of investment; or 

  

	 	(iii)	such other person or persons (including any one or more of the Participating Employers) as the Trustees determine. 

  

	7.2	Appointment of agents 

 The Trustees may appoint any
one or more agents to transact any business of the Plan in which event the provisions of clause 3 (Appointment and Removal of Advisers) will apply. Agents may include any employees or officers of the Trustees and/or of the Participating Employers.

  

	7.3	Application of money or assets 

 Anyone dealing in
good faith with the Trustees will be under no duty to enquire into the application of any money or asset paid or transferred by him to the Trustees. Any receipt given to an agent or delegate of the Trustees will be a valid discharge for the
Trustees. 
  

	7.4	Insurance 

  

	 	(a)	The Trustees may insure any or all of the assets of the Fund against such risks and for such amounts as they deem appropriate. Subject to section 31 of the Pensions Act they may
also effect insurance against any personal liability relating to their office or any other liability of the Plan for such amounts as they deem appropriate. 

  

 7 

 Deed 
  

	 	(b)	The Trustees will hold any proceeds of insurance on trust with power to apply part or all, to repair, replace or maintain the asset in question or (subject to section 31 of the
Pensions Act) to indemnify the Trustees against any claims. They may exercise this power as if they were the absolute owner of the Fund. 

  

	 	(c)	Subject to section 31 of the Pensions Act the cost of effecting insurance will be paid in accordance with clause 13 (Costs and Expenses). 

  

	7.5	Bank accounts 

  

	 	(a)	The Trustees may open any one or more current or deposit accounts with a bank, building society, finance company or other financial institution. They may make such arrangements as
they see fit from time to time regarding the operation of any such account. 

  

	 	(b)	For the avoidance of doubt the Trustees may deposit in any such account: 

  

	 	(i)	any monies awaiting investment; 

  

	 	(ii)	any monies held in the Fund which are to be used to provide benefits for or in respect of Beneficiaries; and 

  

	 	(iii)	any monies held by them which they in their discretion decide should not be allocated to Members’ Accounts. 

  

	 	(c)	Any interest accrued on a bank account which the Trustees at their discretion decide will not to be used for providing benefits for or in respect of Members will form part of the
Reserve Fund pursuant to clause 14.5 (Reserve Fund). 

  

	7.6	Time limits 

 Where any time limit is prescribed by
this Deed or otherwise, the Trustees may in their discretion waive the limit to any extent which they think fit. This power will not apply to any statutory time limit or to the period of two years specified in rule 19.4 (Payment of lump sum
benefits). 
  

	7.7	Ratification of acts or omissions 

 The Trustees
will have power to ratify any administrative action or omission in relation to the Plan even though such act or omission was not expressly authorised by the other terms of this Deed. The Trustees may exercise this power where they consider the
action or omission has not: 
  

	 	(a)	had serious adverse effect on any benefit; 

  

	 	(b)	prejudiced Exempt Approval; or 

  

	 	(c)	contravened any statutory provision. 

  

	8	PROTECTION OF TRUSTEES 

  

	8.1	Liability of Trustees 

 Subject to the limitations
set out in clause 9.1, no Trustee will incur liability for: 
  

 8 

 Deed 
  

	 	(a)	acting as a Trustee; 

  

	 	(b)	the exercise or failure to exercise any power or discretion; 

  

	 	(c)	the performance or non-performance of his duties as a Trustee of the Plan; or 

  

	 	(d)	the acts and omissions either of co-Trustees, agents, delegates or other advisers to the Plan. 

  

	8.2	Indemnities 

 The Trustees will, to the extent that
recovery cannot be made from any other source, be entitled to be indemnified from the Fund (except where prohibited under section 31 of the Pensions Act). 
  

	8.3	Reliance on advice or recommendations 

 The Trustees
will be entitled to rely upon any advice or recommendations given by the advisers to the Plan and will incur no personal liability in so doing. 
  

	8.4	Legal proceedings 

 The Trustees will not be obliged
to bring, pursue or defend any legal proceedings in relation to the Plan. 
  

	8.5	Accountability for payment 

 The Trustees will not
be accountable for any payment they may make under this Deed to: 
  

	 	(a)	a person whom they believe to be entitled to a payment from the Plan even if it subsequently transpires that he is not so entitled; 

  

	 	(b)	a minor directly, or to the minor’s parent or guardian or other person with whom he/she is living; 

  

	 	(c)	any person whom the Trustees believe to be a spouse even if it subsequently transpires that the person is not a spouse; or 

  

	 	(d)	any institution or individual whom the Trustees believe to be responsible for the care of a Beneficiary. 

  

	8.6	Liability for decisions, acts or omissions 

 The
Trustees will not be liable for any decisions, acts or omissions which are based on an incorrect understanding of the facts and circumstances relevant to the matter in question. 
  

	8.7	Limitation of protection 

 The provisions of this
clause apply in addition to any further protection afforded to the Trustees by statute, common law or otherwise but are subject to the limitations set out in clause 9. 
  

 9 

 Deed 
  

	9	LIMITATION AND EXCLUSION OF PROTECTION 

  

	9.1	Limitation of protection 

 The provisions of clause
8 (Protection of Trustees): 
  

	 	(a)	will not apply in relation to a Trustee’s own intentional and dishonest breach of trust; and 

  

	 	(b)	will not apply in respect of fraud, or wilful and knowing breach of trust actually committed by that Trustee; and 

  

	 	(c)	will not apply in the case of a Trustee whose full-time business is the provision of a trustee service for payment in respect of liability for negligent acts and omissions (except
where the Principal Employer determines that such a person should have the same level of protection as the other Trustees); and 

  

	 	(d)	are subject to sections 31 and 33 of the Pensions Act which may restrict or prevent the exclusion of personal liability on the part of a Trustee. 

  

	9.2	Ineffective protection 

 If the inclusion of any
words in clause 8 (Protection of Trustees) and this clause 9 (Limitation and Exclusion of Protection) would at law render ineffective the protection of any Trustee who has not committed an act or omission referred to in clauses 9.1(a) to 9.1(c), the
clause will be read with such words omitted. 
  

	9.3	Application of protection 

  

	 	(a)	The provisions of this clause and clause 8 (Protection of Trustees) will also apply to: 

  

	 	(i)	all present and former officers and employees of a corporate Trustee; and 

  

	 	(ii)	former Trustees of the Plan. 

  

	 	(b)	The provision of clauses 8 (Protection of Trustees) and 9 (Limitation and Exclusion of Protection) are in addition to and will not limit any other provision of this Deed restricting
the liability of the Trustees. 

  

	10	TRUSTEES’ REMUNERATION 

  

	10.1	Trustees engaged in a profession or business 

 Any
Trustee engaged in a profession or business will be entitled to be paid all proper expenses, charges and commissions for work carried out in connection with the Plan by him or any firm/company to which he belongs or by which he is employed.

  

	10.2	Trustees not engaged in a profession or business 

 Any Trustee not engaged in a profession or business may be paid such expenses and remuneration as may be agreed by the Principal Employer. 
  

 10 

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	10.3	Corporate Trustee 

 The provisions of this clause
apply similarly to any officer or employee of a corporate Trustee. 
  

	10.4	Payment 

 All sums due under this clause will be
paid in accordance with the provisions of clause 13 (Costs and Expenses). 
  

	11	PARTICIPATING EMPLOYERS AND EXTENSION OF PLAN 

  

	11.1	Adherence of Participating Employers 

  

	 	(a)	The Principal Employer may, with the consent of the Trustees, allow a company, firm or person associated with it to become a Participating Employer. Participation will take effect
from the date of the deed of adherence referred to in clause 11.2 (Obligations of Participating Employer) unless stated otherwise in that deed. 

  

	 	(b)	However, no company, firm or person will be allowed to become or continue as a Participating Employer if its participation would prejudice Exempt Approval. In such circumstances the
Participating Employer will automatically cease to participate. 

  

	 	(c)	The participation of a Participating Employer may be in respect of employees who are resident and taxable in the European Union although not in the United Kingdom. In such a case:

  

	 	(i)	the Principal Employer, the Participating Employer and the Trustees will execute a deed of adherence in a form agreed with or approved by the Board. 

  

	 	(ii)	the Principal Employer and the Trustees will adopt one or more sets of rules governing such Members’ participation in the Plan which will comply with any requirements
applicable to the relevant Members and made by the provisions of this Deed or the Rules in relation to them. 

  

	11.2	Obligations of Participating Employer 

 Any new
Participating Employer will enter into a deed of adherence with the Principal Employer and the Trustees. This will contain a covenant on its part to observe and perform the relevant provisions of this Deed. Participating Employers may also be
admitted to participation in the Plan on such special terms as are specified in the deed of adherence as determined by the Principal Employer. 
  

	11.3	Supply of information 

 The Participating Employers
will supply to the Trustees and the Trustees’ advisers such information as they are required to provide pursuant to the Pensions Act and as the Trustees may reasonably require for the administration of the Plan. 
  

 11 

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	11.4	Records 

 In addition the Trustees will have the
right on request: 
  

	 	(a)	to have reasonable access to any records relevant to such administration which are in the custody or control of the Participating Employers; and 

  

	 	(b)	to have copies of those records. 

  

	11.5	Data protection 

  

	 	(a)	In this clause the following expressions bear the following meanings unless the context otherwise requires: 

  

	 	(i)	“the Act” means the Data Protection Act 1998 and any secondary legislation made under it; 

  

	 	(ii)	“Personal Data” means personal data as defined in the Act in relation to which the Trustees are a Data Controller; 

  

	 	(iii)	“Seventh Principle” means the seventh principle set out in Part 1 of Schedule 1 to the Act; and 

  

	 	(iv)	the terms “Data Controller”, “Data Processor” and “Processing” have the same respective meanings as in the Act.

  

	 	(b)	To the extent that any Participating Employer is Processing Personal Data as a Data Processor in relation to the Trustees, such Participating Employer will:

  

	 	(i)	comply at all times with the provisions equivalent to those set out in the Seventh Principle; and 

  

	 	(ii)	inform the Trustees on request what measures it has taken to comply with clause 11.5(b)(i), and take any further steps necessary to comply with 11.5(b)(i); 

 

	 	(iii)	permit the Trustees on reasonable notice to inspect its premises, systems, equipment and facilities to enable the Trustees to monitor compliance with the Seventh Principle;

  

	 	(iv)	only process Personal Data on the Trustees’ behalf on instructions from the Trustees; and. 

  

	 	(v)	not sub-contract or otherwise pass to any third party any of its obligations to process Personal Data on the Trustees’ behalf unless; 

  

	 	(A)	it has provided the Trustees with all the information they require to ascertain that any such third party can comply with 11.5(b)(i); 

  

	 	(B)	it has obtained the Trustees’ prior consent; and 

  

	 	(C)	the proposed third party has entered into a direct contract with the Trustees reflecting the terms of this clause 11.5. 

  

 12 

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	 	(c)	The Trustees will keep confidential any confidential information of any such Participating Employer of which they become aware when carrying out inspections under this clause 11.5
unless they are required by law to disclose it. 

  

	11.6	Cessation of participation 

 The Principal Employer
may give one month’s written notice to the Trustees (or such shorter period of notice as the Trustees may agree to accept) that the participation of a Participating Employer will cease whether or not the Participating Employer so wishes and
such participation will cease when such notice expires. 
  

	12	SUBSTITUTION OF PRINCIPAL EMPLOYER 

  

	12.1	New Principal Employer 

  

	 	(a)	Any company may agree with the Trustees to take the place of the Principal Employer for all the purposes of the Plan unless this would prejudice Exempt Approval. The consent of the
former Principal Employer will be necessary unless it has been Liquidated. 

  

	 	(b)	The new Principal Employer will enter into a deed of novation with the Trustees. This will contain a covenant on its part to observe and perform the relevant provisions of this Deed
and will be in such form as the Trustees may prescribe. 

  

	12.2	Liquidation of the Principal Employer 

 If the
Principal Employer has gone into Liquidation without the substitution of another Principal Employer under this clause 12, any requirement in this Deed for the Principal Employer to: 
  

	 	(a)	execute any legal document; 

  

	 	(b)	give its opinion, consent or approval; 

  

	 	(c)	be consulted; or 

  

	 	(d)	take any other action; 

 will not apply and the Trustees
may act alone in such circumstances. 
  

	13	COSTS AND EXPENSES 

  

	13.1	Payment 

  

	 	(a)	Except as provided for below, the costs and expenses of managing, administering and winding-up the Plan and providing any insured lump sum death benefits and any insured
Dependants’ pensions will be paid by the Participating Employers unless the Principal Employer directs that such costs and expenses can be paid from either the Reserve Fund (as the funds in the Reserve Fund from time to time permit) and/or from
the Members’ Accounts. Investment expenses will be deducted from the Members’ Accounts if the Principal Employer directs as will any costs and expenses of managing, administering and winding up the Plan that are included in a charge levied
under an insurance policy or other investment taken out by the Trustees.  

  

 13 

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	 	(b)	Each Participating Employer will pay such proportion of those costs and expenses that are not paid out of the Reserve Fund or the Member’s Accounts as the Principal Employer
determines. 

  

	 	(c)	The Trustees may take the costs and expenses from the Reserve Fund if any of the Participating Employers defaults in paying any costs and expenses for which they are responsible and
the Trustees do not consider that there is any reasonable prospect of recovery or it is not cost effective to seek recovery. To the extent the assets of the Reserve Fund are not sufficient to meet costs and expenses for which the Participating
Employers are liable and the Trustees do not consider that there is any reasonable prospect of recovery from the Participating Employer or it is not cost effective to seek recovery, the costs and expenses may be deducted from the Members’
Accounts on such basis as the Trustees decide to be fair and equitable. 

  

	13.2	Meaning of costs and expenses 

 For the avoidance of
doubt the costs and expenses will include any incurred by the Trustees pursuant to clauses 3, 6, 7, 10, 14 and 15 or otherwise in performance of their duties or the exercise of their powers and discretions. 
  

	13.3	Other charges 

 Without prejudice to clause 13.1 and
subject to any applicable statutory requirements, the Trustees may raise such charges for the provision of any information about the Plan or any Beneficiary as they see fit. For this purpose they will comply with any relevant statutory requirements
which apply. 
  

	14	CONTROL OF THE FUND 

  

	14.1	Ownership 

 The Trustees are the legal owners of the
Fund which is held by them upon irrevocable trusts in accordance with the terms of this Deed. For the avoidance of doubt no Beneficiary will be entitled to any specific part of the Fund and any nominal allocation of assets to a particular
Member’s Account will be for administrative purposes only. 
  

	14.2	Documents of title 

 The Trustees may place any
documents of title relating to the Fund in safe custody with any Custodian appointed pursuant to clause 3 (Appointment and Removal of Advisers) (whether within or outside the United Kingdom) as the Trustees think fit. Where documents of title are so
placed in safe custody: 
  

	 	(a)	such documents will be held to the order of the Trustees; and 

  

	 	(b)	the Trustees will not be liable for the loss or destruction of those documents. 

  

	14.3	Monies and assets 

 All monies and assets received
by the Trustees for the purposes of the Plan will be paid or transferred into the Fund. They may be retained in the Fund or sold if and when the Trustees decide appropriate. 
  

 14 

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	14.4	Benefits due under the Plan 

 All benefits due under
the Plan will be paid out of the Fund or secured in any way the Trustees see fit. The Trustees will have power to sell or realise any Fund assets for this purpose. 
  

	14.5	Reserve Fund 

  

	 	(a)	The Trustees may nominally allocate assets from the Fund to comprise a Reserve Fund of such amount and for such purposes as the Principal Employer so directs. The Reserve Fund may
include: 

  

	 	(i)	any contributions paid by the Participating Employers pursuant to rule 6.1(a)(ii) and rule 6.5; 

  

	 	(ii)	any interest on Plan bank accounts arising pursuant to clause 7.5. 

  

	 	(iii)	any donations, bequests, or gifts pursuant to clause 15.10; 

  

	 	(iv)	any relevant part of a transfer in pursuant to clause 19; and 

  

	 	(v)	any part of the Members’ Accounts which will not be used to provide benefits in accordance with the Rules for any reason including where: 

  

	 	(A)	the liability to provide benefits for and in respect of a Member has been discharged pursuant to rules 10.1 or 19; 

  

	 	(B)	such provision would prejudice Exempt Approval; 

  

	 	(C)	such provision would lead to an assignment of benefits and the Trustees do not use that part of the Member’s Account for the support and maintenance of one or more of the
Member’s Beneficiaries, spouse or Dependants pursuant to rule 26; 

  

	 	(D)	there is no Beneficiary, spouse, Life Assurance Beneficiary or Dependant to make provision of benefits for; 

  

	 	(E)	the Beneficiary has failed to claim benefits pursuant to rule 29; and 

  

	 	(F)	the benefits have been forfeited pursuant to the provisions of rule 30. 

  

	 	(b)	No Beneficiary will have any interest in any part of the Reserve Fund, except in accordance with the provisions of this Deed. 

  

	 	(c)	For the avoidance of doubt (but without limitation) if so decided pursuant to clause 14.5(a) the Reserve Fund may be used: 

  

	 	(i)	to credit a Member’s Account with all or part of the amount required under rule 4.1; and/or 

  

	 	(ii)	to meet Regular Employer Contributions specified under rule 6.1(a)(i); and/or 

  

 15 

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	 	(iii)	to meet all or some of the costs and expenses specified under clause 13 and rule 6.1(a)(ii); and/or 

  

	 	(iv)	to meet any loss or deficiency arising in or caused to the Fund. 

  

	15	INVESTMENT OF THE FUND 

  

	15.1	General powers 

  

	 	(a)	The Trustees may make such investments in respect of the Fund as they from time to time determine and any investments made by the Trustees may from time to time be realised and the
proceeds reinvested in such manner as the Trustees determine. 

  

	 	(b)	Investments may be made within or outside the United Kingdom whether or not: 

  

	 	(i)	involving liability; 

  

	 	(ii)	producing income; or 

  

	 	(iii)	authorised by law for the investment of trust monies; 

 to
the intent that the Trustees will have the same full and unrestricted powers of investment as if they were absolutely and beneficially entitled to the Fund. 
  

	 	(c)	The operation of clause 15.1 and 15.2 is subject to clause 15.3. 

  

	15.2	Particular powers 

 Without prejudice to clause 15.1
the Trustees may invest the Fund in or upon the security of any: 
  

	 	(a)	annuity contract or assurance policy (whether with profits or not) issued by an Insurance Company; 

  

	 	(b)	scheme of deposit administration; 

  

	 	(c)	unit trust, managed fund or mutual fund; 

  

	 	(d)	deposit with a local authority, bank, building society, finance company or other financial institution; 

  

	 	(e)	bonds, stocks, shares, debentures and debenture stocks whether by purchase, subscription, underwriting, sub-underwriting or otherwise (including for the avoidance of doubt such
investments relating to open ended investment companies); 

  

	 	(f)	gilts, government securities and other interest bearing investments whether at a fixed or variable rate; 

  

	 	(g)	traded options (as defined in section 659A of the 1988 Act); 

  

	 	(h)	transactions in financial futures; 

  

	 	(i)	foreign currencies; 

  

 16 

 Deed 
  

	 	(j)	gold bullion or any other commodity or commodity futures or works of art; 

  

	 	(k)	interest in land or property (either in their own right or jointly with any other party); 

  

	 	(l)	loan on commercial terms with or without security; or 

  

	 	(m)	contract, guarantee, option or other agreement in connection with any of the above including for the avoidance of doubt, stock lending. 

  

	15.3	Members’ powers of investment 

  

	 	(a)	Restriction on power of investment 

  

	 	(i)	Notwithstanding the Trustees’ power of investment under clauses 15.1 and 15.2 the discretions contained in those clauses shall not operate so as to override the selection of
Investment Funds by a Member under this clause 15.3. 

  

	 	(ii)	Clause 15.3(b)(iii) confers a power to make investment decisions on the Member in respect of the Investment Funds but is to be treated as a restriction on and not a delegation of
the Trustees’ power of investment to the Member. The Member has sole discretion as to his choice of Investment Funds pursuant to clause 15.3(b)(iii) and the Trustees will have no responsibility or liability for his choice.

  

	 	(b)	Investment options 

  

	 	(i)	The Trustees may make available such choice of Investment Funds (if any) for the investment of Members’ Accounts as they see fit from time to time (including life-styling
options where funds are automatically switched from Investment Fund to Investment Fund depending on the Member’s age, the period to his expected date of retirement or other general objective criteria and/or a default option where no choice is
made which may be a life-styling option) and may withdraw or alter such choice entirely at their discretion and without the concurrence of the Members. Members who had chosen an option which is subsequently withdrawn in accordance with this power
shall be entitled to choose a different option in which to invest. 

  

	 	(ii)	Where the Trustees have withdrawn or altered a choice of Investment Fund previously available to a Member then the Member shall if the Trustees so determine nominate another
Investment Fund to which the assets held in the previous Investment Fund may be directed. If the Member fails to nominate another Investment Fund in these circumstances the Trustees shall determine how the Member’s Amount shall be redirected.

  

	 	(iii)	If the Trustees make available a choice of Investment Funds pursuant to clause 15.3(a) each Member may select and deselect one or more Investment Funds in accordance with the terms
and conditions specified from time to time by the Trustees for this purpose. The value of all or part of his Member’s Account for any period for which the selection is made will be calculated by the Trustees by reference to the Investment
Fund(s) selected for that part of the Member’s Account for that period. 

  

 17 

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	 	(c)	Death of a Member 

 The Trustees will not be bound
to give effect, or continue to give effect, to the exercise of any selection or deselection of Investment Funds if they are notified of the Member’s death. The Trustees may first require the Member’s death certificate for this purpose but
will not be obliged to do so. 
  

	 	(d)	Allocation, disinvestment or switching of contributions and funds 

 Despite anything else in the Rules to the contrary, where Investment Funds are made available, any allocation, disinvestment or switching of contributions and/or funds in the Member’s Accounts in or between such
Investment Funds will be made in accordance with the terms of the policy or other documentation governing the Investment Fund or Funds. 
  

	 	(e)	Dealing with instructions from Members 

 Any
instructions from Members to invest in or switch investments between the Investment Fund or Investment Funds made available will be made in accordance with and acted upon within such periods as are from time to time laid down by the Trustees and/or
the terms of the policy or the other documentation governing the Investment Fund or Funds. 
  

	 	(f)	Financial Advice 

 Subject to clause 15.3(g) below,
where the Trustees make available options in accordance with clause 15.3(b), it shall be the responsibility of each individual Member to seek advice from his own independent financial adviser (if the Member sees fit) as to the options or combination
of options that is best suited to his individual circumstances. Neither the Principal Employer nor the Trustees shall retain or purport to exercise any power in relation to the Investment Fund(s) so chosen. 
  

	 	(g)	Overriding Options 

 The Trustees may (but shall
not be bound to) cease to give effect to any option exercised in accordance with Clause 15.3(b)(i) and 15.3(b)(iii) above if: 
  

	 	(i)	the Trustees determine that the option in question is not available for the investment of Members’ Accounts; 

  

	 	(ii)	it is shown to the satisfaction of the Trustees that by reason of any physical disability or mental incapacity the Member is unable to manage his own affairs;

  

	 	(iii)	to give effect or continue to give effect (as appropriate) to the exercise of any option would or might in the opinion of the Trustees breach any law, regulation or requirement; or

  

	 	(iv)	 some exceptional event or exceptional circumstance is brought to the attention of the Trustees which in their opinion, acting on the advice of a Fund Manager
appointed pursuant to clause 3 (Appointment and Removal of Advisers), makes it impracticable or manifestly inappropriate 

  

 18 

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(whether generally or by reason of being administratively inexpedient) to continue to follow the Member’s directions. 

  

	 	(h)	Trustees’ limited power 

 Notwithstanding the
restriction set out in clause 15.3(a) above, the power to invest a Member’s Account shall be exercisable by the Trustees to the extent that they may (but shall not be bound to) invest such monies in any investment designated by them for these
purposes until the Member in question notifies the Trustees of his investment options in the required manner. For the avoidance of doubt, this limited power shall also apply where a particular investment option has been overridden in accordance with
clause 15.3(g) until the Member in question notifies the Trustees of his new investment options in the required manner. 
  

	15.4	Borrowing 

  

	 	(a)	The Trustees, subject to the consent of the Principal Employer, may borrow or raise money upon such terms as they see fit for the purpose of acquiring any investment or meeting any
liability of the Plan (including the provision of benefits for Beneficiaries). 

  

	 	(b)	The Trustees may charge any investment of the Plan as security for borrowing or raising money as though they were absolutely and beneficially entitled to the Fund.

  

	15.5	Real property 

 The Trustees may enter into any
lease, licence, option, development or other contract in relation to any real property held as an investment of the Plan. 
  

	15.6	Mixed investments 

 The Trustees may join with the
trustees of any other exempt approved scheme in any of the investment activities described in this clause. In such circumstances, the Trustees may hold or be entitled to such share of the mixed investments as they agree with the trustees of the
other scheme. 
  

	15.7	Statement of Investment Principles 

 The Trustees
will, if so required by section 35 of the Pensions Act, prepare and maintain a statement of principles governing the investment of the Fund. The statement will comply with section 35 and the Trustees will consult the Principal Employer in relation
to the statement in accordance with the Pensions Act. 
  

	15.8	Consultation 

 The Trustees will also from time to
time consult with the Principal Employer regarding the investment policy under the Plan. 
  

	15.9	Transactions with another party 

 The Trustees may
in relation to any transaction entered into with another party in connection with this clause 15 enter into or give any agreement, indemnity, warranty or undertaking which the Trustees consider necessary. 
  

 19 

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	15.10	Donations and bequests 

 The Trustees may receive
donations, bequests or gifts from any person or body to be applied for the purposes of the Plan. Such donations or bequests will form part of the Fund and may be allocated to one or more of the Member’s Accounts, and/or to the Reserve Fund as
the Trustees decide. 
  

	15.11	Restrictions on investment 

 The various powers set
out in this clause are all subject to the restrictions set out in clause 16. 
  

	16	RESTRICTIONS ON INVESTMENT 

  

	16.1	Trading 

 The Trustees will not engage in any
trading activity which could prejudice Exempt Approval. 
  

	16.2	Pensions Act 

 Any exercise of the powers set out in
clause 15 will be subject to the provisions of the Pensions Act. 
  

	16.3	Self investment 

 No investment of whatever nature
will be made in any of the Participating Employers (other than where such investment is through a pooled fund available generally to retail investors or to trustees of occupational pension schemes and the shares of the Participating Employer are a
constituent of such pooled fund). For this purpose investment includes any dealings in shares, securities, assets or land or the granting by the Trustees of any loan, guarantee or indemnity. The Trustees will also comply with section 40 of the
Pensions Act relating to employer-related investments. 
  

	17	VALUATIONS 

  

	17.1	Obtaining valuations 

  

	 	(a)	The Trustees will obtain an actuarial valuation of the Plan from the Actuary in such manner and at such intervals as may be required by the Board in order to obtain and maintain
Exempt Approval. 

  

	 	(b)	In addition, the Trustees may obtain an actuarial valuation for such purposes and at such other times as they decide. 

  

	 	(c)	The Trustees and the Participating Employers will make available to the Actuary all accounts, documents and information which he may reasonably require for this purpose.

  

	 	(d)	The Trustees will have no duty under this clause to obtain a valuation during any period when all the liabilities of the Plan are wholly secured under an insurance contract or
policy unless this would prejudice Exempt Approval. However, they may do so if they so wish. 

  

 20 

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	17.2	Statutory surplus 

  

	 	(a)	If it becomes necessary to deal with a Fund surplus to avoid the consequences set out in paragraph 7 of Schedule 22 to the 1988 Act, the surplus will be utilised (to the extent
necessary to avoid those consequences) in compliance with section 603 and Schedule 22 of the 1988 Act in any one or more of the following ways, namely by: 

  

	 	(i)	suspending or reducing the payment of contributions by the Participating Employers (or any of them) for such period as the Actuary may recommend and applying the surplus to credit
the Member’s Account pursuant to rule 6 (Participating Employers’ Contributions); 

  

	 	(ii)	suspending or reducing the payment of contributions by the Active Members (or any of them) for such period as the Actuary may recommend; 

  

	 	(iii)	improving existing benefits or providing new benefits under the Plan; 

  

	 	(iv)	subject to complying with section 37 of the Pensions Act making payments to any of the Participating Employers; or 

  

	 	(v)	such other ways as may be prescribed by regulations made under the 1988 Act. 

  

	 	(b)	Such utilisation will be in accordance with the directions of the Principal Employer except in relation to any proposed payment of surplus to all or any of the Participating
Employers where the consent of the Trustees is required. 

  

	 	(c)	No surplus will be utilised in a way which would prejudice Exempt Approval. 

  

	18	AMENDMENT 

  

	18.1	Power to amend 

  

	 	(a)	The Principal Employer may with the consent of the Trustees at any time subject to section 67 of the Pensions Act, amend, extend, revoke or replace all or any of the provisions of
this Deed. 

  

	 	(b)	Any such changes will be made by deed executed by both the Principal Employer and the Trustees. They will take effect from the date specified in that deed and may be introduced:

  

	 	(i)	on a retrospective basis; 

  

	 	(ii)	at any time in the future; or 

  

	 	(iii)	subject to the prior satisfaction of any conditions specified in such deed. 

  

	18.2	Wind-up 

 The powers contained in this clause will
survive notwithstanding a partial or full wind-up of the Plan. They may be exercised at any time up to the date upon which the trusts of the Plan are discharged in full. 
  

 21 

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	18.3	Liquidation or administration of the Principal Employer 

 If, however, any of the events listed in clauses 22.1(a)(i) or 23.1(b) occur in relation to the Principal Employer (and the Principal Employer has not been substituted in accordance with clause 12) the powers contained in this clause will
vest solely in the Trustees. Such powers will then remain with the Trustees unless and until a new Principal Employer is appointed at which time the provisions of clause 18.1 will be re-instated. 
  

	18.4	Restrictions on amendments 

 Notwithstanding the
above no changes will be made which: 
  

	 	(a)	alter the main purpose of the Plan; 

  

	 	(b)	prejudice Exempt Approval; or 

  

	 	(c)	do not comply with section 67 of the Pensions Act. 

  

	18.5	Power to amend to preserve existing benefits 

 Notwithstanding clauses 1.2(d), 18.1(a), 18.1(b) and 18.4: 
  

	 	(a)	where any legislative change extends, increases or alters the benefits due to any Member in circumstances where the effect is not a mandatory consequence of the relevant enactment
the terms of this Deed shall have effect as if altered to maintain the benefit at the level and in the form set out prior to any such enactment or legislative change. 

  

	 	(b)	where clause 18.5(a) is considered to be applicable then the Principal Employer may direct the Trustees to alter the provisions of this Deed by a simple resolution.

  

	19	BULK TRANSFERS IN 

  

	19.1	Arrangements 

 Subject to the consent of the
Principal Employer, the Trustees may accept a transfer of all or part of the assets of another retirement benefits scheme on the basis that the Trustees will discharge all or part of the liabilities of the transferring scheme. 
  

	19.2	Terms of the transfer 

  

	 	(a)	Such a transfer will be on such terms as may be agreed between the Trustees (after taking the advice of the Actuary) and the trustees or administrator of the transferring scheme and
approved by the Principal Employer. 

  

	 	(b)	The transfer may include all or any part of an unallocated surplus from the transferring scheme, and the terms agreed pursuant to clause 19.2(a) may include the allocation of all or
part of such surplus to the Reserve Fund and/or to provide benefits for or in respect of the transferring Beneficiaries. 

  

 22 

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	20	BULK TRANSFERS OUT 

  

	20.1	Arrangements 

  

	 	(a)	At the request or with the consent of the Principal Employer, the Trustees may arrange for any or all of the Beneficiaries (whether immediate, deferred or contingent) to be
transferred to a Receiving Scheme. 

  

	 	(b)	Subject to clause 20.2, such arrangements may be made without obtaining the consent of any of the persons concerned but only after obtaining the consent of the Board.

  

	 	(c)	The transfer will be effected by transferring to the Receiving Scheme all or any part of the Plan assets and monies upon terms agreed between the Trustees and the trustees or
administrator of the Receiving Scheme and approved by the Principal Employer. 

  

	 	(d)	The transfer may include all or any part of an unallocated surplus within the Plan on the basis that it remains unallocated or be used to provide benefits for the transferring
Beneficiaries. 

  

	20.2	Restrictions 

 No such transfer will be made if it
would: 
  

	 	(a)	offend against the law of perpetuities; 

  

	 	(b)	prejudice Exempt Approval; or 

  

	 	(c)	breach the provisions of the Preservation Regulations. 

  

	20.3	Extinguishing rights 

 Once a transfer has been made
all rights under the Plan relating to or derived from the relevant Beneficiaries will be extinguished and they and all others claiming under them will have no further interest in the Plan. 
  

	21	AMALGAMATION AND RECONSTRUCTION 

  

	21.1	Replacement of a Participating Employer 

 Where a
Participating Employer (other than the Principal Employer): 
  

	 	(a)	is involved in an amalgamation, reconstruction or Liquidation; or 

  

	 	(b)	sells or transfers its property, assets and undertaking or a significant part of them, 

 the Participating Employer may with the Trustees’ consent be replaced by the company, firm or person carrying on all or part of its business in succession. 
  

	21.2	Continuous Pensionable Service 

 Subject to Exempt
Approval not being prejudiced, the Pensionable Service of Active Members employed by the old Participating Employer will be treated as continuous where: 
  

 23 

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	 	(a)	the old Participating Employer is replaced by its successor under clause 21.1; or 

  

	 	(b)	their employment is transferred from the old Participating Employer to another Participating Employer 

  

	22	PARTIAL WIND-UP 

  

	22.1	Application of this rule 

  

	 	(a)	Where a Participating Employer (other than the Principal Employer): 

  

	 	(i)	goes into Liquidation; 

  

	 	(ii)	ceases to be associated with the Principal Employer if its continued participation in the Plan would prejudice Exempt Approval; 

  

	 	(iii)	gives notice (other than contemporaneously with the Principal Employer) pursuant to rule 6.4(a) terminating its obligations to pay future contributions; 

  

	 	(iv)	fails to pay any sum due to the Trustees within one month after receiving a formal written demand from them; or 

  

	 	(v)	receives notice from the Principal Employer pursuant to clause 11.6 that its participation will cease; 

 and (in the case of the events listed in clauses 22.1(a)(i) to 22.1(a)(ii) inclusive) no replacement has been appointed pursuant to clause 21, the
Trustees will apply, at such time as they determine, the relevant Members’ Accounts to secure benefits relating to the Active Members employed by the Participating Employer at the date the relevant event occurs, unless the Active Members become
employees of another Participating Employer. 
  

	 	(b)	The Trustees will apply the relevant Members’ Accounts to secure benefits as provided in clause 22.1(a) (at the direction of the Principal Employer) by one or more of the
following means, namely: 

  

	 	(i)	preserving the benefits in the Plan; 

  

	 	(ii)	setting apart such part of the Fund as the Trustees decide and applying it in a partial wind-up in accordance with clauses 24 and 25; or 

  

	 	(iii)	provided that they comply fully with either rule 22 or clause 20, effecting a transfer out. 

  

	23	FULL WIND-UP 

  

	23.1	Termination Events 

 Subject to clause 26, the
Trustees may wind up the Plan: 
  

	 	(a)	if the Principal Employer gives notice terminating its liability to contribute to the Plan under rule 6.4; 

  

	 	(b)	if the Principal Employer goes into Liquidation; or 

  

 24 

 Deed 
  

	 	(c)	on the expiry of the Trust Period 

 unless in the case of
termination event (a) or (b) a new Principal Employer is appointed under clause 12. 
  

	23.2	Effective Date 

 The wind-up will commence and take
effect from: 
  

	 	(a)	the date specified on or after the occurrence of the termination event; or 

  

	 	(b)	where the relevant event is the expiry of the Trust Period, from the date of the expiry of the Trust Period. 

  

	24	DISSOLUTION 

  

	24.1	Realisation of the Fund 

 If the Plan is wound-up in
part or full, the Trustees will realise the appropriate part of the Fund at such time and upon such terms as they think fit. No further benefits will accrue in respect of the relevant Beneficiaries and no further contributions will be made by or in
respect of the relevant Beneficiaries once the wind-up has commenced and the liability to pay any death in service benefits will cease. Active Members will be treated as if they had ceased to be Active Members for the purposes of rule 10
(Withdrawal) with effect from the date of commencement of the wind-up except that, if the Trustees so determine, any person who was an Active Member immediately before the commencement of the wind-up may be treated as if they were entitled to vested
benefits if pursuant to rule 10.2 he had completed three or more months’ Pensionable Service but less than two years’ Pensionable Service. 
  

	24.2	Dissolution 

  

	 	(a)	Subject to prior payment in accordance with clause 13 of all costs, charges and expenses which cannot be recovered from the Participating Employers the net proceeds of realisation
of each Member’s Account will be applied to secure benefits for and in respect of that Member: 

  

	 	(b)	Where life assurance benefits are payable in respect of a Member who has died before the commencement of the wind-up of all or part of the Fund, the life assurance benefits will be
applied in accordance with the Rules to provide benefits in respect of the Member. 

  

	24.3	Augmentation 

 If any surplus remains in the Reserve
Fund or otherwise after the benefits referred to above have been secured and such surplus is not needed to meet the wind-up expenses, the Trustees will, as the Principal Employer directs, use all or any part of the surplus to augment the benefits of
any of the Beneficiaries up to the Maximum Benefit (as defined in Schedule 3) or such other lower amount as the Principal Employer shall decide. 
  

	24.4	Principal Employer’s powers 

 The Principal
Employer will be under no obligation (fiduciary or otherwise) to direct an augmentation under clause 24.3. However, if an insolvency practitioner or official 

  

 25 

 Deed 
  

 
receiver (as defined in the Insolvency Act 1986) acts in relation to the Principal Employer then its consent will not be required. 
  

	24.5	Return to Participating Employers 

 If any surplus
still remains in the Reserve Fund or otherwise after any such augmentations have been made and such surplus is not needed to meet the winding-up expenses it will be returned to the Principal Employer or (if it no longer exists) to the Participating
Employers, subject to any requirements of section 76 of the Pensions Act which might apply. In the latter case the surplus will be divided among the Participating Employers as the Trustees may determine. 
  

	24.6	Liability for benefits 

 For the avoidance of doubt
the liability for benefits: 
  

	 	(a)	will be categorised under clause 24.2 by reference to their status on the date the wind-up commences, unless the Pensions Act requires that they are categorised by reference to an
earlier date; 

  

	 	(b)	includes any benefits which may subsequently become payable on the death of the relevant Beneficiary; and 

  

	 	(c)	will be calculated and paid where appropriate in accordance with the appropriate Rules of the Plan. 

 Unless the context requires otherwise, any Member who is not a Pensioner on the date the wind-up commences will be categorised as a Deferred Pensioner.

  

	24.7	Confirmation of the trusts of the Plan 

  

	 	(a)	Until all the assets of the Fund have been fully disposed of the trusts of the Plan will remain in force. In particular the provisions of clause 18 will continue.

  

	 	(b)	The trusts of the Plan will be dissolved and all current and previous parties will be discharged from their duties and liabilities under this Deed (to the extent they have not
previously been discharged) once all the assets of the Fund have been applied under this clause 24. 

  

	25	SECURING BENEFITS ON A PARTIAL OR FULL WINDING-UP 

  

	25.1	Purchase of annuity 

 Except as provided for below
benefits will be secured by the purchase of an appropriate annuity in respect of each Beneficiary. Benefits may be secured by the purchase of such a policy, contract or investment as may be permitted by law. 
  

	25.2	Full commutation 

 The Trustees may pay a lump sum
instead of a pension pursuant to rule 16.3. However, if the pension is already payable it may not be commuted for a lump sum on the grounds that it is Trivial if doing so would prejudice Exempt Approval. 
  

 26 

 Deed 
  

	25.3	Refund of contributions 

 The Trustees may pay a
refund of Member Contributions due under rule 10.1(a). 
  

	25.4	Transfers 

  

	 	(a)	Subject to clause 25.7 at the request of a Beneficiary the Trustees may effect a transfer out under rule 20. 

  

	 	(b)	Subject to clause 25.7 the Trustees may arrange for any Beneficiary to participate in a Receiving Scheme in accordance with clause 20. 

  

	25.5	Different treatment 

 The Trustees may at their
discretion secure benefits for the various categories referred to in clause 24.2 by different means. They may also secure benefits by different means for individuals who are in the same category. 
  

	25.6	Partial transfers 

 The Trustees may (to the extent
permitted by the Board and any relevant legislation) pay sums on account of benefits or effect partial transfers-out. These may be adjusted subsequently at the discretion of the Trustees in such manner as they may determine. 
  

	25.7	Insolvency of Principal Employer 

 The Principal
Employer will retain any powers and/or discretions vested in it pursuant to rule 22 (Individual transfers out) and clause 20 unless an insolvency practitioner or official receiver (as defined in the Insolvency Act 1986) acts in relation to the
Principal Employer when such powers and/or discretions will vest in the Trustees. 
  

	25.8	Powers survive 

 The powers contained in clauses
25.1 to 25.7 will only apply in the event of a partial or full wind-up of the Plan as set out in clauses 22 to 24 (inclusive) of this Deed. 
  

	26	SPECIAL POWERS 

  

	26.1	Closed arrangement 

 If any of the circumstances
referred to in clause 23.1(a) or (b) occur the Trustees may (but only if the Principal Employer agrees) in the case of a termination event under clause 23.1(a) (regardless of whether or not they have resolved to wind-up the Plan) elect to
continue the Plan as a closed arrangement. 
  

	26.2	Plan in force 

  

	 	(a)	If an election is made under clause 26.1 then, from the effective date of that election, any Member who is not a Pensioner will become a Deferred Pensioner and no future
contributions will be payable after that date. The entitlement to death in service lump sum and death in service Dependants’ pensions under rules 19.1(a)(i) and 20 respectively will also cease. If such an election is made the trusts of the Plan
will remain in force and in particular clause 18 will continue. 

  

 27 

 Deed 
  

	 	(b)	The election will continue in force until the Trustees determine otherwise. The Plan will then be wound-up in accordance with clauses 25 and 26. 

  

	27	NOTICES 

  

	27.1	Statutory requirements 

 Any notice required under
this Deed or by law will be served in accordance with any statutory requirements which apply. 
  

	27.2	Serving of notice 

  

	 	(a)	Subject to clause 27.1 being complied with any notice required under this Deed may be served by delivering or sending it, in the case of: 

  

	 	(i)	any of the Participating Employers, the Principal Employer or a corporate Trustee to its registered office; 

  

	 	(ii)	an individual Trustee, to his normal place of work or last known private address; or 

  

	 	(iii)	an Active Member or Beneficiary, to his normal place of work or last known private address. 

  

	 	(b)	Notices may be sent by post or delivered personally. Subject to any statutory requirements, the former will be deemed served two days after the date of posting and the latter upon
delivery. Notices served by post will be sent by first class post. 

  

	28	DETERMINATION OF QUESTIONS AND RESOLUTION OF DISPUTES 

  

	28.1	Power of Trustees to determine questions 

  

	 	(a)	Except as provided for expressly in this Deed the Trustees will have power to determine conclusively any questions or matters of doubt concerning the Plan or the construction of
this Deed. 

  

	 	(b)	Such determination will be binding on all interested parties. 

  

	28.2	Resolution of disputes 

 The Trustees will put in
place and operate a procedure for the resolution of disputes if so required by section 50 of the Pensions Act. 
  

	29	GOVERNING LAW 

  

	29.1	This Deed will be governed in all respects by and construed in accordance with the laws of England. 

  

	29.2	The parties agree to submit to the jurisdiction of the English courts. 

 IN WITNESS of which this document was executed and, on the date set out above, delivered as a deed. 
  

 28 

 Definitions 
 SCHEDULE 1 
 Definitions 
 “Active Member” 
 A person who has been admitted to the Plan but who is not an AVC Only Member or a Life
Assurance Only Member and has not become a Deferred Pensioner or Pensioner or otherwise ceased to participate in it. The term Active Membership will be construed accordingly. 
 “Actuary” 
 A Fellow of the Institute of Actuaries or the Faculty of Actuaries who is permitted to act as an
Actuary by the Pensions Act and who is appointed pursuant to clause 3. 
 “Additional Maternity Leave” 
 The absence of a female Active Member from the Plan pursuant to her rights under section 73 of the Employment Rights Act 1996 (as substituted by the Employment Relations
Act 1999). 
 “Administrator” 
 The Trustees or
such other individual or corporate body as the Trustees may appoint to act as administrator for the purposes of the 1988 Act. 
 “Approved
Policy” 
 A policy of insurance or annuity contract, the purchase of which would not prejudice Exempt Approval. 
 “Auditor” 
 A person permitted to act as the auditor by the
Pensions Act and who is appointed pursuant to clause 3. 
 “AVCs” 
 Additional voluntary contributions paid by an Active Member under rule 5 together with any transfer value paid to the Trustees in respect of him which is certified by the transferring scheme to represent AVCs.

 “AVC Account” 
 The total value of the
Member’s AVC Arrangement adjusted in accordance with any investment return (positive or negative), less, unless the Principal Employer determines otherwise, any investment expenses and administration charges and also any expenses and
administration charges levied by the provider of the Investment Fund or Funds in which the AVCs are invested. The value of the AVC Account will also be reduced by any other charges, expenses and amounts which are deducted from the AVC Account under
the Rules or by statute. 
 “AVC Arrangement” 
 Any one or more arrangement which the Trustees make available to accept the Active Member’s or AVC Only Members AVCs. 
 “AVC Only
Member” 
 An employee who is not an Active Member and who is included in the Plan pursuant to rule 2.4. 
 “Beneficiary” 
 A person entitled or prospectively entitled
to a benefit under the Plan. 
 “Board” 
 The
Board of Inland Revenue. 
  

 29 

 Definitions 
  

 “Cash Equivalent” 
 The cash equivalent (as determined in accordance with the 1993 Act) of the benefits payable to and in respect of an Active Member or Deferred Pensioner under the Plan scaled down if necessary to comply with the
requirements of the Occupational Pension Schemes (Transfer Values) Regulations 1996. 
 “Chairman” 
 The Trustee appointed from time to time to act as chairman pursuant to clause 5.4(b) 
 “Class A Member” “Class B Member” and “Class C Member” 
 have the meaning set out in Schedule 3.

 “Class Treatment Requirements” 
 These are
either that: 
  

	•	 	 the Member is a Class B or C Member but elects to be treated as a Class A Member. The election will be in such form, and given within such timescales, as are
prescribed by the Board, or if the form and timescales are not so prescribed, determined by the Trustees; or 

  

	•	 	 the Member can as a result of having previously received bad investment advice be treated as being reinstated in the Plan in the circumstances set out in the
Occupational Pension Schemes (Transitional Provisions) (Amendment) Regulations 1996. 

 “Commencement Date” 
 1 July 2004. 
 “Controlling Director” 
 A Member who, at any time on or after 17 March 1987 and in the last 10 years before the Relevant Date has, in relation to the Participating Employer, been both
within the definition of a director in section 612(1) of the 1988 Act and within paragraph (b) of section 417(5) of that Act. 
 “Custodian” 
 A person who has the custody of cash, securities and any other document of title to Plan assets. 
 “Deferred Pensioner” 
 A former Active Member, or any other
individual for whom benefits have been granted under clause 19 or rule 21, who is entitled to a deferred pension under the Plan but who has not yet become a Pensioner or otherwise retired with benefits becoming payable. 
 “Dependant” 
 In relation to a Member means: 
  

	 	(a)	a spouse of the Member; 

  

	 	(b)	any person (other than the Member’s spouse) who, in the Trustees’ opinion, is wholly or partly financially dependent upon the Member (or was so dependent) at the date of
the Member’s death or retirement (as the case may be) and whose relationship with the Member was in the Trustees’ opinion similar to that of a spouse; 

  

	 	(c)	any: 

  

	 	(i)	natural child of the Member conceived before the Member’s death; 

  

 30 

 Definitions 
  

	 	(ii)	adoptive child of the Member; 

  

	 	(iii)	other child whom the Trustees and at their discretion determine to treat as a child of the Member for the purpose of this definition; 

 who, whether or not financially dependent on him, is: 
  

	 	(A)	under age 18; or 

  

	 	(B)	aged 18 or move but under 21 and continuing in full-time education or receiving full-time vocational training; or 

 who is aged 18 or more and wholly or partly financially dependent on the Member by reason of physical or mental incapacity. 
 “Director Member” 
 A person admitted to Active Membership
of the Plan who has been notified in writing by his employer that he is a Director Member. 
 “Ex-spouse” 
 An individual to whom a Pension Credit has been or will be allocated following a Pension Sharing Order, agreement or equivalent provision. 
 “Ex-spouse Participant” 
 An Ex-spouse who participates in
the Plan, either: 
  

	(a)	solely for the provision of a Pension Credit Benefit; or 

  

	(b)	for the wholly separate provision of a Pension Credit Benefit, where benefits accrue or have accrued to that individual under the Plan for any other reason.

 “Exempt Approval” 
 Exempt
approval in accordance with Chapter I of Part XIV of the 1988 Act or (pending the same) treatment by the Board as an exempt approved scheme. 
 “Fund” 
 The monies, assets, property and investments which from time to time constitute the fund of the Plan. This expression
includes where appropriate any part of the Fund. 
 “Fund Manager” 
 A person who falls or is treated as falling within any of paragraphs (a) to (c) of section 191(2) of the Financial Services Act 1986 and who is appointed pursuant to clause 3 to manage all or part of the
investments of the Plan. 
 “Implementation and Discharge Regulations” means the Pension Sharing (Implementation and Discharge of Liability)
Regulations 2000. 
 “Incapacity” 
 In relation
to a Member, physical or mental deterioration which in the opinion of the Trustees is sufficiently serious to prevent the Member from following his normal employment, or which seriously impairs his earning capacity and does not mean simply a decline
in energy or ability. 
  

 31 

 Definitions 
  

 “Index” 
 The retail prices index published by H M Government or such similar index as may replace it. 
 “Insurance Company” 
 An insurance company as described in section 659B of the 1988 Act. 
 “Investment Funds” 
 One or more investments, including such funds, accounts, policies and contracts permitted under clause 15.2,
specified by the Trustees for the purposes of clause 15.3. 
 “Life Assurance Beneficiary” 
 In relation to a Member means: 
  

	(a)	any spouse or cohabitee of the Member; 

  

	(b)	any child, brother or sister of the Member or of his spouse or cohabitee; 

  

	(c)	any parent, step-parent, ancestor, descendant or collateral relative of the Member or of his spouse or cohabitee; 

  

	(d)	any person who is shown, to the satisfaction of the Trustees, to have been when the Member dies wholly or in part dependent financially on the Member or his spouse or cohabitee;

  

	(e)	any person who is shown, to the satisfaction of the Trustees, to be entitled to any interest in the Member’s estate; 

  

	(f)	any person, charity, society or other body, association or company whose name and particulars the Member before his death notified the Trustees in writing as being a possible
recipient of the lump sum or part of it; 

  

	(g)	any person who is the spouse or descendant of any person referred to above; 

 where: 
  

	(1)	“spouse” includes wife, husband, widow, widower and any former wife or husband; 

  

	(2)	“cohabitee” means any person (whether or not of the opposite sex to the Member) who is shown, to the satisfaction of the Trustees, to have immediately prior to the
Member’s death been living with him in a relationship similar to that which exists between a husband and his wife; 

  

	(3)	“descendant” includes any persons claiming by reason of adoption; 

  

	(4)	“ancestor, descendant or collateral relative” includes ancestors, descendants or collateral relatives of both the whole-blood and the half-blood; and

  

	(5)	“child” includes any step-child, step-grandchild, adopted child or illegitimate child. 

 “Life Assurance Only Member” 
 A member who is not an Active Member and who is included in the Plan pursuant
to rule 2.3. 
  

 32 

 Definitions 
  

 “Life Assurance Salary” 
 An Active Member’s or Life Assurance Only Member’s basic salary plus any other payments as notified by the Participating Employer over the twelve months ending immediately prior to the Active Member’s
or Life Assurance Only Member’s date of death. 
 “Liquidation” 
 Voluntary or compulsory liquidation and Liquidated will be construed accordingly. 
 “Member” 
 An Active Member, Pensioner or Deferred Pensioner or, where appropriate, an AVC only Member. The term Membership will be construed accordingly. 
 “Member’s Account” 
 In respect of a Member such amount
as the Trustees decide represents the aggregate of: 
  

	•	 	 the Member’s Contributions (if any); 

  

	•	 	 the credit for Participating Employer’s contributions to the Plan in respect of the Member including any credit for additional or special contributions paid in
respect of the Member under rule 6; 

  

	•	 	 any transfer value payment received by the Trustees in respect of him in accordance with rule 23; and 

  

	•	 	 a fair share (as determined by the Trustees on professional advice) of any interest, income, gains or losses arising on the Fund but after (unless the Principal
Employer decides otherwise) the deduction for investment expenses; and 

 for the avoidance of doubt Member’s Account will include the
Member’s AVC Account. 
 “Member Contributions” 
 The contributions paid by an Active Member to the Plan together with any interest, transfer value paid to the Trustees in respect of him which is certified by the transferring scheme to represent Member Contributions. 
 “Member Nominated Directors/Trustees” 
 Any person selected
by the Active Members (and former Active Members if appropriate) to be a Trustee in accordance with section 16 of the Pensions Act. 
 “Negative
Deferred Pension” 
 The amount by which the Member’s pension or deferred pension under the Plan which arose/arises from service with the
Participating Employer(s), is reduced at the Relevant Date by section 31 of the Welfare Reform Act following a Pension Sharing Order, agreement or equivalent provision. For this purpose, service with the Participating Employer(s) includes all
periods of service with other employers which have been treated as if they were service with the Participating Employer(s) where a transfer payment has been made to the Plan in respect of that other service. 
 “Normal Pension Date” 
 In the case of a Staff and
Management Member the date of his sixty-fifth birthday. In the case of a Director Member the date of his sixtieth birthday. 
  

 33 

 Definitions 
  

 “Ordinary Maternity Leave” 
 The absence of a female Active Member from the Plan pursuant to her rights, under section 71 of the Employment Rights Act 1996 as substituted by the Employment Relations Act 1999. 
 “Paid Family Leave” 
 Any period throughout which an Active
Member is absent from work for family reasons and for which the Participating Employer pays contractual remuneration. 
 “Participating
Employer” 
 Each of the Principal Employer and any companies, firms or persons which participate in the Plan from time to time in accordance with
clause 11. 
 “Pension Credit” 
 A credit under
section 29(1)(b) of the Welfare Reform Act. 
 “Pension Credit Benefit” 
 The benefits payable under the Plan to or in respect of a person by virtue of rights under the Plan attributable (directly or indirectly) to a Pension Credit. 
 “Pension Credit Rights” 
 Rights to future benefits under
the Plan which are attributable (directly or indirectly) to a Pension Credit. 
 “Pension Debit” 
 A debit under section 29(1)(a) of the Welfare Reform Act. 
 “Pension
Debit Member” 
 A Member whose benefits have been permanently reduced by a Pension Debit excluding a moderate earner as defined in regulation 5 of
the Retirement Benefits Schemes (Sharing of Pensions on Divorce or Annulment) Regulations 2000. 
 “Pension Sharing Order” 
 Any order or provision as is mentioned in section 28(1) of the Welfare Reform Act. 
 “Pensionable Salary” 
 In respect of his employment with a Participating Employer, an Active Member’s monthly basic
contractual salary together with any payments which his Participating Employer has notified to the Active Member in writing as being designated as pensionable. 
 Pensionable Salary will be calculated on a monthly basis and will not exceed the Permitted Maximum for a Class A Member. 
 “Pensionable Service” 
 Service as an Active Member with any Participating Employer before attaining Normal Pension Date.

 “Pensioner” 
 A former Active Member, or any
other individual for whom benefits have been granted under clause 19 or rule 23, who receives a pension under the Plan. 
 “Pensions Act” 

 The Pensions Act 1995 and any statutory instrument made under it. 
  

 34 

 Definitions 
  

 “Permitted Maximum” 
 This expression has the meaning given in section 590C(2) of the 1988 Act. 
 “Personal Pension Scheme”

 A scheme approved by the Board under section 631 of the 1988 Act. 
 “Plan Year” 
 A period of twelve months ending on 31 March in each year or such other date as the Principal Employer may from
time to time determine. 
 “Preservation Regulations” 
 The Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 as amended. 
 “Principal Employer” 
 The Current Principal Employer or any company, firm or person substituted for it pursuant to clause 12. 
 “Qualifying Arrangement” 
 A qualifying arrangement as defined in paragraph 6 of Schedule 5 of the Welfare
Reform Act and not disqualified pursuant to paragraph 7 of that schedule. 
 “Receiving Scheme” 
 A retirement benefits scheme or a Personal Pension Scheme to which a transfer is to be made pursuant to rule 22 or clause 20. 
 “Regular Employer Contributions” 
 Those contributions
payable by a Participating Employer in accordance with rule 6. 
 “Regular Member Contributions” 
 Those contributions payable by an Active Member in accordance with rule 4. 
 “Reserve Fund” 
 The part of the Fund held for the general purposes of the Plan in accordance with clause 14. 
 “Rules” 
 The Rules of the Plan set out in Schedule 2 as
amended from time to time. 
 “Secretary” 
 The
person appointed by the Trustees to act as their secretary pursuant to clause 5.4. 
 “Staff and Management Member” 
 A person admitted to Active Membership of the Plan who has been notified in writing by his employer that he is a Staff and Management Member. 
 “Terminal Ill Health” 
 Ill health which is such as to give
rise to a life expectancy of less than one year from the date on which commutation of the Pension Credit Benefit is applied for. 
 “Trivial”

 A Beneficiary’s benefits are Trivial if the aggregate of total benefits arising in respect of a Member’s service with a Participating
Employer do not exceed the value of a pension of £260 a year or such other amount as would not prejudice Exempt Approval. 
  

 35 

 Definitions 
  

 In respect of rule 21 of the Rules “Trivial” means any Pension Credit Rights the aggregate of which do not
exceed the value of a pension of £260 a year or such other amount as would not prejudice Exempt Approval. 
 “Trust Corporation”

 A trust corporation as defined in the Trustee Act 1925. 
 “Trust Period” 
 The period referred to in Clause 1.4. 
 “Trustees” 
 The Current Trustee and/or its successors in title. 
 “Valuation Day” 
 The meaning given by section 29(7) of the
Welfare Reform Act. 
 “Vodafone Group Pension Scheme” 
 The retirement benefits scheme currently governed by the provisions of a Second Definitive Deed and Rules dated 28 May 1999 made between Vodafone Group Plc and Vodafone Group Pension Trustee Limited. 
 “Welfare Reform Act” 
 The Welfare Reform and Pensions Act
1999. 
 “1988 Act” 
 The Income and Corporation
Taxes Act 1988. 
 “1993 Act” 
 The Pension
Schemes Act 1993. 
  

 36 

 The Rules 
 SCHEDULE 2 
 The Rules 
  

	1	ELIGIBILITY 

  

	1.1	Eligibility conditions 

  

	 	(a)	Any person who: 

  

	 	(i)	is employed in the United Kingdom by a Participating Employer; and 

  

	 	(ii)	has attained age 16 but has not yet attained age 75; and 

  

	 	(iii)	subject to (b) below is not an active member of the Vodafone Group Pension Scheme or any other retirement benefits scheme (as defined in section 611 of the 1988 Act) of the
Participating Employer; 

 shall be eligible to join the Plan. 
  

	 	(b)	The condition in (a)(iii) above shall not apply in circumstances where the person requests to join the Plan as an AVC Only Member. 

  

	 	(c)	Admission to the Plan shall be determined in accordance with Rules 2 and 3 below. 

  

	1.2	Discretionary eligibility 

  

	 	(a)	The Principal Employer may notify the Trustees that: 

  

	 	(i)	any person or class of persons will not be eligible for Active Membership, Life Assurance Only Membership or AVC Only Membership; 

  

	 	(ii)	any person or class of persons will be eligible for Active Membership, Life Assurance Only Membership or AVC Only Membership, even if the conditions set out in rule 1.1 are not
satisfied; and/or 

  

	 	(iii)	Active Membership, Life Assurance Only Membership or AVC Only Membership will be closed to new entrants. 

  

	 	(b)	Any notice given under rule 1.2(a) will take effect immediately or at such future date as may be specified in it. 

  

	 	(c)	The Principal Employer may direct that an individual be admitted to or continue in Active Membership, Life Assurance Only Membership or AVC Only Membership on such special terms
whether as to contributions, date of admission, benefits or otherwise as it may prescribe. The Trustees will implement the direction in such manner as may be required by the Principal Employer provided that the relevant Participating Employers pay
such further contributions (if any) as the Trustees may request on the advice of the Actuary. 

  

	 	(d)	A statement in writing signed by or on behalf of the Principal Employer to the effect that any person is or is not eligible for Active Membership, Life Assurance Only Membership or
AVC Only Membership will be conclusive. 

  

 37 

 The Rules 
  

	1.3	Exempt Approval 

 No person will be admitted to
remain in or be excluded from Membership of the Plan if this would prejudice Exempt Approval. 
  

	2	ADMISSION TO MEMBERSHIP 

  

	2.1	Information required 

  

	 	(a)	An eligible person who wishes to join the Plan shall: 

  

	 	(i)	notify the Principal Employer or the Trustees in writing within three months of first becoming eligible: 

  

	 	(A)	that he wishes to join the Plan; and 

  

	 	(B)	whether he wishes to join the Plan as an Active Member or a Life Assurance Only Member. 

  

	 	(ii)	if so requested by the Trustees supply to them: 

  

	 	(A)	a copy of his birth certificate or other evidence of age or health satisfactory to the Trustees; or 

  

	 	(B)	such other information as the Trustees may require. 

 Any
notification or supply of information shall be made in such manner as the Trustees shall specify from time to time. 
  

	 	(b)	If for any reason the information supplied pursuant to rule 2.1 transpires to be incorrect or incomplete the Trustees may: 

  

	 	(i)	withdraw, reclaim, suspend or vary any benefits relating to the person’s Active Membership or Life Assurance Only Membership; 

  

	 	(ii)	vary his Member Contributions; and/or 

  

	 	(iii)	adjust the terms of his Active Membership or Life Assurance Only Membership; 

 in such manner as they consider appropriate. Any such changes may be made retrospectively. 
  

	 	(c)	An eligible person who does not give notice in accordance with rule 2.1(a) shall be admitted to membership of the Plan as a Life Assurance Only Member immediately on becoming
eligible to join the Plan until the earliest of: 

  

	 	(i)	the day immediately before three months from the date of first becoming eligible to join the Plan; 

  

	 	(ii)	the date he gives notice in accordance with rule 2.1(a)(i); or 

  

	 	(iii)	the date he gives notice in writing to the Trustees or the Participating Employer that he does not wish to be admitted. 

  

 38 

 The Rules 
  

	2.2	Date of admission 

  

	 	(a)	Admission to the Plan shall begin on and from 1 August 2004. 

  

	 	(b)	Provided the person has complied with rule 2.1(a) to the satisfaction of the Trustees he will become an Active Member or a Life Assurance Only Member with effect from:

  

	 	(i)	the day immediately on his becoming eligible for Active Membership or Life Assurance Only Membership; 

  

	 	(ii)	such date as the Trustees notify to the Member; or 

  

	 	(iii)	where appropriate, such date as may be prescribed by the Principal Employer pursuant to rule 1.2(c). 

  

	 	(c)	A person who is admitted to Life Assurance Only Membership under rule 2.1(c) will cease to become a Life Assurance Only Member and be admitted as an Active Member with effect from
the earliest of: 

  

	 	(i)	three months from the date of first becoming eligible for Active Membership; 

  

	 	(ii)	such date as the Trustees notify to the Member; or 

  

	 	(iii)	where appropriate, such date as may be prescribed by the Principal Employer pursuant to Rule 1.2(c). 

  

	2.3	Life Assurance Only Member 

 An employee of a
Participating Employer who is eligible to become an Active Member but gives notice in accordance with rule 2.1 that he wishes to be admitted to the Plan as a Life Assurance Only Member or is admitted as a Life Assurance Only Member under rule 2.1(c)
shall be included in the Plan but only for the purposes of lump sum death benefits under rule 19.1. 
  

	2.4	AVC Only Members 

 An employee of a Participating
Employer who is an active member of the Vodafone Group Pension Scheme may be admitted to the Plan as an AVC Only Member on his giving notice to the Trustees that he wishes to pay voluntary contributions to the Plan. 
  

	2.5	Inland Revenue Maximum 

 The Maximum Benefits (as
defined in Schedule 3) which apply to, and the maximum Member Contributions that may be paid by, a Member are set out in Schedule 3. The provisions of Schedule 3 which apply will depend on the date the Member joined the Plan unless: 
  

	 	(a)	the Board has agreed pursuant to its discretionary practice that the Member may be treated as if he joined the Plan on another date; or 

  

	 	(b)	the Member meets the Class Treatment Requirements. 

  

 39 

 The Rules 
  

	3	CESSATION OF ACTIVE MEMBERSHIP OR LIFE ASSURANCE ONLY MEMBERSHIP 

  

	3.1	Situations where an individual’s Active Membership or Life Assurance Only Membership will cease 

  

	 	(a)	An individual’s Active Membership or Life Assurance Only Membership will cease if he: 

  

	 	(i)	is no longer eligible for Active Membership or Life Assurance Only Membership (unless the Principal Employer determines otherwise pursuant to rule 1.2(a)); 

 

	 	(ii)	exercises any statutory right to opt out; or 

  

	 	(iii)	exercises a right under rule 3.2. 

  

	 	(b)	The Participating Employer will give written notice to the Trustees if any Active Member ceases to be eligible for Active Membership. 

  

	3.2	Opting out 

  

	 	(a)	Active Membership and Life Assurance Only Membership of the Plan is voluntary. 

  

	 	(b)	An Active Member may elect to withdraw by giving written notice to the Trustees by the end of the calendar month of the pay date from which the withdrawal relates. Active Membership
will cease at the end of the calendar month in which written notice is given. 

  

	 	(c)	A Life Assurance Only Member may elect to withdraw by giving one month’s written notice to the Trustees. Life Assurance Only Membership will cease on the expiry of the notice.

  

	3.3	Re-admission/Admission at a subsequent date 

  

	 	(a)	Any person who: 

  

	 	(i)	has opted out of Active Membership or Life Assurance Only Membership under rule 3.2; or 

  

	 	(ii)	who has declined to join the Plan as an Active Member or Life Assurance Only Member when first eligible to do so 

 may be re-admitted or admitted immediately to Active Membership or Life Assurance Only Membership subject to the consent of the Trustees and the
Principal Employer subject to the person producing such evidence of health satisfactory to the Trustees. 
  

	3.4	Temporary absence 

  

	 	(a)	If an Active Member is temporarily absent from work he will remain an Active Member while he remains employed by his Participating Employer unless his Participating Employer
otherwise directs. 

  

	 	(b)	 If an Active Member is not in receipt of wages or salary from his Participating Employer while he is temporarily absent from work, Regular Member 

  

 40 

 The Rules 
  

	 	 
Contributions and Regular Employer Contributions will not be payable during temporary absence. Death in service lump sum benefits and death in service
Dependant’s pensions payable under rule 19.1(a) and 20.2 respectively shall only continue with the agreement of the Trustees on prior application by the Participating Employer. The Active Member may choose to continue to pay AVCs in accordance
with rule 5 (Member AVCs). 

  

	 	(c)	If an Active Member is in receipt of wages or salary from his Participating Employer while he is temporarily absent from work, Regular Member Contributions and Regular Employer
Contributions will continue to be payable and will be calculated by reference to actual Pensionable Salary received or, if agreed between the Participating Employer and the Active Member, by reference to the Pensionable Salary received immediately
prior to the period of temporary absence. Death in service lump sum benefits and death in service Dependant’s pensions payable under rule 19.1(a)(i) and 20.2 respectively will continue to be payable. Regular Member Contributions may be
suspended or reduced during such period as determined by the Participating Employer and the Trustees. 

  

	 	(d)	Subject to rule 3.4(a), if an Active Member dies during the period of temporary absence any lump sum death benefits and death in service Dependants’ pensions payable under rule
19.1(a)(i) and 20.2 respectively during and in respect of the period of absence will be calculated by reference to the Active Member’s Life Assurance Salary immediately before the period of temporary absence or any amount payable during the
absence if greater. 

  

	 	(e)	If the Active Member ceases to be employed by a Participating Employer or his Participating Employer so directs, his Active Membership will terminate and he will be entitled to
benefits in accordance with rule 10 unless the Trustees agree otherwise and the applicable statutory requirements so permit. 

  

	 	(f)	If a Life Assurance Only Member is temporarily absent from work he will remain a Life Assurance Only Member while he remains employed by his Participating Employer unless his
Participating Employer otherwise directs. 

  

	 	(g)	If an Active Member is temporarily absent from work under this rule 3 and is not in receipt of wages or salary from his Participating Employer, the Principal Employer may allow the
Active Member during his period of temporary absence or following his return to work to pay Regular Member Contributions calculated by reference to the full Pensionable Salary he would have received if he had not been absent under this rule 3.

  

	3.5	Maternity leave 

  

	 	(a)	Rules 3.4(a) to 3.4(e) (inclusive) do not apply in the case of maternity leave and the following provisions will apply instead. 

  

	 	(b)	If an Active Member is absent on Ordinary Maternity Leave: 

  

	 	(i)	Regular Member Contributions will be payable to the Plan based on the Active Member’s actual Pensionable Salary; 

  

	 	(ii)	Regular Employer Contributions will be based on what the Active Member’s Pensionable Salary would have been the Active Member not been on Ordinary Maternity Leave; and

  

 41 

 The Rules 
  

	 	(iii)	the lump sum death benefits and death in service Dependant’s pension under rules 19.1(a)(i) and 20.2 respectively will be based on the Life Assurance Salary which would have
applied had the Active Member not been on Ordinary Maternity Leave. 

  

	 	(c)	If an Active Member is absent on Additional Maternity Leave: 

  

	 	(i)	Pensionable Service will continue to accrue for as long as statutory or contractual pay is received by the Active Member. Unless the Principal Employer directs otherwise Pensionable
Service will not accrue and no Regular Employer Contributions will be payable in any period when statutory or contractual pay is not received by the Active Member; 

  

	 	(ii)	Regular Member Contributions will be payable based on the Pensionable Salary actually received. For the avoidance of doubt in any period during which no statutory or contractual pay
is payable the Active Member will not be required to pay Regular Member Contributions under the Plan; 

  

	 	(iii)	for any period for which statutory or contractual pay is received Regular Employer Contributions will be payable based on the Pensionable Salary which would have been applied had
the Active Member not been on Additional Maternity Leave; 

  

	 	(iv)	for any period for which statutory or contractual pay is received the lump sum death benefit payable under rule 19.1(a)(i) and the Dependant’s pension payable under rule 20.2
pursuant to rule 3.5(c)(v) will be based on the Life Assurance Salary which would have applied had the Active Member not been on Additional Maternity Leave; 

  

	 	(v)	and dies in a period in which no statutory or contractual pay is received the lump sum death benefits and death in service Dependant’s pension under rules 19.1(a)(i) and 20.2
respectively payable will be those applicable had the Active Member died on the day the Active Member’s statutory or contractual pay ceased based on the Active Member’s Life Assurance Salary on the date of cessation.

  

	 	(d)	If the Active Member resumes employment at the end of Ordinary Maternity Leave or the Additional Maternity Leave, Pensionable Service which has accrued before, during and after the
maternity leave will be aggregated. 

  

	 	(e)	If the Active Member does not return to work at the end of her Ordinary Maternity Leave or period of paid maternity leave, the Active Member will be treated as if the Active Member
left Pensionable Service on the last day which counts as Pensionable Service. 

  

	3.6	Paid Family Leave and Parental Leave 

  

	 	(a)	Rules 3.4(a) to 3.4(e) (inclusive) do not apply in the case of Paid Family Leave and the following provisions will apply instead. 

  

	 	(b)	 An Active Member will only be treated as still in Pensionable Service during any period of Paid Family Leave or “Parental Leave” (as defined in section 76
of the Employment Rights Act 1996). If an Active Member does not return to work at the end of any period of Paid Family Leave or Parental Leave, he will be treated 

  

 42 

 The Rules 
  

	 	 
as if he left Pensionable Service on the last day which counts as Pensionable Service. 

  

	3.7	Paternity Leave 

  

	 	(a)	An Active Member will be treated as still in Pensionable Service during any period of “Paternity Leave” (as defined under the Paternity and Adoption Leave Regulations
2002). 

  

	 	(b)	The Active Member’s benefits during any period of Paternity Leave will be calculated as if the Active Member had worked normally and received the normal pay for doing so.
Member Contributions will be payable based on actual Pensionable Salary received. 

  

	3.8	Adoption Leave 

  

	 	(a)	An Active Member will be treated as still in Pensionable Service throughout his “Ordinary Adoption Leave” (as defined under section 75A of the Employment Rights Act 1996).

  

	 	(b)	An Active Member who receives pay from his Participating Employer for this period must pay Member Contributions on the amount received. An Active Member who does not receive any pay
for his Ordinary Adoption Leave does not have to pay Member Contributions for that period. The Active Member’s benefits during this period will be calculated as if the Active Member had worked normally and received the normal pay for doing so.

  

	 	(c)	If an Active Member is not entitled to extra periods of absence under (d), and does not return to work at the end of his Ordinary Adoption Leave, he will be treated as if he left
Pensionable Service on the last day of Ordinary Adoption Leave. 

  

	 	(d)	If an Active Member is not treated as being in Pensionable Service during his “Additional Adoption Leave”, (as defined under section 75B of the Employment Rights Act
1996), but returns to work at the end of this period, then the earlier and later periods of Pensionable Service shall be treated as continuous (but excluding the break). 

  

	 	(e)	The Principal Employer and the Trustees will agree terms (consistent with Exempt Approval of the Plan) to apply to the Active Member’s contributions and benefits for this
further period. 

  

	4	MEMBER’S NORMAL CONTRIBUTIONS 

  

	4.1	Amount of contributions 

 Subject to rule 4.2 an
Active Member shall pay Regular Member Contributions to the Fund at the rate appropriate to his category of Membership as set out below. The Regular Member Contributions (including the rates) shall be determined by the Principal Employer who may at
its discretion decide to amend, replace or vary the Regular Member Contributions (including the rates) as it in its absolute discretion may determine. 
  

 43 

 The Rules 
  

	 	(a)	A Staff and Management Member shall pay contributions in accordance with any of the rates specified in the following table as the Staff and Management Member decides:

  

	
	 Rate of Regular Member Contributions (as a percentage of Pensionable
Salary)

	 2

	 3

	 4

	 5 or such higher percentage as the Member chooses to pay

 In the case of admission under rule 2.1(c) the Active Member shall pay Regular Member
Contributions at a rate of 2% of Pensionable Salary. 
  

	 	(b)	A Director Member shall pay contributions in accordance with any of the rates specified in the following table as the Director Member decides: 

  

	
	 Rate of Regular Member Contributions (as a percentage of Pensionable
Salary)

	 2

	 3

	 4

	 5 or such higher percentage as the Member chooses to pay

 In the case of admission under rule 2.1(c) the Active Member shall pay Regular Member
Contributions at a rate of 2% of Pensionable Salary. 
  

	4.2	Duration of contributions 

 Subject to rule 3,
Regular Member Contributions will begin on the first pay date after admission. Any corresponding Regular Employer Contributions will commence on the same date and will cease when Active Membership comes to an end. 
  

	4.3	Change of Regular Member Contribution Rate 

 If the
Active Member requests in writing to change the rate of his Regular Member Contributions such change shall be effective from 1 April of the next Plan Year or such other date as the Principal Employer may determine. 
  

	4.4	Deduction of Member’s Contributions 

  

	 	(a)	The relevant Participating Employer will deduct the Member’s Contributions (together with any AVCs made pursuant to rule 5) from the Active Member’s pay and remit them to
the Trustees within 19 days of the end of the month in which they are deducted and in any event within the time limits permitted from time to time under the Pensions Act in such manner and at such other intervals as the Principal Employer and the
Trustees agree between them. 

  

 44 

 The Rules 
  

	 	(b)	Until the Member’s Contributions are received by the Trustees (or any person on behalf of the Trustees) they will remain the property of the Active Member by whom they are
paid. 

  

	4.5	Excessive contributions 

 The payment of
contributions by an Active Member may be terminated, suspended or reduced at any time by the Trustees if the Actuary confirms they are excessive having regard to the Maximum Benefit (as defined in Schedule 3) applicable to him. 
  

	4.6	Investment of Contributions 

 Contributions may be
held in a non interest bearing account pending investment of such contributions amongst the investment options made available to the Plan in such circumstances as the Trustees determine. 
  

	5	MEMBER AVCS 

  

	5.1	Payment of AVCs 

 Subject to rule 5.3 below, an
Active Member or an AVC Only Member may pay AVCs either on a regular or an ad hoc basis until he elects to stop paying them or in the case of an Active Member his Active Membership ceases. 
  

	5.2	AVC Arrangements 

 AVCs may be paid to one or more
AVC Arrangement. 
  

	5.3	Calculation of AVCs 

  

	 	(a)	No Active Member or AVC Only Member may pay AVCs if this would cause the contribution limit referred to in Schedule 3 to be exceeded. 

  

	 	(b)	If it appears that an Active Member or AVC Only Member is paying AVCs greater than those which are appropriate having regard to the Maximum Benefit (as defined in Schedule 3) they
will be reduced by such amount as the Trustees may direct. 

  

	 	(c)	Before commencing, ceasing or varying payment of AVCs the Active Member or AVC Only Member will give the Trustees such prior written notice (not exceeding 12 months) as they may
from time to time require. This obligation will not apply in the circumstances referred to in rules 5.3(a) and 5.3(b) or where AVCs cease because Active Membership has ceased. 

  

	 	(d)	Save as specified elsewhere in these Rules an Active Member’s AVC Account will be used by the Trustees to increase the benefits payable in respect of his Membership.

  

	 	(e)	The benefits provided by AVCs will be of a value which the Trustees consider reasonable, having regard to the amount of the AVCs. 

  

	 	(f)	For the avoidance of doubt the Trustees will not be obliged to increase: 

  

	 	(i)	all or any specific benefit payable in respect of the Member; or 

  

 45 

 The Rules 
  

	 	(ii)	all benefits by the same proportion. 

  

	5.4	Type of benefits 

 The Trustees may in relation to
an Active Member provide benefits from the Member’s AVC Account in a different form from those prescribed by the Plan. However, they will be of such kind and amount as are acceptable to the Board and which will not prejudice Exempt Approval.

  

	5.5	Lump sum retirement benefits 

 Any AVC Account
established on or after 8 April 1987 which is used to provide retirement benefits will only be used to do so on an annuity basis. No lump sum retirement payment will be made from such an AVC Account, except in accordance with rule 16.3 or
unless permitted by legislation. 
  

	5.6	Surplus AVCs 

 Any monies remaining in the
Member’s AVC Account after benefits have been provided will be paid to him after deduction of tax at the appropriate rate. In this respect the Trustees will ensure the Plan is administered in accordance with Part III of Schedule 6 to the
Finance Act 1989 and the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993. 
  

	5.7	Segregation 

 The Trustees will hold the AVC
Accounts (including AVCs collected but not yet paid in) separate from the other assets of the Fund upon trust to provide benefits for and in respect of the relevant Active Members or AVC Only Members. Accordingly, on a total or partial wind-up the
AVC Accounts will not be used for the general purposes of the Plan. 
  

	5.8	Transfers of AVC Only Members’ benefits 

 Where
the benefits of an AVC Only Member are transferred in whole or in part out of the Vodafone Group Pension Scheme to another scheme, policy or arrangement (other than the Plan) the Member shall notify the Trustees and the Trustees shall, unless they
determine otherwise, transfer the Member’s AVC Account to the other scheme, policy or arrangement. 
  

	6	PARTICIPATING EMPLOYERS’ CONTRIBUTIONS 

  

	6.1	Determining contributions 

  

	 	(a)	Subject to rule 6.1(b), each of the Participating Employers will pay to the Plan: 

  

	 	(i)	the Regular Employer Contributions pursuant to rule 6.2; 

  

	 	(ii)	any other costs and expenses, including (without limitation) the cost of providing lump sum death benefits and Dependant’s pensions under rules 19.1(a)(i) and 20.2 respectively
and the costs of providing benefits under rule 14. 

  

	 	(b)	 The Participating Employers’ Regular Employer Contributions under rule 6.1(a)(i) and the Participating Employers’ contributions under rule 6.1(a)(ii) will
not be 

  

 46 

 The Rules 
  

	 	 
payable to the extent the amounts required are credited or paid from the Reserve Fund pursuant to clause 14.5 and/or clause 17.2.

 For any period of Membership of less than a Plan Year a due proportion will be paid. 
  

	6.2	Regular Employer Contributions 

 Regular Employer
Contributions will be paid in accordance with the rate specified in the following tables that corresponds to the “Rate of Regular Member Contributions” or at such other rate as the Participating Employer determines in relation to a
particular Active Member or a category of Active Members. The Principal Employer may at its discretion decide that such other Regular Employer Contributions (including the rates) shall be payable in place of those set out below. 
  

	 	(a)	Regular Employer Contributions payable in respect of Staff and Management Members 

  

			
	 Rate of Regular Member Contributions
 (as a percentage of Pensionable Salary)
	  	 Corresponding Rate of Regular
 Employer Contributions (as a
 percentage of Pensionable Salary)

	 2
	  	3
	 3
	  	4  1/2
	 4
	  	6
	 5 or more
	  	7  1/2

  

	 	(b)	Regular Employer Contributions payable in respect of Director Members 

  

			
	 Rate of Regular Member Contributions
 (as a percentage of Pensionable Salary)
	  	 Corresponding Rate of Regular
 Employer Contributions (as a
 percentage of Pensionable Salary)

	 2
	  	10
	 3
	  	15
	 4
	  	20
	 5 or more
	  	25

  

	6.3	Frequency of contributions 

 The contributions due
from the Participating Employers will be paid to the Trustees or as the Trustees may otherwise direct. Payment of contributions and credits of the Member’s Accounts will be made at such intervals as the Trustees may from time to time determine,
subject to rule 6.6. 
  

	6.4	Severance and suspension 

  

	 	(a)	Each Participating Employer may terminate its obligation to make future contributions by giving one month’s written notice to the Trustees. In such circumstances the provisions
of clauses 22 and 23 (as appropriate) will apply. 

  

 47 

 The Rules 
  

	 	(b)	Each Participating Employer may suspend or reduce its obligation to make further contributions by giving one month’s written notice to the Trustees on such terms as it may
agree with the Principal Employer: 

  

	 	(c)	If a Participating Employer’s obligation to make contributions is suspended, no further Member Contributions will be paid by the Active Members employed by the Participating
Employer and, unless the Trustees determine otherwise, such Active Members will cease to be covered for lump sum death benefits and death in service Dependant’s pensions under rules 19.1(a)(i) and 20.2 respectively. The Trustees may also treat
such Active Members as if they had ceased to be Active Members and became Deferred Pensioners for the purposes of rule 10 from the date of such suspension or such later date as the Trustees decide. 

  

	 	(d)	A Participating Employer may not reduce its contributions in respect of lump sum death benefits and death in service Dependant’s pensions under rules 19.1(a)(i) and 20.2
respectively. 

  

	6.5	Additional contributions 

 A Participating Employer
may at any time pay further contributions to the Trustees provided this does not prejudice Exempt Approval. Such contributions may be made either for the general purposes of the Plan or for one or more of the specific purposes. 
  

	6.6	Payment schedule 

 If so required by section 87 of
the Pensions Act, the Trustees will ensure that a payment schedule for the Plan is put in place. The payment schedule will be prepared, maintained and reviewed as necessary to comply with section 87 of the Pensions Act. 
  

	7	NORMAL RETIREMENT 

  

	7.1	Payment of pension 

  

	 	(a)	Subject to rules 8 and 9, an Active Member who reaches Normal Pension Date will retire and be paid a pension for the remainder of his life equal to the amount (as determined by the
Trustees) that can be secured on his behalf by the Trustees: 

  

	 	(i)	from his Member’s Account (after taking into account any Dependant’s Pension provided under rule 17 and any lump sum payment arising under rule 16) by purchasing from an
Insurance Company an annuity policy in the name of the Member. If the Trustees cannot secure an annuity policy in the Member’s name the Trustees shall purchase the annuity policy either in the name of the Trustees or in the name of the Trustees
for the benefit of the Member or those claiming through him; or 

  

	 	(ii)	where the Principal Employer consents to the purchase of a Member’s pension under the Plan, by paying a pension for the remainder of the Member’s life equal to the amount
(as determined by the Trustees) that can be purchased under the Plan on his behalf by the Trustees from his Member Account (after taking into account any Dependant’s pension provided under rule 17 and any lump sum payment arising under rule 16)
at such rate as the Trustees, acting on Actuarial Advice, shall from time to time determine. 

  

 48 

 The Rules 
  

	 	(b)	The pension may be supplemented in accordance with the Rules by the application of AVCs, transfer payments and any other increases and augmentations. 

  

	7.2	Optional benefits 

 The Trustees will, if the Member
so elects, in accordance with rule 7.3 secure the pension payable from the Member’s Account pursuant to rule 7.1 to provide: 
  

	 	(a)	further increases in payment beyond those required by section 51 of the Pensions Act but consistent with Exempt Approval; 

  

	 	(b)	a guarantee as to the minimum period of payment such form and terms of which may be determined by the Trustees; and/or 

  

	 	(c)	such other protection as may be permitted by the Board. 

  

	7.3	Member’s choice 

 The Member will select and
advise the Trustees in writing of the form of pensions and/or other options available under the provisions of this rule 7 and rules 16 and 17 in accordance with any procedures specified for this purpose by the Trustees. Where the Member does not so
advise the Trustees the Member’s Account will be used to provide benefits as decided by the Trustees. 
  

	8	EARLY RETIREMENT 

  

	8.1	General early retirement 

 An Active Member may,
subject to the consent of the Principal Employer retire at any time from age 50. 
  

	8.2	Incapacity early retirement 

 An Active Member may
retire at any time before Normal Pension Date subject to the Trustees determining that the Active Member satisfies the grounds for Incapacity. 
  

	8.3	Evidence of Incapacity 

 In determining whether the
Member satisfies the grounds of Incapacity the Trustees may require such evidence (medical or otherwise) as they may at their discretion decide. 
  

	8.4	Payment of pension 

 An Active Member who retires
early under rule 8 will be paid a pension for the remainder of his life calculated in accordance with rule 7. 
  

	9	LATE RETIREMENT 

  

	9.1	Deferment of retirement 

 An Active Member may
subject to the written consent of the Principal Employer defer payment of all or part of his benefits past Normal Pension Date until the earlier of his actual date of retirement or the date he attains age 75. 
  

 49 

 The Rules 
  

	9.2	Pension payable 

 If such consent is given the
Active Member will be entitled to a pension paid from his actual date of retirement in accordance with the then value of his Member’s Account subject to Exempt Approval not being prejudiced. 
  

	9.3	Controlling Directors 

 Any pension payable to a
Controlling Director will be calculated in a manner and commence no later than a date acceptable to the Board. 
  

	10	WITHDRAWAL 

  

	10.1	Less than three months Pensionable Service - refund of Member Contributions 

  

	 	(a)	A person who ceases to be an Active Member with less than three months Pensionable Service will be given a refund of an amount equal to that part of the Member’s Account which
represents his Member Contributions. From this refund the Trustees will deduct any tax for which they are liable. 

  

	 	(b)	Anyone who receives such a refund (and anyone who may derive any entitlement through his Active Membership) will have no further interest under the Plan. 

 

	10.2	Three or more months’ Pensionable Service but less than two years’ Pensionable Service 

 Where a person ceases to be an Active Member with more than three months’ Pensionable Service but less than two years’ Pensionable Service
either: 
  

	 	(a)	the Member will be given a refund of an amount equal to that part of the Public Limited Company (Company Number: 01833679) Member’s Account which represents his Member
Contributions (the Trustees will deduct any tax for which they are liable from this refund); 

  

	 	(b)	subject to the Member electing within three months of the date the Member is notified of his options under rule 10.2, a transfer of the Member’s Account may be made to a
Personal Pension Scheme, a retirement benefits scheme or such other arrangement approved (whether generally or in any particular case) by the Board to accept a transfer; or 

  

	 	(c)	subject to rule 22 and clause 20, if the Member is employed by a company within Vodafone Group Public Limited Company (Company Number 01833679) the Member will be entitled to
request that his Member’s Account is maintained in the Plan as a Deferred Pensioner until such time as he is no longer employed by a company within Vodafone Group Public Limited Company in which event the Member must elect to use his
Member’s Account in accordance with one of the ways set out in rules 10.2(a) and 10.2(b). 

  

	10.3	Two or more years Pensionable Service - entitlement to deferred pension 

  

	 	(a)	Subject to rule 22 and clause 20, a person who ceases to be an Active Member and who does not receive an immediate benefit will have his Member’s Account maintained in the Plan
as a Deferred Pensioner provided either: 

  

 50 

 The Rules 
  

	 	(i)	he has completed at least two years’ Pensionable Service; or 

  

	 	(ii)	the Trustees have received a transfer in respect of him from another retirement benefit scheme or a Personal Pension Scheme. 

  

	 	(b)	Subject to paragraphs (c) and (d) the Member’s Account will be used to provide benefits in accordance with rules 7, 16 and 17 from Normal Pension Date.

  

	 	(c)	Early retirement 

  

	 	(i)	General early retirement 

 A Deferred Pensioner may
subject to the written consent of the Principal Employer retire at any time from age 50. 
  

	 	(ii)	Incapacity early retirement 

 A Deferred Pensioner may
retire early at any time before Normal Pension Date on grounds of Incapacity subject to the Trustees determining that the Deferred Pensioner satisfies the grounds for Incapacity. 
  

	 	(iii)	Evidence of Incapacity 

 In determining whether a Deferred
Member satisfies the grounds for Incapacity the Trustees may require such medical evidence as they may in their discretion decide. 
  

	 	(iv)	Payment of pension 

 A Deferred Member who retires early
under this rule 10 will be paid a pension for the remainder of his life calculated in accordance with rule 7. 
  

	 	(d)	Late retirement 

 A Deferred Pensioner may, subject to the
consent of the Principal Employer, retire after Normal Pension Date and defer payment of his pension until the earlier of his actual date of retirement or the date he attains age 75 in accordance with rule 9. 
  

	11	INCREASES TO PENSIONS IN PAYMENT 

  

	11.1	Statutory increases 

 The pension secured with the
Member’s Account will provide increases in payment to the extent required by section 51 of the Pensions Act. Any further increases will be made pursuant to rules 7.2 and 17 if at all. 
  

	11.2	Restriction of pension increases 

 To the extent
permitted by sections 52 and 53 of the Pensions Act, the Trustees, with the agreement of the Principal Employer, may restrict the increases otherwise required under section 51 of the Pensions Act. 
  

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	11.3	Dependant’s pensions 

 Any pension payable
under rule 20 will increase in payment as follows: 
  

	 	(a)	that part of the pension payable under rules 20.2 and 20.3 that is required to be increased by Section 51 of the Pensions Act will be increased in accordance with that section;

  

	 	(b)	any balance of the pension payable under rules 20.2 and 20.3 not increased under the preceding provisions of this rule 11 may be increased if the Trustees so decide at such rate as
they may determine. In reaching their decision the Trustees may take account of any written representations made to them by the deceased regarding this matter but will not be obliged to do so; 

  

	 	(c)	any Dependant’s pension provided on the death of a Pensioner under rule 20.4 will increase on the basis that was selected at the date of retirement under rules 7.3 and 17.1.

  

	11.4	Date of increase 

 Any increases to pensions in
payment to be made pursuant to the rules will take effect on such date as is determined by the selection made by the Member under rule 7.3 and in any other case on the date decided by the Trustees for this purpose. 
  

	11.5	Exclusions 

 Subject to section 51 of the Pensions
Act, the pension to be increased will not include any part of the pension: 
  

	 	(a)	granted as a result of the exercise of the power of augmentation unless decided otherwise pursuant to rule 14; or 

  

	 	(b)	arising as a result of the payment of AVCs pursuant to rule 5 unless provided for in accordance with rules 5 and 7. 

  

	12	SECURING BENEFITS 

  

	12.1	Method of provision 

 Subject to any arrangements
made to transfer or buy out the Plan benefits for and in respect of a Member pursuant to clause 20 or rule 22, the Trustees may pay any benefits due under these Rules from the Plan pursuant to rule 13 or secure them pursuant to rule 12.2.

  

	12.2	Purchase of Approved Policy 

  

	 	(a)	Subject to rule 22.7 in relation to a Deferred Pensioner, where benefits are payable under the Plan in respect of any Beneficiary, the Trustees may purchase or provide in the name
of the Beneficiary, or in the name of a trustee for the benefit of the Beneficiary, or may assign to the Beneficiary or to the trustee, an Approved Policy with an Insurance Company. 

  

	 	(b)	 The Approved Policy will provide benefits in place of the benefits for and in respect of the Beneficiary under the Plan. In securing such benefits the Trustees

  

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will act in accordance with any relevant requirements of the Board and the 1993 Act and regulations issued under it. Once secured in accordance with this
rule 12.2, the Beneficiary and all others claiming under him will have no further interest in the Plan in respect of such benefits. 

 If a cheque relating to a refund of Member’s Contributions is not cashed within 6 months from the day it is dated (or such other period as the Trustees from time to time decide) the Trustees may pay the money
into the Member’s Account and invest it in such Investment Fund(s) as the Trustees determine on his behalf. 
  

	12.3	Member choice 

 The Member shall select and advise
the Trustees in writing at least two months (or such other period as may be agreed by the Trustees) before the Member intends to retire (or in accordance with any other procedure specified by the Trustees for this purpose) of the Insurance Company
with whom the Member wishes the Trustees to purchase an Approved Policy in accordance with rule 12.2(a) and of the benefits to be provided under such Approved Policy. 
  

	12.4	Default provision 

 Where the Member does not make a
selection and advises the Trustees in accordance with rule 12.3, the Trustees shall select the Insurance Company with whom an annuity shall be purchased or apply the Member’s Member Account to provide benefits as determined by the Trustees from
time to time (acting on Actuarial Advice and such other professional advice as it considers appropriate) and any cost of so doing shall be borne out of the Member’s Member Account. If the Trustees act on such advice in good faith, they shall
have no responsibility or liability for the consequences of doing so. 
  

	13	PAYMENT OF BENEFITS 

  

	13.1	Frequency of payments 

  

	 	(a)	Save as appears below in this rule every pension will be payable by equal monthly instalments. 

  

	 	(b)	Payment of each instalment will be made on such day of the month as the Trustees may from time to time decide. 

  

	 	(c)	For instalments which cover periods greater or less than a month the payment will be adjusted on a pro rata basis. If the final instalment is overpaid the Trustees may call for
repayment of the relevant amount. However, they will not be obliged to do so. 

  

	 	(d)	If at any time the Trustees consider it would be unduly costly or inconvenient to make monthly payments they may instead pay the pension at such intervals as they deem appropriate.

  

	13.2	Method of payments 

  

	 	(a)	Benefits will be paid by such method as the Trustees may from time to time determine including payment: 

  

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	 	(i)	at the registered office of the Principal Employer, subject to the requirements of the Pensions Act; 

  

	 	(ii)	by cheque, money order or other negotiable instrument sent to the last known address of the Beneficiary; 

  

	 	(iii)	by transfer or credit to a bank, building society or other account nominated by the Beneficiary; or 

  

	 	(iv)	by an Insurance Company or agent appointed by the Trustees. 

  

	 	(b)	All benefits will be sent at the risk of the Beneficiary and the Trustees will not be liable if they go astray. The Trustees will not be obliged to obtain a formal receipt or
acknowledgement of payment. 

  

	13.3	Incapable and minor Beneficiaries 

 If in the
opinion of the Trustees a Beneficiary has become incapable of managing his own affairs or if the Beneficiary is a minor they may: 
  

	 	(a)	pay any benefit due to the Beneficiary to anyone they consider is a proper person to receive the same on his behalf; 

  

	 	(b)	pay or apply any benefit to which the Beneficiary is entitled under the Plan for the maintenance of the Beneficiary or to any person for the benefit of the Beneficiary or to any
person financially dependent on him; 

  

	 	(c)	hold it until the Beneficiary is able to act, or for the Beneficiary’s estate; or 

  

	 	(d)	pay any benefit to trustees to hold upon any trusts for the principal benefit of the Beneficiary and subject to any powers or provisions, as the Trustees may direct.

  

	13.4	Detainment of Beneficiary 

 If any Beneficiary is
detained in legal custody, or otherwise against his will, the Trustees may pay or apply the Beneficiary’s benefit under the Plan for the maintenance of any persons who are financially dependent upon the Beneficiary. 
  

	13.5	Dependant’s Pension 

 Any pension payable to a
Dependant will cease on his death. 
  

	14	AUGMENTATION 

  

	14.1	Principal Employer’s request 

  

	 	(a)	The Principal Employer may request the Trustees to enhance the terms of Membership and/or the benefits which may become payable to or in respect of a Beneficiary in such manner as
it may prescribe including all or any of the following: 

  

	 	(i)	increasing benefits; 

  

	 	(ii)	accelerating the payment of benefits; 

  

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	 	(iii)	granting additional and/or new benefits; 

  

	 	(iv)	enhancing Pensionable Service; 

  

	 	(v)	subject to the Beneficiary’s written consent, amending the terms in respect of any Beneficiary; and 

  

	 	(vi)	reducing, suspending or disapplying the requirement to pay Regular Member Contributions. 

  

	 	(b)	The Principal Employer may also request the Trustees to provide any benefits to or in respect of any person in, or formerly in, the service of any Participating Employer.

  

	 	(c)	The Trustees will implement any request of the Principal Employer pursuant to rules 14.1(a) and 14.1(b) provided that the relevant Participating Employer pays such further
contributions (if any) as the Trustees may require, or the Principal Employer and the Trustees direct that such contributions can be paid out of the Reserve Fund, and that Exempt Approval is not prejudiced. 

  

	14.2	Trustees’ request 

 The Trustees may also
request the Principal Employer to grant any enhancement specified in rules 14.1(a) and 14.1(b). The Principal Employer will be under no obligation to agree the request but if it does the provisions of rule 14.1(c) will apply. 
  

	15	REVALUATION 

 Where an Active Member became a
Deferred Pensioner at least one year before Normal Pension Date his Member’s Account will be revalued in accordance with paragraph 5 of Schedule 3 to the 1993 Act. In other words the Member’s Account will increase or decrease to reflect
the rate of return (positive or negative) made by funds in that Member’s Account less any expenses or other amounts deducted in accordance with the Rules or statute. 
  

	16	LUMP SUM BENEFITS 

  

	16.1	Election of a cash lump sum 

  

	 	(a)	Subject to the consent of the Trustees an Active Member or Deferred Pensioner may elect to receive all or part of his Member’s Account as a cash lump sum. The maximum cash lump
sum such a Member may elect to receive will be decided by the Trustees, subject to the Maximum Benefit for cash lump sums. 

  

	 	(b)	Such election will be made by giving written notice to the Trustees before payment of the pension commences in accordance with the procedure for selecting benefits under rule 7.3.

  

	16.2	Date of payment 

 The lump sum will be due at the
same time as the first payment of the pension except that if an Active Member or Deferred Pensioner postpones drawing his pension at Normal Pension Date pursuant to the Rules he may still elect to commute part of his pension for 

  

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 The Rules 
  

 
a cash lump sum at Normal Pension Date or at any time between Normal Pension Date and the date of his actual retirement. 
  

	16.3	Trustees’ discretion 

  

	 	(a)	At the Trustees’ discretion a lump sum may also, subject to the requirements of the Board, be paid to: 

  

	 	(i)	a Member in lieu of all benefits payable (including those payable on his death) which are or become Trivial; 

  

	 	(ii)	a Dependant, in lieu of his benefits which are or become Trivial; and 

  

	 	(iii)	a Member in lieu of his pension in exceptional circumstances of serious ill-health of which the Trustees will be the sole judge. 

  

	 	(b)	If the Trustees exercise their discretion pursuant to rule 16.3 they will deduct from the lump sum any tax for which they may be liable upon it. 

  

	 	(c)	Any lump sum payable under rule 16.3(a)(i) or 16.3(a)(ii) will, subject to the requirements of the Board, be payable: 

  

	 	(i)	at the time the pension would otherwise be payable; or 

  

	 	(ii)	following an increase in the limit below which a pension is Trivial. 

  

	16.4	Active Member’s and Life Assurance Only Member’s option to increase insured lump sum death benefits and Dependants pensions 

  

	 	(a)	A Staff and Management Member and Life Assurance Only Member may give notice in writing to the Principal Employer that he wishes to increase the insured benefit under rule
19.1(a)(i) (the “Lump Sum Death Benefit”) to a maximum of 4 times his Life Assurance Salary or such greater amount as may be permitted by legislation. 

  

	 	(b)	Notwithstanding rule 16.4(a) a Staff and Management Member, Director Member or Life Assurance Only Member may give notice in writing to the Principal Employer that he wishes to
increase any dependant’s pension under rule 20.2 to an amount which, taking account of the Lump Sum Death Benefit, is no greater than 8 times his Life Assurance Salary at the date of death. 

  

	 	(c)	The cost of any increase made under rules 16.4(a) and (b) will be payable by the Staff and Management Member, Director Member or Life Assurance Only Member (as applicable).

  

	 	(d)	Any increase under this rule shall be subject to the production of such satisfactory evidence of health or other matters as the Principal Employer may require.

  

	 	(e)	Any notice in writing required to be given under rules 16.4(a) and (b) must be given within three months of first being eligible to join the Plan. If any notice is given after
three months of first being eligible to join the Plan the increase shall be effective from 1 April of the next Plan Year. 

  

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	 	(f)	Any notice in writing required to be given under rules 16.4(a) and (b) must specify the level of the increase to be provided under rules 16.4(a) and (b) respectively.

  

	 	(g)	The Staff and Management Member, Director Member or Life Assurance Only Member may give notice in writing to the Principal Employer that he wishes to reduce or suspend the
additional amount payable by him under rule 16.4 at any time. The reduction or suspension will take effect from the end of the month following the receipt of the notice if notice is received prior to the payroll cut-off date.

  

	17	CONVERSION 

  

	17.1	Election for Dependant’s Pension 

  

	 	(a)	An Active Member or Deferred Pensioner may, with the Trustees’ consent, elect that part of his Member’s Account be utilised to provide one or more Dependant’s
pensions. The Dependant’s pensions will be of such amount(s) as can be secured by the Trustees from that part of the Member’s Account surrendered and will be in accordance with any conditions laid down by the Board.

  

	 	(b)	The Dependant’s pension will provide for increases in payment of at least those required by section 51 of the Pensions Act and such further increases chosen by the Member in
accordance with rule 7.3 as are consistent with Exempt Approval. 

  

	 	(c)	Such an election will be made before Normal Pension Date or the date of retirement (whichever is the later) in accordance with the procedure for selecting benefits under rule 7.3.

  

	17.2	Restriction on election 

  

	 	(a)	No election may be made to the extent it would reduce the pension payable to the Active Member or Deferred Pensioner, prior to any commutation for a lump sum, below the amount of
the Dependant’s pension. 

  

	 	(b)	The election will be void if before the Active Member or Deferred Pensioner retires: 

  

	 	(i)	the Dependant dies; 

  

	 	(ii)	where the election is in favour of a spouse, the marriage is dissolved or a decree of judicial separation is granted unless written confirmation that the election is to continue is
given by the Active Member or Deferred Pensioner; or 

  

	 	(iii)	the Active Member or Deferred Pensioner withdraws his election with the consent of the Trustees. 

  

	17.3	Payment of benefits 

 If at the retirement of an
Active Member or Deferred Pensioner a valid election subsists, he will be paid reduced benefits in accordance with rule 17.1(a). On his death (or if applicable, on the expiry of any guaranteed period for which his pension is payable) the Dependant
(if surviving) will be paid the Dependant’s pension. 
  

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	18	EVIDENCE OF DEATH 

  

	18.1	Evidence required 

  

	 	(a)	The Trustees may obtain such evidence as they consider reasonable to confirm the death of an individual. 

  

	 	(b)	When a sum is to be paid to a deceased’s personal representatives the Trustees may first require a copy of the grant of representation. However, they will not be obliged to do
so. 

  

	18.2	Trustees’ discretion 

 When a sum is to be paid
to the deceased’s personal representatives but no grant has been taken out the Trustees may at their discretion pay the relevant sum to the deceased’s personal representatives, spouse, next-of-kin or such other person as they may consider
appropriate. Payment to the relevant individual will be a valid discharge to the Trustees. 
  

	19	LUMP SUM DEATH BENEFITS 

  

	19.1	Death of an Active Member, a Life Assurance Only Member or an AVC Only Member 

  

	 	(a)	If an Active Member dies a lump sum will be paid subject to any requirements of the Board for this purpose, equal to: 

  

	 	(i)	in the case of a Staff and Management Member, 3 times his Life Assurance Salary at the date of death (or such increased sum as the Staff and Management Member so elects under rule
16.4) and in the case of a Director Member, 4 times his Life Assurance Salary at the date of death; and 

  

	 	(ii)	Subject to the Trustees’ discretion, that part of his Member’s Account (if any) which can be paid without the total sum paid exceeding the Maximum Benefit (as defined in
Schedule 3). 

  

	 	(b)	If a Life Assurance Only Member dies a lump sum will be paid equal to 3 times his Life Assurance Salary (or such increased sum as the Life Assurance Only Member so elects under rule
16.4) at the date of death. 

  

	 	(c)	If an AVC Only Member dies a lump sum will be paid equal to the value of his AVC Account. 

  

	 	(d)	The lump sum death benefit payable under rules 19.1(a), 19.1(b) and 19.1(c) will be subject to any special conditions or restrictions from time to time agreed between the Trustees
and the Principal Employer as a consequence of any terms imposed by an insurer with which the Trustees have effected an insurance contract to provide the benefit. 

  

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	19.2	Death of a Deferred Pensioner before Normal Pension Date 

 If a Deferred Pensioner dies before Normal Pension Date a sum will be paid equal to his Member’s Account then applicable, up to the maximum amount in accordance with Schedule 3 for this purpose. 
  

	19.3	Death of a Pensioner 

 On the death of a Pensioner a
lump sum will be payable in accordance with the terms for any applicable guaranteed minimum period of payment of his pension secured at the time of retirement. 
  

	19.4	Payment of lump sum benefits 

  

	 	(a)	Subject to rule 19.6, all lump sum benefits arising under this rule 19 will be held by the Trustees separately from the other assets of the Fund. The lump sum benefits will be paid
out within two years of the date of death of the relevant individual except where his estate passes bona vacantia (i.e. ownerless property which passes to the crown under legislation and/or common law). If all or any part of the lump sum due remains
unpaid at the end of two years from the date of death of the relevant individual, it will be paid to his estate. If the estate of the deceased individual passes bona vacantia no payment will be made pursuant to this rule, the monies being retained
for the purposes of the Plan. 

  

	 	(b)	The lump sum benefit will be distributed on such terms and in such proportions as the Trustees decide to or for the benefit of one or more of the deceased’s Life Assurance
Beneficiaries. 

  

	 	(c)	If the Trustees are unable to identify and/or locate any Life Assurance Beneficiaries of the deceased they may at their discretion pay the lump sum in such proportions they decide
to such other trust, person, body or organisation as they may consider appropriate. 

  

	 	(d)	The Trustees may take account of any expression of wish made by the deceased regarding the disposal of the lump sum benefit but they will not be obliged to do so.

  

	 	(e)	Where a Controlling Director remains in Pensionable Service after age 74 any lump sum benefit paid under the provisions of this rule will be paid to his spouse or (if he leaves no
spouse) to his personal representatives. 

  

	19.5	Establishment of trust 

 The Trustees may establish
a trust, on such terms as they may think appropriate, for the benefit of one or more of the persons to whom benefits may be paid under rule 19.4 and may pay to it any sum arising under this rule 19. Any costs and expenses incurred in establishing
the trust or making the payment to it may be deducted from the payment if the Trustees so decide. 
  

	19.6	Funeral expenses 

 The Trustees may use all or part
of any lump sum payable pursuant to this rule 19 to reimburse any person who has paid the funeral expenses of a deceased Member. 
  

 59 

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	20	DEPENDANT’S PENSIONS 

  

	20.1	Calculation of Dependant’s pensions 

  

	 	(a)	If the deceased Active Member or Deferred Pensioner is survived by any Dependants a pension calculated in accordance with this rule will be paid in accordance with rule 12 and/or
rule 13 as appropriate. 

  

	 	(b)	The pension of a deceased Active Member or Deferred Pensioner will be paid to or for the benefit of one or more of the Dependants and in such shares as the Trustees decide, and as
set out below. 

  

	 	(c)	In deciding the shares in which the Dependant’s pension should be provided the Trustees may take account of written representations made to them by the deceased but they will
not be obliged to do so. 

  

	20.2	Death of an Active Member 

 If an Active Member dies
before drawing any retirement benefits the Dependant’s pension will be equal to any pension that can be purchased with the balance (if any) of the Member’s Account which is not paid as a lump sum pursuant to rule 19 together with any
increased amount elected by the Active Member under rule 16.4. 
  

	20.3	Death of a Deferred Pensioner before Normal Pension Date 

 If a Deferred Pensioner dies before Normal Pension Date the Dependant’s pension will be equal to any pension that can be purchased with the balance (if any) of the Member’s Account which is not paid as a lump sum pursuant to rule
19. 
  

	20.4	Death of a Pensioner 

  

	 	(a)	If a Pensioner dies the Dependant’s pension will be equal to the pension if any provided or secured for his Dependant from the balance of his Member’s Account at the time
of his retirement pursuant to rule 17. 

  

	 	(b)	This rule 20.4 will apply equally to a former Member who would have been a Pensioner but for the payment of all of his pension as a lump sum on grounds of serious ill health, if a
pension had been provided for his Dependant at the time of his retirement. 

  

	20.5	Continuation of Pensioner’s pension 

  

	 	(a)	Subject to rule 20.5(b) on the death of a Pensioner a continuation of pension is payable in accordance with the terms for any applicable guaranteed minimum period of payment of the
pension secured at the time of retirement. This continuation of pension will be paid at the Trustees’ discretion to one or more Life Assurance Beneficiaries in accordance with rule 19.4. Where the pension continues to be paid under this rule,
the Dependant’s pension payable under rule 20.4 will not commence until the end of the guarantee period if the guarantee period exceeds five years. 

  

	 	(b)	The operation of rule 20.5(a) is subject to the requirements of the Board. The requirement under rule 19.4 to pay out benefits within two years of the date of death will not apply.

  

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	20.6	Restrictions 

 The pensions payable to an Active
Member’s Dependant or Dependants on the death of an Active Member before Normal Pension Date will be subject to any special conditions or restrictions from time to time decided by the Trustees as a consequence of the terms imposed by an insurer
with which the Trustees have effected an insurance contract to provide the benefit. 
  

	20.7	Payment of pension 

 The pension for any particular
Dependant will cease in accordance with rule 13. 
  

	21	PENSIONS SHARING ON DIVORCE 

  

	21.1	Definitions 

 Where the following terms are used in
the Rules (apart from rule 21.9(b) of the Rules) for the purposes of rule 21 the reference to a Member in relation to those terms will be construed as a reference to the Ex-spouse: 
  

	 	(a)	Dependant; 

  

	 	(b)	Child; or 

  

	 	(c)	Life Assurance Beneficiary. 

  

	21.2	Application of this rule 

  

	 	(a)	This rule applies in respect of Pension Sharing Orders. When a Pension Sharing Order takes effect in relation to the Plan the Trustees will give effect to it in accordance with this
schedule and the Welfare Reform Act and any regulations made under it. 

  

	 	(b)	This rule also applies where the Trustees wish to impose charges in relation to a pension attachment order pursuant to rule 21.4(b). 

  

	21.3	Supply of Information 

 The Trustees will comply
with any requirement to supply information they are required to provide pursuant to the Welfare Reform Act and the regulations made under it. 
  

	21.4	Charging 

  

	 	(a)	The Trustees may subject to complying with the Welfare Reform Act and with any relevant regulations pursuant to the Welfare Reform Act impose such charges as they think fit in
relation to pension sharing and may require any such charges to be paid before implementing a Pension Sharing Order. 

  

	 	(b)	The Trustees may subject to complying with the Welfare Reform Act and any relevant regulations impose such charges as they think fit in relation to a pension attachment order
specified in section 24 of the Welfare Reform Act. 

  

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	21.5	Valuation and calculation of Pension Credit 

  

	 	(a)	The Trustees will issue a notice of implementation under the Welfare Reform Act and will notify the Member and the Ex-spouse of the Valuation Day. 

  

	 	(b)	The Trustees will then: 

  

	 	(i)	make arrangements to carry out a valuation of the benefits of the Member that are subject to a Pension Sharing Order; and 

  

	 	(ii)	make arrangements to calculate the Pension Credit in accordance with the Welfare Reform Act and the Pension Sharing (Valuation) Regulations 2000; 

 as at the Valuation Day. 
  

	21.6	Option for Ex-Spouse 

 The Trustees will give the
Ex-spouse details of the option to require the Trustees to discharge the Pension Credit by making a payment to a Qualifying Arrangement in accordance with the Welfare Reform Act. 
  

	21.7	Method of discharging liability for Pension Credit 

  

	 	(a)	The Trustees will discharge their liability for a Pension Credit for and in respect of an Ex-spouse: 

  

	 	(i)	by paying the Pension Credit to a Qualifying Arrangement with the consent of the Ex-spouse (the “External Transfer”); or 

  

	 	(ii)	where such consent is not obtained subject to rule 21.8 by paying the Pension Credit to a Qualifying Arrangement without the consent of the Ex-spouse (the “Default
Option”). 

 For this purpose the payment will be made in accordance with the relevant provisions of the Welfare Reform
Act that apply. 
  

	 	(b)	Once a payment has been made pursuant to rule 21.7(a) above the Trustees will be discharged from any further liability to and in respect of the Ex-spouse in relation to his Pension
Credit. 

  

	21.8	Alternative method of discharging liability 

  

	 	(a)	If an External Transfer is not made pursuant to rule 21.7(a)(i) the Trustees may from time to time determine that liability for a Pension Credit will be discharged by conferring
rights or benefits on the Ex-spouse under the Plan (“the Internal Transfer Option”) instead of by means of the Default Option. In such circumstances the Trustees may make such arrangements as they consider fit to give effect to the
Internal Transfer Option in accordance with the Welfare Reform Act and any relevant regulations. For this purpose: 

  

	 	(i)	the Trustees will have any powers and discretions; and 

  

 62 

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	 	(ii)	the Rules and this schedule will be deemed to be amended to include any rules; 

 that the Trustees consider appropriate in relation to the Internal Transfer Option in accordance with the Welfare Reform Act. 
  

	 	(b)	In making any arrangements for an Internal Transfer Option the Trustees will comply with: 

  

	 	(i)	the requirements of Part 5 of Schedule 3; 

  

	 	(ii)	the requirements of the Welfare Reform Act and any regulations made under it and Part IVA of the 1993 Act (requirements relating to Pension Credit Benefit).

  

	21.9	Limitation of rights 

  

	 	(a)	No person with a Pension Credit or Pension Credit Rights will have any right or interest under the Plan except under and to the extent specified in this schedule or as required by
law. For the avoidance of doubt such person is excluded from the ambit of any Plan Rule which provides for: 

  

	 	(i)	the augmentation of benefits or improvement of the terms on which benefits are payable; 

  

	 	(ii)	discretionary pension increases; or 

  

	 	(iii)	the grant of new or additional benefits; 

 whether the
Plan is continuing or winding up. 
  

	 	(b)	The provisions of rule 21.9(a) above will not operate in respect of any other capacity in which the person may have rights or interests under the Plan whether as a Member, Dependant
or Nominee. 

  

	21.10	Death before discharge 

  

	 	(a)	If the Ex-spouse dies after a Pension Sharing Order has been made but before the Trustees have discharged their liability in respect of the Pension Credit subject to regulation 6 of
the Implementation and Discharge Regulations the Trustees will discharge their liability in respect of the Pension Credit by applying the Pension Credit in such one or more of the following ways as the Trustees determine: 

 

	 	(i)	by paying one or more lump sum death benefits at the discretion of the Trustees in accordance with rule 19.4 (payment of lump sum benefits) of the Rules; 

 

	 	(ii)	by paying one or more pensions to one or more of the Dependants as decided by the Trustees; and 

  

	 	(iii)	 by purchasing an annuity contract or insurance policy for the benefit of any one or more Dependants as decided by the Trustees which satisfies 

  

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the requirements of regulation 6(3) of the Implementation and Discharge Regulations. 

  

	 	(b)	The amount of the Pension Credit applied under each of rules 21.10(a)(i), 21.10(a)(ii) and 21.10(a)(iii) will be determined by the Trustees and be subject to the limits set out in
Part 5 of Schedule 3. 

  

	 	(c)	Any payments or purchases pursuant to rule 21.10(a) will be made in accordance with the requirements of the Board and the 1993 Act and any applicable regulations, made under it. The
Trustees may pay a lump sum in lieu of a Dependant’s pension which is Trivial at the time the pension becomes payable, or at such other time as will not prejudice Exempt Approval. 

  

	 	(d)	Any balance of the Pension Credit not applied in accordance with rule 21.10(a) will be retained by the Trustees for the general purposes of the Plan. 

  

	 	(e)	Once the Trustees have applied the Pension Credit pursuant to rules 21.10(a) or 21.10(d) the Trustees will be discharged from their liability in respect of the Pension Credit
(except their liability to a Dependant in respect of a pension pursuant to rule 21.10(a)(ii)). 

  

	21.11	Assignment 

 Rule 26 (bar on assignment) of the
Rules which places a bar on the assignment of benefits will not apply when a Pension Sharing Order comes into effect against them. In such a case benefits may be assigned in whole or in part to the extent necessary to comply with the Pension Sharing
Order. 
  

	21.12	Pension Debit Members 

 The benefits for a Pension
Debit Member are also subject to the requirements set out in Part 5 of Schedule 3 and subject to compliance with social security legislation. 
  

	21.13	Statutory compliance 

  

	 	(a)	For the avoidance of doubt the Trustees will have all such powers and discretions as they consider appropriate to give effect to a Pension Sharing Order. 

 

	 	(b)	To the extent this schedule does not reflect any statutory requirements and any requirements of the Board in relation to Pension Debits, Pension Credits and Pension Credit Rights it
will stand amended accordingly. 

  

	22	INDIVIDUAL TRANSFERS OUT 

  

	22.1	Statutory right to a transfer 

 A Deferred Pensioner
may: 
  

	 	(a)	at least one year before Normal Pension Date; or 

  

	 	(b)	if later, within six months after leaving Pensionable Service; 

 request that his entitlements under the Plan be transferred if he: 
  

	 	(c)	sets up a Personal Pension Scheme; 

  

 64 

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	 	(d)	becomes a member of another retirement benefits scheme; and/or 

  

	 	(e)	sets up any other arrangement or becomes a member of any other scheme; 

 approved (whether generally or in any particular case) by the Board to accept a transfer. 
  

	22.2	Non-statutory request to transfer 

 Any other
Deferred Pensioner who is not able to exercise a right to transfer out under rule 22.1 may, with the consent of the Principal Employer, request the Trustees to transfer his entitlements to any one or more of the arrangements listed in rule 22.1.
Such request will be made in such form as the Trustees may require. 
  

	22.3	Amount of transfer 

 If such a request is made the
Trustees will pay to the Receiving Scheme the Cash Equivalent for the Deferred Pensioner. The transfer will be made in accordance with any relevant requirements of the 1993 Act. 
  

	22.4	Certificate 

 The Trustees will provide a
certificate to the trustees of the Receiving Scheme showing: 
  

	 	(a)	how much of the transfer value represents Member Contributions and can be paid by way of a refund of contributions; and 

  

	 	(b)	the maximum cash lump sum payable from the transfer value, if required for this purpose by the Board. 

  

	22.5	Buy-out at Deferred Pensioner’s request 

 Provided it does not prejudice Exempt Approval a Deferred Pensioner may in the circumstances set out in rules 22.1 or 22.2 as appropriate request the Trustees to purchase for him an annuity policy or contract with an Insurance Company. The
purchase price of the policy or contract will be equal to the Cash Equivalent referred to in rule 22.3. 
  

	22.6	Extinguishing rights 

 Once a transfer has been
effected or an annuity policy or contract has been purchased all rights under the Scheme relating to or derived from the Deferred Pensioner will be extinguished and the Deferred Pensioner and all others claiming under him will have no further
interest in the Scheme. 
  

	22.7	Buy-out at Trustees’ discretion 

  

	 	(a)	To the extent permitted by the 1993 Act the Trustees (at their discretion) may secure all benefits for and in respect of a Deferred Pensioner by a transaction to which sections 19
and 81 of the 1993 Act apply to provide benefits identical or different to those benefits. 

  

	 	(b)	 In securing such benefits the Trustees will act in accordance with any relevant requirements of the Board and the 1993 Act and regulations issued under it. Once
secured in accordance with this rule 22.7 the Deferred Pensioner and all 

  

 65 

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others claiming under him will have no further interest in the Plan in respect of such benefits. 

  

	22.8	Restrictions 

 No transfer or buy-out will be made
under this rule 22 if it would: 
  

	 	(a)	offend against the law of perpetuities; 

  

	 	(b)	prejudice Exempt Approval; or 

  

	 	(c)	breach the provisions of the Preservation Regulations. 

  

	23	INDIVIDUAL TRANSFERS IN 

  

	23.1	Request for transfer in 

 If an Active Member

  

	 	(a)	previously participated in another retirement benefits scheme or Personal Pension Scheme; or 

  

	 	(b)	has participated in any other arrangement or scheme approved (either generally or in any particular case) to make a transfer 

 the Trustees (with the consent of the Principal Employer) may receive a transfer payment in respect of the Member from such arrangement or scheme.

  

	23.2	Additional rights 

 Upon receipt of the transfer
payment the Member’s Account will be credited with such assets as the Trustees may determine provided this does not prejudice Exempt Approval and is in accordance with any statutory requirements regarding the receipt of the transfer payment.

  

	23.3	Classification of Member’s Contributions 

  

	 	(a)	Where a transfer payment is accepted the Member’s Contributions will be deemed to be those which would be refunded on withdrawal from the transferring scheme. For this purpose
any deduction which would have been made in respect of tax will be ignored. 

  

	 	(b)	If the transferring scheme has no provision for withdrawal refunds the Member Contributions will be those which it actually credited to the Active Member. 

 

	24	ALTERNATIVE TO SHORT SERVICE BENEFIT 

 Where an
alternative to short service benefit (as defined in section 71 of the 1993 Act) is payable under the Plan the Trustees will be reasonably satisfied it is at least of equal value. 
  

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	25	DISCLOSURE OF INFORMATION 

  

	25.1	No charging or assignment 

 The Trustees may ask any
Beneficiary to supply such evidence of age, identity, status or other information as they may from time to time require. 
  

	25.2	Cessation of benefits 

 If such information is not
supplied or is incorrect the Trustees may make such adjustments to the benefits payable to the Beneficiary as they think fit. These adjustments may be made on a retrospective basis and the Trustees may reclaim any benefit which has been over-paid
previously. 
  

	26	BAR ON ASSIGNMENT 

  

	26.1	No charging or assignment 

 Except to the extent
allowed by section 91 of the Pensions Act, no benefit or part of a benefit payable under the Plan may be charged or assigned nor may a lien or set-off be exercised in respect of it. 
  

	26.2	Cessation of benefits 

 No transaction or attempt by
a Beneficiary to effect a transaction in respect of a benefit which is contrary to rule 26.1 will be binding upon the Trustees. If such a transaction or an attempt is made the benefit or the relevant part of it will cease to be payable. 

 

	26.3	Discretionary Application 

 In such circumstances
the Trustees may at their discretion instead apply an amount equal to the benefit or the relevant part of the benefit for the support and maintenance of any one or more of the Beneficiary, his spouse and Dependants. 
  

	26.4	Payment to Reserve Fund 

 Any part of the benefit
that has ceased to be payable not applied for support or maintenance will be transferred to the Reserve Fund. 
  

	27	TAX LIABILITY AND OVER-PAYMENTS 

  

	27.1	Tax liability 

  

	 	(a)	Where liability to any tax or duty arises in respect of any benefit or refund the Trustees may deduct the same before payment. 

  

	 	(b)	If the liability is uncertain or its extent unknown the Trustees may postpone payment until they are satisfied that the liability does not exist or has been adequately provided for.

  

	 	(c)	If for any reason a payment is made in full where a deduction should have been applied or if the liability arises after payment then the Trustees may (but will not be obliged to)
recover the same from the recipient. 

  

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 The Rules 
  

	27.2	Over payments 

 If for any reason there is any
over-payment of benefit it will be at the Trustees’ discretion as to whether to recover the same. 
  

	28	DETERMINATION OF EMPLOYMENT 

  

	28.1	No effect on employment rights 

 No provision of the
Plan will in any way restrict the right of any of the Participating Employers to end the employment of an Active Member. 
  

	28.2	No damages 

 No damages will be recoverable by a
Member from the Plan or the Trustees as a consequence of his employment coming to an end. 
  

	29	FAILURE TO CLAIM BENEFITS 

  

	29.1	Cessation of entitlement after 6 years 

 No
Beneficiary will be entitled to any benefit more than six years after it has fallen due if the reason for non-payment was: 
  

	 	(a)	his failure to claim it; or 

  

	 	(b)	the Trustees’ lack of knowledge of his existence or whereabouts or of any fact giving him the right to it. 

  

	29.2	Payment to Reserve Fund 

 Subject to rule 29.3 any
such sums will be forfeited and used for the general purposes of the Plan. 
  

	29.3	Trustees’ discretion 

 Notwithstanding the
above the Trustees may with the consent of the Principal Employer elect to pay to or in respect of the Beneficiary part or all of the relevant benefit. 
  

	30	FORFEITURE AND CHARGING 

  

	30.1	Application of rule 

 This rule applies where:

  

	 	(a)	there is a monetary obligation due to a Participating Employer arising out of a fraudulent, negligent or criminal act or omission of a Beneficiary; 

  

	 	(b)	there is a monetary obligation due to the Plan arising out of a breach of trust by a Beneficiary who is a Trustee; 

  

	 	(c)	there is a monetary obligation due to the Plan as a result of a criminal, negligent or fraudulent act or omission of a Beneficiary. 

  

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	30.2	Debt due to a Participating Employer 

 Where there
is a monetary obligation due to a Participating Employer arising out of a criminal, negligent or fraudulent act or omission of a Beneficiary: 
  

	 	(a)	the relevant Participating Employer may deliver to the Trustees a certificate stating the monetary obligation that has arisen as a consequence of the fraudulent, negligent or
criminal act or omission; 

  

	 	(b)	upon receipt of the certificate the entitlement, or accrued rights of the Beneficiary will, at the direction of the Participating Employer, either: 

  

	 	(i)	stand charged with the payment of the monetary obligation; or 

  

	 	(ii)	be forfeited (other than any benefit, or instalment that has already fallen due for payment) to the extent of the monetary obligation; 

  

	 	(c)	the Trustees will then deliver a copy of the certificate to the Beneficiary; and 

  

	 	(d)	without prejudice to any other remedy it may have, the Participating Employer will be entitled to reimbursement of an amount equal to the loss from the Plan (less any tax which may
be chargeable) by, payment to the Participating Employer. Alternatively, if the Participating Employer so directs an amount equal to the entitlement or accrued rights of Member so charged or forfeited shall be transferred to the Reserve Fund to
reduce the Participating Employer’s future contribution liability pursuant to rule 6 or otherwise. 

  

	30.3	Monetary Obligation due to the Plan 

 Where there is
a monetary obligation due to the Plan arising out of a breach of trust or a criminal, negligent or fraudulent act or omission of a Beneficiary: 
  

	 	(a)	the entitlement or accrued rights of the Beneficiary will, if the Trustees direct, either: 

  

	 	(i)	stand charged with the payment of the monetary obligation; or 

  

	 	(ii)	be forfeited (other than any benefit, or instalment that has already fallen due for payment) to the extent of the monetary obligation; 

  

	 	(b)	the Trustees will issue the Beneficiary with a certificate showing the amount of the charge and its effect on his benefits under the Plan or the amount of the forfeiture and the
effect of the forfeiture on his benefits; 

  

	 	(c)	The Trustees may at their discretion modify the reduction in light of any representations made by the Beneficiary; 

  

	 	(d)	Any charged or forfeited benefits may be applied by the Trustees to make good the monetary obligation to the Plan or transferred to the Reserve Fund. 

  

	30.4	Restriction on reducing or reimbursing benefits 

 Despite the above the Trustees may not make any reduction or reimbursement: 
  

 69 

 The Rules 
  

	 	(a)	unless the claim set out in the certificate delivered to the Beneficiary is either not disputed or the obligation has become enforceable by an order of a competent court or in
consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff; 

  

	 	(b)	in the case of the charging (but not forfeiture) of a Beneficiary’s entitlement or accrued rights by a Participating Employer, in respect of any benefits transferred into the
Plan under clause 19 or rule 23 (except to the extent permitted by sections 91, 92 or 93 of the Pensions Act); 

  

	 	(c)	which is more than the amount of the monetary obligation in question, or (if less) the value of the Beneficiary’s entitlement or accrued rights under the Plan; or

  

	 	(d)	if it contravenes the preservation requirements of the 1993 Act. 

  

	30.5	Expressions in this rule to have same meaning as in Pensions Act 

 In this rule the expressions “monetary obligation”, “entitlement, or accrued rights” and other expressions also used in sections 91-95 Pensions Act will, unless the context otherwise requires, have
the same meanings as in the Pensions Act. 
  

	31	EMPLOYMENT WITH AN OVERSEAS EMPLOYER 

  

	31.1	Application of this rule 

 This rule will apply
solely to employees of Participating Employers which are not resident in the United Kingdom and will override any other provisions of the Plan which are inconsistent with it. Employees will only be eligible to join the Plan under this rule if they
are also eligible to join under rules 1, 2 and 3 and the Principal Employer agrees that this rule will apply. 
  

	31.2	Eligibility Conditions 

  

	 	(a)	Active Membership of the Plan will be open to employees of Participating Employers that are not resident in the United Kingdom who are chargeable to United Kingdom income tax under
Case I or II of Schedule E of the 1988 Act on their emoluments from the Participating Employer. But employees: 

  

	 	(i)	cannot be Active Members in respect of a period of service when they qualified for a deduction of 100% under section 193(1) of the 1988 Act; and 

  

	 	(ii)	will be restricted to receiving death in service benefits if they are in receipt of foreign emoluments as defined in section 192(1) of the 1988 Act and are members of a scheme in
respect of which they are obtaining relief under the “corresponding provisions” of section 192(3) or 596(2)(b) of the 1988 Act. (Where any employee in receipt of foreign emoluments has become a member of a scheme in respect of which he is
obtaining relief under the “corresponding” provisions of section 192(3) or 596(2)(b) of the 1988 Act, his benefits relating to subsequent service will be confined to death in service benefits or he will be withdrawn from Membership of the
Plan immediately). 

  

 70 

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	 	(b)	Active Membership of the Plan will also be open to employees of Participating Employers that are not resident in the United Kingdom if: 

  

	 	(i)	the Board has explicitly approved the terms of their Membership; or 

  

	 	(ii)	Active Membership commences or continues because the following circumstances and conditions are satisfied. 

 The circumstances are that: 
  

	 	(A)	there is a definite expectation that the employee will come to the United Kingdom either to take up employment with an employer participating in the Plan (such an expectation should
be evidenced in writing), or to retire; or 

  

	 	(B)	the employee’s earnings remain effectively chargeable because he only works overseas for periods which total less than 365 days in any year. 

 The conditions are that: 
  

	 	(C)	the United Kingdom employer or the United Kingdom branch of the overseas employer will continue to pay to the approved Plan any employer contributions due, but will be reimbursed by
the overseas employer for the costs, unless the Board have specifically agreed otherwise; and 

  

	 	(D)	the prospective pension in respect of the service abroad will be calculated and funded by reference to the rate of remuneration appropriate for similar employment in the United
Kingdom; and 

  

	 	(E)	the period of service abroad will not exceed 10 years. If there has been a previous period or periods of service abroad continuation of Plan Active Membership is limited to an
aggregate of 10 years. 

 For the purposes of the aggregation calculation: 
  

	 	(F)	any period or periods of service abroad separated from a subsequent period of service abroad by at least one year’s employment in the United Kingdom can be ignored; and

  

	 	(G)	any period of service that arises from employees performing their duties abroad for a United Kingdom resident employer who are provided with benefits under an approved scheme
(regardless of whether they are effectively chargeable) can be ignored. 

  

	31.3	Duration of provision of benefits 

 Benefits for any
employees of the said Participating Employers will be provided in relation only to their periods of service with and remuneration from the Participating Employer while they satisfy the eligibility conditions in rule 31.2(a) or 31.2(b). 

 

 71 

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	31.4	Consequences of ceasing to satisfy the eligibility conditions in rule 30.2 

 In the event of an employee of one of the said Participating Employers ceasing to satisfy the eligibility conditions in rules 31.2(a) or 31.2(b) his benefits will be held subject to the Rules until he leaves service
or retires or his benefits are transferred out of the Plan. 
  

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 Revenue Limits Rules 
 SCHEDULE 3 
 Revenue Limits Rules 
  

	1	DEFINITIONS 

 In these rules the following
expression shall have the meanings ascribed to them: 
 “Act” shall mean the Income and Corporation Taxes Act 1988 and any
statutory amendment modification or re-enactment thereof, including the Income Tax (Earnings and Pensions) Act 2003. 
 “Aggregate
Retirement Benefit” shall mean the aggregate of 
  

	 	(a)	the Member’s pension under this Plan and any Associated Scheme and 

  

	 	(b)	the pension equivalent of the Member’s Lump Sum Retirement Benefit. 

 “Approval” shall mean approval of the Plan by the Inland Revenue under Chapter I Part XIV of the Act. 
 “Associated Employer” an employer is associated with another employer if one is controlled by the other, or both are controlled by a third party. Control has the meaning in section 840 of the Act, or
in the case of a close company, section 416 of the Act. 
 “Associated Scheme” shall mean any Relevant Scheme providing
benefits in respect of Service. 
 “Class A Member” shall be any Member who is not a Class B Member or a Class C Member.

 “Class B Member” shall mean any Member: 
  

	 	(a)	who, on or after 17 March 1987 and before 1 June 1989, joined the Plan being a scheme which commenced before 14 March 1989, or 

  

	 	(b)	who the Inland Revenue have agreed in writing to be a Class B Member by virtue of previous membership of a Relevant Scheme, or in any other circumstances permitted under the Act,

 and, in any such case, has not opted to become a Class A Member. 
 “Class C Member” shall mean any Member:- 
  

	 	(a)	who joined the Plan before 17 March 1987, or 

  

	 	(b)	who joined subsequently and who the Inland Revenue have agreed in writing to be a Class C Member by virtue of previous membership of a Relevant Scheme, or in any other circumstances
permitted under the Act, 

 and, in any such case, has not opted to become a Class A Member. 
 “Connected Scheme” shall mean any Relevant Scheme which is connected with the Plan in relation to the Member i.e. if 
  

 73 

 Revenue Limits Rules 
  

	 	(a)	there is a period during which the Member has been the employee of 2 Associated Employers; 

  

	 	(b)	that period counts under both schemes as a period in respect of which benefits are payable; and 

  

	 	(c)	the period counts under one scheme for service with one employer and under the other for service with the other employer. 

 “Controlling Director” shall mean a Member who, at any time on or after 17 March 1987 and in the last 10 years before the Relevant
Date has, in relation to the Employer, been both within the definition of a director in section 612(1) of the Act and within paragraph (b) of section 417(5) of that Act. 
 “Final Remuneration” shall mean the greater of: 
  

	 	(a)	the highest remuneration upon which tax liability has been determined for any one of the 5 years preceding the Relevant Date being the aggregate of: 

  

	 	(i)	the basic pay for the year in question, and 

  

	 	(ii)	the yearly average over 3 or more consecutive years ending with the expiry of the corresponding basic pay year, of any Fluctuating Emoluments provided that Fluctuating Emoluments of
a year other than the basic pay year may be increased in proportion to the increase in the Index from the last day of that year up to the last day of the basic pay year. Remuneration that is received after the Relevant Date and upon which tax
liability has been determined will be treated as a Fluctuating Emolument (providing it was earned or qualified for prior to the Relevant Date). In these circumstances it may be included provided the yearly average of 3 or more consecutive years
begins no later than the commencement of the basic pay year; or 

  

	 	(b)	the yearly average of the total emoluments from the employer which are assessable to income tax under Case I or II of Schedule E and upon which tax liability has been determined for
any 3 or more consecutive years ending not earlier than 10 years before the Relevant Date. Where such emoluments are received after the Relevant Date but are earned or qualified for prior to that date, they may be included provided that in these
circumstances the yearly average of 3 or more consecutive years begins no later than the commencement of the year ending with the Relevant Date. 

 Provided that: 
  

	 	(i)	remuneration and total emoluments do not include any amounts which arise from the acquisition or disposal of shares or any interest in shares or from a right to acquire shares
(except where the shares or rights etc which give rise to such an amount liable to tax under Schedule E had been acquired before 17 March 1987) or anything in respect of which tax is chargeable by virtue of sections 148 or 313 of the Act;

  

	 	(ii)	in relation to a Controlling Director, final remuneration shall be the amount ascertained in accordance with (b) and (a) above shall not apply; 

 

 74 

 Revenue Limits Rules 
  

	 	(iii)	in relation to any other employee whose remuneration in any year subsequent to 5 April 1987 used for the purpose of calculating benefits has exceeded £100,000, (or such
other figure as may be prescribed by the Treasury), final remuneration shall not exceed the amount ascertained in accordance with (b) above and (a) above shall not apply, unless the individual chooses to adopt £100,000 (or such other
figure as may be prescribed by the Treasury); 

  

	 	(iv)	where final remuneration is computed by reference to any year other than the last complete year ending on the Relevant Date, the Member’s remuneration or total emoluments of
any year may be increased in proportion to any increase in the Index from the last day of that year up to the Relevant Date. For a Class C Member this proviso shall not apply to the calculation of the maximum Lump Sum Retirement Benefit unless the
Member’s aggregate total benefits are similarly increased beyond the maximum amount which could be paid but for this proviso and/or the first sentence of (a)(ii) above and then only to the same proportionate extent; 

  

	 	(v)	for Class A Members final remuneration shall not exceed the Permitted Maximum; 

  

	 	(vi)	for the purpose of calculating the maximum Lump Sum Retirement Benefit of a Class B Member final remuneration shall not in any event exceed £100,000 (or such other figure as
may be prescribed by the Treasury); 

  

	 	(vii)	an employee who remains, or is treated as remaining, in service but by reason of Incapacity is in receipt of a much reduced remuneration i.e. under a sick pay or permanent health
insurance scheme, for more than 10 years up to the Relevant Date, may calculate final remuneration under (a) or (b) above with the final remuneration calculated at the cessation of normal pay and increased in accordance with the Index;

  

	 	(viii)	the total amount of any profit related pay (whether relieved from income tax or not) may be classed as pensionable remuneration and treated as a Fluctuating Emolument;

  

	 	(ix)	an early retirement pension in payment from the Employer may not be included in final remuneration. 

  

	 	(x)	any amounts of pay used to buy partnership shares in a share incentive plan that are classed as pensionable remuneration qualify for the purpose of paragraph 83 of Schedule 8 to the
Finance Act 2000. 

 Notes: 
  

	 	1	Except as in proviso (i) above, benefits in kind may be taken into account when they are assessed to income tax as emoluments under Schedule E, and will normally be regarded as
Fluctuating Emoluments. If benefits are not so assessable, they may not be included as part of final remuneration except with the agreement of the Inland Revenue. 

  

	 	2	 Where at the Relevant Date, final remuneration cannot be precisely established because tax liability on all the constituent elements of 

  

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 Revenue Limits Rules 
  

	 	 
Remuneration for the year or years in question has not been determined, Final Remuneration may be calculated on the appropriate basis above using those
elements of Remuneration which have been finally determined for tax purposes. Immediate “on account” pension and lump sum benefits may be provided based on Final Remuneration so calculated. When tax liability on Remuneration is finally
determined, and Final Remuneration recalculated providing scope for further benefits (both pension and lump sum), these may be paid but they must not cause total benefits to exceed Inland Revenue limits calculated as at the date benefits were first
taken. 

 Where the above applies in the case of a Class A Member whose Lump Sum Retirement Benefit is calculated on
the basis set out in paragraph 8.7 of IR12(2001), a subsequent additional lump sum will not be possible if Final Remuneration is not finally determined for tax purposes until after the end of the first year in which the pension has been in payment.

 Where immediate benefits are not being provided or where a transfer payment is to be made in respect of accrued pension benefits then
Final Remuneration may only be calculated using Remuneration assessable to income tax under Case I or II of Schedule E and upon which tax liability has been determined. 
  

	 	3	Where the Relevant Date occurs during a period of paid maternity leave or within 12 months of the end of a period of paid maternity leave, Final Remuneration (as defined in this
definition) can include an amount based on the greater of: 

  

	 	(a)	the Remuneration that the employer would have been obliged to pay to the employee under a contract of employment in force in respect of that employee prior to the start of the paid
maternity leave, or 

  

	 	(b)	the actual amount of Remuneration received by the employee from the employer in the period of 12 months immediately before the commencement of the paid maternity leave.

 In the case of (a) above the Remuneration that the employer would have been obliged to pay to the employee under a
contract of employment in force in respect of that employee prior to the start of the paid maternity leave cannot include any amounts that, had they been paid, would not qualify as remuneration 
 In the case of (b) above only, the Remuneration may be increased in proportion to any increase in the National Average Earnings Index from the last
day of the 12 month period immediately before the commencement of the paid maternity leave up to the end of that leave. 
  

	 	4	 Where Fluctuating Emoluments have not been paid for the full 3 years, they should be averaged over the period from the commencement of their entitlement to payment
(or the beginning of the 3 year period, if later) to the end of the relevant basic pay year. Where, however, it is proposed to include in Final Remuneration a Fluctuating Emolument which was 

  

 76 

 Revenue Limits Rules 
  

	 	 
payable in a single year only the agreement of the Inland Revenue must be sought. 

 “Fluctuating Emoluments” are any part of an employee’s earnings which are not paid on a fixed basis and are additional to the basic
wage or salary. They include overtime, commission, bonuses or benefits in kind as long as they are assessable to tax under Case I or II of Schedule E and profit related pay (see proviso (viii) to definition of Final Remuneration).
Directors’ fees may rank as fluctuating emoluments according to the basis on which they are voted. 
 “Index” shall mean
the Government’s Index of Retail Prices. 
 “Lump Sum Retirement Benefit” shall mean the total value of all retirement
benefits payable in any form other than non-commutable pension under this and any Associated Scheme. 
 “Maximum Benefit”
shall mean the appropriate maximum prescribed by this Schedule 3 or as otherwise specified by the Board from time to time. 
 “Pensionable Service” shall have the meaning ascribed to it by section 70(2) of the Pension Schemes Act 1993. 
 “Permitted Maximum” is to be construed as defined in section 590C(2) of the Act. 
 “Relevant Date”
shall mean the date of retirement, leaving Pensionable Service or death as the case may be. 
 “Relevant Scheme” shall
mean any other scheme approved or seeking approval under Chapter I Part XIV of the Act and in respect of a Class A Member who is a Controlling Director also any retirement annuity contract or trust scheme approved under Chapter III Part XIV or
any personal pension scheme as approved under Chapter IV Part XIV of the Act insofar as it provides benefits secured by contributions in respect of Service. 
 “Remuneration” in relation to any year shall mean the aggregate of the total emoluments for the year in question from the Employer and which are assessable to Income Tax under Schedule E but excluding
any amounts which arise from the acquisition or disposal of shares or any interest in shares or a right to acquire shares or anything in respect of which tax is chargeable by virtue of section 148 of the Act. Provided that for a Class A Member
there shall be disregarded any emoluments in excess of the Permitted Maximum. 
 “Retained Death Benefits” shall mean any
lump sum benefits payable on the Member’s death from: 
  

	 	(a)	retirement benefits schemes approved or seeking approval under Chapter I Part XIV of the Act or relevant statutory schemes as defined in section 611A thereof,

  

	 	(b)	funds to which section 608 of the Act applies, 

  

	 	(c)	retirement benefits schemes which have been accepted by the Inland Revenue as “corresponding” in respect of a claim made on behalf of the Member for the purposes of
section 596(2)(b) of that Act, 

  

	 	(d)	retirement annuity contracts approved under Chapter III Part XIV of the Act, 

  

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 Revenue Limits Rules 
  

	 	(e)	term life provisions under personal pension schemes approved under Chapter IV Part XIV of the Act, or 

  

	 	(f)	transfer payments from overseas schemes held in a type of arrangement defined in (a), (d) or (e) above, 

 in respect of previous employments or periods of self-employment (whether alone or in partnership). If the Retained Death Benefits do not exceed
£2,500 in total (or in other circumstances which do not affect Approval) they may be ignored. 
 “Service” shall mean
service with the Employer or an Associated Employer or, except in relation to a Class A Member who is a Controlling Director of either employer, an employer who is associated with the Employer only by virtue of a permanent community of
interest. 
  

 78 

 Revenue Limits Rules 
  

 Part 1 
 Inland Revenue Limits 
  

	2	CLASS A MEMBERS 

 Notwithstanding anything to the
contrary in the Plan provisions the benefits payable to a Class A Member or his Dependants or other beneficiaries in respect of him shall not, when aggregated with all benefits of a like nature provided under all Associated Schemes exceed the
limits set out below: 
  

	2.1	The Member’s Aggregate Retirement Benefit shall not exceed: 

  

	 	(a)	 on retirement at any time between attaining age 50 and attaining age 75, except before Normal Retirement Date on grounds of Incapacity, a pension of  1/60th of Final Remuneration for each year of Service (not exceeding 40 years) or such greater amount as will not prejudice Approval;

  

	 	(b)	on retirement at any time before Normal Retirement Date on grounds of Incapacity, a pension of the amount which could have been provided at Normal Retirement Date in accordance with
rule 2.1(a), Final Remuneration being computed as at the actual date of retirement; 

  

	 	(c)	 on leaving Pensionable Service before attaining age 75, a pension of  1/60th of Final Remuneration for each year of Service prior to leaving Pensionable Service (not exceeding 40 years) or such greater amount as will not prejudice Approval. The amount computed may be increased by 5% for
each complete year or if greater, in proportion to any increase in the Index which has occurred between the date of termination of Pensionable Service and the date on which the pension begins to be payable. Any further increase necessary to comply
with social security legislation is also allowable. 

  

	 	(d)	 Benefits for a Class A Member are further restricted to ensure that his total retirement benefit from this Plan and from any Associated Scheme or Connected
Scheme does not exceed a pension of  1/30th of the Permitted Maximum for each year of service, subject to a maximum of  20/30ths. For the purpose of this limit, service is the aggregate of Service and any period of service which gives rise to benefits
under a Connected Scheme provided that no period is to be counted more than once. 

  

	 	(e)	For the purpose of calculating the Aggregate Retirement Benefit or the total retirement benefit in (a) to (d) above, the pension equivalent of any Lump Sum Retirement
Benefit is one twelfth of its total cash value. 

  

	2.2	The Member’s Lump Sum Retirement Benefit shall not exceed: 

  

	 	(a)	 on retirement at any time between attaining age 50 and attaining age 75, except before Normal Retirement Date on grounds of Incapacity,  3/80ths of Final Remuneration for each year of Service (not exceeding 40 years) or such greater amount as will not prejudice Approval;

  

	 	(b)	 on retirement at any time before Normal Retirement Date on ground of Incapacity, the amount which could have been provided at Normal Retirement 

  

 79 

 Revenue Limits Rules 
  

	 	 
Date in accordance with rule 2.2(a), Final Remuneration being computed as at the actual date of retirement; 

  

	 	(c)	 on leaving Pensionable Service before attaining age 75, a lump sum of  3/80ths of Final Remuneration for each year of Service prior to leaving Pensionable Service (not exceeding 40 years) or such greater amount as will not prejudice Approval. The amount computed may be increased in
proportion to any increase in the Index which has occurred between the date of termination of Pensionable Service and the date on which the benefit is first paid. 

  

	3	CLASS B MEMBERS OR CLASS C MEMBERS 

 Notwithstanding
anything to the contrary in the Plan provisions, the benefits payable to a Class B Member or a Class C Member or to his Dependants or other beneficiaries in respect of him shall not when aggregated with all benefits of a like nature provided under
all Associated Schemes exceed the limits set out below. 
  

	3.1	The Member’s Aggregate Retirement Benefit shall not exceed: 

  

	 	(a)	 on retirement at or before Normal Retirement Date, a pension of  1/60th of Final Remuneration for each year of Service (not exceeding 40 years) or such greater amount as will not prejudice Approval; 

  

	 	(b)	on retirement at any time before Normal Retirement Date on grounds of Incapacity, a pension of the amount calculated in accordance with rule 3.1(a) as if the Member had remained in
Service until the Normal Retirement Date, Final Remuneration being computed as at the actual date of retirement; 

  

	 	(c)	on retirement after Normal Retirement Date, a pension of the greatest of: 

  

	 	(i)	the amount calculated in accordance with rule 3.1(a) on the basis that the actual date of retirement was the Member’s Normal Retirement Date, 

  

	 	(ii)	the amount which could have been provided at Normal Retirement Date in accordance with rule 3.1(a) increased either actuarially in respect of the period of deferment or in
proportion to any increase in the Index during that period, and 

  

	 	(iii)	 where the Member’s total Service has exceeded 40 years, the aggregate of  1/60th of Final Remuneration for each year of Service before Normal Retirement Date (not exceeding 40 such years) and of a further  1/60th of Final Remuneration for each year of Service after Normal Retirement Date, with an overall maximum of 45 reckonable years,

 Final Remuneration being computed in respect of (i) and (iii) above as at the actual date of
retirement, but subject always to rule 4; 
  

	 	(d)	 on leaving Pensionable Service before Normal Retirement Date, a pension of  1/60th of Final Remuneration for each year of Service prior to leaving Pensionable Service (not exceeding 40 years) or such greater amount as will not prejudice Approval. The amount computed may be
increased by 5% for each complete year or if greater, in proportion to any increase in the Index which has occurred between the date of termination of Pensionable Service and the date on 

  

 80 

 Revenue Limits Rules 
  

	 	 
which the pension begins to be payable. Any further increase necessary to comply with social security legislation is also allowable.

  

	3.2	The Member’s Lump Sum Retirement Benefit shall not exceed: 

  

	 	(a)	 on retirement at or before Normal Retirement Date,  3/80ths of Final Remuneration for each year of Service (not exceeding 40 years) or such greater amount as will not prejudice Approval; 

  

	 	(b)	on retirement at any time before Normal Retirement Date on grounds of Incapacity the amount calculated in accordance with rule 3.2(a) as if the Member had remained in Service until
the Normal Retirement Date, Final Remuneration being computed as at the actual date of retirement; 

  

	 	(c)	on retirement after Normal Retirement Date, the greatest of: 

  

	 	(i)	the amount calculated in accordance with rule 3.2(a) on the basis that the actual date of retirement was the Member’s Normal Retirement Date, 

  

	 	(ii)	the amount which could have been provided at Normal Retirement Date in accordance with rule 3.2(a) together with an amount representing interest thereon, and

  

	 	(iii)	 where the Member’s total Service has exceeded 40 years, the aggregate of  3/80ths of Final Remuneration for each year of Service before Normal Retirement Date (not exceeding 40 such years) and of a further  3/80ths of Final Remuneration for each year of Service after Normal Retirement Date, with an overall maximum of 45 reckonable years,

 Final Remuneration being computed in respect of (i) and (iii) above as at the actual date of
retirement, but subject always to rule 4; 
  

	 	(d)	 on leaving Pensionable Service before Normal Retirement Date, a lump sum of  3/80ths of Final Remuneration for each year of Service prior to leaving Pensionable Service (not exceeding 40 years) or such greater amount as will not prejudice Approval. The amount computed as
aforesaid may be increased in proportion to any increase in the Index which has occurred between the date of termination of Pensionable Service and the date on which the benefit is first paid. 

  

	3.3	If a Member elects to take any part of the benefits under this Plan in advance of actual retirement, the limits set out in rules 3.1 and 3.2 shall apply as if the Member had retired
at the date of the election as aforesaid, no account being taken of subsequent Service, save that the maximum amount of any uncommuted pension not commencing immediately may be increased either actuarially in respect of the period of deferment or in
proportion to any increase in the Index during that period. 

  

	3.4	The preceding provisions of this Rule shall be modified in their application to a Member who is a Controlling Director as follows:- 

  

	 	(a)	 the amount of the maximum Aggregate Retirement Benefit in rule 3.1 and of the maximum Lump Sum Retirement benefit in rule 3.2 shall be reduced, where necessary for
Approval, to take account of any corresponding benefits under retirement annuity contracts or trust schemes approved under Chapter III Part 

  

 81 

 Revenue Limits Rules 
  

	 	 
XIV of the Act or under personal pension schemes approved under Chapter IV Part XIV of the Act; 

  

	 	(b)	where retirement takes place after Normal Retirement Date but not later than the Member’s 70th birthday, rules 3.1(c)(ii) and 3.1(c)(iii) and rule 3.2(c)(ii) and 3.2(c)(iii)
shall not apply, and if retirement is later than the attainment of that age, the said Rules shall apply as if the Member’s 70th birthday had been specified in the Rules as Normal Retirement Date, so as not to treat as Service after Normal
Retirement Date any Service before the Member reaches the age of 70; 

  

	 	(c)	where rule 3.3 applies to him, the rate of the actuarial increase referred to therein in relation to any period of deferment prior to attaining the age of 70, shall not exceed the
percentage increase in the Index during that period. 

  

 82 

 Revenue Limits Rules 
  

 Part 2 
 Other conditions relating to Class A Members 
  

	4	MEMBER’S CONTRIBUTIONS 

  

	4.1	Each Member is required to contribute in accordance with rule 4.1 of Schedule 2. No rate of contribution determined under those Rules may be altered before the expiry of a period of
12 months from the date on which the first payment at the current rate became due without the specific agreement of the Inland Revenue. 

  

	4.2	In addition the Member may make voluntary contributions to the Plan to secure additional benefits for the Member and/or the Member’s Dependants. Any retirement benefits so
secured must be in the form of non-commutable pension except to the extent to which the provisions of the Plan allow commutation of trivial pensions or on the grounds of serious ill health. 

  

	4.3	The contributions paid to the Plan by a Member in a year of assessment shall not exceed either: 

  

	 	(a)	when aggregated with the Member’s contributions to any other exempt approved schemes, 15 per cent of the Member’s Remuneration, or 

  

	 	(b)	when aggregated with the Member’s contributions to any Associated Schemes or Connected Schemes, 15 per cent of the Permitted Maximum. 

  

	5	CONTINUED LIFE COVER 

 Any provision in the Rules to
provide a lump sum benefit on the death of a Member occurring after retirement on pension (other than a payment under a guarantee of pension provision) shall be restricted in respect of a Member who joined the Plan on or after 1 October 1991 to
exclude any provision other than on death occurring before the Normal Retirement Date and after retirement on grounds of Incapacity. The amount of the benefit shall not exceed the amount payable had the Member died immediately before retirement
increased in proportion to any increase in the Index between the date of the Member’s retirement and the date of death. 
  

	6	PAYMENT OF RETIREMENT BENEFITS 

  

	6.1	The payment of a Member’s retirement benefits shall not commence earlier than the Member attaining age 50, except on retirement on grounds of Incapacity, nor later than
attaining age 75. 

  

	6.2	No part of the Member’s retirement benefits is to be paid in advance of actual retirement except as necessary to comply with rule 6.1 or to the extent necessary to comply with
the requirements of the 1993 Act. 

  

 83 

 Part 3 
 Other conditions relating to Class B Members or Class C Members 
  

	7	MEMBER’S CONTRIBUTIONS 

  

	7.1	Each Member is required to contribute in accordance with rule 4.1 of Schedule 2. No rate of contribution determined under those Rules may be altered before the expiry of a period of
12 months from the date on which the first payment at the current rate became due without the specific agreement of the Inland Revenue. 

  

	7.2	In addition the Member may make voluntary contributions to the Plan to secure additional benefits for the Member and/or the Member’s Dependants. Where such contributions
commence on or after 8 April 1987 any retirement benefits so secured must be in the form of non-commutable pension except to the extent to which the provisions of the Plan allow commutation of trivial pensions or on the grounds of serious ill
health. 

  

	7.3	The total contributions paid by the Member in a year of assessment to this and any Associated Scheme shall not exceed 15% of Remuneration for that year. 

  

	8	TRANSFERS 

  

	8.1	Any retirement benefits arising by virtue of the receipt by the Plan of a transfer value (other than from another scheme providing benefits in respect of Service) shall not be
capable of commutation unless and then only to the extent that a certificate has been obtained from the administrator of the transferring scheme showing the maximum lump sum payable from the transfer value. The amount so certified may be increased
in proportion to any increase in the Index since the date the transfer payment was received. 

  

	8.2	When, on or after a transfer having been made to another occupational pension scheme, the administrator of that scheme requests such a certificate as is referred to in rule 8.1, the
administrator of the Plan shall calculate as at the date of the transfer the maximum lump sum payable on retirement from the transfer value and certify that amount to the Receiving Scheme. 

  

 84 

 Part 4 
 Other conditions relating to all Members 
  

	9	LUMP SUM DEATH BENEFIT 

 The lump sum benefit
(exclusive of any refund of the Member’s own contributions not applied specifically to secure the payment of benefits on the Member’s death and any interest thereon) payable on the death of a Member while in Service or (having left
Pensionable Service with a deferred pension) before the commencement of the pension shall not, when aggregated with all benefits of a like nature under Associated Schemes, exceed the greater of: 
  

	 	(a)	£5,000, and 

  

	 	(b)	4 times the greatest of: 

  

	 	(i)	annual rate (subject for a Class A Member to the Permitted Maximum) of the Member’s basic salary or wages at the date of death or leaving Pensionable Service together with
the yearly average of Fluctuating Emoluments received in the 3 years (or the whole period of Service if less) up to the date of death or leaving Pensionable Service; 

  

	 	(ii)	the Member’s total emoluments (subject for a Class A Member to the Permitted Maximum) of any selected period of 12 months ending not earlier than 36 months before the date
of death; and 

  

	 	(iii)	Final Remuneration disregarding provisos (i), (ii) and (iii) of that definition less Retained Death Benefits. 

  

	10	PENSIONS FOR DEPENDANTS 

  

	10.1	 Any pension for a Dependant, when aggregated with the pensions, other than those provided by surrender or allocation of the Member’s own pension, payable to
that Dependant under all Associated Schemes, shall not exceed an amount equal to  2/3rds of the maximum Aggregate Retirement
Benefit payable to the Member immediately before death under Part 1 above. Where the death of the Member occurs whilst in Service before the Normal Retirement Date the maximum is that appropriate had the Member retired on grounds of Incapacity on
the date of death entitled to no retained benefits from previous employments. 

  

	10.2	If pensions are payable to more than one Dependant of a Member, the aggregate of all Dependant’s pensions payable in respect of the Member under this and all Associated Schemes
shall not exceed the full amount of the maximum Aggregate Retirement Benefit described in rule 10.1. 

  

	11	INCREASES OF PENSIONS IN PAYMENT 

 The maximum
amount of a pension ascertained in accordance with Part 1 or Part 4 less any pension which has been commuted for a lump sum or the pension equivalent of any benefits in lump sum form and any pension surrendered to provide a Dependant’s pension
may be increased by 3% for each complete year or if greater, in proportion to any increase in the Index since the pension commenced. 
  

 85 

	12	SURPLUS AVCS 

  

	12.1	Where the application of the limits in this Schedule requires the quantum of the Aggregate Retirement Benefit to be restricted and the Member has paid additional voluntary
contributions to supplement scheme benefits, that restriction shall first be effected on those supplementary benefits so as to permit the repayment of the surplus additional voluntary contributions subject to the provisions of section 599A of the
Act. 

  

	12.2	The administrator of the Plan shall comply with the requirements of Regulation 5 of The Retirement Benefits Schemes (Restriction on Discretion to Approve) (Additional Voluntary
Contributions) Regulations 1993 and where the scheme is the “leading scheme” in relation to a Member, with the requirements of Regulation 6 of those Regulations so far as they concern “main schemes”. If these Regulations are
amended or replaced by any other Regulations then this Rule will have effect as if it had been amended or replaced accordingly. 

  

	13	TRANSFERS 

  

	13.1	The benefits arising on retirement from a transfer value shall not be capable of commutation nor shall they be paid in lump sum form if the transfer is accompanied by a certificate
from the administrator of the transferring scheme to the effect that the transfer value is not to be used to provide benefits in lump sum form. 

  

	13.2	When making a transfer to a Personal Pension Scheme the administrator of the Plan shall provide a certificate of the maximum lump sum payable on retirement from the transfer value
if the Member has in respect of any period to which the transfer payment or any part of it relates been either: 

  

	 	(a)	a Controlling Director at any time within the 10 years preceding the transfer date, or 

  

	 	(b)	in receipt of annual remuneration in any year of assessment falling (wholly or partly) during the period of six years prior to the transfer date more than the allowable maximum
(within the meaning of section 640A(2) of the Act) for the year of assessment in which the transfer dates falls and the individual’s age at the transfer date is 45 or more. 

 Part 5 
 Inland Revenue requirements on pension sharing 
  

	14	INLAND REVENUE REQUIREMENTS FOR EX-SPOUSE PARTICIPANT 

 The requirements relating to an Ex-Spouse Participant’s benefits are as follows: 
  

	 	(a)	Subject to Part 1 a pension can be paid: 

  

	 	(i)	 at any time between attaining age 50 and 75 (commencement of the pension cannot be deferred beyond his 75th birthday); 

  

	 	(ii)	earlier on grounds of Incapacity where the Ex-Spouse Participant is simultaneously taking early payment of benefits on the grounds of Incapacity arising from his own Membership of
the Scheme; 

  

 86 

	 	(iii)	immediately if the Ex-Spouse Participant is aged 75 or over at the date the Pension Sharing Order is implemented. 

  

	 	(b)	A pension not yet in payment may be fully commuted at any age on the grounds of Terminal Ill Health. 

  

	 	(c)	There is no limit on the amount of the pension payable to an Ex-Spouse Participant. Such a pension should not be commuted, surrendered or assigned except in accordance with the
Rules and this schedule. Such a pension will be payable for life unless it is fully commuted under the terms of this schedule. 

  

	 	(d)	No lump sum may be paid to the Ex-Spouse Participant where the Member (who was formerly married to the Ex-Spouse Participant) has already received a Lump Sum Retirement Benefit from
the Scheme before the date of the implementation by the Scheme of the Pension Sharing Order, agreement or equivalent provision. 

  

	 	(e)	No lump sum may be paid to the Ex-Spouse Participant where all of the Pension Credit Rights under the Scheme have been transferred into the Scheme with a lump sum nil certificate.

  

	 	(f)	The lump sum payable to an Ex-Spouse Participant is limited to a maximum of 2.25 x the initial annual pension. For this purpose, the initial annual pension should be calculated on
the following bases: 

  

	 	(i)	if the pension payable for the year changes, the initial pension payable should be taken; 

  

	 	(ii)	it should be assumed that the Ex-Spouse Participant will survive for a year; 

  

	 	(iii)	the effect of commutation should be ignored. 

  

	 	(g)	Where the Ex-Spouse Participant dies before benefits come into payment the requirements are as follows: 

  

	 	(i)	The lump sum is limited to 25% of what would have been the cash equivalent of the Pension Credit Rights at the Ex-Spouse Participant’s date of death. This lump sum will be paid
at the discretion of the Trustees. The balance of the said cash equivalent may be used to provide a non-commutable pension for a Dependant of the Ex-Spouse Participant. 

  

	 	(ii)	 The amount of pension payable to a Dependant is limited to a maximum of  2/3rds of the amount of the pension that could have been paid to the Ex-Spouse Participant at the date of death had the whole of the cash equivalent of the Pension Credit Rights been used to purchase an annuity at an
available market rate. For the purpose of determining the pension which could have been paid to the Ex-Spouse Participant, it should be assumed that he was aged 50 at the date of death, where he died at an earlier age. Where more than one pension
will be paid the total of all the pensions cannot exceed the amount of the pension that could have been paid to the Ex-Spouse Participant. 

  

 87 

	 	(h)	Where the Ex-Spouse Participant dies after pension has come into payment, the requirements are as follows: 

  

	 	(i)	 The amount of pension payable to a Dependant is limited to a maximum of  2/3rds of the initial annual pension which was paid to the Ex-Spouse Participant as increased by any rise in the Index since the commencement of the Ex-Spouse Participant’s pension. Where more than one pension will
be paid the total of all the pensions cannot exceed the amount of the initial annual pension which was paid to the Ex-Spouse Participant, as increased by any rise in the Index since the commencement of the Ex-Spouse Participant’s pension. For
these purposes initial annual pension should be calculated on the same basis as for rule 14 of Part 5. 

  

	 	(ii)	Where the Ex-Spouse Participant selected a guarantee not exceeding 5 years and the guarantee period has not expired, the remaining balance of the pension instalments can be paid as
a lump sum. This lump sum will be paid at the discretion of the Trustees. Where the Ex-Spouse Participant selected a guarantee exceeding 5 years and the guarantee period has not expired, the remaining balance of the pension instalments will be paid
in pension form to an individual or individuals at the discretion of the Trustees. 

  

	 	(i)	Any payment of death benefits to be made at the discretion of the Trustees will be paid pursuant to rule 19 (disposal power) of the Rules. 

  

	 	(j)	Full commutation of Pension Credit Rights which are Trivial is permitted when the pension first becomes payable or at such other time that will not prejudice Exempt Approval. Where
the Ex-Spouse Participant is also entitled to benefits under this Scheme arising from his own Membership of the Scheme for the purposes of determining whether the aggregate value of total benefits exceed the triviality limit for the purposes of the
Rules benefits from Pension Credit Rights will be included and will be simultaneously commuted. 

  

	 	(k)	Where an Ex-Spouse Participant surrenders his pension to provide an additional pension for a Dependant, the amount of pension surrendered will not exceed the reduced pension that
the Ex-Spouse Participant retains. The option of the Ex-Spouse Participant to surrender his pension does not apply where the pension is paid in the form of income drawdown. 

  

	15	INLAND REVENUE REQUIREMENTS FOR PENSION DEBIT MEMBER 

  

	15.1	Notwithstanding any other provisions of the Rules, the benefits for a Pension Debit Member are additionally subject to the following limits, subject to compliance with social
security legislation: 

  

	 	(a)	The pension will not exceed the Aggregate Retirement Benefit less the Negative Deferred Pension in this Scheme and the Negative Deferred Pension in any Associated Scheme and,
furthermore in the case of a Class A Member the Negative Deferred Pension in any Connected Scheme. 

  

	 	(b)	The lump sum from this and any Associated Scheme will not exceed: 

  

 88 

	 	(i)	for Pension Debit Members who are Class A Members or Class B Members, an amount determined by 2.25 x the initial annual pension payable; 

  

	 	(ii)	for Pension Debit Members who are Class C Members, an amount of the greater of:- 

  

	 	(A)	2.25 x the initial annual pension payable; or 

  

	 	(B)	a lump sum for the Pension Debit Member determined in accordance with rule 21 for a Class C Member (Inland Revenue maximum lump sum) as if there had been no Pension Debit,
less 2.25 x the Negative Deferred Pension. 

  

	 	(c)	For the purposes of this rule, the initial annual pension should be calculated on the following bases: 

  

	 	(i)	if the pension payable for the year changes, the initial pension payable should be taken; 

  

	 	(ii)	it should be assumed that the Pension Debit Member will survive for a year; 

  

	 	(iii)	the effect of commutation should be ignored. 

  

	 	(d)	 On the death of the Pension Debit Member, any pension for a Dependant will not exceed  2/3 x of the pension for the Pension Debit Member determined in accordance with Schedule 3 (Inland Revenue Requirements) as if there had been no Pension Debit, less the Negative Deferred Pension
and the Negative Deferred Pension in any Associated Scheme and, furthermore in the case of a Class A Member the Negative Deferred Pension in any Connected Scheme. Where more than one pension will be paid the total of all the pensions cannot
exceed 100% of the pension for the Pension Debit Member determined in accordance with Schedule 3 (Inland Revenue Requirements) as if there had been no Pension Debit, less the Negative Deferred Pension and the Negative Deferred Pension in any
Associated Scheme and, furthermore in the case of a Class A Member the Negative Deferred Pension in any Connected Scheme. 

  

	16	INLAND REVENUE REQUIREMENTS ON DEATH BEFORE DISCHARGE 

  

	16.1	The lump sum death benefit payable is limited to 25% of what would have been the cash equivalent of the fund which would have provided the Pension Credit Rights for the Ex-Spouse.

  

	16.2	 The amount of pension payable to a Dependant is limited to a maximum of  2/3rds of the amount of the pension that could have been paid to the Ex-Spouse at the date of death if the whole of what would have been the cash equivalent of the fund which would have provided the Pension Credit Rights
had been used to purchase an annuity at an available market rate. Where more than one pension will be paid the total of all the pensions cannot exceed the amount of the pension that could have been paid to the Ex-Spouse.

  

 89 

	17	INLAND REVENUE REQUIREMENTS ON PAYMENT OF PENSIONS ON DEATH 

 Any pension payable to a Dependant on the death of an Ex-Spouse will be payable for life except a pension payable to a Child will cease (unless continued payment would not prejudice Exempt Approval) on the attainment of age 18 or if later
on the cessation of full time education. Such pensions may be fully commuted for a lump sum in accordance with Part 1 at the time the pension becomes payable, or at such other time that will not prejudice Exempt Approval. 
  

	18	INLAND REVENUE REQUIREMENTS FOR PENSION CREDIT BENEFIT TO BE KEPT SEPARATE 

 Where any individual is entitled to Pension Credit Benefits under the Scheme in addition to other benefits pursuant to the Rules such Pension Credit Benefits will be kept separate from the other Scheme benefits of the
individual concerned. 
  

	19	INLAND REVENUE REQUIREMENTS ON TRANSFERS 

 The
following provisions apply to transfers. 
  

	 	(a)	The Trustees will give full details of the Pension Debit and a lump sum certificate specifying the maximum permissible lump sum, to the receiving scheme/arrangement where the fund
underlying the benefits for a Pension Debit Member is transferred to another scheme approved under Chapter 1 Part XIV of the 1988 Act or a scheme approved under Chapter IV Part XIV of the 1988 Act. 

  

	 	(b)	Where the Trustees accept a transfer payment for an individual who is already a Member of the Scheme or is already an Ex-Spouse Participant in the Scheme and are informed by the
transferor that the transfer value consists wholly or partly of Pension Credit Rights in the former scheme or arrangement, then the Trustees will separately identify the transfer payment relating to the Pension Credit Rights or the part of the
transfer payment relating to the Pension Credit Rights from other funds held for the benefit of the Member or Ex-Spouse Participant. Furthermore the Trustees will comply with the requirements of Rule 18 above in respect of the transferred-in Pension
Credit Rights. Then the individual will acquire the status of an Ex-Spouse Participant in the Scheme in relation to his transferred-in Pension Credit Benefits. Such Pension Credit Benefits will not count towards any limit on benefits for that
Member. 

  

	 	(c)	Where the Trustees accept a transfer payment and are informed by the transferor of the details of a Pension Debit relating to the transfer payment, the Trustees will take account of
the Pension Debit, if appropriate, in the calculation of any limit on benefits for that Member. If a transfer of the fund underlying the benefits for the Member is made to a scheme approved under Chapter 1 Part XIV of the 1988 Act or a scheme
approved under Chapter IV Part XIV of the 1988 Act, the Trustees will give full details of the Pension Debit to the receiving scheme/arrangement. 

  

	 	(d)	Where the Trustees make a transfer payment in respect of an Ex-Spouse Participant it will be made in accordance with any requirements of the Board and the Trustees will confirm to
the receiving scheme or arrangement that the transfer consists wholly or partly of Pension Credit Rights for the benefit of an Ex-Spouse Participant. 

  

 90 

			
	SIGNED as a deed, and delivered when dated, by VODAFONE GROUP PLC in the presence of:
		
	 Director
	 	
	Signature:	 	/s/ Authorized Signatory
	Name:	 	Authorized Signatory
	
	 Director/Secretary

	Signature:	 	/s/ Authorized Signatory
	Name:	 	Authorized Signatory

  

			
	SIGNED as a deed, and delivered when dated, by VODAFONE DC PENSION TRUSTEE COMPANY LIMITED in the presence of:
		
	 Director
	 	
	Signature:	 	/s/ Authorized Signatory
	Name:	 	Authorized Signatory
	
	 Director/Secretary

	Signature:	 	/s/ Authorized Signatory
	Name:	 	Authorized Signatory

  

 91Vodafone Group Pension Scheme Second Definitive Deed and Rules

 Exhibit 10.27 
 DATED 28TH MAY 1999 
 VODAFONE GROUP PENSION SCHEME 
 (formerly called the Vodafone Group 
 Staff
Pension Scheme) 
 SECOND DEFINITIVE DEED 
 AND RULES 
 Stephenson Harwood 
 One, St. Paul’s Churchyard London EC4M 8SH 
 Telephone: 0171-329-4422 Fax: 0171-606 0822 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 CONTENTS 
  

					
	 	  	Page
	 PARTIES
	  	1
	 RECITALS
	  	1
	 OPERATIVE CLAUSES
	  	2
		
	 1                  ADOPTION OF NEW
PROVISIONS
	  	2
		
	 2                  APPLICATION OF THE
NEW PROVISIONS
	  	3
	2.1	    	Application of the new provisions relating to administration	  	3
	2.2	    	Continued application of old rules to leavers before the Revision Date	  	3
	2.3	    	Application of new rules	  	3
	2.4	    	Continuation of individual arrangements	  	3
			
	 SCHEDULE 1:
	    	INTERPRETATION	  	7
			
	 SCHEDULE 2:
	    	OPERATION OF THE SCHEME	  	23
			
	 SCHEDULE 3:
	    	STAFF SECTION RULES	  	87
			
	 SCHEDULE 4:
	    	EXECUTIVE MANAGER AND SENIOR MANAGER SECTION RULES	  	137
			
	 SCHEDULE 5:
	    	DIRECTORS SECTION RULES	  	189
			
	 SCHEDULE 6:
	    	REVENUE LIMITS RULES	  	235
			
	 SCHEDULE 7:
	    	GMP RULES	  	253
			
	 SCHEDULE 8:
	    	LIST OF GOVERNING DOCUMENTS	  	259

 VODAFONE GROUP PENSION SCHEME 
 THE SECOND DEFINITIVE DEED is made the 28th day of May 1999 
 BETWEEN:- 
 (1) VODAFONE GROUP PLC (registered in England No. 1833679) whose registered office is at The Courtyard 2-4 London Road Newbury Berkshire 
 (hereinafter called the “PRINCIPAL EMPLOYER”) 
 (2) VODAFONE GROUP
PENSION TRUSTEE LIMITED (registered in England No. 2288254) whose registered office is at The Courtyard as aforesaid 
 (hereinafter called the
“TRUSTEE”) 
 WHEREAS:- 
 (A) The Vodafone Group
Pension Scheme (the “SCHEME”) was established by the Interim Trust Deed dated 10 October 1988 listed as deed no. 1 in Part 1 of Schedule 8. The Scheme was originally called the Racal Telecom Staff Pension Scheme, became known as the
Vodafone Group Staff Pension Scheme in 1991 and has since 1 April 1999 (the “REVISION DATE”) been known as the Vodafone Group Pension Scheme. 
 (B) The Scheme is currently governed by the Clauses of and Rules attached to the Definitive Deed dates 3 August 1990 listed as deed no. 3 in Part 1 of Schedule 8 (the “DEFINITIVE DEED”), as amended subsequently by the Deeds
dated 23 October 1991, 30 January 1995 and 30 January 1996 listed as deeds nos. 4, 5 and 6 in Part 1 of Schedule 8. 
 (C) This Deed is
supplemental, inter alia, to the Deeds mentioned in Recitals (A) and (B) above. 
 (D) The Trustee is the present trustee of the Scheme.

 (E) By virtue of Transfer Agreements dated 31 March 1999 the Trustee and the Principal Employer agreed to merge the Scheme and the Vodafone Group
Directors Pension Scheme (the “VODAFONE DIRECTORS SCHEME”) and the Vodafone Group Executive Manager and Senior Manager Pension Scheme (the “VODAFONE EM&SM SCHEME”) by accepting a transfer from those Schemes of their assets
and liabilities. The documents governing the Vodafone Directors Scheme and the Vodafone EM&SM Scheme immediately before the Revision Date are listed in Parts 2 and 3 of Schedule 8. 
 (F) With effect from the Revision Date the Scheme has been divided into three sections known as the Staff Section, the Executive Manager and Senior Manager Section and the Directors Section respectively. 

(G) Clause 4 of the Definitive Deed provides as follows: 
 THE Trustees
may at any time, with the Principal Employer’s consent by deed executed by the Principal Employer and the Trustees in the case of the Interim Deed, this deed or the Rules, amend (or add to) all or any of the trusts, powers or provisions of the
Interim Deed, this deed or the Rules, and any such amendment or addition shall have effect from such time as may be specified in that deed or resolution and so that the time so specified 

 
may be the date of that deed or resolution or any reasonable time previous or subsequent to it, so as to give the amendment or addition retrospective or
future effect (as the case may be) 
 PROVIDED THAT for so long as the Scheme is being treated as an Exempt Approved Scheme, any such amendment or addition
shall be notified to the Board of Inland Revenue and, for so long as any employment is contracted-out by reference to the Scheme or any person is entitled to receive (or has accrued rights to) a Guaranteed Minimum Pension under the Scheme, shall not
be made without the Occupational Pensions Board’s consent if it would affect any of the manners dealt with in Part III of the Pensions Act. 
 (H) The
Principal Employer has agreed with the Trustees that the provisions of the Scheme as set out in the Definitive Deed (as amended) should be brought up to date by re-stating them in their entirety with effect from the Revision Date in the manner set
out in this Deed, including the incorporation of Schedules setting out rules governing the membership, contributions and benefits of active members of the Directors Section and the Executive Manager and Senior Manager Section as well as the Staff
Section. 
 (G) The actuary appointed by the Trustee in accordance with section 47 of the Pensions Act 1995:- 
 (1) has certified to the Trustee for the purpose of section 67 of the Pensions Act 1995 and regulation 3 of the Occupational Pension Schemes (Modification of Schemes)
Regulations 1996 (SI 1996 NO 2517) that, in his opinion, the exercise of the power conferred by Clause 4 of the Definitive Deed in the manner provided for in this Deed would not adversely affect any member of the Scheme (without his consent) in
respect of his entitlement, or accrued rights, acquired before that power is exercised; and 
 (2) confirmed to the Trustee for the purpose of section 37 of
the Pension Schemes Act 1993 and regulation 42(2) of the Occupational Pension Schemes (Contracting-out) Regulations 1996 (SI 1996 NO 1172) that the Scheme would continue to satisfy the statutory standard in accordance with section 12A of the Pension
Schemes Act of 1993 if the alterations provided for in this Deed were to be made. 
 NOW THIS DEED WITNESSES the following:- 
  

	1	ADOPTION OF NEW PROVISIONS 

 The Trustee in exercise of the
powers conferred upon it by Clause 4 of the Definitive Deed and with the consent of the Principal Employer (as evidenced by its execution of this Deed) hereby amends and adds to the provisions of the Definitive Deed and the Rules with effect from
the Revision Date by replacing them in their entirety by the provisions set out in the Schedules to this Deed. 
  

 2 

 2. APPLICATION OF THE NEW PROVISIONS 
 2.1 APPLICATION OF THE NEW PROVISIONS RELATING TO ADMINISTRATION 
 With effect from the Revision Date, the Scheme shall be administered and managed
in accordance with the Schedule 2 to this Deed for all purposes. 
 2.2 CONTINUED APPLICATION OF OLD RULES TO LEAVERS BEFORE THE REVISION DATE 
 The entitlement to benefits of any Member, and any spouse, financial dependant or dependent child of any Member, whose pensionable service terminated before the Revision
Date together with the amount of such benefits, shall be determined in accordance with such of the provisions of the Scheme, the Vodafone Directors Scheme or the Vodafone EM&SM Scheme (as applicable) as were in force immediately before the
Revision Date and applied to him or them. However, with effect from the Revision Date those benefits shall be administered in accordance with Schedule 2 to this Deed. 
 2.3 APPLICATION OF NEW RULES 
 The benefits payable to and in respect of any Member who is in pensionable service under this
Scheme on the Revision Date, or whose pensionable service commences on or after that date, shall be determined in accordance with whichever of Schedules 3 to 7 to this Deed apply to him. 
 2.4 CONTINUATION OF INDIVIDUAL ARRANGEMENTS 
 Any individual arrangements which were made before the Revision Date by or on
behalf of the Trustee with any Member who is in pensionable service on the Revision Date (including arrangements for the payment of voluntary contributions, and arrangements concerning the benefits to be provided under the Scheme in respect of any
transfer payment or voluntary contributions) and which remained in force immediately before the Revision Date, shall continue in force on and from the Revision Date as if made under the provisions of this Deed. For the purpose of this sub-Clause, in
the case of any Member who became a Member of the Scheme on the Revision Date as a result of the merger referred to in Recital (E) above, the arrangements to which this sub-Clause applies shall be deemed to include arrangements made with the
Member by the trustees of the Vodafone EM&SM Scheme or the Vodafone Directors Scheme, as the case may be. 
 IN WITNESS of which this instrument has been
duly executed as a deed on the date first before written. 
  

 3 

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 4 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 SCHEDULE 1: INTERPRETATION 

 

					
	 	  	 	  	Page
	1	  	MEMBER CATEGORIES	  	7
		  	 1.1    Member categories: (a) for Revenue Limits purposes
	  	7
		  	 1.2    Member categories: (b) for contracting-out purposes
	  	7
			
	2.	  	DEFINED TERMS	  	7
		  	 2.1    Defined terms in the Schedules
	  	7
		  	 2.2    General definitions
	  	7
			
	3	  	OTHER RULES OF INTERPRETATION	  	14
		  	 3.1    Statutory references
	  	14
		  	 3.2    Miscellaneous
	  	15
		  	 3.3    Employers’ discretions, rights and powers
	  	15

  

 5 

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 6 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 SCHEDULE 1: INTERPRETATION 

1 MEMBER CATEGORIES 
 1.1 MEMBER CATEGORIES: (A) FOR REVENUE LIMITS
PURPOSES 
 Because of changes made to Revenue Limits by the Finance (No. 2) Act 1987 and the Finance Act 1989, Members fall into three categories for Revenue
Limits purposes as set out in the Revenue Limits Rules in Schedule 6. 
 1.2 MEMBER CATEGORIES: (B) FOR CONTRACTING-OUT PURPOSES 
 Members who were in Pensionable Service before 6 April 1997 have accrued rights to Guaranteed Minimum Pensions in respect of Pensionable Service up to 5 April
1997. The rules applicable to Guaranteed Minimum Pensions are summarised in Schedule 7. 
 Members whose Pensionable Service commences on or after
6 April 1997 have no accrued rights to Guaranteed Minimum Pensions except in respect of any transfer payment received by the Scheme from another scheme under which the Member concerned had accrued rights to Guaranteed Minimum Pensions as a
result of contracted-out employment prior to 6 April 1997. Similarly, Members whose Pensionable Service commenced before 6 April 1997 have no rights to Guaranteed Minimum Pensions in respect of Pensionable Service on or after that date.

 2 DEFINED TERMS 
 2.1 DEFINED TERMS IN THE SCHEDULES

 Where defined terms are used only in one or other of Schedules 3 to 7, they are defined separately in Rule 1 of the Schedule in question. 
 2.2 GENERAL DEFINITIONS 
 Throughout this Deed, the following words and
expressions have the following meanings respectively:- 
 “ACTUARY” means the individual who is for the time being appointed by the Trustees as
actuary to the Scheme as provided for in sub-Clause 7.2 in Schedule 2; 
 “ADMINISTRATION REGULATIONS” means the Occupational Pension Schemes
(Scheme Administration) Regulations 1996 (SI 1996 No. 1715); 
  

 7 

 “APPROVAL” means approval by the Inland Revenue for the purposes of Chapter 1 of Part XIV of the Taxes Act;

 “ASSIGNMENT ETC. REGULATIONS” means the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 1997 (SI 1997
No. 785); 
 “AUDITOR” means the individual, body corporate or partnership who or which is for the time being appointed by the Trustees as
auditor to the Scheme as provided for in sub-Clause 7.2 in Schedule 2; 
 “AUTHORISED INSURANCE COMPANY” means any insurance company of the kind
referred to in section 19(4)(a) of the Pension Schemes Act; 
 “COMMENCEMENT DATE” means 1 November 1988; 
 “CONTRACTED-OUT BENEFITS” means benefits in respect of contracted-out employment (within the meaning of section 8(1) of the Pension Schemes Act) consisting of
Guaranteed Minimum Pensions, Protected Rights and Section 9(2B) Rights: 
 “CONTRACTED-OUT EMPLOYMENT” shall be construed in accordance with
section 8(1) of the Pension Schemes Act; 
 “CONTRACTED-OUT MEMBER” means a Member in relation to whose employment the Scheme is a contracted-out
scheme within the meaning of section 7(3) of the Pension Schemes Act; 
 “CONTRACTING-OUT REQUIREMENTS” means the requirements which the Trustees
must comply with by reason of the Scheme being a contracted-out scheme within the meaning of section 7(3) of the Pension Schemes Act; 
 “CONTRACTING-OUT TRANSFER REGULATIONS” means the Contracting-out (Transfer and Transfer Payment) Regulations 1996 (SI 1996 No. 1462); 
 “DEFERRED MEMBER” means a Member who is entitled to preserved benefits under the Scheme; 
 “DEPENDANT” means, in relation to a
Member:- 
 (a) any individual who in the opinion of the Trustees is financially dependent on him or dependent on him because of disability, or who was so
dependent at the time of the Member’s death or retirement; and 
 (b) any Dependent Child of his; 
 “DEPENDENT CHILD” means, in relation to a Member:- 
 (i) any
natural child of the Member conceived before the Member’s death; 
 (ii) any adoptive child of the Member; and 
  

 8 

 (iii) any other child whom the Trustees in their discretion determine to treat as a child of the Member for the purpose
of this definition; 
 who, whether or not financially dependent on him, is:- 
 (a) under age 18; or 
 (b) aged 18 or more but under age 21 and continuing in full-time education or receiving full-time
vocational training; or 
 who is aged 18 or more and wholly or partly financially dependent on the Member by reason of physical or mental incapacity;

 “DIRECTORS SECTION” means the Director Section of this Scheme in relation to which the Rules relating to eligibility, membership, contributions
and benefits are set out in Schedule 5; 
 “DISCLOSURE REGULATIONS” means the Occupational Pension Schemes (Disclosure of Information) Regulations
1996 (SI 1996 No. 1655); 
 “DISCRETIONARY BENEFICIARIES” is used only in Clause 22 in Schedule 2 and is defined in sub-Clause 22.1;

 “EMPLOYEE” means an employee of any of the Employers; 
 “EMPLOYER” means, in relation to a Member, whichever of the Employers he is employed by; 
 “EMPLOYERS” means the Principal
Employer and the Participating Employers collectively; 
 “EXECUTIVE MANAGER AND SENIOR MANAGER SECTION” means the Executive Manager and Senior
Manager Section of this Scheme in relation to which the Rules relating to eligibility, membership, contributions and benefits are set out in Schedule 4; 
 “FINAL PENSIONABLE EARNINGS” means, in relation to a Member, the greater of:- 
 (1) the annual average of his basic earnings from his
Employer (and of any other earnings from his Employer which are deemed by the Principal Employer to be pensionable) in the thirty-six months ended on his Scheme Exit Date, together with the annual average of the commission and/or bonus payments
received by the Member from his Employer during the previous three Scheme Years; and 
 (2) the annual average of his Pensionable Earnings in any three
consecutive years in the ten years ended on his Scheme Exit Date; 
 “FINANCIAL DEPENDANT” means, in relation to a Member, any natural person
(other than the Member’s spouse) who, in the Trustees’ opinion, is wholly or partly financially dependent upon that Member (or was so dependent) at the date 

  

 9 

 
of the Member’s death or retirement (as the case may be) and whose relationship with the Member was in the Trustees’ opinion similar to that of a
spouse; 
 “FORMER PROVISIONS” means the trusts, powers and provisions of the Scheme from time to time in force prior to the Revision Date;

 “FUND” means the fund comprising all monies, investments and other property from time to time held by the Trustees upon the trusts of the
Scheme; 
 “FUND MANAGER” means any person who is for the time being appointed as provided for in sub-Clause 7.3 in Schedule 2 to manage the
investments held for the purposes of the Scheme; 
 “GMP RULES” means the rules relating to Guaranteed Minimum Pensions set out in Schedule 7;

 “GUARANTEED MINIMUM PENSION” has the same meaning as in section 8(2) of the Pension Schemes Act; 
 “INLAND REVENUE” means the Commissioners of Inland Revenue; 
 “MEMBER” means:- 
 (a) in Schedule 2, any individual who, having been admitted to membership of the Scheme (on whatever date and whether
or not in Pensionable Service on the Revision Date), remains entitled (whether prospectively or actually) to any benefits from the Scheme; and 
 (b) in
Schedules 3 to 5, any individual to whom those Schedules apply by virtue of Rule 1 in each such Schedule; 
 “MEMBER’S CONTRIBUTIONS” means
contributions paid by the Member to the Scheme (other than voluntary contributions) and the amount of any transfer payment relating to the Member which represents the Member’s contributions (other than voluntary contributions) to the previous
scheme or arrangement; 
 “MFR REGULATIONS” means the Occupational Pension Schemes 
 (Minimum Funding Requirement and Actuarial Valuations)  
 Regulations 1996 (SI 1996 No. 1536); 
 “MINIMUM TRUSTEE REQUIREMENTS” means the requirement under sub-Clause 3.1 in Schedule 2 that unless a company (which need not be a trust corporation) is sole
Trustee, the minimum number of Trustees shall be two; 
 “NORMAL PENSION AGE” is relevant only to early leavers and has the meaning ascribed to it
by Section 180 of the Pension Schemes Act; 
 “NORMAL RETIREMENT AGE” is separately defined in Rule 1 in Schedules 3, 4 and 5; 
  

 10 

 “PARTICIPATING EMPLOYER” means a company or firm which has been admitted to participation as an employer in the
Scheme in accordance with sub-Clause 6.3 in Schedule 2 or the Former Provisions, and whose participation has not terminated pursuant to the Former Provisions or any of sub-Clauses 6.5 to 6.10 in Schedule 2; 
 “PENSIONABLE EARNINGS” means in relation to any Member the aggregate of the following earnings:- 
 (1) the Member’s annual rate of basic pay from his Employer as at the immediately preceding 1 April and any other earnings which are deemed by the Principal Employer to be pensionable; and 
 (2) the annual average of any commission, bonus and other fluctuating payments deemed by the Principal Employer to be pensionable received by the Member from his
Employer during the previous three Scheme Years; 
 except that:- 
 (a) in the case of a Member whose Service commences on a date other than 1 April, it means, for the purpose of the Scheme Year in which his Service commences, his annual rate of basic pay from his Employer as at the date on which his
Service commences plus the annual rate of any other earnings for that Scheme Year which are deemed by the Principal Employer to be pensionable; and 
 (b)
for the purpose of calculating any lump sum payable on death in Pensionable Service the annual rate of pay for the purpose of paragraph (1) of this definition shall be taken as at the date of the Member’s death instead of the preceding 1
April; 
 “PENSIONABLE SERVICE” means Service which counts towards benefits under the Scheme; 
 “PENSION SCHEMES ACT” means the Pension Schemes Act 1993; 
 “PENSIONS ACT” means the Pensions Act 1995; 
 “PRESERVATION REGULATIONS” means the Occupational Pension Schemes (Preservation
of Benefit) Regulations 1991 (SI 1991 No. 167); 
 “PRESERVATION REQUIREMENTS” means the requirements concerning the protection of early
leavers as specified in or under sections 71 to 82 of the Pension Schemes Act; 
 “PRINCIPAL EMPLOYER” means Vodafone Group Plc (registered in
England no 1833679) or such other company or firm which for the time being holds the position of principal employer for the purposes of the Scheme pursuant to Clause 5 in Schedule 2; 
  

 11 

 “PROTECTED RIGHTS” has the same meaning as in Section 10 of the Pension Schemes Act; 
 “PROTECTED RIGHTS TRANSFER REGULATIONS” means the Protected Rights (Transfer Payment) Regulations 1996 (SI 1996 No 1461); 
 “QUALIFYING SERVICE” means, in relation to a Member whose Pensionable Service has terminated otherwise than by death or retirement with an immediate
entitlement to pension from the Scheme, the period which is relevant for the purpose of determining whether he is entitled to a preserved pension from the Scheme, and the length of which is calculated in accordance with the Preservation
Requirements; 
 “RACAL DIRECTORS SCHEME” means the Racal Group Executive Pension Plan established by an Interim Trust Deed dated 26 March
1976; 
 “RACAL EM&SM SCHEME” means the Racal Group Executive Manager and Senior Manager Pension Scheme established by a Declaration of Trust
dated 1 April 1993 and originally called The Decca Limited 1968 Supplementary Scheme for Senior Executives; 
 “RACAL RBS SCHEME” means the
Racal Group Retirement Scheme (for weekly and hourly paid employees) established by an Interim Deed dated 27 April 1978; 
 “RACAL STAFF
SCHEME” means the Racal Group Staff Pension and Life Assurance Scheme established by a Trust Deed dated 23 February 1962 and originally called the Radiotel Group Pension Fund; 
 “REVENUE LIMITS” means the limits on benefits and contributions from time to time imposed by the Inland Revenue as a condition of Approval, of which brief details are set out in the Revenue Limits Rules;

 “REVENUE LIMITS RULES” means the rules set out in Schedule 6; 
 “REVISION DATE” means 1 April 1999; 
 “RPI” means the general index of retail prices (for all
items) published by the Office for National Statistics, and if that index is not published for a month which is relevant for the purposes of any provision of the Scheme, that provision shall be construed as referring to any substituted index or
index figures published by that Office; 
 “RULES” means the rules of the Scheme relating to membership, Members’ contributions and benefits
from time to time in force, consisting of the rules set out in Schedules 3 to 7 to this Deed as amended from time to time pursuant to Clause 24 in Schedule 2; 
 “SCHEDULE” means, except where the context requires otherwise, a schedule to this Deed; 
  

 12 

 “SCHEDULE OF CONTRIBUTIONS” means the schedule to be prepared, maintained and from time to time revised by the
Trustees pursuant to section 58 of the Pensions Act; 
 “SCHEME” means the Vodafone Group Pension Scheme established by the Interim Trust Deed
dated 10 October 1988 listed as document no. 1 in Part 1 of Schedule 8 to which this Deed is supplemental; 
 “SCHEME EXIT DATE” means, in
relation to any Member in Pensionable Service on or after the Revision Date, the earliest of the following dates:- 
 (1) when he retires from Service;

 (2) when he leaves Service otherwise than by reason of deat or retirement; 
 (3) when he withdraws from active membership of the Scheme pursuant to sub-Rule 2.7 in Schedules 3, 4 or 5; 
 (4) when he
dies, if he dies in Service; 
 (5) his Normal Retirement Age; 
 and the Trustees may rely on a statement from the Member’s Employer as to the date when the Member’s Service terminates; 
 “SCHEME YEAR” MEANS:- 
 (a) a period of 12 months commencing on 1 April in any year or on such other date as the Trustees
shall select; or 
 (b) such other period (if any) exceeding 6 months but not exceeding 18 months as is selected by the Trustees;- 
 (i) in respect of the year in which the Scheme terminates; or 
 (ii) in
connection with a variation of the date on which the Scheme Year is to commence; 
 “SECTION 9(2B) RIGHTS” has the same meaning as in regulation 1
of the Contracting-out Transfer Regulations; 
 “SERIOUS ILL-HEALTH” means, in relation to a Member, physical or mental deterioration which in the
opinion of the Trustees is sufficiently serious to prevent the Member from following his normal employment, or which seriously impairs his earning capacity, and does not mean simply a decline in energy or ability; 
 “SERVICE means employment by any of the Employers, or, in relation to any period before the Commencement Date, employment by Racal Electronics Plc or any of its
subsidiaries; 
  

 13 

 “SHORT SERVICE BENEFIT” means the benefit which the Scheme must provide in respect of a Member in order to
comply with the Preservation Requirements where;- 
 (1) the Member’s Pensionable Service is terminated by him leaving Service or opting out of the
Scheme whilst remaining in Service; and 
 (2) he has by then completed the period of qualifying servic required by the Preservation Requirements applicable
to him when his Pensionable Service terminated or a transfer payment in respect of his rights under a personal pension scheme (within the meaning of the Pensions Schemes Act) has been made to the Scheme; 
 “STAFF SECTION” means the Staff Section of this Scheme in relation to which the Rules relating to eligibility, membership, contributions and benefits are set
out in Schedule 3; 
 “TAXES ACT” means the Income and Corporation Taxes Act 1988; 
 “TAX YEAR” means a year commencing on 6 April; 
 “TERMINATION DATE” means the date on which the Scheme
terminates in accordance with Clause 25 in Schedule 2; 
 “TRIVIALITY LIMIT” means, in relation to a Member’s pension, that the total value of
all his benefits from occupational pensions schemes providing benefits in respect of his employment with his Employer is in the opinion of the Trustees less than a pension of (pound)260 per annum or such higher amount as may be prescribed by
regulations made under section 77(5) of the Pension Schemes Act and “TRIVIAL” means within the Triviality Limit; 
 “TRUST DEEDS” means
the deeds which govern or relate to the Scheme; 
 “TRUSTEE” means a trustee of the Scheme and where the context allows the “TRUSTEES”
means the trustees or trustee for the time being of the Scheme; 
 “VODAFONE DIRECTORS SCHEME” means the Vodafone Group Directors Pension Scheme
Established by an Interim Trust Deed dated 10 October 1988 and originally called the Racal Telecom Directors Pension Scheme; 
 “VODAFONE EM&SM
SCHEME” means the Vodafone Group Executive Manager and Senior Manager Pension Scheme established by an Interim Trust Deed dated 10 October 1988 and originally called the Racal Telecom Executive Manager and Senior Manager Pension Scheme.

 3 OTHER RULES OF INTERPRETATION 
 3.1 STATUTORY REFERENCES

 Any reference in this Deed to any Act of Parliament or any Part, Chapter or Section of, or any Regulation made under any such Act shall include any
statutory 

  

 14 

 
modification or re-enactment thereof for the time being in force, and, in respect of any period prior to the date of this Deed, any statutory predecessor
than in force. 
 3.2 MISCELLANEOUS 
 Except where the context
requires otherwise, in this Deed:- 
 (1) words which appear in the singular shall include the plural; and 
 (2) words which appear in the masculine shall include the feminine. 
 3.3
EMPLOYERS’ DISCRETIONS, RIGHTS AND POWERS 
 The Principal Employer and every other Employer may exercise any or all of the discretions, rights and
powers which are exercisable by it under the Scheme for its own sole and absolute benefit, except that the Principal Employer shall have regard to the interests of the Members and other beneficiaries of the Scheme when exercising its powers to
appoint and remove Trustees. 
  

 15 

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 16 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 SCHEDULE 2: OPERATION OF THE SCHEME 

  

							
		    		  	PART 1: INTRODUCTION	  	23
			
	 1       
	    	CONSITITUTION OF THE SCHEME	  	23
				
		    	1.1	  	Scheme name	  	23
		    	1.2	  	Declaration of trust	  	23
		    	1.3	  	Irrevocability	  	23
		    	1.4	  	Purpose	  	23
		    	1.5	  	Revenue limits	  	23
		    	1.6	  	Contracting-out	  	23
			
	 2       
	    	BENEFITS TO BE PROVIDED BY THE SCHEME	  	24
				
		    	2.1	  	Benefits in relation to Members	  	24
		    	2.2	  	Admission to membership	  	24
		    	2.3	  	Membership on special terms	  	24
		    	2.4	  	Closure of Scheme to new Members	  	24
				
		    		  	PART 2: THE TRUSTEES	  	25
			
	 3       
	    	APPOINTMENT AND TERMINATION OF APPOINTMENT	  	25
				
		    	3.1	  	Number	  	25
		    	3.2	  	Member-nominated trustees or directors requirements	  	25
		    	3.3	  	Appointment	  	25
		    	3.4	  	Termination of appointment	  	25
		    	3.5	  	Resignation	  	26
		    	3.6	  	Removal	  	26
		    	3.7	  	Appointment of Principal Employer as Trustee	  	26
		    	3.8	  	Discharge upon termination of appointment	  	26
		    	3.9	  	Vesting following termination of appointment	  	26
			
	 4       
	    	OTHER PROVISIONS APPLICABLE TO TRUSTEES	  	26
				
		    	4.1	  	Remuneration and personal expenses	  	26
		    	4.2	  	Liability	  	27
		    	4.3	  	Interests of Trustees	  	28
		    	4.4	  	Retention of Scheme benefits	  	28
		    	4.5	  	Sole corporate Trustee	  	28
		    	4.6	  	Proceedings of Trustees	  	28
				
		    		  	PART 3: THE EMPLOYERS	  	31
			
	 5       
	    	THE PRINCIPAL EMPLOYER	  	31
				
		    	5.1	  	Substitution of principal employer	  	31
		    	5.2	  	How substitution is effected	  	31
		    	5.3	  	Effective date of substitution	  	31

  

 17 

							
		    	5.4	  	Deed of substitution	  	31
		    	5.5	  	Insolvency or winding up of Principal Employer	  	32
		    	5.6	  	Effect of Principal Employer’s insolvency or winding up	  	32
		    	5.7	  	Effect of subsequent substitution of Principal Employer	  	32
			
	6	    	PARTICIPATING EMPLOYERS	  	33
				
		    	6.1	  	Eligibility to participate: (1) on a permanent basis	  	33
		    	6.2	  	Eligibility to participate: (2) on a temporary basis	  	33
		    	6.3	  	Admission to participation	  	33
		    	6.4	  	Participating Employer ceasing to be associated	  	34
		    	6.5	  	Termination of participation: (1) by Principal Employer	  	34
		    	6.6	  	Termination of participation: (2) by Participating Employer	  	34
		    	6.7	  	Termination of participation: (3) by the Trustees	  	35
		    	6.8	  	Other circumstances resulting in termination of participation	  	35
		    	6.9	  	Effect of termination of participation	  	36
		    	6.10	  	Partial winding-up	  	36
			
		    	PART 4: THE PROFESSIONAL ADVISERS	  	38
			
	 7       
	    	APPOINTMENT OF PROFESSIONAL ADVISERS	  	38
				
		    	7.1	  	Meaning of “professional adviser”	  	38
		    	7.2	  	Auditor and actuary	  	38
		    	7.3	  	Fund Manager	  	38
		    	7.4	  	Eligibility for appointment as auditor or actuary	  	39
		    	7.5	  	Eligibility for appointment as other professional adviser	  	39
		    	7.6	  	Trustees to rely on their own professional advisers	  	39
			
	 8       
	    	MANNER AND TERMS OF APPOINTMENT OF PROFESSIONAL ADVISERS	  	39
				
		    	8.1	  	Manner of appointment and removal	  	39
		    	8.2	  	Terms of appointment: (a) generally	  	39
		    	8.3	  	Terms of appointment: (b) fund manager	  	40
		    	8.4	  	Terms of appointment: (c) custodians and nominees	  	40
				
		    		  	PART 5: SCHEME ADMINISTRATION	  	42
			
	 9       
	    	TRUSTEES’ ADMINISTRATIVE POWERS	  	42
				
		    	9.1	  	Specific powers and general power	  	42
		    	9.2	  	Appointment of additional account signatories	  	42
		    	9.3	  	Bank accounts	  	42
		    	9.4	  	Borrowing	  	43
		    	9.5	  	Costs and expenses	  	43
		    	9.6	  	Debts and claims	  	43
		    	9.7	  	Delegation	  	43
		    	9.8	  	Donations and bequests	  	44
		    	9.9	  	Employment of staff and agents	  	44
		    	9.10	  	Guarantees and indemnities	  	44
		    	9.11	  	Insurance	  	44
		    	9.12	  	Legal proceedings	  	45
		    	9.13	  	Paying agents	  	45
		    	9.14	  	Questions and matters of doubt	  	45
		    	9.15	  	Questions of fact	  	45

  

 18 

							
		    	9.16	  	Revenue undertakings	  	45
		    	9.17	  	Security over assets of the Fund	  	46
		    	9.18	  	Specialist advice	  	46
		    	9.19	  	Tax	  	46
		    	9.20	  	Withholding or suspending payment of benefits	  	46
			
	10	    	ACCOUNTS, RECORDS AND AUDIT	  	47
				
		    	10.1	  	Accounts and records	  	47
		    	10.2	  	Audited records	  	47
		    	10.3	  	Disclosure of information to auditor	  	47
			
	11	    	PROVISION OF INFORMATION	  	47
				
		    	11.1	  	Provision of information and documents by the Trustees	  	47
		    	11.2	  	Provision of information by Employers	  	48
		    	11.3	  	Provision of information by Members and others	  	48
			
	12	    	OTHER MISCELLANEOUS PROVISIONS	  	48
				
		    	12.1	  	Protection of third parties: (a) receipts	  	48
		    	12.2	  	Protection of third parties: (b) purchasers and lenders	  	48
		    	12.3	  	Notices	  	49
		    	12.4	  	Termination of employment	  	49
		    	12.5	  	Resolution of disputes	  	49
				
		    		  	PART 6: THE FUND	  	50
			
	 13       
	    	CONTRIBUTIONS TO THE FUNDS	  	50
				
		    	13.1	  	Members’ contributions	  	50
		    	13.2	  	Employers’ contributions: (a) amount and payment intervals	  	50
		    	13.3	  	Employers’ contributions: (b) termination	  	50
			
	 14       
	    	SCHEME EXPENSES	  	50
				
		    	14.1	  	Payment out of Fund	  	50
		    	14.2	  	Payment by Employers	  	51
			
	 15       
	    	INVESTMENT OF THE FUND	  	51
				
		    	15.1	  	Retention of monies in bank account etc	  	51
		    	15.2	  	Power of investment	  	51
		    	15.3	  	Ancillary investment powers	  	51
		    	15.4	  	Pooled investments	  	52
		    	15.5	  	Compliance with legal requirements	  	52
		    	15.6	  	Appointment of Fund Manager	  	52
			
	 16       
	    	SAFE CUSTODY OF THE FUND	  	53
				
		    	16.1	  	Trustees’ duty to safeguard assets	  	53
		    	16.2	  	Appointment of custodians and nominees	  	53
		    	16.3	  	Professional adviser requirements	  	53
			
	 17       
	    	SURPLUSES AND DEFICITS	  	53
				
		    	17.1	  	Trustees’ duty to obtain actuarial valuations	  	53
		    	17.2	  	Trustees’ power to obtain actuarial valuations	  	53

  

 19 

							
		    	17.3	  	Surplus revealed by actuarial valuation	  	54
		    	17.4	  	Deficit revealed by actuarial valuation	  	54
				
		    		  	PART 7: TRANSFERS TO AND FROM THE FUND	  	55
			
	18	    	ACCEPTANCE OF TRANSFER PAYMENTS	  	55
				
		    	18.1	  	Power to accept transfer payments	  	55
		    	18.2	  	Inland Revenue requirements	  	55
		    	18.3	  	Contracting-out requirements	  	55
		    	18.4	  	Scheme benefits in return for transfer payments	  	56
		    	18.5	  	Information to be obtained in respect of transfer payments	  	56
		    	18.6	  	Transferred-in Members’ contributions	  	56
		    	18.7	  	Transfers of assets	  	57
			
	19	    	MAKING TRANSFER PAYMENTS	  	57
				
		    	19.1	  	Power to make payments	  	57
		    	19.2	  	Inland Revenue requirements	  	57
		    	19.3	  	Contracting-out requirements	  	57
		    	19.4	  	Preservation requirements	  	58
		    	19.5	  	Effect of Member exercising right to cash equivalent	  	58
		    	19.6	  	Member’s consent to transfer out	  	59
		    	19.7	  	Amount to be applied in making transfer payment	  	59
		    	19.8	  	Bulk transfers	  	59
		    	19.9	  	Reliance on Actuary’s advice	  	59
		    	19.10	  	Benefits under the other scheme: (a) transfer with consent	  	60
		    	19.11	  	Benefits under the other scheme: (b) transfer without consent	  	60
		    	19.12	  	Discharge of Trustees on transfer out	  	60
		    	19.13	  	Power to transfer out following death of a Member	  	60
		    	19.14	  	Transfer of assets	  	61
		    	19.15	  	Merger with another scheme	  	61
			
	20	    	BUYING OUT BENEFITS	  	61
				
		    	20.1	  	Power to buy out	  	61
		    	20.2	  	Benefits to be provided on buying out	  	62
		    	20.3	  	Amount to be applied in buying out	  	62
		    	20.4	  	Inland Revenue requirements	  	62
		    	20.5	  	Contracting-out requirements	  	63
		    	20.6	  	Preservation requirements	  	63
		    	20.7	  	Member’s consent to buy-out	  	63
		    	20.8	  	Discharge of Trustees on buying out	  	63
		    	20.9	  	Effect of Member exercising right to cash equivalent	  	64
		    	20.10	  	Power to buy out following death of a Member	  	64
				
		    		  	PART 8: PROVISION OF BENEFITS	  	65
			
	21	    	AUGMENTATION: ADDITIONAL OR NEW BENEFITS	  	65
				
		    	21.1	  	Request from Employers for augmentation	  	65
		    	21.2	  	Trustees’ power of augmentation	  	65
			
	22	    	TRUSTEES’ DISCRETION AS TO LUMP SUM DEATH BENEFITS	  	65
				
		    	22.1	  	Interpretation	  	65

  

 20 

							
		 	22.2	  	Trustees’ discretion	  	66
			
	23	 	MISCELLANEOUS PROVISIONS CONCERNING BENEFITS	  	67
				
		 	23.1	  	Inalienability of benefits subject to exception	  	67
		 	23.2	  	Forfeiture prohibited subject to exceptions	  	68
		 	23.3	  	Monetary obligation due to Employer	  	69
		 	23.4	  	Monetary obligation due or loss caused to Scheme	  	70
		 	23.5	  	Payments to infants and persons under incapacity	  	72
		 	23.6	  	Polygamous marriages	  	73
				
		 		  	PART 9: AMENDMENT AND TERMINATION	  	74
			
	24	 	AMENDMENT	  	74
				
		 	24.1	  	Power of amendment	  	74
		 	24.2	  	Effective date of amendment	  	74
		 	24.3	  	Trustees’ statutory power of amendment	  	74
		 	24.4	  	Statutory restrictions on power of amendment	  	74
			
	25	 	TERMINATION OF THE SCHEME	  	74
				
		 	25.1	  	Termination by the Principal Employer	  	74
		 	25.2	  	Termination by the Trustees	  	75
		 	25.3	  	Perpetuity period	  	75
		 	25.4	  	Termination at or following end of perpetuity period	  	75
		 	25.5	  	Certain consequences of termination	  	76
		 	25.6	  	Continuation of Scheme as paid-up and closed scheme following termination	  	76
		 	25.7	  	Winding up following termination	  	76
		 	25.8	  	Notice of termination to Members and others	  	76
			
	26	 	WINDING UP	  	77
				
		 	26.1	  	Commencement	  	77
		 	26.2	  	Powers and discretions	  	77
		 	26.3	  	Members’ rights	  	77
		 	26.4	  	Realisation of assets	  	77
		 	26.5	  	Creation of a reserve for costs and expenses	  	78
		 	26.6	  	Order of priority for securing Scheme’s liabilities	  	78
		 	26.7	  	Valuing the Scheme’s liabilities	  	78
		 	26.8	  	Deficit on winding up	  	78
		 	26.9	  	Surplus on winding up	  	78
		 	26.10	  	Power to secure liabilities on an interim basis	  	79
		 	26.11	  	Manner in which liabilities to be secured	  	79
		 	26.12	  	Information to Members and others concerning winding up	  	79
		 	26.13	  	Trustees’ general power on winding up	  	79

  

 21 

 PAGE INTENTIONALLY LEFT BLANK 
  

 22 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 SCHEDULE 2: OPERATION OF THE SCHEME 

 PART 1: INTRODUCTION 
 1 CONSTITUTION
OF THE SCHEME 
 1.1 SCHEME NAME 
 With effect from the Revision
Date the name of the Scheme shall be the “Vodafone Group Pension Scheme”. 
 1.2 DECLARATION OF TRUST 
 The Trustees shall hold the assets of the Scheme upon, with and subject to the trusts, powers and provisions set out or referred to in this Deed. 
 1.3 IRREVOCABILITY 
 The trusts of the Scheme are irrevocable. 
 1.4 PURPOSE 
 The purpose of the Scheme shall be the provision of such
relevant benefits (as defined in section 612 of the Taxes Act) to such persons (being employees or former employees of the Employers or other persons having some connection with them) as may be set out in or determined in accordance with this Deed.

 1.5 REVENUE LIMITS 
 All benefits provided by the Scheme and
all contributions paid by Members to the Scheme shall be restricted to such extent (if any) as may be necessary to comply with Revenue Limits. 
 1.6
CONTRACTING-OUT 
 The Scheme is designed to be contracted-out of the state earnings related pension scheme on a salary-related basis in relation to the
employment of Members in Pensionable Service by virtue of satisfying section 9(2) of the Pension Schemes Act. Accordingly:- 
  

	1.6.1	in relation to any Member’s Pensionabl Service before 6 April 1997, it is designed to satisfy the conditions of section 9(2A) (Guaranteed Minimum Pensions); and

  

	1.6.2	in relation to any Member’s Pensionabl Service on or after 6 April 1997, it is designed to satisfy the conditions of section 9(2B) (statutory standard and reference
scheme). 

  

 23 

 2 BENEFITS TO BE PROVIDED BY THE SCHEME 
 2.1 BENEFITS IN RELATION TO MEMBERS 
 The benefits provided by the Scheme shall be payable to or in respect of Members.

 2.2 ADMISSION TO MEMBERSHIP 
 On and after the Revision Date
Employees shall be admitted to membership in accordance with Rule 2 in whichever of Schedules 3, 4 or 5 is applicable to him. 
 In addition, the Trustees
shall have power, with the Principal Employer’s consent, to admit (or re-admit) to membership of the Scheme any person who is entitled or prospectively entitled to benefits under any other scheme or arrangement if the admission (or
re-admission) of such person would not prejudice the Scheme’s Approval. 
 2.3 MEMBERSHIP ON SPECIAL TERMS 
 If requested to do so by the Principal Employer, the Trustees may grant any Employee or any other person (in either case whether or not already a Member) membership of
the Scheme on special terms as to any contributions to be paid by him or the benefits to be provided for and in respect of him which differ in any respect from the terms of membership set out in Schedules 3, 4 or 5 except that such special terms
must comply with the Revenue Limits Rules and, if the Member is a Contracted-out Member, the Contracting-out Requirements. Any special terms which may apply to a Member by virtue of this sub-Clause shall only apply when set out in writing in
memorandum or other document signed by or on behalf of the Trustees. 
 2.4 CLOSURE OF SCHEME TO NEW MEMBERS 
 The Principal Employer may by notice in writing to the Trustees at any time close the Scheme to new Members; and with effect from the date of such notice, no further
persons shall be admitted to membership. 
  

 24 

 PART 2: THE TRUSTEES 
 3. APPOINTMENT AND TERMINATION OF APPOINTMENT 
 3.1 NUMBER 
 A company (which need not be a trust corporation) may be the sole Trustee. Unless a company is the sole Trustee or one of the Trustees, the minimum number of Trustees shall be two. There shall be no maximum number of
Trustees. 
 3.2 MEMBER-NOMINATED TRUSTEES OR DIRECTORS REQUIREMENTS 
 For so long as a company is a sole Trustee, it must comply with sections 18 to 21 of the Pensions Act with regard to member-nominated directors, insofar as those sections are applicable to the Scheme. 
 If a company ceases to be sole Trustee, the Trustees must comply with sections 16 to 21 of the Pensions Act with regard to member-nominated trustees, insofar as those
section are applicable to the Scheme. 
 3.3 APPOINTMENT 
 Subject to sub-Clause 3.2, the Principal Employer shall have the power to appoint new and additional Trustees. The power shall be exercised by deed of appointment to which the parties shall be the Principal Employer, the continuing Trustees
and the new or additional Trustee(s). 
 3.4 TERMINATION OF APPOINTMENT 
 A Trustee shall cease to be a Trustee in the following circumstances:- 
  

	3.4.1	if, being an individual, he dies; 

  

	3.4.2	if he resigns from his office in accordance with sub-Clause 3.5; 

  

	3.4.3	if he is removed from his office in accordance with sub-Clause 3.6; 

  

	3.4.4	if he becomes prohibited by law from being a trustee (including if he becomes disqualified for being a trustee in accordance with sections 29 and 30 of the Pensions Act);

  

	3.4.5	if he becomes bankrupt or makes any arrangement or composition with his creditors generally; or 

  

	3.4.6	if he is, or may be, suffering from mental disorder and either:- 

  

	 	(a)	he is admitted to hospital in pursuance of an application for admission for treatment under the Mental Health Act 1983 or, in Scotland, an application for admission under the Mental
Health (Scotland) Act 1960, or 

  

 25 

	 	(b)	an order is made by a court having jurisdiction (whether in the United Kingdom or elsewhere) in matters concerning mental disorder for his detention or for the appointment of a
receiver, curator bonis or other person to exercise powers with respect to his property or affairs. 

 3.5 RESIGNATION 
 Any Trustee may resign from office by serving notice of resignation on both the Principal Employer and the other Trustees (if any). The period of notice required shall be
one month or such lesser period (including summary notice) as the Principal Employer and the other Trustees (if any) may agree to accept. 
 3.6 REMOVAL

 Subject to sub-Clause 3.2, the Principal Employer shall have power to remove any Trustee or Trustees from office for any reason whatsoever provided that
immediately following such removal the Minimum Trustee Requirement will be satisfied. The power shall be exercised by deed of removal executed by the Principal Employer. 
 3.7 APPOINTMENT OF PRINCIPAL EMPLOYER AS TRUSTEE 
 If upon any Trustee ceasing to be a Trustee the Minimum Trustee
Requirement is not satisfied, the Principal Employer shall thereupon become the Trustee (if there would otherwise be no Trustee at all) or one of the Trustees (if otherwise there would be a sole individual Trustee) but it shall be under a duty to
appoint another person in its place as soon as reasonably practicable thereafter consistently with the requirements referred to in sub-Clause 3.2 insofar as it is applicable to the Scheme. 
 3.8 DISCHARGE UPON TERMINATION OF APPOINTMENT 
 Each Trustee shall be
discharged from the trusts of the Scheme upon ceasing to be a Trustee in accordance with the Clause, but such discharge shall be without prejudice to any liability the discharged Trustee may have for any breach of trust previously committed by him.

 3.9 VESTING FOLLOWING TERMINATION OF APPOINTMENT 
 Each
Trustee shall on and after ceasing to be a Trustee do all such acts, matters and things as the continuing and any new or additional Trustees may require in order to vest in them the assets of the Scheme. 
 4. OTHER PROVISIONS APPLICABLE TO TRUSTEES 
 4.1 REMUNERATION AND PERSONAL
EXPENSES 
 Each of the Trustees shall be entitled:- 
  

 26 

	4.1.1	to charge and be paid such fees or remuneration (if any) for his or its services in connection with the Scheme as he or it may from time to time agree with the Principal Employer;

  

	4.1.2	to be paid such fees or remuneration out of the Fund unless (a) he or it agrees with the Principal Employer that such fees or remuneration shall be paid by the Principal
Employer or (b) notwithstanding such an agreement, the Principal Employer commits any breach of its obligation to pay; 

  

	4.1.3	to retain beneficially any brokerage, commission, fee, remuneration or dividend (other than a dividend payable in respect of an asset of the Fund) payable to him or it whether
directly or indirectly (and so that his entitlement shall apply also to any firm of which the Trustee is a partner and to any company which is a subsidiary of or associated with the Trustee or in which the Trustee is interested, whether as officer
or shareholder); 

 but no amount may be paid under this sub-Clause if and to the extent that paying it would contravene section 31 of the
Pensions Act. 
 4.2 LIABILITY 
 The following provisions shall
apply to the liability of the Trustees for any beach of any of their obligations:- 
  

	4.2.1	No Trustee shall be responsible, chargeable or liable in any manner whatsoever for (or in respect of) any loss of, nor for any depreciation in (or default upon), any of the
investments, securities, stocks or policies in which the moneys and assets of the Fund (or any part of it) may at any time be invested in accordance with the provisions of this Deed, nor for any delay which may occur (from whatever cause) in the
investment of any moneys belonging to it, nor for the safety of any securities or documents of title deposited by the Trustees for safe custody, nor for the exercise of any discretionary power conferred on the Trustees by the Trust Deeds (including
any act or omission by any agent, staff or delegate appointed by the Trustees), nor for anything else except wilful default on the part of the Trustee who is sought to be made liable. 

  

	4.2.2	As required by section 33 of the Pensions Act, sub-Clause 4.2.1 does not exclude or restrict the liability of the Trustees for breach of an obligation under any rule of law to take
care or exercise skill in the performance of any investment functions. 

  

	4.2.3	 Notwithstanding sub-Clause 4.2.2, and as permitted by section 34(6) of the Pensions Act, the exclusion or restriction of the liability of the Trustees by sub-Clause
4.2.1 shall apply to any liability of the Trustees resulting from the acts or defaults of a Fund Manager in the exercise of a discretion delegated to him under section 34(5)(b) of the Pensions Acts where the Trustees have taken all such steps as are
reasonable to satisfy themselves (or the person who made the 

  

 27 

	 	 
delegation on their behalf has taken all such steps as are reasonable to satisfy himself):- 

  

	 	(1)	that the Fund Manager has the appropriate knowledge and experience for managing the investments of the Scheme; and 

  

	 	(2)	that he is carrying out his work competently and complying with section 36 of the Pensions Act. 

 4.3 INTERESTS OF TRUSTEES 
 No performance of the duties or exercise of the powers and discretions of the Trustees shall be
invalidated or questioned on the ground that any or all of the Trustees or their secretary (or, in the case of a corporate Trustee, any director, officer or employee of the Trustee) had a direct or indirect personal interest in the manner or
consequence of such performance or exercise. 
 4.4 RETENTION OF SCHEME BENEFITS 
 No Trustee and no director, officer or employee of a corporate Trustee shall be precluded from membership of the Scheme, and any Trustee and any director, officer or employee of a corporate Trustee who becomes a
Member shall be entitled to retain for his own absolute benefit any sums payable to him as a result of his membership of the Scheme. 
 4.5 SOLE CORPORATE
TRUSTEE 
 For so long as a company (whether or not a trust corporation) is a sole Trustee, the board of directors or other governing body of the Trustee
acting in accordance with its memorandum and articles of association or other instrument constituting or defining its constitution, or any person or persons duly authorised by such board or body, shall be competent to perform all the duties and
exercise all the powers and discretions vested in the Trustees by the Trust Deeds. 
 4.6 PROCEEDING OF TRUSTEES 
 The following provisions shall apply if there is more than one Trustee. 
  

	4.6.1	Meetings: A meeting of the Trustees which has been duly convened and held and at which a quorum is present throughout shall be competent to perform all the duties and exercise all
the powers and discretions vested in them by the Trust Deeds and all decisions taken at any such meeting shall bind all the Trustees. 

  

	4.6.2	Convention meetings: Any Trustee may at any time convene a meeting of the Trustees by giving notice of such meeting to the other Trustees. 

  

	4.6.3	Notice of meetings: Notice of any occasion at which decisions may be taken by agreement of a majority of Trustees must comply with the 

  

 28 

	  	requirements of section 32 of the Pensions Act and regulations made under it. As at the date of this Deed, those requirements are set out in that section and regulations 9 and 10 of
the Administration Regulations and are that:- 

  

	 	(a)	unless the occasion is one on which it is necessary as a matter of urgency to make a decision, notice must be given to each Trustee to whom it is reasonably practicable to give such
notice; and 

  

	 	(b)	unless the Trustees agree otherwise, the notice must (i) specify the date, time and place of the occasion and (ii) be sent to the last known address of each Trustee no
later than 10 business days before the occasion. 

  

	4.6.4	Quorum: The quorum for any meeting of which notice has been given to all the Trustees shall be two of the Trustees present in person or by proxy. 

  

	4.6.5	Voting: Each of the Trustees shall be entitled to cast one vote on any issue which may arise at any meeting. Where there are three or more Trustees present at a meeting all
questions shall be decided by a simple majority of votes of the Trustees present and voting. In the event of an equality of votes the chairman (if any) shall have a casting vote. 

  

	4.6.6	Chairman: The Trustees may from time to time nominate one of their number to take the chair at meetings of the Trustees. In the event of an equality of votes on the election of a
chairman, he shall be chosen by lot. If for any reason the chairman is unable to attend any meeting, the Trustees present may nominate one of their number to take the chair at that meeting. 

  

	4.6.7	Written resolutions: A written resolution signed by or on behalf of all the Trustees, or by a majority of the Trustees if notice of such resolution has been given to all of them,
shall be effective as if it had been passed at a meeting of the Trustees duly convened and held pursuant to the preceding sub-Clauses of this Clause. Such a resolution may consist of two or more documents in the same form each signed by or on behalf
of one or more of the Trustees. 

  

	4.6.8	Representation of a corporate Trustee: If there is more than one Trustee and any of the Trustees is a company, such company may by resolution of its directors or other governing
body authorise such person as it thinks fits to act as its representative at any meeting of the Trustees. Such person shall be entitled to do all such acts, matters and thing on behalf of the corporate Trustee he represents as that corporate Trustee
would be entitled to do if it were an individual. 

  

	4.6.9	 Secretary: The Trustees may appoint a secretary (who may be one of their number) to assist them in the performance of their duties and the exercise of their powers
and discretions and to keep minutes of all 

  

 29 

	 	 
meetings of the Trustees. Such a secretary may be removed by the Trustees giving him notice in writing to that effect. 

  

	4.6.10	Further regulations: Subject to the preceding sub-Clauses of this Clause the Trustees shall be entitled to make their own regulations for the conduct of their business and meetings.

  

 30 

 PART 3: THE EMPLOYERS 
 5 THE PRINCIPAL; EMPLOYER 
 5.1 SUBSTITUTION OF PRINCIPAL EMPLOYER 
 With the consent of the Trustees and subject to the approval of the Inland Revenue any other company or firm may be substituted for the Principal Employer as the
principal employer in relation to the Scheme. 
 5.2 HOW SUBSTITUTION IS EFFECTED 
 Any substitution of principal employer pursuant to sub-Clause 5.1 shall be effected by a deed of substitution between (1) the company or firm currently holding the position of Principal Employer (referred to in
the remainder of the Clause as the “old Principal Employer”), (2) the company or firm to be substituted (referred to in the remainder of this Clause as the “new Principal Employer”) and (3) the Trustees. 
 5.3 EFFECTIVE DATE OF SUBSTITUTION 
 Any such substitution may be with effect
from the date of the deed to be entered into pursuant to sub-Clause 5.2 or from a later date or may be deemed to be with effect from any earlier date, then (unless the deed of substitution provides otherwise) the new Principal Employer shall be
liable for the acts and defaults of the old Principal Employer under the Scheme from the date with effect from which the substitution is deemed to be made as if such acts and defaults were its own and shall indemnify the old Principal Employer
accordingly. 
 5.4 DEED OF SUBSTITUTION 
 The deed of
substitution to be entered into pursuant to sub-Clause 5.2:- 
  

	5.4.1	shall contain a covenant by the new Principal Employer in favour of the old Principal Employer and the Trustees to observe and perform the provisions of the Scheme applicable to the
principal employer and generally to be bound by the provisions of the Scheme; 

  

	5.4.2	shall contain a declaration as to the date with effect from which the substitution is to take place, or to be deemed to have taken place; and 

  

	5.4.3	may contain such other provisions as the parties to it may agree including provisions dealing with liability as between the old Principal Employer and the new Principal Employer as
principal employer prior to the date of the deed. 

  

 31 

 5.5 INSOLVENCY OR WINDING UP OF PRINCIPAL EMPLOYER 
 Sub-Clause 5.6 applies where:- 
  

	5.5.1	a receiver is appointed in respect of the whole or any part of the Principal Employer’s property (in which context “receiver” means any receiver, manager,
administrative receiver or the official receiver); 

  

	5.5.2	an administration order is made in relation to the Principal Employer pursuant to section 8 of the Insolvency Act 1986; 

  

	5.5.3	the Principal Employer passes a resolution for voluntary winding up and the winding up is a creditors’ voluntary winding up within the meaning of section 90 of the Insolvency
Act 1986; 

  

	5.5.4	the winding up of the Principal Employer having commenced as a members’ voluntary winding up becomes a creditors’ voluntary winding up in accordance with section 96 of the
Insolvency Act 1986; or 

  

	5.5.5	a liquidator of the Principal Employer is appointed provisionally pursuant to section 135 of the Insolvency Act 1986; or 

  

	5.5.6	an order for the winding up the Principal Employer is made by the Court. 

 5.6 EFFECT OF PRINCIPAL EMPLOYER’S INSOLVENCY OR WINDING UP 
 Where by virtue of sub-Clause 5.5, this sub-Clause applies:- 
  

	5.6.1	in case of any power or discretion vested in the Trustees by the Trust Deeds which is exercisable only with the Principal Employer’s consent or approval, that consent or
approval shall cease to be required; 

  

	5.6.2	the Principal Employer shall cease to have the powers of appointment and removal of Trustees vested in it by Clause 3 of this Schedule and instead the surviving or continuing
Trustee or Trustees, or the personal representatives of the last surviving or continuing Trustee, may exercise the powers of appointing new or additional trustees under section 36 of the Trustee Act 1925; and 

  

	5.6.3	any other power vested in the Principal Employer by the Trust Deeds shall cease to be exercisable by the Principal Employer and shall instead be exercisable by the Trustees, but
every such power which was exercisable by the Principal Employer beneficially shall be exercised by the Trustees in a fiduciary capacity. 

 5.7 EFFECT OF SUBSEQUENT SUBSTITUTION OF PRINCIPAL EMPLOYER 
 If after sub-Clause 45.6 commences to apply to any other company is substituted for
the Principal Employer as the principal employer in the Scheme in accordance 
  

 32 

 with sub-Clause 5.2, and sub-Clause 5.5 does not apply in relation to the new Principal Employer, the operation of
sub-Clause 5.6 shall cease when such substitution takes effect, but without prejudice to the further operation of sub-Clause 5.6 if any of the events listed in sub-Clause 5.5 subsequently occurs. 
 6 PARTICIPATING EMPLOYERS 
 6.1 ELIGIBILITY TO PARTICIPATE: (1) ON A
PERMANENT BASIS 
 Any company or firm is eligible is participate in the Scheme if it satisfies either of the following conditions:- 
  

	6.1.1	it and the other Employers are associated employers (as defined in section 590A(3) of the Taxes Act); or 

  

	6.1.2	it and the other Employers are associated through a permanent community of interest and the Inland Revenue approve its participation. 

 6.2 ELIGIBILITY TO PARTICIPATE: (2) ON A TEMPORARY BASIS 
 Any company
or firm which does not satisfy either of the conditions set out in sub- Clause 6.1 is nonetheless eligible to participate temporarily in the Scheme if it is the successor to the whole or part of the business and/or the workforce of a Participating
Employer and the Inland Revenue approves its participation. 
 6.3 ADMISSION TO PARTICIPATION 
 A company or firm which is eligible in accordance with sub-Clauses 6.1 or 6.2 shall be admitted to participation if:- 
  

	6.3.1	it accepts an invitation to that effect from the Principal Employer; 

  

	6.3.2	the Trustees consent to its admissions; and 

  

	6.3.3	it enters into a deed of adherence wit the Principal Employer and the Trustees under which:- 

  

	 	(i)	it covenants with the Principal Employer and the Trustees to observe and perform the provisions of the Scheme applicable to participating employers and generally to be bound by the
provisions of the Scheme; 

  

	 	(ii)	it gives such other covenants and agrees to be bound by such other provisions as the Principal Employer with the consent of the Trustees may require; 

  

	 	(iii)	in the case of an employer which is eligible in accordance with sub- Clause 6.2, the period of its temporary participation is specified; and 

  

	 	(iv)	the Principal Employer and the Trustees admit it to participation. 

  

 33 

 6.4 PARTICIPATING EMPLOYER CEASING TO BE ASSOCIATED 
 If any Participating Employer ceased to satisfy the eligibility conditions set out in sub- Clause 6.1 having been admitted to participation by virtue of its eligibility under that sub-Clause its participation may only
continue if:- 
  

	6.4.1	the Principal Employer and the Trustee agree to its continued participation for a limited period thereafter; and 

  

	6.4.2	the Participating Employer enters into such supplemental deed of adherence (if any) with the Principal Employer and the Trustees as the Principal Employer may require:-

  

	 	(i)	containing such provisions as the Principal Employer may require (including, but without limiting the provisions which may be required, a covenant to pay interest on any late paid
contributions and provisions limiting the increase in its employees’ earnings which are to be taken into account in determining their benefits under the Scheme); and 

  

	 	(ii)	specifying the period during which the Participating Employer may continue to participate in the Scheme (which, unless the Principal Employer, the Trustees and the Inland Revenue
agree otherwise, shall not exceed one year from the date when the Participating Employer ceases to satisfy the conditions set out in sub-Clause 6.1). 

 6.5 TERMINATION OF PARTICIPATION: (1) BY PRINCIPAL EMPLOYER 
 The Principal Employer may terminate the participation of any Participating
Employer in the Scheme by serving notice to that effect on the Participating Employer and the Trustees. The minimum period of notice shall be:- 
  

	6.5.1	if the Participating Employer is in breach of any of its obligations under the Scheme: summary notice; and 

  

	6.5.2	in any other case: one month’s notice or such shorter period of notice as the Trustees are willing to accept. 

 This sub-Clause is subject to any variation of its right to terminate which the Principal Employer may agree with any Participating Employer and notify to the Trustees.

 6.6 TERMINATION OF PARTICIPATION: (2) BY PARTICIPATING EMPLOYER 
 Any Participating Employer may terminate its participation in the Scheme by serving notice to that effect on the Principal Employer and the Trustees. The minimum period of notice required shall be one month or such lesser period as the
Principal Employer and the Trustees may agree. 
  

 34 

 6.7 TERMINATION OF PARTICIPATION: (3) BY THE TRUSTEES 
 The Trustees may in accordance with this sub-Clause terminate the participation of any Participating Employer in the Scheme in any of the following circumstances:- 
  

	6.7.1	if the Participating Employer fails to pay any sum due from it to the Trustees under the Scheme within one month (or such longer period as the Trustees may allow) after the Trustees
demand payment of such sum from the Participating Employer; 

  

	6.7.2	if the Participating Employer is in breach of any of its other obligations under the Scheme to an extent which the Trustees consider to be material and, where the breach is capable
of remedy, the Participating Employer fails to remedy such breach within one month after the Trustees serve notice on it requiring the breach to be remedied; 

  

	6.7.3	if the Trustees determine that the continued participation of the Participating Employer in the Scheme would prejudice the Scheme’s Approval; 

  

	6.7.4	if any of the events listed in sub- Clause 5.5 occurs in relation to it, where references in sub-Clause 5.5 to Principal Employer are replaced by references to the Participating
Employer. 

 The termination of a Participating Employer’s participation in the Scheme pursuant to this sub-Clause shall be effect by the
Trustees serving notice of termination on the Participating Employer concerned. Such notice may be summary notice. 
 6.8 OTHER CIRCUMSTANCES RESULTING IN
TERMINATION OF PARTICIPATION 
 The participation of any Participating Employer in the Scheme shall terminate automatically in the following circumstances:-

  

	6.8.1	when it ceases to satisfy the eligibility conditions set out in sub-Clause 6.1 having been admitted to participation by virtue of its eligibility under that sub- Clause, unless the
Principal Employer and the Trustees agree to its continued participation pursuant to sub-Clause 6.4.1; 

  

	6.8.2	at the end of the period of temporary participation specified in accordance with sub-Clause 6.3.3 in the case of an Employer which is eligible to participate in accordance with
sub-Clause 6.2; 

  

	6.8.3	at the end of any period of extended participation specified pursuant to sub- Clause 6.4.2; and 

  

	6.8.4	upon the expiration of any notice give by it under sub-Clause 13.3 to terminate its obligation to pay contributions to the Scheme. 

  

 35 

 6.9 EFFECT OF TERMINATION OF PARTICIPATION 
 If the participation in the Scheme of any participating Employer terminates pursuant to any of the preceding sub-Clauses of this Clause:- 
  

	6.9.1	all Members in Pensionable Service by virtue of Service with that Participating Employer shall be deemed to have left Pensionable Service on the date when its participation
terminates; 

  

	6.9.2	no employee of that Participating Employer may be admitted or re-admitted to membership of the Scheme after that date by virtue of Service with that Participating Employer;

  

	6.9.3	the Participating Employer shall cease to have any obligation to pay any contributions to the Scheme after the date when its participation terminates except contributions due but
unpaid at the date of termination and any sum payable by it pursuant to the Pensions Act; and 

  

	6.9.4	the benefits payable to the Members who are or were employees of the Participating Employer and of those others persons whose entitlement to benefit from the Scheme results from the
membership of those Members shall continue to be provided in accordance with the trusts, powers and provisions of this Deed including the powers to make transfer payments and buy out benefits under Clauses 19 and 20. 

 6.10 PARTIAL WINDING-UP 
 If the participation of any Participating Employer
in the Scheme terminates pursuant to any of the preceding sub-Clauses of this Clause and the Inland Revenue require the part of the Scheme relating to that Participating Employer to be wound-up, sub-Clause 6.9.4 shall not apply and instead the
Trustees shall set aside such part of the Fund as they, subject to the approval of the Principal Employer and having consulted the Actuary, shall decide relates to the Participating Employer concerned. The Trustees shall then deal with the part of
the Fund thereby set aside in accordance with Clause 26 as if:- 
  

	6.10.1	references to the Termination Date were to the date when the participation of the Participating Employer in the Scheme terminates; 

  

	6.10.2	references to the Scheme were to the part of the Scheme which relates to that Participating Employer; 

  

	6.10.3	references to the Fund were the part of the Fund set aside in relation to that Participating Employer; 

  

	6.10.4	references to the liabilities of the Scheme were to the liabilities secured by the part of the Fund thereby set aside; and 

  

 36 

	6.10.5	references to Members and others entitles to benefit from the Scheme were to those members and others whose benefits the Trustees determine to be secured by the part of the Fund
thereby set aside. 

  

 37 

 PART 4: THE PROFESSIONAL ADVISERS 
 7 APPOINTMENT OF PROFESSIONAL ADVISERS 
 7.1 MEANING OF “PROFESSIONAL ADVISER” 
 For the purpose of this Clause and Clause 8, the expression “professional adviser” has the same meaning as in section 47(4) of the Pensions Act namely:-

  

	7.1.1	the auditor, actuary and legal adviser appointed by the Trustees in relation the Scheme; 

  

	7.1.2	any fund manager appointed by or on behalf of the Trustees in relation to the Scheme; and 

  

	7.1.3	any person appointed by the Trustees t exercise any of the functions provided by regulations made under section 47(3)(a) of the Pensions Act (being at the date of this Deed the
function prescribed in regulation 2 of the Administration Regulations). 

 7.2 AUDITOR AND ACTUARY 
 At the date of this Deed, section 47 of the Pensions Act applies to the Scheme and accordingly, the Trustees are responsible for ensuring that:- 
  

	7.2.1	an individual, body corporate or partnership is appointed by them as auditor in relation to the Scheme; and 

  

	7.2.2	an individual is appointed by them as actuary in relation to the Scheme; 

 in each case as required by section 47(1) of the Pensions Act. 
 7.3 FUND MANAGER 
 If section 47(2) of the Pensions Act applies to the Scheme because its assets consist of or include investments (within the meaning of the Financial Services Act 1986) and no exception to that section applies to the
Scheme by virtue of regulations made under section 47(5) of the Pensions Act, the Trustees are responsible for ensuring that an individual, body corporate or partnership is appointed by them as fund manager in relation to the Scheme as required by
section 47(2) if the Pensions Act. The person appointed must be someone to whom the Trustees are permitted by section 34(2) of the Pensions Act to delegate any discretion of theirs to make any decision about investments. Sub-Clause 15.6 contains
further provisions relating to the appointment of the Fund Manager. 
  

 38 

 7.4 ELIGIBILITY FOR APPOINTMENT AS AUDITOR OR ACTUARY 
 An individual, body corporate or partnership (in the case of an auditor) and an individual (in the case of an actuary) may only hold an appointment as the auditor or actuary in relation to the Scheme if he or it has
the qualifications and experience, or approval, required for such appointment specified by regulations made under section 47(5)(b) of the Pensions Act (being, at the date of this Deed, specified by regulation 4 of the Administration Regulations).

 Except as provided in section 27 of the Pensions Act and regulations made under it, a Trustee and any person who (within the meaning of the Pensions Act)
is connected with, or an associate of, a Trustee must not act as an auditor or actuary of the Scheme. 
 7.5 ELIGIBILITY FOR APPOINTMENT AS OTHER
PROFESSIONAL ADVISER 
 Any other professional adviser must have the qualifications and experience, or approval, (if any) required for appointment as a
professional adviser as specified by regulations made under section 47(5)(b) of the Pensions Act. No such regulations have been made in relation to other professional advisers as at the date of this Deed. 
 7.6 TRUSTEES TO RELY ON THEIR OWN PROFESSIONAL ADVISERS 
 Any Trustee who in
exercising any of his functions places reliance on the skill or judgment of any person:- 
  

	7.6.1	appointed otherwise than by the Trustees as legal adviser or to exercise any functions prescribed by regulations under section 47(3)(a) of the Pensions Act, in relation to the
Scheme; or 

  

	7.6.2	appointed otherwise than by or on behalf of the Trustees as a fund manager; 

 is liable by virtue of section 47(3) of the Pensions act to have a prohibition order made against him or to be required to pay a civil penalty as provided in sections 3 and 10 of the Pensions Act. 
 8. MANNER AND TERMS OF APPOINTMENT OF PROFESSIONAL ADVISERS 
 8.1 MANNER OF
APPOINTMENT AND REMOVAL 
 The Trustees shall appoint and remove professional advisers in relation to the Scheme in the manner provided for in regulations
made under section 47(6) of the Pensions Act (being at the date of this Deed set out in regulation 5 of the Administration Regulations). 
 8.2 TERMS OF
APPOINTMENT: (A) GENERALLY 
 The Trustees shall appoint professional advisers in relation to the Scheme on the terms (including the manner in which such
professional advisers may resign):- 
  

 39 

	8.2.1	as provided for in regulations made under section 47(6) of the Pensions Act (being at the date of this Deed set out in regulation 5 of the Administration Regulations); and

  

	8.2.2	subject to sub-Clause 8.2.1, in accordance with section 47(7) of the Pensions Act, namely on such terms as the Trustees may determine. 

 8.3 TERMS OF APPOINTMENT: (B) FUND MANAGER 
 Without prejudice to the
generality of their power under sub-Clause 8.2.2 to determine the terms on which any professional adviser is appointed, in the case of a Fund Manager the terms may include:- 
  

	8.3.1	providing for the remuneration, protection and indemnity of the person so appointed; 

  

	8.3.2	authorising that person to enter into any transaction on behalf of the Trustees in which that person has a personal interest or interest in another fiduciary capacity including a
sale of investments by that person to the Trustees or purchase of investments by that person from the Trustees; 

  

	8.3.3	authorising that person to enter into any transaction in respect of investments comprised in the Fund together with investments comprised in other funds under the management or
control of that person; 

  

	8.3.4	delegating to that person any of the powers of the Trustees relating or incidental to the investment or safe custody of the Fund or the part concerned. 

 8.4 TERMS OF APPOINTMENT: (C) CUSTODIANS AND NOMINEES 
 Also without
prejudice to the generality of their powers under sub-Clause 8.2.2, in the case of a custodian or nominee (being a person treated as a professional adviser by virtue of section 47(3) of the Pensions Act and regulation 2(c) of the Administration
Regulations), the terms may include:- 
  

	8.4.1	providing for the remuneration, protection and indemnity of that person; 

  

	8.4.2	authorising that person to enter into any transaction on behalf of the Trustees in which that person has a personal interest or interest in another fiduciary capacity including a
sale of investments by that person to the Trustees or purchase of investments by that person from the Trustees; 

  

	8.4.3	authorising that person to hold and deal with assets comprised in the Fund together with assets comprised in other funds under the control of that person; 

 

 40 

	8.4.4	delegating to that person any of the powers of the Trustees relating or incidental to the safe custody of the Fund or the part concerned. 

  

 41 

 PART 5: SCHEME ADMINISTRATION 
 9 TRUSTEES’ ADMINISTRATIVE POWERS 
 9.1 SPECIFIC POWERS AND GENERAL POWER 
 In addition to the powers of administration and management conferred on them by law, the Trustees shall have the specific powers set out in the following sub-Clauses of
this Clause. The Trustees shall also have general power to do or omit to do all such other acts, matters and things as may be necessary or desirable in order to administer and manage the Scheme and achieve its purpose, but this general power may not
be exercised so as to avoid any requirement in any of the following sub-Clauses of this Clause to obtain the Principal Employer’s approval or consent. 
 9.2 APPOINTMENT OF ADDITIONAL ACCOUNT SIGNATORIES 
 The Trustees may:- 
  

	9.2.1	with the consent of the Principal Employer appoint any person to be an additional authorised signatory to any account which the Trustees may have with any bank or other person
(including an investment manager) for the purpose of the Scheme; 

  

	9.2.2	provide that all or any payments or transfers out of such account shall not be made without the signature of such additional authorised signatory; 

  

	9.2.3	appoint any such additional authorised signatory on such terms as they think fit including terms defining the purpose of any such appointment and the duties and obligations to be
imposed on such additional authorised signatory, and terms limiting the liability of, indemnifying, reimbursing and remunerating such additional authorised signatory; and 

  

	9.2.4	appoint a person to be an additional authorised signatory notwithstanding that he is a partner in any firm, or a director or employee of any company which advises or otherwise
provides any other services to the Trustees and/or Principal Employer for the purpose of the Scheme. 

 9.3 BANK ACCOUNTS 
 The Trustee shall have power:- 
  

	9.3.1	to open and operate such bank accounts; 

  

	9.3.2	to authorise such person or persons (whether or not Trustee) to do such acts, matters and things in respect of such bank accounts; 

  

	9.3.3	generally to give such mandates to their bankers in respect of such bank accounts; 

  

 42 

 in each case as they shall think fit, but consistently with their obligation under section 49 of the Pensions Act to keep
any money received by them in a separate account kept by them at an institution authorised under the Banking Act 1987 except in prescribed circumstances (being at the date of this Deed the circumstances prescribed in regulation 11 of the
Administration Regulations). 
 9.4 BORROWING 
 The Trustees
shall have power to obtain any credit facility and to borrow money in any currency from any person upon such terms and conditions (including as to interest, repayment and security as they shall think fit. 
 9.5 COSTS AND EXPENSES 
 The Trustees shall have power in the execution of
the trusts and the exercise of the powers and discretions conferred on them under the Scheme (and generally in the administration and management of the Scheme) to incur all such reasonable costs and expenses as they shall think fit. Payment of any
such costs and expenses shall be made in accordance with Clause 14 of this Schedule. 
 9.6 DEBTS AND CLAIMS 
 Without prejudice to section 15 of the Trustee Act 1925, the Trustees shall have power:- 
  

	9.6.1	to pay or allow any debt or claim on any evidence that they think sufficient; 

  

	9.6.2	to accept any composition or any security in respect of any debt or any claim; 

  

	9.6.3	to allow any time for payment of any debt; or 

  

	9.6.4	to compromise, compound, abandon, submit to arbitration or otherwise settle any debt or claim; 

 in each case on such terms and conditions as they shall think fit. 
 9.7 DELEGATION 
 The Trustees shall have power to delegate the execution or exercise of all or any of the trusts, powers and discretions vested in them (whether by the trust Deeds or by
law) as trustees of the Scheme to such person or persons for such period and generally on such terms and conditions (including authority to sub-delegate) as they shall think fit. Any such delegation may be revoked by the Trustees at any time.

  

 43 

 9.8 DONATIONS AND BEQUESTS 
 The Trustees shall have power to accept any donation or bequest from any person which is to be applied for any of the purposes of the Scheme and which may be accepted by them without prejudicing the Scheme’s Approval. 
 9.9 EMPLOYMENT OF STAFF AND AGENTS 
 The Trustees shall have power, instead
of acting personally, to appoint or employ any person or persons as their agent or employee upon such terms and conditions as the Trustees shall think fit (except that nay remuneration to be paid to any such person shall be subject to approval by
the Principal Employer) to do any act, matter or thing on their behalf in the administration and management of the Scheme. 
 9.10 GUARANTEES AND INDEMNITIES

 The Trustees shall have power with the prior written consent of the Principal Employer to give any guarantee or to become surety for, or to give any
indemnity in respect of the payment of, any money owed by any person or the performance of any obligation or the discharge of any liability by any person; but this power must not be exercised in a manner which would contravene section 40 of the
Pensions Act or regulations made under it. 
 9.11 INSURANCE 
 The Trustees shall have power to take out the following insurance for the benefit of the Scheme for such amounts and upon such terms and conditions as they shall think fit (so that the premiums for such insurance shall be Scheme expenses
and the proceeds of any such insurance shall be held by the Trustees upon the trusts of the Scheme):- 
  

	9.11.1	insurance against any loss of or damage to any assets of the Fund from any risk; 

  

	9.11.2	insurance against any loss or damage caused by any act or omission of the trustees or any of them, or any person appointed or employed by them or to whom they may have delegated the
execution or exercise of any of the trusts, powers and discretions vested in them (in which case, for the avoidance of doubt, the insurance may be taken out on terms and conditions which include the waiver by the insurer of its rights of subrogation
against the person or persons, including the Trustees, responsible for the act or omission); 

  

	9.11.3	insurance against the risk of the death of any Member or any other person upon whose death any benefits become payable from the Scheme; and 

  

	9.11.4	such other insurance as the Trustees may consider it desirable to take out for the benefit of the Scheme; 

  

 44 

 but this power is not exercisable in a manner which would contravene section 31 of the Pensions Act (having regard to
sub-section (2) of that section) by enabling the Trustees to pay out of the assets of the Scheme any premium in respect of a policy of insurance where the risk is or includes the imposition of such a fine or the requirement to pay such a
penalty as is mentioned in section 31(1) of this Pensions Act. 
 9.12 LEGAL PROCEEDINGS 
 The Trustees shall have the following powers in respect of legal proceedings relating to the Scheme exercisable in each case as they shall think fit:- 
  

	9.12.1	to institute or defend any such proceedings; 

  

	9.12.2	to take and act upon the advice of any barrister or solicitor, or any other suitably qualified lawyer in any jurisdiction outside England and Wales; and 

  

	9.12.3	to do or omit to do in such proceedings all such acts, matters and things as may seem to them to be necessary or desirable (including compromising or settling any claim).

 9.13 PAYING AGENTS 
 The Trustees shall have
power to appoint any of the Employers or any Authorised Insurance Company as their agent for the purpose of paying any pension or pensions which arise under the Scheme. The payment of any such pension by any such Employer or Authorised Insurance
Company to the person or persons entitled to receive it shall be a complete discharge to the Trustees for the Trustees for the payment of the amount concerned. 
 9.14 QUESTIONS AND MATTERS OF DOUBT 
 The Trustees shall have power (so far as the law permits):- 
  

	9.14.1	to determine whether or not any person is entitled to any payment or other benefit from the Scheme; and 

  

	9.14.2	generally to determine all questions and matters of doubt arising in connection with the Scheme. 

 9.15 QUESTIONS OF FACT 
 In determining any question of fact the Trustees shall power to act upon such evidence or
presumption as they shall think sufficient. 
 9.16 REVENUE UNDERTAKINGS 
 The Trustees shall have power to give such undertakings to the Inland Revenue as may be required as a condition of the Scheme’s Approval and such other undertakings in favour of the Inland Revenue as the Trustees shall think fit.

  

 45 

 9.17 SECURITY OVER ASSETS OF THE FUND 
 The Trustees shall have power to charge, mortgage, pledge or grant any other security over any of the assets of the Fund in order to secure:- 
  

	9.17.1	the repayment of any money borrowed by the Trustees; 

  

	9.17.2	the payment of any interest on, and any other sums payable by them in respect of, any money they may have borrowed; or 

  

	9.17.3	the discharge or performance of any liability or obligation incurred by the Trustees as a result of exercising their power under sub-Clause 9.10. 

 However, this power must not be exercised in a manner which would contravene section 40 of the Pensions Act or regulations made under it. 
 9.18 SPECIALIST ADVICE 
 The Trustees shall have power to take and act upon
advice from any person whom they consider to be suitably qualified to advise them in connection with the Scheme, including any accountant, actuary, banker, barrister, broker, investment adviser, medical practitioner, pensions consultant or
solicitor. Such power must be exercised consistently with the requirements of Clauses 7 and 8 and the legislation referred to in them insofar as such person is a professional adviser for the purpose of those Clauses. Except where the person is a
professional adviser for those purposes, the remuneration of the adviser must be approved by the Principal Employer. 
 9.19 TAX 
 The Trustees shall have power:- 
  

	9.19.1	to pay any taxes or other fiscal impositions in any part of the world in respect of the Fund, any of the assets of the Fund, any income thereof or dealing therewith; and

  

	9.19.2	before making any payment to any Member or other beneficiary of the Scheme or any Employer, to deduct any tax which is deductible therefrom and account for the same to the Inland
Revenue. 

 9.20 WITHHOLDING OR SUSPENDING PAYMENT OF BENEFITS 
 The Trustees shall have power to withhold or suspend the payment of any benefits under the Scheme until they are satisfied as to the entitlement to the benefit concerned of the Member or other person claiming to be
entitled. 
  

 46 

 10. ACCOUNTS, RECORDS AND AUDIT 
 10.1 ACCOUNTS AND RECORDS 
 The Trustees shall keep such books and records as may be required by regulations made under section 49 of the Pensions
Act (which at the date of this Deed are set out in Chapter III of Part III of the Administration Regulations). The Trustees may keep any other books or records as they may consider necessary or desirable for the proper administration of the Scheme.

 10.2 AUDITED ACCOUNTS 
 The Trustees’ duty to obtain
audited account for any Scheme year is limited to the duty imposed on them by regulations made under section 41 of the Pensions Act (being at the date of this Deed the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a
Statement from the Auditor) Regulations 1996 (SI 1996 No. 1975)), but the Trustees shall have power to obtain audited accounts for any other period as they shall think fit. 
 10.3 DISCLOSURE OF INFORMATION TO AUDITOR 
 There shall be disclosed to the Auditor such information as is required to be
disclosed by regulations made under section 47(9) of the Pensions Act (which as at the date of this Deed is set out in regulation 6 of the Administration Regulations). 
 11 PROVISION OF INFORMATION 
 11.1 PROVISION OF INFORMATION AND DOCUMENTS BY THE TRUSTEES 
 The following provisions of this sub-Clause shall apply to the provision of information and documents by the Trustees:- 
  

	11.1.1	The Trustees’ obligations to provide information and documents to Members is limited to their obligations under applicable legislation, in particular:-

  

	 	(i)	such information as may be prescribed by regulation made under section 113 of the Pension Schemes Act; 

  

	 	(ii)	such documents as may be prescribed by regulations made under section 41 of the Pensions Act; 

 being at the date of this Deed the information and documents prescribed in the Disclosure Regulations. 
  

	11.1.2	The Trustees’ obligations to provide information and documents to the Scheme’s professional advisers is limited to their obligations imposed by regulations made under
section 47(9)(b) of the Pensions Act (being at the date of this Deed regulation 6(3) of the Administration Regulations). 

  

 47 

	11.1.3	The Trustees may provide such other information and documents as they may think fit. 

 11.2 PROVISION OF INFORMATION BY EMPLOYERS 
 The Employers’ obligations to provide information to the Trustees is
limited to their obligations imposed by regulations made under section 47(9)(a) of the Pensions Act (being at the date of this Deed regulation 6(1) and (2) of the Administration Regulations). 
 11.3 PROVISION OF INFORMATION BY MEMBERS AND OTHERS 
 Every Member and every
other person entitled or claiming to be entitled to any benefit under the Scheme shall provide the Trustees with all such information and documents as they may require:- 
  

	11.3.1	in order to enable them to determine the entitlement of any person to any benefit under the Scheme (including any birth, marriage or death certificate); or 

 

	11.3.2	for the administration of the Scheme (including his residential address and details of any bank account into which he wishes his benefits from the Scheme to be paid).

 12 OTHER MISCELLANEOUS PROVISIONS 
 12.1
PROTECTION OF THIRD PARTIES: (A) RECEIPTS 
 By way of modification of section 14(1) of the Trustee act 1925, the written receipt of the Trustees or any
of them (or any person or persons authorised by the Trustees to give receipts) for any money, securities or other personal property or effects paid, transferred or delivered to them or him or to their or his order shall be a sufficient discharge to
the person paying, transferring or delivering the same and shall effectually exonerate him from seeing to the application or being answerable for any loss or misapplication thereof. 
 As provided in section 14(2)(a) of the Trustee Act 1925, this sub-Clause does not enable a sole Trustee to give a valid receipt for the proceeds of sale or other capital money arising under a trust for sale of land
unless the Trustee is a trust corporation. 
 12.2 PROTECTION OF THIRD PARTIES: (B) PURCHASERS AND LENDERS 
 By way of modification of section 17 of the Trustee Act 1925, no purchaser or lender (whether or not a mortgagee) who pays or advances money pursuant to a transaction
purportedly entered into under any trust or power vested in the Trustees shall be concerned to see that such money is required for the purposes of the Scheme, or that no more than is required for such purposes is raised, or otherwise as to the
application thereof. 
  

 48 

 12.3 NOTICES 
 Any notice to
be served pursuant to any of the provisions of the Trust Deeds shall be duly served:- 
  

	12.3.1	in the case of service on any of the Employers: if it is delivered or sent by post to the Employer’s registered office (if it is a company) or to its principal place of
business (if it is not a company); 

  

	12.3.2	in the case of a Trustee who is an individual: if it is delivered or sent by post to him at his usual place of work if he is employed by one of the Employers or, if he is not, to
his usual residential address or such address as he may have notified the Principal Employer to be his address for the service of notices; 

  

	12.3.3	in the case of service on a Trustee which is a company: if it is delivered or sent by post to its registered office. 

 12.4 TERMINATION OF EMPLOYMENT 
 Nothing in the Trust Deeds:- 
  

	12.4.1	shall in any way restrict the right of any Employer to terminate the Service of any Member who is its employee; or 

  

	12.4.2	shall be used in aggravation of damages in any action, counterclaim or suit brought by any such Member against the Employer in respect of the termination of his Service.

 12.5 RESOLUTION OF DISPUTES 
 Section 50 of
the Pensions Act and regulations made under it, being at the date of this Deed the Occupational Pension Schemes (Internal Dispute Resolution Procedures) Regulations 1996 (SI 1996 No 1270), require Trustees to secure that arrangements for the
resolution of disagreements between, on the one hand, the Trustees and, on the other hand, the Members and other person prescribed in regulation 2(1) of those Regulations about matters in relation to the Scheme are made and implemented. 

 

 49 

 PART 6: THE FUND 
 13 CONTRIBUTIONS TO THE FUND 
 13.1 MEMBERS’ CONTRIBUTIONS 
 The contributions payable by Members to the Fund shall be determined pursuant to Rule 3 in Schedule 3. 
 13.2
EMPLOYERS’ CONTRIBUTIONS: (A) AMOUNT AND PAYMENT INTERVALS 
 The Employers shall pay contributions to the Scheme on such basis and at such
intervals as shall be determined by the Trustees and the principal Employer, having taken advice from the Actuary, to be required (after taking account of compulsory contributions payable by the members) in order to enable the Trustees to provide
the benefits payable under the Scheme. 
 Once a minimum funding valuation has been made under section 57 of the Pensions Act and the MFR Regulations, such
contributions shall be payable in accordance with the Schedule of Contributions. 
 Without prejudice to the generality of the foregoing, any Employer may be
required to pay contributions to the Scheme of any amount or at any rate determined by the Trustees and the Principal Employer, having taken advice from the Actuary, to take account of any increase in the benefits payable to any member employed or
formerly employed by the Employer in question resulting from any action of that Employer. 
 13.3 EMPLOYERS’ CONTRIBUTIONS: (B) TERMINATION

 Any Employer may at any time elect to terminate its obligation to pay contributions to the Scheme by giving not less than one month’s notice to that
effect to the Trustees (or shorter period as the trustees may agree to accept). Upon the expiry of such notice:- 
  

	13.3.1	if the Employer is a Participating Employer its participation in the Scheme shall terminate in accordance with sub-Clause 6.10.4; and 

  

	13.3.2	if the Employer is the Principal Employer the Scheme shall terminate in accordance with Clause 25. 

 14 SCHEME EXPENSES 
 14.1 PAYMENT OUT OF FUND 
 Unless the Principal Employer and the Trustees agree to otherwise pursuant to sub-Clause 14.2, all costs and expenses incurred by the trustees in accordance with sub-Clauses 4.1 and 9.4 (including all costs and
expenses incurred by any person on behalf of the Trustees with the Trustees’ approval) shall be paid by them out of the Fund. 
  

 50 

 14.2 PAYMENT BY EMPLOYERS 
 The Principal Employer and the Trustees may from time to time agree that all or any of the costs and expenses referred to in sub-Clause 14.1 shall, instead of being paid out of the Fund, be paid by the Employers. In that case they shall be
paid by the Employers in such proportions as the Principal Employer may from time to time determine. Once a minimum funding valuation has been made under section 57 of the Pensions Act and the MFR Regulations, any such payments in respect of
expenses shall be made in accordance with the Schedule of Contributions. 
 15 INVESTMENT OF THE FUND 
 15.1 RETENTION OF MONIES IN BANK ACCOUNT ETC 
 The Trustees may retain such of
the Fund as they decide in any currency in any current or deposit account with any bank or other financial institution, but consistently with their obligation under section 49 of the Pensions Act to keep any money received by them in a separate
account kept by them at an institution authorised under the Banking Act 1987 except in prescribed circumstances (being at the date of this Deed the circumstances prescribed in regulation 11 of the Administration Regulations). 
 15.2 POWER OF INVESTMENT 
 Subject to the exercise of their power under
sub-Clause 15.1, the Trustees shall invest the Fund and in doing so they shall have the same full and unrestricted powers of investment as if they were absolutely and beneficially entitled to the Fund except that they must comply with the
restrictions on investment in employer-related assets prescribed pursuant to section 40 of the Pensions Act (being at the date of this Deed the restrictions prescribed in The Occupations Pension Schemes (Investment) Regulations 1996 (SI 1996
No. 3127)). 
 15.3 ANCILLARY INVESTMENT POWERS 
 The
Trustees’ power of investment includes the power:- 
  

	15.3.1	to convert, sell, transpose o vary or grant rights in respect of any of the assets of the Fund; 

  

	15.3.2	to exercise or refrain from exercising any rights attached to or arising from any of the assets of the Fund; 

  

	15.3.3	to lend any person on such terms as they shall think fit, any of the assets of the Fund and any document constituting, evidencing or representing any such asset;

  

	15.3.4	to enter into any futures or options contract, any underwriting or sub- underwriting contract or any other contract (whether similar to or different from the foregoing) which the
Trustees consider it appropriate to enter into for or in connection with the investment of the Fund; and 

  

 51 

	15.3.5	to do or refrain from doing anything else (whether similar to or different from the above) in relation to the assets of the Scheme which they consider to be for the benefit of the
Scheme. 

 15.4 POOLED INVESTMENTS 
 The Trustees
shall have power to pool the assets of the Fund, or any of them, with the assets of any other retirement benefits scheme which is approved under Chapter 1 of Part XIV of the Taxes Act and in which any of the Employers participates, in any common
investment fund which satisfies the requirements of the Inland Revenue, upon such terms and conditions as the trustees shall think fit. 
 15.5 COMPLIANCE
WITH LEGAL REQUIREMENTS 
 In relation to the invest of the Fund, the Trustees are required to comply with:- 
  

	15.5.1	section 191 of the Financial Service Act 1986; and 

  

	15.5.2	the following sections of the Pensions Act, namely section 33, 34 and section 35, unless that section does not apply to the Scheme by virtue of regulations made under it, and
section 36; 

 as well as with the general law concerning the investment of trust assets. 
 15.6 APPOINTMENT OF FUND MANAGER 
 The following provisions apply where the
Trustees appoint a Fund manager as one of the Scheme’s professional advisers in accordance with the requirements of section 47 of the Pensions Act and Clauses 7 and 8 in this Schedule. 
  

	15.6.1	The Trustees shall have power to delegate to the Fund Manager the management of the whole or any part of the Fund including any discretion of the Trustees to make any decision about
investments. If giving effect to the decision would constitute carrying on investment business in the United Kingdom (within the meaning of the Financial Services Act 1986) then (as required by section 34(3) of the Pension Act, having regard to
section 34(5)(b)) the Fund Manager must fall, or be treated as falling, within any of paragraphs (a) to (c) of section 191(2) of the Financial Services Act 1986. 

  

	15.6.2	The Trustees’ responsibility for the act or default of any Fund Manager shall be determined in accordance with section 34(4) if the Pensions Act, whether or not the discretion
delegated to him is such that giving effect to the investment decision would constitute carrying on investment business in the United Kingdom (within the meaning of the Financial Service Act 1986). 

  

 52 

	15.6.3	The Fund Manager is required to exercise in accordance with section 36(2) of the Pensions Act any discretion which the Trustees have delegated to him to make any decision about
investments. 

  

	15.6.4	The Fund Manager is required by section 36(5) of the Pension Act, to exercise his powers of investment with a view to giving effect to the principles contained in the statement of
investment principles under section 35 of the Pensions Act, so far as reasonably practicable. 

 16 SAFE CUSTODY OF THE FUND 
 16.1 TRUSTEES’ DUTY TO SAFEGUARD ASSETS 
 The Trustees shall take such
steps as they may consider to be necessary or desirable in order to safeguard the assets of the Fund. 
 16.2 APPOINTMENT OF CUSTODIANS AND NOMINEES

 Subject to sub-Clause 16.3, the Trustees may appoint any person whom they consider to be suitably qualified for the purpose to act as custodian or nominee
in respect of the whole or any part of the Fund upon such terms as the Trustees shall think fit. 
 16.3 PROFESSIONAL ADVISER REQUIREMENTS 
 By virtue of sections 47(3)(a) and 47(4)(c) of the Pensions Act and regulation 2(c) of the Administration Regulations any person appointed to exercise the function of
custody of cash, securities and any documents of title to the assets of the Scheme is a professional adviser whose appointment must comply with section 47 of the Pensions Act as provided for in Clauses 7 and 8 if this Schedule. 
 17 SURPLUSES AND DEFICITS 
 17.1 TRUSTEES’ DUTY TO OBTAIN ACTUARIAL
VALUATIONS 
 The Trustee’s duty to obtain actuarial valuations of the Scheme’s assets in relation to its liabilities is limited to their duty under
the following legislation, to the extent that it applied to the Scheme, namely:- 
  

	17.1.1	Schedule 22 of the Taxes Act and regulations made under it (being at the date of this Deed the Pension Scheme Surpluses (Valuation) Regulation 1987 (SI 1987 No 412); and

  

	17.1.2	sections 41 and 57 of the Pensions Act and regulations made under them (being at the date of this Deed the MFR Regulations). 

 17.2 TRUSTEES’ POWER TO OBTAIN ACTUARIAL VALUATIONS 
 In addition, the
Trustees shall have power to obtain an actuarial valuation prepared by the Actuary as at such date, on such basis, and for such purpose as the Trustees shall think fit. 
  

 53 

 17.3 SURPLUS REVEALED BY ACTUARIAL VALUATION 
 If any actuarial valuation obtained by the Trustees reveals that as at the effective date of such valuation the value of the Scheme’s assets exceeds the value of its liabilities:- 
  

	17.3.1	to the extent (if any) that the excess is such that the Trustees are required to submit to the Inland Revenue in accordance with Schedule 22 to the Taxes Act proposal for reducing
or eliminating it, then the Trustees, having considered any recommendations made by the Actuary, shall submit such proposals as are consistent with the provisions of Schedule 22 as the Principal Employer shall approve, and shall carry them out once
approved by the Inland Revenue; and 

  

	17.3.2	to the extent that the excess is not such that the Trustees are required to submit to the Inland Revenue in accordance with Schedule 22 to the Taxes Act proposals for reducing or
eliminating it, then except insofar as the Trustees and the Principal Employer agree otherwise, the excess shall be applied in reducing the contributions to be paid by the Employers under sub-Clause 13.2 over such period as the Trustees and the
Principal Employer shall decide, having taken advice from the Actuary including as to the certification by the Actuary of the adequacy of the contributions in accordance with the MFR Regulations. 

 17.4 DEFICIT REVEALED BY ACTUARIAL VALUATION 
 If any actuarial valuation
obtained by the trustees reveals that as at the effective date of such valuation the value of the Scheme’s assets falls short of the value of its liabilities, then:- 
  

	17.4.1	to the extent that the shortfall constitutes serious underprovision for the purpose of section 60 of the Pensions Act, the Employers are required to secure an increase in the value
of the Scheme’s assets in accordance with that section; and 

  

	17.4.2	to the extent that the shortfall does not constitute serious underprovision for the purpose of that section, it shall be taken into account in determining the contributions to be
paid by the Employers pursuant to sub-Clause 13.2 except insofar as the Trustees and the Principal Employer agree otherwise. 

  

 54 

 PART 7: TRANSFERS TO AND FROM THE FUND 
 18. ACCEPTANCE OF TRANSFER PAYMENTS 
 18.1 POWER TO ACCEPT TRANSFER PAYMENTS

 The Trustee shall have power,. subject to and in accordance with the provisions of this Clause, with the consent of the Principal Employer (which may be
given generally or in any specific case), to accept a transfer payment in respect of the accrued benefits of any Member or any group of Members under any other scheme or arrangement from which transfers may be made to the Scheme. 
 18.2 INLAND REVENUE REQUIREMENTS 
 The Trustees must not accept a transfer
payment if to do so would prejudice the Scheme’s Approval. The Trustees may without prejudicing the Scheme’s Approval accept transfer payments from any of the following:- 
  

	18.2.1	a retirement benefits scheme (including a free-standing additional voluntary contribution scheme) approved or for which approval is being sought under Chapter I of Part XIV of the
Taxes Act; 

  

	18.2.2	a personal pension scheme approved or for which approval is being sought under Chapter IV of Part XIV of the Taxes Act; 

  

	18.2.3	a relevant statutory scheme within the meaning of section 611A of the Taxes Act; 

  

	18.2.4	a retirement annuity contract approved under Chapter III of Part XIV of the Taxes Act; 

  

	18.2.5	an annuity contract approved for the purposes of section 431(4)(d) or (e) or 591(2)(g) of the Taxes Act; 

  

	18.2.6	a superannuation fund approved before 6 April 1980 to which section 608 if the Taxes Act applies. 

 For the purposes of sub-Clauses 18.2.1 and 18.2.2, the Trustees may only accept a transfer payment from a retirement benefits scheme or a personal pension scheme for which approval is being sought under Chapters I or
IV of Part XIV of the Taxes Act if the Inland Revenue have given specific authority for the transfer payment to be made. 
 18.3 CONTRACTING-OUT REQUIREMENTS

 The Trustees may accept a transfer payment in relation to Contracted-out Benefits in the circumstances and subject to the conditions set out in the
following section of the Pension Schemes Act, and regulations made under them:- 
  

	18.3.1	in the case of Guaranteed Minimum Pensions, section 20 and the Contracting-out Transfer Regulations; 

  

 55 

	18.3.2	in the case of Protected Rights, section 28 and the Protected Rights Transfer Regulations; and 

  

	18.3.3	in the case of Section 9(2B) Rights, section 12C and the Contracting-out Transfer Regulations. 

 18.4 SCHEME BENEFITS IN RETURN FOR TRANSFER PAYMENTS 
 In return for the making to them of a transfer payment which they are
permitted to accept in accordance with sub-Clause 18.1, the Trustees shall have power to grant the Member or Members concerned such additional or new benefits under the Scheme as they (after consultation with the Acutuary and with the Principal
Employer’s agreement) shall determine, except that they must comply with the Contracting-out Requirements referred to in sub-Clause 18.3 when granting benefits in respect of any transfer payment which represents of consists of Contracted-out
Benefits. 
 18.5 INFORMATION TO BE OBTAINED IN RESPECT OF TRANSFER PAYMENTS 
 Before accepting any transfer payment pursuant to this clause, the trustees shall ascertain from the trustees or administrators of the other scheme or arrangement:- 
  

	18.5.1	the amount (if any) of the transfer payment which represents the Member’s contributions to the other or any previous scheme or arrangement; 

  

	18.5.2	the maximum amount of the transfer payment which the member may take as benefit in the form of a cash lump sum; 

  

	18.5.3	the period (if any) in which the Member will be treated as having been employed in linked qualifying service (within the meaning of section 179 of the Pensions Schemes Act) under
another scheme as a result of the making of the transfer payment to the Scheme; and 

  

	18.5.4	if the transfer payment represents or consists of Contracted-out Benefits, such information as they may require in order to comply with the Contracting-out Requirements referred to
in sub-Clause 18.3 in relation to those rights. 

 18.6 TRANSFERRED-IN MEMBERS’ CONTRIBUTIONS 
 For the purpose of determining the benefits payable to or in respect of the Member upon leaving Pensionable Service otherwise than on retirement, the amount (if any) of
any transfer payment accepted by the Trustees pursuant to this Clause which represents the Member’s contributions to the other or any previous scheme or arrangement shall be treated as the Member’s contributions to the Scheme. 

 

 56 

 18.7 TRANSFER OF ASSETS 
 The
Trustees shall have power to accept a transfer payment under this Clause in the form of money or a transfer of other assets, or a combination of each. Accordingly references in this Clause to a transfer payment include references to a transfer of
other assets and references to the amount any transfer payment include references to the value of any such other assets. 
 19 MAKING TRANSFER PAYMENTS

 19.1 POWER TO MAKE TRANSFER PAYMENTS 
 The Trustees shall have
power, subject to and in accordance with the provisions of this Clause, to make a transfer payment to the trustees or administrators of another occupational pension scheme or a personal pension scheme in relation to the benefits accrued under the
Scheme to or in respect of any Member. 
 19.2 INLAND REVENUE REQUIREMENTS 
 A transfer payment pursuant to sub-Clause 19.1 may only be made to:- 
  

	19.2.1	a retirement benefits scheme (excluding a free-standing additional voluntary contribution scheme) approved or for which approval is being sought under Chapter I of Part XIV of the
Taxes Act; 

  

	19.2.2	a personal pension scheme approved or for which approval is being sought under Chapter IV of Part XIV of the Taxes Act; 

  

	19.2.3	a relevant statutory scheme within the meaning of section 611A of the Taxes Act; 

  

	19.2.4	such other scheme or arrangement (including an overseas scheme) to which Inland Revenue may permit a transfer payment to be made form the Scheme. 

 For the purpose of sub-Clauses 19.2.1 and 19.2.2, the trustees may only make a transfer payment to a retirement benefits scheme or a personal pension scheme for which
approval is being sought under Chapter I or IV of Part XIV of the Taxes Act if (a) the Inland Revenue have given specific authority for the transfer payment to be made, or (b) the documents of the receiving scheme expressly name the Scheme
as one from which transfers may be accepted. 
 19.3 CONTRACTING-OUT REQUIREMENTS 
 The Trustees may make a transfer payment pursuant to this clause in relation to contracted-out Benefits in the circumstances and subject to the conditions set out in the following sections of the Pension Schemes Act
and regulations made under them:- 
  

	19.3.1	in the case of Guaranteed Minimum Pensions, section 20 and the Contracting-out Transfer Regulations; and 

  

 57 

	19.3.2	in the case of Section 9(2B) Rights, section 12C and the Contracting-out Transfer Regulations. 

 19.4 PRESERVATION REQUIREMENTS 
 Where a Member’s Pensionable Service terminates prior to Normal Pension Age and he is
entitled to Short Service Benefit then the Benefits accrued under the Scheme to or in respect of him may only be transferred:- 
  

	19.4.1	to:- 

  

	 	(a)	another occupational pension scheme with a view to the acquisition for the Member of transfer credits (as defined in section 181 of the Pension Schemes Act) under the other scheme;
or 

  

	 	(b)	a personal pension scheme or a self-employed pension arrangement (both as defined in section 181 of the Pension Schemes Act) with a view to acquiring rights for the Member under the
rules of the scheme or arrangement; and 

  

	19.4.2	with the Member’s consent (except that the member’s consent shall not be required in the circumstances mentioned in regulation 12(1) of the Preservation Regulations or in
such other cases (if any) as may be prescribed pursuant to section 73(4)(b) of the Pension Schemes Act). 

 19.5 EFFECT OF MEMBER EXERCISING
RIGHT TO CASH EQUIVALENT 
 Where a Member (being a Member whose Pensionable Service terminated at least one year before Normal Pension Age):- 
  

	19.5.1	has acquired a right under section 94 of the Pension Schemes Act to the cash equivalent of the benefits which have accrued to or in respect of him under the Scheme;

  

	19.5.2	has not lost that right in accordance with section 98 of the Pension Schemes Act; 

  

	19.5.3	has made an application in writing to the Trustees under section 95 of the Pension Schemes Act requiring them to use the cash equivalent in accordance with section 95(2)(a) or (b);
and 

  

	19.5.4	has not withdrawn that application in accordance with section 100 of the Pension Schemes Act; the transfer payment must comply with the requirements of Chapter IV of Part IV of the
Pension Schemes Act. 

  

 58 

 19.6 MEMBER’S CONSENT TO TRANSFER-OUT 
 The Member’s consent to the transfer in accordance with this Clause of the benefits accrued to and in respect of him under the Scheme shall only be required:- 
  

	19.6.1	if his Pensionable Service terminates prior to Normal Pension Age; 

  

	19.6.2	if he is entitled to Short Service Benefit; 

  

	19.6.3	if the exception mentioned in sub-Clause 19.4.2 does not apply; 

  

	19.6.4	if the circumstances mentioned in sub-Clause 19.5 have not arisen or no longer prevail; and 

  

	19.6.5	in the case if the transfer of Contracted-out Benefits, to the extent required by the Contracting-out referred to in sub-Clause 19.3. 

 19.7 AMOUNT TO BE APPLIED IN MAKING TRANSFER PAYMENT 
 The amount of any
transfer payment to be made pursuant to this clause shall be equal to the cash equivalent, calculated in accordance with section 97 of the Pension Schemes Act, of the benefits accrued to and in respect of the Member under the Scheme or, subject to
sub-Clause 19.5 if applicable, such other amount as the trustees, with the consent of the Principal Employer, shall decide 
 19.8 BULK TRANSFERS 

Where the Trustees propose to make transfer payments simultaneously in respect of more than one Member or other person entitled to benefits under the Scheme,
sub-Clause 19.7 shall apply so that those transfer payments may be calculated in the aggregate. 
 Where the pursuant to the sub-Clause any transfer payments
are to be calculated in the aggregate, the Trustees shall have power to make the aggregate transfer payment in such installments and at such times as they may agree with the Principal Employer. 
 19.9 RELIANCE ON ACTUARY’S ADVICE 
 The Principal Employer and the
Trustees may rely on the advice of the Actuary as to any amount to be calculated for the purposes of sub-Clauses 19.7 and 19.8. 
  

 59 

 19.10 BENEFITS UNDER THE OTHER SCHEME: (A) TRANSFER WITH CONSENT 
 Where a transfer payment is made by the Trustees:- 
  

	19.10.1	pursuant to this Clause and with the consent of the Member whose benefits are transferred, or 

  

	19.10.2	upon an application made by the Member pursuant to section 95 of the Pensions Schemes Act, 

 the Member alone shall be responsible for agreeing with the trustees or managers of the receiving scheme the benefits to be granted under the receiving scheme in respect of the transfer payment, and the Trustees shall
have no obligation to see to the application of the transfer payment by those trustees or managers. 
 19.11 BENEFITS UNDER THE OTHER SCHEME:
(B) TRANSFER WITHOUT CONSENT 
 Where the Trustees propose to make a transfer payment:- 
  

	19.11.1	pursuant to this Clause but without the consent of the Member whose benefits are to be transferred, and 

  

	19.11.2	otherwise than upon an application made by the Member pursuant to section 95 of the Pension Schemes Act, 

 then before making the transfer payment the Trustees shall satisfy themselves that the transfer credits to be acquired for the Member under the receiving scheme are not less than equal in value to the rights to be
transferred, for which purpose they shall be entitled to rely on the advice of the Actuary (but without prejudice to the requirements of regulation 12 of the Preservation Regulations in the case of any member who has left Pensionable Service before
his Normal Pension Age and is entitled to Short Service Benefit). 
 19.12 DISCHARGE OF TRUSTEES ON TRANSFER OUT 
 The making of a transfer payment in accordance with this Clause discharges the Trustees from their liability to provide the benefits to which the transfer payment
relates. The Trustees’ discharge under this sub-Clause is without prejudice, but in addition, to the statutory discharge contained in section 99(1) of the Pension Schemes Act where a transfer payment is made in accordance with Chapter IV of
Part IV of the Pension Schemes Act. 
 19.13 POWER TO TRANSFER OUT FOLLOWING DEATH OF A MEMBER 
 Where as a result of the death of any Member any other person is entitled to benefits under the Scheme, the Trustees’ powers under this Clause shall apply to the benefits accrued to any such person in the same
manner and subject to the same restrictions as they do to benefits accrued to and in respect of any Member except as regards any statutory provisions which apply to the Member but not to any such other person.. 
  

 60 

 19.14 TRANSFERS OF ASSETS 
 The Trustees shall have power to make a transfer under this Clause by making a payment of money or a transfer of other assets, or a combination of each. Accordingly references in this Clause to a transfer payment include references to a
transfer of other assets and references to the amount of any transfer payment include references to the value of any such other assets. 
 19.15 MERGER WITH
ANOTHER SCHEME 
 The Trustees may exercise their powers under this Clause so as to merge the Scheme with another retirement benefits scheme by paying and/or
transferring to the trustees or managers of the other scheme the whole of the assets of the Scheme subject to and in accordance with the following:- 
  

	19.15.1	Before making any payment or transfer pursuant to this sub-Clause the Trustees shall have power to set aside and retain such sums as they may reasonably require:-

  

	 	(1)	in order to give effect to any outstanding application made by a Member under section 95 of the Pension Schemes Act concerning the use of a cash equivalent;

  

	 	(2)	in order to pay any costs and expenses payable by them out of the Fund; 

  

	 	(3)	in order to pay any tax for which they are accountable to the Inland Revenue; and 

  

	 	(4)	as a reserve against any other liability they may have incurred. 

  

	19.15.2	Instead of exercising the powers conferred on them by sub-Clause 19.15.1 either at all or to their fullest extent, the Trustees may (but shall not be bound to) rely on an indemnity
in their favour from the trustees of the other scheme, any or all of the Employers or any other person in respect of any or all of the costs, expenses, tax or liabilities to which sub-Clause 19.15.1 applies. 

  

	19.15.3	Upon completing the payment and/or transfer to the trustees or managers of the other scheme of the whole of the assets of the Scheme (after setting aside such sums as they may
decide to retain pursuant to sub-Clause 19.15.1), the Trustees shall be discharged from their liability to provide any pension or other benefit for or in respect of any person. 

 20 BUYING OUT BENEFITS 
 20.1 POWER TO BUY OUT 
 The Trustees shall have power, subject to and in accordance with the provisions of this Clause, to buy out the benefits accrued under the Scheme to and in respect of any
Member:- 
  

 61 

	20.1.1	by entering into or taking out in the name of the Member with an Authorised Insurance Company an annuity contract or insurance policy by which such benefits are secured; or

  

	20.1.2	by transferring to the Member the benefit of any annuity contract or insurance policy with an Authorised Insurance Company which is already held by the Trustees as an asset of the
Scheme for the provision of such benefits. 

 20.2 BENEFITS TO BE PROVIDED ON BUYING OUT 
 In exercising their power under sub-Clause 20.1, the Trustees shall have discretion to secure benefits which are:- 
  

	20.2.1	the same as those accrued to or in respect of the Member under the Scheme; or 

  

	20.2.2	different from the accrued benefits in such ways and to such extent as they shall think fit (in which case sub-Clauses 20.3 and 20.7.2 apply for the protection of the Member).

 20.3 AMOUNT TO BE APPLIED IN BUYING OUT 
 When
buying out any benefits pursuant to sub-Clause 20.1.1 the Trustees shall have power to pay to the Authorised Insurance Company concerned such sum as may be needed for the purpose. 
 If the benefits to be secured by the annuity contract or insurance policy to be entered into or taken out pursuant to sub-Clause 20.1.1 are different from the accrued benefits under the Scheme, the Trustees must be
reasonably satisfied that the payment made to the Authorised Insurance Company concerned in order to buy out the accrued benefits is at least equal to the value of the accrued benefits (in determining which they may rely on advice from the Actuary).

 20.4 INLAND REVENUE REQUIREMENTS 
 Every annuity contract or
insurance policy to which sub-Clause 20.1.1 applies:- 
  

	20.4.1	shall be in a form approved for the purposes of sections 431(4)(d) or (e) or 592 (2)(g) of the Taxes Act:- 

  

	20.4.2	shall contain such provisions as may be necessary in order to satisfy the requirements of the Inland Revenue in relation to such contracts or policies; and 

 

	20.4.3	may contain such provisions as the Inland Revenue may permit. 

 Every
annuity contract or insurance policy to which sub-Clause 20.1.2 applies shall, when its benefit is transferred to the Member, be endorsed so that it 

  

 62 

 
satisfies the requirements of the Inland Revenue in relation to such contracts or policies. 
 20.5 CONTRACTING-OUT REQUIREMENTS 
 The buy-out pursuant to this Clause of Contracted-out Benefits in respect of any Member
must comply with the following sections of the Pension Schemes Act and regulations made under 
 them:- 
  

	20.5.1	in the case of Guaranteed Minimum Pensions, section 19; and 

  

	20.5.2	in the case of Section 9(2B) Rights, section 12C. 

 20.6 PRESERVATION
REQUIREMENTS 
 Where a Member’s Pensionable Service terminates prior to Normal Pension Age and he is entitled to Short Service Benefit, the benefits
accrued to and in respect of him under the Scheme may only be bought out by means of a transaction which complies with section 81 of the Pension Schemes Act and 
 which:- 
  

	20.6.1	if benefits the same as those required to constitute Short Service Benefit are being secured, satisfies the requirements of regulation 6(2) of the Preservation Regulations; or

  

	20.6.2	if benefits different from those required to constitute Short Service Benefit are being secured, satisfies the requirements of regulation 9 of the Preservation Regulations.

 20.7 MEMBER’S CONSENT TO BUY-OUT 
 The
consent of a Member to the buy-out pursuant to this Clause of the benefits accrued to and in respect of him under the Scheme shall only be required:- 
  

	20.7.1	if he is a Member who left Pensionable Service with an entitlement to Short Service Benefit; 

  

	20.7.2	if by virtue of section 73(2) of the Pension Schemes Act and regulation 9 of the Preservation Regulations, benefits different from those required to constitute Short Service Benefit
are being secured, but regulation 9(4) of the Preservation Regulations does not apply so as to allow the buy-out to be effected without the Member’s consent; and 

  

	20.7.3	in the case of the buy-out of the Member’s Contracted-out Benefits, to the extent required by the Contracting-out Requirements referred to in sub-Clause 20.5.

 20.8 DISCHARGE OF TRUSTEES ON BUYING OUT 
 The
buy-out in accordance with this Clause of the benefits accrued to and in respect of a Member under the Scheme discharges the Trustees from their liability to provide those benefits for and in respect of any person. 
  

 63 

 in the case of the buy-out in accordance with this Clause of the benefits accrued to and in respect of a Member who
leaves Pensionable Service with an entitlement to Short Service Benefit, the provisions of this sub-Clause are additional and without prejudice to the provisions of section 81 of the Pension Schemes Act. 
 20.9 EFFECT OF MEMBER EXERCISING RIGHT TO CASH EQUIVALENT 
 Where a Member
(being a Member whose Pensionable Service terminates at least one year before his Normal Pension Age):- 
  

	20.9.1	has acquired a right under section 94 of the Pension Schemes Act to the cash equivalent of the benefits which have accrued to or in respect of him under the Scheme;

  

	20.9.2	has not lost that right in accordance with section 98 of the Pension Schemes Act; 

  

	20.9.3.	has made an application in writing to the Trustees under section 95 of the Pension Schemes Act requiring them to use the cash equivalent in accordance with section 95(2)(c); and

  

	20.9.4	has not withdrawn that application in accordance with section 100 of the Pension Schemes Act; 

 the buy-out must comply with Chapter IV of Part IV of the Pension Schemes Act. 
 20.10 POWER TO BUY OUT FOLLOWING DEATH OF A
MEMBER 
 Where as a result of the death of any Member any other person is entitled to benefits under the Scheme, the Trustees’ powers under this Clause
shall apply to the benefits accrued to any such other person in the same manner and subject to the same restrictions as they do to benefits accrued to and in respect of any Member except as regards any statutory provisions which apply to the Member
but not to any such other person. 
  

 64 

 PART 8: PROVISION OF BENEFITS 
 21 AUGMENTATION: ADDITIONAL OR NEW BENEFITS 
 21.1 REQUEST FROM EMPLOYERS FOR AUGMENTATION 
 Any Employer may request the Trustees to grant additional or new benefits under the Scheme for or in respect of any of its employees or former employees whether or not
the employee or former employee concerned is already a Member. The Principal Employer may make such a request in relation to any of the Members. 
 21.2
TRUSTEE’S POWER OF AUGMENTATION 
 The Trustees shall have power to grant any benefits to which a request made pursuant to sub-Clause 21.1 relates,
subject to the following conditions:- 
  

	21.2.1	the benefits do not exceed Revenue Limits; 

  

	21.2.2	the Employer which makes the request enters into such arrangements (if any) with the Trustees as the Trustees may require and the Principal Employer may approve in order to fund the
increase in the value of the liabilities of the Scheme resulting from the grant of the benefits. 

 22 TRUSTEES’ DISCRETION AS TO LUMP SUM
DEATH BENEFITS 
 22.1 INTERPRETATION 
 For the purpose of this
Clause the expression “Discretionary Beneficiaries” means in relation to a Member:- 
 (1) the Member’s spouse or any ancestor or descendant
(however remote the relationship) of the Member or of his spouse and the spouse of any such ancestor or descendant; 
 (2) any brother or sister of the
Member or of his spouse (whether of the whole or half-blood) and any descendant or any such brother or sister and the spouse of any such brother or sister or of any such descendant of any such brother or sister; 
 (3) any step-brother or step-sister of the Member or of his spouse and any descendant of any such step-brother or step-sister and the spouse of any such step-brother or
step-sister or of any such descendant of any such step-brother or step-sister; 
 (4) any uncle or aunt of the Member or of his spouse and any descendant of
any such uncle or aunt and the spouse of any such uncle or aunt or of any such descendant of any such uncle or aunt; 
 (whether or not, in any of cases
(1) to (4) above the Member was or was not liable for (or to contribute to) their maintenance or support and including any such person related by adoption); 
  

 65 

 (5) any other natural person who in the Trustees’ opinion has been dependent or partly dependent on the Member for
maintenance or support; 
 (6) any person (whether or not a natural person) entitled to any interest in the Member’s estate under any testamentary
disposition made by him and in respect of which a grant of representation has been obtained; and 
 (7) any nominee (who or which may be an individual, a
charity or an association or a body corporate) of the Member whom he wishes to be treated as a Beneficiary for the purposes of the Scheme and whose name and address the Member has notified to the Trustees in writing. 
 For the purpose of this sub-Clause 22.1:- 
 (1) “spouse” includes
wife, husband, widow, widower and any former wife or husband and a person with whom the Member (or other relevant person) has gone through any lawful ceremony of marriage; 
 (2) “descendant” includes step-children; and 
 (3) the class of Beneficiaries shall be closed at the Member’s
death except that it shall include persons then conceived who, if born, would have been Beneficiaries. 
 22.2 TRUSTEES’ DISCRETION 
 Any lump sum payable as a result of the death of any Member and expressed to be payable in accordance with this Clause shall be held by the Trustees as follows:-

  

	22.2.1	The Trustees shall have power to pay or apply the whole or any part or parts of such lump sum to or for the benefit of all or any one or more of the deceased Member’s
Discretionary Beneficiaries in such manner as the Trustees shall in their absolute discretion think fit. 

  

	22.2.2	Without prejudice to the generality of the power conferred on them by sub-Clause 22.2.1, the Trustees shall have power to apply the whole or any part or parts of the lump sum by
settling it upon such trusts and with and subject to such powers and provisions and generally in such manner for the benefit of all or such one or more of the deceased Members’ Discretionary Beneficiaries as the Trustees shall think fit
(including trusts and powers of a discretionary character, powers and provisions concerning the appointment, remuneration and protection of trustees, and powers and provisions of an administrative character, but having regard to the rules of law
relating to perpetuities). 

  

	22.2.3	in exercising their powers under sub-Clauses 22.2.1 or 22.2.2 the Trustees:- 

  

 66 

	 	(a)	shall not be required to ascertain the identity of all the persons who are objects of such powers or the financial or other circumstances of any of them, but may instead limit
themselves to ascertaining the identity of such one or more of the persons who are objects of such powers as they shall think fit; 

  

	 	(b)	shall be entitled to consult with the Employer by which the Member was last employed prior to his death or with the Principal Employer and to rely upon the certificate of any such
Employer that any person to or for whose benefit any amount is to be so paid or so applied is a Beneficiary; and 

  

	 	(c)	shall be entitled to rely upon the certificate of any solicitor or firm of solicitors to the effect that the trusts upon which any amount so transferred will be held are such that
the amount must necessarily be paid to or applied for the benefit of one or more of the Beneficiaries; 

  

	22.2.4	All or any expenses, fees, stamp duty, or other outgoings incurred by the Trustees for the purpose of or in connection with any payment or application of any such lump sum
(regardless of how the lump sum is paid or applied) shall if the Principal Employer so decides be deducted from or paid out of such lump sum. 

  

	22.2.5	The Trustees’ powers under sub-Clauses 22.2.1 and 22.2.2 may only be exercised by them within the period of two years after the Member’s death. 

 

	22.2.6	To the extent that the Trustees do not pay or apply the whole of any lump sum to which this Clause relates within the period of two years after the Member’s death they shall at
the end of such period pay it (or the balance which has not been so paid or applied) to the Member’s estate, except that if as a result of doing so, the sum would vest in the Crown, the Duchy of Lancaster or the Duke of Cornwall as bona
vacantia or in any creditor of the Member, the Trustees shall instead continue to hold it as part of the Fund to apply it for such purposes of the Scheme as they shall decide. 

 23 MISCELLANEOUS PROVISIONS CONCERNING BENEFITS 
 23.1 INALIENABILITY OF
BENEFITS SUBJECT TO EXCEPTIONS 
 Where any person has any entitlement or accrued right to any benefit under the Scheme then, as required by section 91 of the
Pensions Act:- 
 (a) it cannot be assigned, commuted or surrendered; 
 (b) it cannot be charged or a lien exercised in respect of it; and 
 (c) no set-off can be exercised in respect of it; 
  

 67 

 and an agreement or purported agreement to effect any of those things is unenforceable. 
 This sub-Clause is subject to such exceptions as are permitted by section 91 of the Pensions Act. 
 23.2 FORFEITURE PROHIBITED SUBJECT TO EXCEPTIONS 
 Where any person has any entitlement or accrued right to any benefit under
the Scheme, it cannot be forfeited except as provided for by the following sub-Clauses of this Clause, consistently with sections 92 and 93 of the Pensions Act. 
  

	23.2.1	EXCEPTION (1): UNCLAIMED BENEFITS. If any benefit becomes payable from the Scheme and the Trustees neither know the whereabouts of the person entitled to it nor have received any
claim for the benefit from that person within 6 years of the date on which it first became payable, the right of such person to such benefit shall be forfeited on the expiration of that period of 6 years, subject to the following provisions of this
sub-Clause:- 

  

	 	(a)	The application of this sub-Clause to any Guaranteed Minimum Pension is subject to the circumstances mentioned in this sub-Clause continuing to be prescribed by regulations made
under section 21(2) of the Pension Schemes Act (being at the date of this Deed, regulation 61(2)(d) of the Contracting-out Regulations). 

  

	 	(b)	If after any benefit is forfeited in accordance with this sub-Clause the Trustees receive a claim for the benefit from the person who would have been entitled to it if it had not
been forfeited, the Trustees with the consent of the Principal Employer may reinstate the forfeited benefit. 

  

	 	(c)	With the Principal Employer’s consent the Trustees shall have power to add interest at such rate as they shall think fit to any payment made by them of any benefit which was
not claimed when it first became payable (including any benefit forfeited and subsequently reinstated pursuant to paragraph (b) of this sub-Clause). 

  

	23.2.2	EXCEPTION (2): PURPORTED ALIENATION OR BANKRUPTCY. The benefits of any Member or any other person entitled to benefits under the Scheme shall be forfeited upon the occurrence of
either of the following events:- 

  

	 	(a)	the Member or other person entering or attempting to enter into any transaction in respect of them or any of them if such transaction is or would be contrary to sub-Clause 23.1 and
is not within the permitted exceptions to that sub-Clause as are provided for in the Trust Deeds; or 

  

	 	(b)	the Member or other person becoming bankrupt; 

  

 68 

	    	whether or not that event occurred before or after the benefits became payable. 

  

	    	However, the right of any Member or the spouse of any Member to a Guaranteed Minimum Pension (whether current or prospective) may only be forfeited to the extent permitted by the
GMP Rules. 

  

	23.2.3	EXCEPTION (3): UNLAWFUL KILLING OF MEMBER. The benefits of any person entitled to benefits on the death of any Member shall be forfeited in the circumstances prescribed by
regulations made under section 92(6) of the Pensions Act (being at the date of this Deed regulations 6(1)(a) and 6(2) of the Assignment etc. Regulations). 

  

	23.2.4	EXCEPTIONS (4) AND (5): The benefits of any person may also be forfeited in order to discharge a monetary obligation due to any Employer or a monetary loss caused to the Scheme
subject to and in accordance with sub-Clauses 23.3 or 23.4. 

  

	23.2.5	REPAYMENT OF FORFEITED BENEFITS. If any benefits are paid to any Member or other person after they have been forfeited but before the Trustees become aware of the circumstances
resulting in forfeiture, they shall be received and held by the Member or other person concerned subject to the trusts of the Scheme and to a duty to repay them to the Trustees forthwith. 

  

	23.2.6	TRUSTEES’ DISCRETION IN RELATION TO FORFEITED BENEFITS. Where benefits are forfeited under sub-Clause 23.2.2 the Trustees shall have power to pay the benefits, or any of them
to all or any of the persons referred to in section 92(3) of the Pensions Act. 

 23.3 MONETARY OBLIGATION DUE TO EMPLOYER 
 This sub-Clause contains exceptions to sections 91 and 92 of the Pensions Act as permitted by sections 91(5)(d) and 93 of that Act. Where any amount becomes due to any
Employer from any person with any entitlement or accrued right to any benefit under the Scheme arising out of a criminal, negligent or fraudulent act or omission by the person in question, the following provisions of this sub-Clause shall apply.

  

	23.3.1	CHARGE ON BENEFITS. The person in question’s entitlement or accrued right shall stand charged with the amount due to the Employer and the Employer shall be entitled to exercise
the charge by notice in writing to the Trustees. 

  

	23.3.2	EXCEPTIONS FROM CHARGE: (1) TRANSFER CREDITS. In accordance with section 91(5)(d) of the Pensions Act and regulation 3 of the Assignment etc. Regulations, the charge in favour
of the Employer shall not apply to transfer credits (as defined in section 124(1) of the Pensions Act) other than those mentioned in regulation 3 of the Assignment etc. Regulations. 

  

 69 

	23.3.3	EXCEPTIONS FROM CHARGE: (2) GMPS AND PROTECTED RIGHTS. In accordance with section 91(7) of the Pensions Act and section 159 of the Pension Schemes Act, the charge in favour of
the Employer shall not apply to any Guaranteed Minimum Pensions or Protected Rights. 

  

	23.3.4	AMOUNT OF CHARGE. As required by section 91(6)(a) of the Pensions Act, the amount of the charge must not exceed the amount of the monetary obligation due to the Employer, or (if
less) the value of the person in questions’ entitlement or accrued right. For this purpose, the value of the person in question’s entitlement or accrued right shall be determined in such manner as may for the time being be permitted by
regulations made under section 91(6)(a) of the Pensions Act or if no such manner is for the time being so prescribed, in such manner as the Trustees shall determine. 

  

	23.3.5	CERTIFICATE. As required by section 91(6)(b) of the Pensions Act, the pension in question must be given a certificate showing the amount of the charge and its effect on his benefits
under the Scheme. Such certificate shall be given by the Trustees. 

  

	23.3.6	DISPUTED LIABILITY. As required by section 91(6) of the Pensions Act, where there is a dispute as to its amount, the charge must not be exercised unless the monetary obligation in
question has become enforceable under an order of a competent court or in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff. 

  

	23.3.7	MANNER OF EXERCISING THE CHARGE. Subject to sub-Clause 23.3.8 any charge which becomes exercisable under this sub-Clause shall be exercisable by setting off the amount of the person
in question’s entitlement or accrued right which is subject to the charge against any amount payable to the Scheme by the Employer. 

  

	23.3.8	FORFEITURE. As permitted by section 93 of the Pensions Act, the Employer may request the Trustees to forfeit the person in question’s entitlement or accrued right in order to
discharge the amount due to the Employer, and pay a corresponding amount to the Employer. However, this sub-Clause 23.3.8 shall not apply to an entitlement or accrued right to the extent that it is attributable to Pensionable Service before the
Revision Date. Any such forfeiture must comply with the requirements of sections 93(2) to 93(5) of the Pensions Act concerning the extent to which the entitlement or accrued right may be forfeited, the consequences of a dispute as to the amount of
the monetary obligation in question, the giving of a certificate (which shall be given by the Trustees) and the payment of a corresponding amount to the Employer. 

 23.4 MONETARY OBLIGATION DUE OR LOSS CAUSED TO SCHEME 
 This sub-Clause contains exceptions to section 91 and 92 of the
Pensions Act as permitted by sections 91(5)(e) and 92(6) of that Act. 
  

 70 

 Where any amount becomes due to the Scheme from any person with any entitlement or accrued right to any benefit under the
Scheme:- 
 (a) arising out of a criminal, negligent or fraudulent act or omission by the person in question; or 
 (b) if the person in question is or was a Trustee, arising out of a breach of trust by him; 
 the following provisions of this sub-Clause shall apply. 
  

	23.4.1	CHARGE ON BENEFITS. The person in question’s entitlement or accrued right shall stand charged with the amount due to the Scheme. 

  

	23.4.2	EXCEPTIONS FROM CHARGE: (1) RELIEF FROM BREACH OF TRUST. In accordance with section 91(5)(e) of the Pensions Act and regulation 4 of the Assignment etc. Regulations, the charge
in favour of the Scheme shall not apply where the monetary obligation arises out of a breach of trust by the person in question and the court has relived him wholly or partly from personal liability under section 61 of the Trustee Act 1925 or
section 32 of the Trusts (Scotland) Act 1921. 

  

	23.4.3	EXCEPTIONS FROM CHARGE: (2) GMPS AND PROTECTED RIGHTS. In accordance with section 91(7) of the Pensions Act and section 159 of the Pension Schemes Act, the charge in favour of
the Scheme shall not apply to any Guaranteed Minimum Pensions or Protected Rights. 

  

	23.4.4	AMOUNT OF CHARGE. As required by section 91(6)(a) of the Pensions Act, the amount of the charge must not exceed the amount of the monetary obligation due to the Scheme, or (if less)
the value of the person in question’s entitlement or accrued right. For this purpose, the value of the person in question’s entitlement or accrued right shall be determined in such manner as may for the time being be permitted by
regulations made under section 91(6)(a) of the Pensions Act or if no such manner is for the time being so prescribed, in such manner as the Trustees shall determine. 

  

	23.4.5	CERTIFICATE. As required by section 91(6)(b) of the Pensions Act, the pension in question must be given a certificate showing the amount of the charge and its effect on his benefits
under the Scheme. Such certificate shall be given by the Trustees. 

  

	23.4.6	DISPUTED LIABILITY. As required by section 91(6) of the Pensions Act, where there is a dispute as to its amount, the charge must not be exercised unless the monetary obligation in
question has become enforceable under an order of a competent court or in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff. 

  

 71 

	23.4.7	MANNER OF EXERCISING THE CHARGE. Any charge which becomes exercisable under this sub-Clause shall be exercisable by setting off the amount of the person in question’s
entitlement or accrued right which is subject to the charge against the amount due to the Scheme from the person in question. 

  

	23.4.8	FORFEITURE. As permitted by section 92(6) of the Pensions Act and regulations made under it (being at the date of this Deed regulation 6(1)(b) and 6(3) of the Assignment etc.
Regulations), where the criminal, negligent or fraudulent act or omission, or breach of trust, has caused a monetary loss to the Scheme, the person in question’s entitlement or accrued right may be forfeited by the Trustees to the extent that
it does not exceed the amount of the monetary loss to the Scheme, or (if less) the value of the person’s entitlement or accrued right under the Scheme. 

  

	23.4.9	PRE-REVISION DATE BENEFITS. None of the preceding provisions of this sub-Clause 23.4 shall apply to an entitlement or accrued right to the extent that it is attributable to
Pensionable Service before the Revision Date except insofar as the person in question’s entitlement or accrued right was capable of being charged or forfeited before the coming into force of the Pensions Act 1995 in respect of an amount due or
loss caused to the Scheme. 

 23.5 PAYMENTS TO INFANTS AND PERSONS UNDER INCAPACITY 
 Subject to the GMP Rules in the case of Guaranteed Minimum Pensions, if any benefit under the Scheme is payable to any beneficiary of the Scheme who is an infant or under
incapacity the following provisions of this sub-Clause shall apply:- 
  

	23.5.1	if the beneficiary is an infant, the Trustees shall have power to pay the benefit to him personally; 

  

	23.5.2	the Trustees shall have power to pay the benefit or any part of it to such individual, body corporate or institution for the benefit of the beneficiary as the Trustees shall think
fit; and 

  

	23.5.3	the receipt of (a) the beneficiary if he is an infant and the payment is made pursuant to sub-Clause 23.5.1, or (b) the individual, body corporate or institution to whom
or to which the payment is made in the case of a payment made pursuant to sub-Clause 23.5.2, shall be a complete discharge to the Trustees for the payment and shall exonerate them from all further concern or responsibility in relation to it.

 For the purpose of this sub-Clause:- 
 (a) an
individual shall be treated as being under incapacity if for any reason (including illness or age) he is unable to give reasoned consideration to financial matters; 
  

 72 

 (b) the Trustees shall be entitled to accept as conclusive evidence of a beneficiary of the Scheme being under incapacity
a certificate signed by any person whom the Trustees consider to be competent to give such certificate. 
 23.6 POLYGAMOUS MARRIAGES 
 Where any male Member marries under a law which allows polygamy and the Member dies leaving more than one wife to whom he was lawfully married at the date of his death,
any benefit payable under the Scheme which is expressed to be payable to the Member’s spouse shall be payable to such one or more of the Member’s wives, and, if to more than one, in such proportions, as the Trustees may in their discretion
think fit. 
  

 73 

 PART 9: AMENDMENT AND TERMINATION 
 24 AMENDMENT 
 24.1 POWER OF AMENDMENT 
 The Trustees may at any time, with the Principal Employer’s consent, by deed amend or add to all or any of the trusts, powers and provisions of the Trust Deeds. 
 24.2 EFFECTIVE DATE OF AMENDMENTS 
 Any amendment or addition made pursuant to sub-Clause 24.1 shall have effect from such
time as may be specified in the deed by which it is made, and such time may be the date of such deed or any reasonable time previous or subsequent to it, so as to give the amendment or addition retrospective or future effect (as the case may be).

 24.3 TRUSTEES’ STATUTORY POWERS OF AMENDMENT 
 The
preceding sub-Clauses of this Clause are without prejudice to the Trustees’ powers under the following sections of the Pensions Act, namely:- 
  

	24.3.1	section 65 (equal treatment rule; consequential alteration of schemes); and 

  

	24.3.2	section 68 (power of trustees to modify schemes by resolution). 

 24.4
STATUTORY RESTRICTIONS ON POWER OF AMENDMENT 
 No amendment may be made pursuant to this Clause:- 
  

	24.4.1	which would contravene section 67 if the Pensions Act (restriction on power to alter schemes); or 

  

	24.4.2	which would contravene section 37 of the Pension Schemes Act (alteration of rules of contracted-out schemes). 

 25 TERMINATION OF THE SCHEME 
 25.1 TERMINATION BY THE PRINCIPAL EMPLOYER

 The Principal Employer may terminate the Scheme at any time by serving notice to that effect on the Trustees. The notice shall be of such length (including
summary notice) as the Principal Employer may decide. The Scheme shall terminate on the date when the notice expires (or the date when it is served, if it is summary notice). 
  

 74 

 25.2 TERMINATION BY THE TRUSTEES 
 The Trustees may terminate the Scheme in any of the following circumstances:- 
  

	25.2.1	if the Principal Employer exercises its right to discontinue contributions under sub-Clause 13.3; or 

  

	25.2.2	if the Principal Employer fails to pay any sum due from it to the Trustees under the Scheme within fourteen days (or such longer period as the Trustees may allow) after the Trustees
demand payment of such sum from the Principal Employer; 

  

	25.2.3	if the Principal Employer is materially in breach of any of its other obligations under the Scheme and, where the breach is capable of remedy, the Principal Employer fails to remedy
such breach within one month after the Trustees serve notice on it requiring the breach to be remedied; 

  

	25.2.4	if sub-Clause 5.6 applies because of the occurrence of any of the events listed in sub-Clause 5.5; 

  

	25.2.5	if the Principal Employer is wound up; or 

  

	25.2.6	if all the Employers exercise (whether at the same time or different times) their right to discontinue contributions under sub-Clause 13.3; 

 by making a written declaration to that effect. The Trustees shall then notify the Employers and the Members that they have done so. The Scheme shall terminate on the
date of such declaration. 
 25.3 PERPETUITY PERIOD 
 In
accordance with section 1 of the Perpetuities and Accumulations Act 1964, the perpetuity period applicable to the Scheme shall be 80 years from 10 October 1988. The specification of a perpetuity period in this sub-Clause shall be without
prejudice to the exemption of the Scheme from the operation of any rules of law relating to perpetuities by virtue of it qualifying under section 163 of the Pension Schemes Act. 
 25.4 TERMINATION AT OR FOLLOWING END OF PERPETUITY PERIOD 
 If the Scheme has not previously terminated under the sub-Clauses
25.1 or 25.2, it shall terminate automatically on the later of:- 
  

	25.4.1	the date when the perpetuity period mentioned in sub-Clause 25.3 expires; and 

  

	25.4.2	the date when the Scheme ceases to qualify under section 163 of the Pension Schemes Act or any other statutory provision exempting it from the operation of any rules of law relating
to perpetuity. 

  

 75 

 25.5 CERTAIN CONSEQUENCES OF TERMINATION 
 Without prejudice to the following sub-Clauses of this Clause, and Clause 26, the termination of the Scheme shall have the following consequences:- 
  

	25.5.1	all Members in Pensionable Service on the date when the Scheme terminates shall be deemed to have left Pensionable Service on that date; 

  

	25.5.2	no person may be admitted or re-admitted to membership of the Scheme after that date; 

  

	25.5.3	the Employers shall cease to have any obligation to pay any contributions to the Scheme except contributions due but unpaid at the date of termination and any sum payable by them
pursuant to section 75 of the Pensions Act. 

 25.6 CONTINUATION OF SCHEME AS PAID-UP AND CLOSED SCHEME FOLLOWING TERMINATION 
 Following the termination of the Scheme pursuant to this Clause the Trustees shall continue to administer and manage the Scheme as a paid-up and closed scheme unless or
until they are required by sub-Clause 25.7 to wind up. For so long as the Scheme continues as a paid-up and closed scheme all the powers vested in the Trustees and the Employers by the Trust Deeds and the Rules shall remain in force, subject as
provided in sub-Clause 25.5. 
 25.7 WINDING UP FOLLOWING TERMINATION 
 The Trustees shall proceed to wind up the Scheme in accordance with Clause 26 as soon as practicable after the earliest of the following dates:- 
  

	25.7.1	if the Scheme terminates pursuant to sub-Clause 25.4 (operation of perpetuity rules), the date when the Scheme terminates; 

  

	25.7.2	such date as the Trustees resolve to wind up the Scheme; 

  

	25.7.3	such date with effect from which the Principal Employer directs the Trustees to proceed to wind up the Scheme (being a date not earlier than the date of such direction).

 25.8 NOTICE OF TERMINATION TO MEMBERS AND OTHERS 
 As soon as practicable and, in any event, within three months after the termination of the Scheme, the Trustees shall inform all Members of the Scheme of the termination of the Scheme and the steps which the Trustees propose to take
following termination. 
  

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 26 WINDING UP 
 26.1
COMMENCEMENT 
 The winding up of the Scheme shall commence on the earliest of the dates mentioned in sub-Clause 25.7. 
 26.2 POWERS AND DISCRETIONS 
 All the powers and discretions vested in the
Trustees and the Principal Employer by the Trust Deeds (other than by Clause 25), or by law (including the power to amend this Clause) shall, except as provided in sub-Clause 25.5.2, remain exercisable by them respectively until the completion of
winding up. 
 26.3 MEMBERS’ RIGHTS 
 The Member’s
rights under the Rules:- 
  

	26.3.1	to commute the whole or any part of their benefits in return for the payment of a lump sum, and 

  

	26.3.2	to surrender part of their entitlement to a pension in return for the payment of a pension to a spouse or Dependent, 

 shall remain exercisable in accordance with the Rules until such time as the Trustees (having regard to the need to determine the liabilities of the Scheme before
securing them) declare in writing that such rights have ceased to be exercisable. 
 Where a Member has a right under Chapter IV of Part IV of the Pension
Schemes Act to take the cash equivalent of his accrued benefits under the Scheme, such right remains exercisable until the Scheme is wound up, unless the Member previously loses the right pursuant to section 98(7) of the Pension Schemes Act.

 26.4 REALISATION OF ASSETS 
 When the Scheme fails to be wound
up pursuant to sub-Clause 25.7, the Trustees shall realize the assets of the Fund in such manner and upon such terms and conditions as they shall think fit, subject to and with the following powers:- 
  

	26.4.1.	power to delay the realisation of any or all of the assets of the Fund for as long as they shall think fit (so that they may continue to exercise all or any of the powers of
investment conferred on them by the Trust Deeds pending realisation); and 

  

	26.4.2	power to place any realisation proceeds on current or deposit account with any bank or other financial institution. 

  

 77 

 26.5 CREATION OF A RESERVE FOR COSTS AND EXPENSES 
 Before applying the assets of the Scheme to secure its liabilities in accordance with the following sub-Clauses of this Clause, the Trustees shall set aside in a reserve such sum as they consider to be a prudent
estimate of the costs and expenses (1) incurred by them prior to or in the course of winding up the Scheme and not previously paid and (2) likely to be incurred by them thereafter in the course of winding up. 
 26.6 ORDER OF PRIORITY FOR SECURING SCHEME’S LIABILITIES 
 Upon the
winding up of the Scheme the assets of the Scheme shall be applied by the Trustees in securing its liabilities in the order required by section 73 of the Pensions Act and regulations made under it (being at the date of this Deed The Occupational
Pension Schemes (Winding Up) Regulations 1996 (SI 1996 No. 3126)). 
 26.7 VALUING THE SCHEME’S LIABILITIES 
 For the purposes of this Clause, the value of the Scheme’s liabilities in respect of pensions and other benefits shall, subject to the requirements of section 73 of
the Pensions Act, be calculated on such basis as the Trustees shall decide after consultation with the Actuary. 
 26.8 DEFICIT ON WINDING UP 
 If, notwithstanding any sums received by the Trustees in discharge of any debt due from any of the Employers to them pursuant to section 75 of the Pensions Act, the
assets of the Scheme (after the payment of costs and expenses and the setting aside of a reserve pursuant to sub-Clause 26.5) are insufficient to secure in full all of its liabilities in respect of pensions and other benefits, the Trustees shall
apply the available assets in accordance with section 73(2) of the Pensions Act. 
 26.9 SURPLUS ON WINDING UP 
 If the assets of the Scheme (after the payment of costs and expenses and the setting aside of a reserve pursuant to sub-Clause 26.5) are more than sufficient to secure in
full all of its liabilities in respect of pensions and other benefits, the Trustees shall apply in securing those liabilities such part of the assets as is required to secure them and shall deal with the surplus as follows:- 
  

	26.9.1	first, by applying such part (if any) of the surplus in providing, subject to Revenue Limits, such additional or new benefits as the Principal Employer shall direct; and

  

	26.9.2.	 secondly, subject to compliance with section 76 of the Pensions Act (“Excess assets on winding up”) by paying any remaining balance to the Employers (and,
if more than one, in such proportions as shall be determined by the Actuary) as it may specify, having first deducted 

  

 78 

	 	 
any tax for which the Trustees may be accountable to the Inland Revenue. 

 26.10 POWER TO SECURE LIABILITIES ON AN INTERIM BASIS 
 If for any reason the Trustees experience delay in realising the
assets of the Scheme (including the discharge of any debt due to them from any of the Employers under section 75 of the Pensions Act) or in determining the Scheme’s liabilities in respect of pensions and other benefits, they shall have power to
apply such part of the assets of the Scheme as they shall think fit in securing any or all of such liabilities as they are able to determine but not so as to prejudice the securing of the Scheme’s liabilities in the order of priority referred
to in sub-Clause 26.6. 
 26.11 MANNER IN WHICH LIABILITIES TO BE SECURED 
 Subject as provided in section 74 of the Pensions Act, the Trustees shall have power to secure in any one or more of the following ways the liabilities of the Scheme in respect of pensions and other benefits which
pursuant to the preceding sub-Clauses of this Clause are required to be secured on the winding-up of the Scheme:- 
  

	26.11.1	by making a transfer payment to another retirement benefits scheme or a personal pension scheme in accordance with Clause 19; 

  

	26.11.2	by buying them out in accordance with Clause 20; and 

  

	26.11.3	by paying (a) such lump sums in commutation of entitlements to pension as may be permitted by the Rules or (b) such lump sums as may be payable under the Rules on the
death of any person. 

 26.12 INFORMATION TO MEMBERS AND OTHERS CONCERNING WINDING UP 
 The Trustees’ duty to provide information to Members and other persons entitled to benefits from the Scheme concerning the winding up of the Scheme is limited to the
duties imposed on them by paragraphs (10) to (12) of regulation 5 of the Disclosure Regulations. 
 The Trustees shall provide such information to
the Principal Employer concerning the winding up of the Scheme as the Principal Employer may reasonably require and shall do so as soon as practicable and, in any event, within one month after receiving any request for such information from the
Principal Employer. 
 26.13 TRUSTEES’ GENERAL POWER ON WINDING UP 
 Notwithstanding the specific powers conferred on them by this Clause, the Trustees shall have power to do all such acts matters or things as they shall think fit in order to achieve:- 
  

	26.13.1	the orderly winding up of the Scheme; and 

  

 79 

	26.13.2	(subject to the order of priority referred to in sub-Clause 26.6) such application of the assets of the Scheme in securing its liabilities as they shall think fair and equitable.

  

 80 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 SCHEDULE 3: STAFF SECTION RULES

  

							
	 SECTION 1: INTRODUCTION; ELIGIBILITY AND MEMBERSHIP
	  	87
			
	 1
	    	INTRODUCTION	  	87
		    	1.1	    	Interpretation	  	87
		    	1.2	    	Defined terms	  	87
		    	1.3	    	Application	  	87
		    	1.4	    	Transfer to another Section	  	88
		    	1.5	    	Member categories	  	88
			
	 2
	    	ELIGIBILITY AND MEMBERSHIP	  	88
		    	2.1	    	Eligibility conditions	  	88
		    	2.2	    	Evidence as to fulfilment of conditions	  	88
		    	2.3	    	Admission of new Employees to membership when first eligible	  	88
		    	2.4	    	Medical and other evidence	  	89
		    	2.5	    	Discretionary admission to membership	  	89
		    	2.6	    	Effect of admission to membership	  	89
		    	2.7	    	Opting out	  	89
		    	2.8	    	Re-joining the Scheme after opting out	  	89
		    	2.9	    	Effect of providing incomplete or inaccurate information	  	90
		
	 SECTION 2: MEMBERS’ CONTRIBUTIONS
	  	91
			
	 3
	    	MEMBERS’ CONTRIBUTIONS	  	91
		    	3.1	    	Compulsory contributions	  	91
		    	3.2	    	Voluntary contributions	  	91
		    	3.3	    	Notice to be given by Members concerning voluntary contributions	  	91
		    	3.4	    	Benefits in respect of voluntary contributions	  	91
		    	3.5	    	Repayment of surplus voluntary contributions	  	91
		    	3.6	    	Deduction of contributions from salary or pay	  	92
		    	3.7	    	Termination of Member’s contributions	  	92
		    	3.8	    	Member’s contributions during temporary absence	  	92
		
	 SECTION 3: PENSIONABLE SERVICE AND TEMPORARY ABSENCE
	  	93
			
	 4
	    	CALCULATION OF STAFF PENSIONABLE SERVICE	  	93
		    	4.1	    	Purpose of this Rule	  	93
		    	4.2	    	Staff Pensionable Service	  	93
		    	4.3	    	More than one period of Staff Pensionable Service	  	93
		    	4.4	    	Change of Scheme Employer	  	94
			
	 5
	    	MEMBERS IN PART-TIME EMPLOYMENT	  	94
		    	5.1	    	Purpose of this Rule	  	94
		    	5.2	    	Interpretation	  	94

  

 81 

							
		    	5.3	    	Members to whom this Rule applies	  	94
		    	5.4	    	Conversion into full-time equivalent	  	95
		    	5.5	    	Treatment of notional Pensionable Service	  	95
			
	 6
	    	CONSEQUENCES OF TEMPORARY ABSENCE	  	95
		    	6.1	    	Purpose of this Rule	  	95
		    	6.2	    	Maternity absence: (a) paid	  	96
		    	6.3	    	Maternity absence: (b) unpaid	  	96
		    	6.4	    	Other causes of temporary absence	  	97
		
	 SECTION 4: MEMBER’S RETIREMENT BENEFITS
	  	99
			
	 7
	    	MEMBERS’ RETIREMENT BENEFITS: GENERAL	  	99
		    	7.1	    	Member’s retirement benefits	  	99
		    	7.2	    	Other provisions applicable to retirement pensions	  	99
		    	7.3	    	Supplements to retirement pensions	  	99
		    	7.4	    	Contracting-out and Inland Revenue requirements	  	100
			
	 8
	    	NORMAL RETIREMENT	  	100
		    	8.1	    	Member’s entitlement to pension from Normal Retirement Age	  	100
		    	8.2	    	Initial annual amount of Member’s pension	  	100
		    	8.3	    	Transferred Racal RBS Members	  	100
			
	 9
	    	EARLY RETIREMENT: (A) GENERALLY	  	100
		    	9.1	    	Circumstances in which Member’s pension may commence early	  	100
		    	9.2	    	Preservation requirements	  	101
		    	9.3	    	GMP requirements	  	101
			
	 10
	    	EARLY RETIREMENT: (B) VOLUNTARY	  	101
		    	10.1	    	When payable	  	101
		    	10.2	    	Initial annual amount	  	101
		    	10.3	    	Adjustment for male Pre-88 Members	  	102
		    	10.4	    	Adjustment for female Pre-88 Members	  	102
		    	10.5	    	Transferred Racal RBS Members	  	102
			
	 11
	    	EARLY RETIREMENT: (C) REDUNDANCY	  	103
		    	11.1	    	When payable	  	103
		    	11.2	    	Initial annual amount	  	103
		    	11.3	    	Adjustment for male Pre-88 Members	  	103
		    	11.4	    	Adjustment for female Pre-88 Members	  	103
		    	11.5	    	Reliance by Trustees on statements from Employers	  	104
		    	11.6	    	Transferred Racal RBS Members	  	104
			
	 12
	    	EARLY RETIREMENT: (D) SERIOUS ILL-HEALTH	  	104
		    	12.1	    	When payable	  	104
		    	12.2	    	Procedure	  	104
		    	12.3	    	Medical evidence before commencement of pension	  	105
		    	12.4	    	Commencement	  	105
		    	12.5	    	Initial annual amount	  	105
		    	12.6	    	Subsequent adjustments	  	105

  

 82 

							
		    	12.7	    	Medical evidence after commencement of pension	  	105
		    	12.8	    	Transferred Racal RBS Members	  	106
			
	 13
	    	LATE RETIREMENT	  	106
		    	13.1	    	Commencement of late retirement pension	  	106
		    	13.2	    	Initial annual amount of late retirement pension	  	106
		    	13.3	    	Transferred Racal RBS Members	  	106
		
	 SECTION 5: ALTERNATIVES TO MEMBER’S PENSION
	  	107
			
	 14
	    	COMMUTATION	  	107
		    	14.1	    	Member’s right to commute	  	107
		    	14.2	    	Member’s election to commute	  	107
		    	14.3	    	Maximum lump sum	  	107
		    	14.4	    	Member continuing in Service after Normal Retirement Age	  	107
		    	14.5	    	Benefits from Member’s voluntary contributions	  	107
		    	14.6	    	Exceptional circumstances of serious ill-health	  	108
		    	14.7	    	Trivial pensions	  	108
		    	14.8	    	Commutation factors	  	108
		    	14.9	    	GMP requirements	  	108
			
	 15
	    	SURRENDER OPTION	  	108
		    	15.1	    	Trustees’ discretion to permit surrender	  	108
		    	15.2	    	Member’s election to surrender	  	109
		    	15.3	    	Revenue and contracting-out limits on surrender	  	109
		    	15.4	    	Surrender factors	  	109
		    	15.5	    	Effect of death of spouse or nominated Dependant	  	109
		    	15.6	    	Revocation of Member’s election	  	110
		    	15.7	    	Further election following cancellation or revocation	  	110
		
	 SECTION 6: BENEFITS ON MEMBER’S DEATH
	  	111
			
	 16
	    	BENEFITS OF MEMBER’S DEATH: GENERAL	  	111
		    	16.1	    	 Categories of benefit payable
	  	111
		    	16.2	    	 Provisions applicable to pensions on Member’s death
	  	111
			
	 17
	    	DEATH IN PENSIONABLE SERVICE	  	112
		    	17.1	    	Lump sum benefit	  	112
		    	17.2	    	Spouse’s pension	  	113
		    	17.3	    	Financial Dependant’s pension	  	113
		    	17.4	    	Children’s pensions:	  	113
			
	 18
	    	DEATH IN SERVICE ON OR AFTER NORMAL RETIREMENT AGE	  	115
		    	18.1	    	Lump sum benefit	  	115
		    	18.2	    	Spouse’s pension	  	115
		    	18.3	    	Financial Dependant’s pension	  	115
		    	18.4	    	Children’s pensions	  	116
		
	 19 DEATH AFTER RETIREMENT
	  	117
		    	19.1	    	 Lump sum benefit: (a) 5 year guarantee
	  	117

  

 83 

							
		    	19.2	    	Lump sum benefit: (b) continued life cover in special cases	  	117
		    	19.3	    	Spouse’s pension	  	117
		    	19.4	    	Financial Dependant’s pension	  	118
		    	19.5	    	Children’s pensions	  	118
		
	 SECTION 7: EARLY LEAVERS
	  	120
			
	 20
	    	EARLY LEAVERS: GENERAL	  	120
		    	20.1	    	Application of this Section to early leavers	  	120
		    	20.2	    	Early leavers not qualifying for preserved benefits	  	120
		    	20.3	    	Early leavers who qualify for preserved benefits	  	120
			
	 21
	    	EARLY LEAVER NOT ENTITLED TO PRESERVED BENEFITS	  	120
		    	21.1	    	 Refund of contributions
	  	120
		    	21.2	    	Transfer option	  	121
			
	 22
	    	EARLY LEAVER ENTITLED TO PRESERVED BENEFITS	  	121
		    	22.1	    	Entitlement to preserved benefits	  	121
		    	22.2	    	Commutation and/or surrender of preserved pension	  	121
		    	22.3	    	Other provisions applicable to preserved pensions	  	121
		    	22.4	    	Supplements to preserved pensions	  	121
		    	22.5	    	Contracting-out and Inland Revenue requirements	  	122
		    	22.6	    	Alternatives to preserved benefits	  	122
			
	 23
	    	COMMENCEMENT OF PRESERVED BENEFITS AT NRA	  	123
		    	23.1	    	Payment	  	123
		    	23.2	    	Initial annual amount	  	123
		    	23.3	    	Transferred Racal RBS Members	  	123
			
	 24
	    	COMMENCEMENT OF PRESERVED BENEFITS BEFORE NRA	  	123
		    	24.1	    	Conditions for early commencement	  	123
		    	24.2	    	Initial annual amount	  	124
		    	24.3	    	Adjustment for male Pre-88 Members	  	124
		    	24.4	    	Adjustment for female Pre-88 Members	  	124
		    	24.5	    	Transferred Racal RBS Members	  	125
		    	24.6	    	Preservation requirements	  	125
			
	 25
	    	COMMENCEMENT OF PRESERVED BENEFITS AFTER NRA	  	125
		    	25.1	    	Conditions for late commencement: (a) 89 Limits Members	  	125
		    	25.2	    	Conditions for late commencement: (b) other Members	  	125
		    	25.3	    	Initial annual amount	  	126
		    	25.4	    	Transferred Racal RBS Members	  	126
		    	25.5	    	Preservation requirements	  	126
			
	 26
	    	BENEFITS ON DEATH OF EARLY LEAVER WITH PRESERVED BENEFITS	  	126
		    	26.1	    	Lump sum on death of Deferred Member whilst benefits preserved	  	126
		    	26.2	    	Spouse’s pension on death of Deferred Member whilst benefits preserved	  	127
		    	26.3	    	Financial Dependant’s pension	  	127
		    	26.4	    	Benefits on death of Deferred Member after pension commences	  	127
		    	26.5	    	Other provisions applicable to survivors’ pensions	  	127

  

 84 

							
	 SECTION 8: PENSIONS - PAYMENT ARRANGEMENTS AND INCREASES
	  	128
			
	 27
	    	PAYMENT OF PENSIONS	  	128
		    	27.1	  	Payment arrangements	  	128
		    	27.2	  	Power to change payment arrangements	  	128
		    	27.3	  	Overpayment of pensions	  	128
			
	 28
	    	PENSION INCREASES	  	128
		    	28.1	  	Guaranteed Minimum Pensions	  	128
		    	28.2	  	Other pensions	  	128
		    	28.3	  	Members in Pensionable Service on 1 September 1993	  	129
		    	28.4	  	First annual increase	  	129

  

 85 

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 86 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE TRUST DEED AND RULES 
 SCHEDULE 3: STAFF SECTION RULES 

 SECTION 1: INTRODUCTION; ELIGIBILITY AND MEMBERSHIP 
 1.
INTRODUCTION 
 1.1 INTERPRETATION 
 These Rules is this Schedule
shall be interpreted in accordance with Schedule 1 to this Deed. 
 Any reference in this Schedule to a numbered Rule is to one of these Rules unless the
reference is to a rule in one of the other Schedules. 
 Any reference in this Schedule to a Member is to a Member to whom this Schedule applies, as stated
in sub-Rule 1.3. 
 1.2 DEFINED TERMS 
 In these Rules the
following words and expressions have the following meanings respectively:- 
 “NORMAL RETIREMENT AGE” means the date of the Member’s 65th
birthday; 
 “PRE-88 MEMBERS” means Members whose Service commenced before January 1988; 
 “RACAL RBS SERVICE” means, in relation to a Transferred Racal RBS Member, service which qualified for benefit under the Racal RBS Scheme expressed in complete
months; 
 “STAFF PENSIONABLE SERVICE” means the total of the periods referred to in sub-Rule 4.2; 
 “TRANSFERRED RACAL RBS MEMBER” means a Member who:- 
 (1) was a
member of the Racal RBS Scheme on 31 October 1988; and 
 (2) joined this Scheme on 1 November 1988 as a full contributory Member. 
 1.3 APPLICATION 
 These Rules apply:- 
 (1) to all Members who are in Pensionable Service on the Revision Date and immediately before the Revision Date were in pensionable service under this Scheme; and

  

 87 

 (2) to all Members who become Members of the Staff Section on or after that date in accordance with Rule 2. 

1.4 TRANSFER TO ANOTHER SECTION 
 When any Member of this Section becomes
a Member of another Section of the Scheme, he shall cease to be entitled to benefits under this Section. 
 1.5 MEMBER CATEGORIES 
 Pre-88 Members had Normal Retirement Ages of 65 in the case of men and 60 in the case of women until 31 August 1993. Irrespective of their sex, Normal Retirement Age
under the Scheme for these Members became their 65th birthday with effect from 1 September 1993. 
 Members whose Service (as opposed to their
Pensionable Service) commenced on or after 1 January 1988 have always had a Normal Retirement Age of 65 which applies to both sexes. Members whose service commences on or after the Revision Date also have a Normal Retirement Age of 65.

 2 ELIGIBILITY AND MEMBERSHIP 
 2.1 ELIGIBILITY CONDITIONS

 An Employee is eligible to become a Member of the Staff Section if he fulfils the following eligibility conditions unless he is informed by the Principal
Employer that he is not eligible to become a Member:- 
 (1) he is employed by one or more of the Employers as a permanent employee; and 
 (2) he is aged 18 years or over but under 64 years 11 months. 
 An Employee
is not eligible to become a Member on the Staff Section if and for so long as he pays contributions to a personal pension scheme approved or for which approval is being sought under Chapter IV of Part XIV of the Taxes Act or if he is eligible to
become a Member of the Executive Manager and Senior Manager Section or the Directors Section. 
 2.2 EVIDENCE AS TO FULFILMENT OF CONDITIONS 
 The Trustees may rely on a statement from an Employer as to the fulfilment of the conditions in sub-Rule 2.1 in respect of any Employee. 
 2.3 ADMISSION OF NEW EMPLOYEES TO MEMBERSHIP WHEN FIRST ELIGIBLE 
 An
Employee shall be admitted to membership of the Staff Section with effect from the first date on which he satisfies all the eligibility conditions set out in sub-Rule 2.1 subject to the Trustees’ powers under sub-Rule 2.4 and (having 

  

 88 

 
regard to section 160 of the Pension Schemes Act) with the right under sub-Rule 2.7 to opt out if he does not wish to be or remain a Member. 
 2.4 MEDICAL AND OTHER EVIDENCE 
 Before being admitted to membership of the
Staff Section an Employee shall produce such evidence of health, age and such other matters (if any) as the Trustees may require. 
 If when required to do
so pursuant to this sub-Rule an Employee fails to produce evidence of good health to the satisfaction of the Trustees, the Trustees may decline to admit him to membership or they may offer him membership on such special terms (including as to
modified or partial benefits) as the Trustees with the consent of the Principal Employer shall decide. 
 2.5 DISCRETIONARY ADMISSION TO MEMBERSHIP

 An Employee who would not otherwise be eligible for membership of the Staff Section may be admitted to membership of the Staff Section with the consent of
the Principal Employer and the Trustees and on such terms and at such time as may be agreed between the Trustees and the Principal Employer. 
 2.6 EFFECT OF
ADMISSION TO MEMBERSHIP 
 Upon being admitted to membership of the Staff Section an Employee becomes a Member and is bound by the Trust Deeds. 
 2.7 OPTING OUT 
 A Member may at any time withdraw from active membership of
the Staff Section by giving to his Employer for recording and transmission to the Trustees not less than one month’s notice to that effect ending on the last day of any month on such form as the Trustees may prescribe for that purpose, or such
lesser period of notice (if any) as the Trustees and the Employer may agree to accept. Upon the expiration of such notice the Member concerned shall be treated for the purposes of the Scheme as having terminated his Pensionable Service. If the
Member gives such notice before paying any contributions to the Scheme, he shall be treated as if he had never become a Member. 
 2.8 RE-JOINING THE SCHEME
AFTER OPTING OUT 
 A Member who withdraws from active membership of the Staff Section pursuant to sub-Rule 2.7 may, at the discretion of the Trustees and
with the consent of the Principal Employer, be re-admitted to membership of the Staff Section provided he then fulfils the eligibility conditions mentioned in sub-Rule 2.1 and satisfies the requirements of sub-Rule 2.4. Such re-admission shall be
for such benefits and subject to such conditions as the Trustees and the Principal Employer shall decide. 
  

 89 

 2.9 EFFECT OF PROVIDING INCOMPLETE OR INACCURATE INFORMATION 
 Without prejudice to sub-Rule 2.4, if when required to do so any Employee or Member fails to provide the Trustees with information or provides them with information which
is incomplete or inaccurate, the Trustees may with the consent of the Principal Employer modify the benefits payable to or in respect of the Member under the Scheme to such extent as they may consider appropriate in the circumstances. 
  

 90 

 SECTION 2: MEMBERS’ CONTRIBUTIONS 
 3 MEMBERS’ CONTRIBUTIONS 
 3.1 COMPULSORY CONTRIBUTIONS 
 In each Scheme Year each Member shall pay contributions to the Scheme in equal instalments at the same time as he receives pay from his Employer at the rate of 3.5% of his Pensionable Earnings (or, in the case of a
Member who is an 89 Limits Member for the purposes of the Revenue Limits Rules, the Permitted Maximum (as defined in the Revenue Limits Rules), if less). 
 3.2 VOLUNTARY CONTRIBUTIONS 
 A Member may pay voluntary contributions to the Scheme of such amounts or at such rates (subject to the limits on
Member’s contributions mentioned in the Revenue Limits Rules) and at such intervals as he may agree with the Trustees. The assets representing such voluntary contributions and the income from them and any additions to them shall be held by the
Trustees separate from all the other assets of the Fund. 
 3.3 NOTICE TO BE GIVEN BY MEMBERS CONCERNING VOLUNTARY CONTRIBUTIONS 
 A Member must give the Trustees such notice as the Trustees may require (not exceeding the maximum period of notice allowed by Regulation 2(4) of the Pension Schemes
(Voluntary Contributions Requirements and Voluntary and Compulsory Membership) Regulations 1987 (SI 1987 No. 1108)) of his intention to pay voluntary contributions at a specified rate or of a specified amount, or to vary that rate or amount.

 3.4 BENEFITS IN RESPECT OF VOLUNTARY CONTRIBUTIONS 
 The
Trustees shall secure:- 
 (1) that any voluntary contributions paid by a Member are used to provide such benefits for or in respect of him under the Scheme
as the Trustees and the Member may agree or, in the absence of agreement, as the Trustees may decide and that such benefits:- 
 (a) shall be additional to
the benefits provided for or in respect of him under the following Rules; and 
 (b) shall be money purchase benefits within the meaning of section 181 of
the Pension Schemes Act; and 
 (2) that the value of the additional benefits is reasonable having regard to the amount of the voluntary contributions.

 3.5 REPAYMENT OF SURPLUS VOLUNTARY CONTRIBUTIONS 
 This
sub-Rule applies if a Member pays voluntary contributions under this rule and on his Scheme Exit Date the benefits which have accrued to him are found to 

  

 91 

 
exceed the maximum total benefits which may be provided by the Scheme to or in respect of him under Revenue Limits. 
 (1) To the extent that the excessive benefits have been secured by the Member’s voluntary contributions the amount of the Scheme assets which secure the excessive
benefits and consist of or relate to those contributions shall be determined by the Trustees (for which purpose they may rely on the advice of the Actuary). 
 (2) The Trustees shall then pay that amount to the Member (or, if the Member has died, to the Member’s estate) after deducting such tax as they may be required to deduct and account for to the Inland Revenue. 
 (3) The Trustees shall also comply with the requirements of Regulation 5 of the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Additional Voluntary
Contributions) Regulations 1993 (SI 1993 No. 3016), and, where the Scheme is the “leading scheme” in relation to the Member, with the requirements of Regulation 6 of those Regulations so far as they concern main schemes. 

3.6 DEDUCTION OF CONTRIBUTIONS FROM SALARY OR PAY 
 Each Member’s
Employer shall deduct from the Member’s salary or pay the amounts payable by the Member to the Scheme as compulsory and voluntary contributions and pay them to the Trustees promptly and in any event so as to comply with section 49(8) of the
Pensions Act and regulations made under it (being at the date of this Deed regulation 16 of the Administration Regulations which requires the payment to the Trustees to be made within 19 days commencing from the end of the month in which the amount
is deducted from the Member’s earnings). 
 3.7 TERMINATION OF MEMBER’S CONTRIBUTIONS 
 Unless a Member’s Employer determines otherwise and notifies the Member accordingly, but subject always to such Inland Revenue consent as may from time to time be required, no contributions shall be payable or
may be paid by a Member after his Normal Retirement Age or the date when his Pensionable Service terminates, if earlier. 
 3.8 MEMBER’S CONTRIBUTIONS
DURING TEMPORARY ABSENCE 
 Where a Member is temporarily absent from work with his Employer, the payment of his contributions under this Rule is governed by
Rule 6. 
  

 92 

 SECTION 3: PENSIONABLE SERVICE AND TEMPORARY ABSENCE 
 4 CALCULATION OF STAFF PENSIONABLE SERVICE 
 4.1 PURPOSE OF THIS RULE 
 Most of the benefits payable to or in respect of a Member under the Staff Section are determined by reference to the Member’s Staff Pensionable Service. This Rule
explains how a Member’s Staff Pensionable Service is calculated. 
 4.2 STAFF PENSIONABLE SERVICE 
 Subject to sub-Rule 4.3, a Member’s Staff Pensionable Service for the purpose of calculating the benefits payable to and in respect of him under the Staff Section is
the total of such of the following periods as apply to him and are continuous:- 
 (1) the period during which he was in Pensionable Service under the Staff
Section; 
 (2) if he was a Member immediately before the Revision Date, the period during which he was in Pensionable Service under the Scheme ending on the
day before the Revision Date; 
 (3) if he was a member in Pensionable Service under the Racal Staff Scheme immediately before the Commencement Date, and
became a Member of this Scheme on the Commencement Date, any period of pensionable service under the Racal Staff Scheme which he has been notified by the Trustees counts towards his benefits under this Scheme. 
 Staff Pensionable Service shall be expressed in complete years with complete months which are not part of a complete year being expressed as a fraction of a year.

 There shall be deducted any part of the period or periods in paragraphs (1) and (2) above which does not count as Staff Pensionable Service due
to temporary absence from work as provided in Rule 6 or the applicable temporary absence rule prevailing when the absence occurred. 
 Staff Pensionable
Service shall be subject to a maximum of 40 years or such longer period as may be permitted under the Revenue Limits Rules. 
 4.3 MORE THAN ONE PERIOD OF
STAFF PENSIONABLE SERVICE 
 If a Member who has been in Pensionable Service leaves Service or withdraws from active membership of the Staff Section and
subsequently rejoins the Staff Section, each of the periods of Staff Pensionable Service shall count as a separate period of Staff Pensionable Service unless:- 
 (a) the Trustees with the consent of the Principal Employer agree to aggregate them; or 
  

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 (b) the Member is a female Member who is absent from work wholly or partly because of pregnancy or confinement and the
periods of Pensionable Service separated by the period of maternity absence are required to be treated as continuous by Part VIII of the Employment Rights Act 1996. 
 Where a Member has any period of Staff Pensionable Service which is not aggregated in accordance with this sub-Rule with his most recent period of Staff Pensionable Service, the benefits payable to and in respect of
him in respect of the earlier period or periods are determined in accordance with the Rules relating to early leaves. 
 4.4 CHANGE OF SCHEME EMPLOYER

 Where a Member is employed by one Employer and immediately after the termination of his employment with that Employer he becomes an employee of another
Employer, his Staff Pensionable Service shall not be treated as having been broken by reason only of such change of employment. 
 5 MEMBERS IN PART-TIME
EMPLOYMENT 
 5.1 PURPOSE OF THIS RULE 
 This Rule explains the
adjustments required where any Member’s Staff Pensionable Service includes both full-time and part-time employment or variable part-time employment. 
 5.2 INTERPRETATION 
 In this Rule:- 
 (1)
“FULL-TIME EMPLOYMENT” means in respect of any Employer and any period, employment with the Employer which, by reason of the number of hours per week (or month) for which the Member is contracted to work, is treated by the Employer as
full-time employment; and 
 (2) “PART-TIME EMPLOYMENT” means employment with the Employer which is less than Full-time Employment. 
 5.3 MEMBERS TO WHOM THIS RULE APPLIES 
 This Rule applies to any Member where
during the Member’s Staff Pensionable Service:- 
 (a) the Member has periods both of Full-time Employment and Part-time Employment; or 
 (b) the Member has periods of Part-time Employment in respect of which there is a difference in the number of hours per week (or month) for which he is contracted to
work as a proportion of the number of hours required for Full-time Employment. 
  

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 The Trustees may rely on a statement from the Employer as to the hours per week (or month) for which any Member is or was
contracted to work and the number of hours which are or were required for Full-time Employment with the Employer. 
 5.4 CONVERSION INTO FULL-TIME EQUIVALENT

 Where by virtue of sub-Rule 5.3 this Rule applies to any Member, in respect of each period during which the number of hours per week (or month) for which
the Member is required to work bears the same proportion to the number of hours required for Full-time Employment, his Final Pensionable Earnings and Staff Pensionable Service shall be converted into their full-time equivalent and the benefit
attributable to each such period shall then be aggregated. For this purpose:- 
 (1) the Member’s Final Pensionable Earnings shall be converted into its
full-time equivalent by multiplying it by the fraction FTH/CH; and 
 (2) the Member’s Staff Pensionable Service shall be converted into its full time
equivalent by multiplying it by the fraction CH/FTH:- 
 where:- 
 (a) “FTH” is the number of hours per week (or month) required for Full-time Employment at the end of such period; and 
 (b)
“CH” is the number of hours per week (or month) for which the Member is contracted to work at the end of the period in question. 
 5.5 TREATMENT
OF NOTIONAL PENSIONABLE SERVICE 
 Where any benefit under the Rules is required to be calculated taking into account notional Pensionable Service after a
Member’s actual Pensionable Service has terminated, it shall be assumed that the number of hours for which the Member was contracted to work and the number of hours required for Full-time Employment in each case as at the date when his
Pensionable Service terminated would have continued to apply if he had remained in Pensionable Service. 
 6 CONSEQUENCES OF TEMPORARY ABSENCE 
 6.1 PURPOSE OF THIS RULE 
 This Rule determines:- 
 (1) whether and the extent to which any period during which a Member is temporarily absent from work with his Employer, but remains in Service, is to be included in the
Member’s Staff Pensionable Service; 
 (2) whether and the extent to which the Member is obliged to pay contributions during or in respect of any such
period of temporary absence; and 
  

 95 

 (3) whether the Member’s death during any such period of temporary absence is to count as death in Pensionable
Service for the purpose of determining benefits on death in Pensionable Service under Section 6 of these Rules. 
 6.2 MATERNITY ABSENCE: (a) PAID

 If a female Member is absent from work wholly or partly because of pregnancy or confinement whilst remaining in Service, then to the extent that the period
of absence is a period of paid maternity absence within the meaning of paragraph 5(3) of Schedule 5 to the Social Security Act 1989 or a maternity leave period within the meaning of section 235(1) of the Employment Rights Act 1996, the effect of the
Member’s absence shall be as provided in the following sub-Rules of this Rule. 
  

	6.2.1	CONTINUATION OF MEMBERSHIP. The Member shall be deemed to continue in Pensionable Service throughout the period of paid maternity absence or maternity leave period.

  

	6.2.2	CONTRIBUTIONS DURING ABSENCE. The Member shall continue to pay contributions in accordance with Rule 3 during the period of paid maternity absence calculated by reference to her
actual earnings from her Employer instead of by reference to her Pensionable Earnings. 

  

	6.2.3	PERIOD OF PENSIONABLE SERVICE. The period of paid maternity absence or maternity leave period shall be included in the Member’s Staff Pensionable Service.

  

	6.2.4	DEATH DURING ABSENCE. If a Member dies in Service during the period of paid maternity absence or maternity leave period she shall be treated as dying in Pensionable Service for the
purpose of Section 6 of these Rules. To the extent that the benefits under Section 6 fail to be determined by reference to her earnings during a period which included a period of paid maternity absence, they shall be determined in
accordance with the normal employment requirement within the meaning of paragraph 5(3) of Schedule 5 to the Social Security Act 1989. 

 6.3
MATERNITY ABSENCE: (b) UNPAID 
 If a female Member is absent from work wholly or partly because of pregnancy or confinement whilst remaining in Service,
then to the extent that the period of absence is not a period of paid maternity absence within the meaning of paragraph 5(3) of Schedule 5 to the Social Security Act 1989 or a maternity leave period within the meaning of section 235(1) of the
Employment Rights Act 1996, the effect of the Member’s absence shall be as provided in the following sub-Rules of this Rule. 
  

	6.3.1	CONTINUATION OF MEMBERSHIP. The Member shall be deemed to continue in Pensionable Service throughout the period in question. 

  

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	6.3.2	CONTRIBUTIONS DURING ABSENCE. The Member shall cease to pay contributions in accordance with Rule 3 during the period of absence but may following her return to work pay the
contributions calculated by reference to her full Pensionable Salary which she would have paid if this sub-Rule had not applied in such instalments and over such period as she may agree with the Trustees. 

  

	6.3.3	PERIOD OF PENSIONABLE SERVICE. Any period of maternity absence to which this sub-Rule 6.3 applies shall be included in the Member’s Staff Pensionable Service only to the extent
that the Member pays contributions in respect of it, by way of arrears of contributions paid following her return to work in accordance with sub-Rule 6.3.2. 

  

	6.3.4	DEATH DURING ABSENCE. If the Member dies in Service during a period of maternity absence to which this sub-Rule 6.3 applies, she shall be treated as dying in Pensionable Service for
the purpose of Section 6 of these Rules. 

 6.4 OTHER CAUSES OF TEMPORARY ABSENCE 
 If a Member is temporarily absent from work and the Member is not a female Member whose absence comes within sub-Rules 6.2 or 6.3, the effect of the Member’s absence
shall be as provided in the following sub-Rules of this Rule. 
  

	6.4.1	CONTINUATION OF MEMBERSHIP. The Member shall be deemed to have left Pensionable Service upon the expiry of the following periods:- 

  

	 	(a)	if the absence is due to illness or injury, 30 months from the date when the absence commences; or 

  

	 	(b)	if the absence is for any other reason, 12 months from the date when the absence commences; 

 or such longer period (if any) as the Trustees and the Principal Employer may agree. 
  

	6.4.2	CONTRIBUTIONS DURING ABSENCE. For so long as the Member receives salary or pay from his Employer at not less than half the rate of his salary or pay immediately before the absence
commenced, he shall continue to pay contributions in accordance with Rule 3 during the period of absence calculated by reference to his full Pensionable Earnings. For so long as any Member receives salary or pay from his Employer at less than half
the rate of his salary or pay immediately before the absence commenced, he shall cease to pay contributions in accordance with Rule 3 during the period of absence but may following his return to work pay the contributions (calculated by reference to
his full Pensionable Earnings) which he would have paid if this sub-Rule had not applied in such instalments and over such period as he may agree with the Trustees. 

  

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	6.4.3	PERIOD OF PENSIONABLE SERVICE. Any period of temporary absence shall be included in the Member’s Staff Pensionable Service only to the extent that the Member pays contributions
in respect of it, either during the period of absence or by way of arrears of contributions paid following his return to work in accordance with sub-Rule 6.4.2. 

  

	6.4.4.	DEATH DURING ABSENCE. If a Member dies in Service whilst absent from work and he has not been deemed to have left Pensionable Service in accordance with sub-Rule 6.4.1, he shall be
treated as dying in Pensionable Service for the purpose of Section 6 of these Rules. 

  

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 SECTION 4: MEMBER’S RETIREMENT BENEFITS 
 7 MEMBER’S RETIREMENT BENEFITS: GENERAL 
 7.1 MEMBER’S RETIREMENT BENEFITS 
 On retirement from Pensionable Service:- 
 (1) a Member is entitled to a
pension; and 
 (2) a Transferred Racal RBS Member is also entitled to a cash sum; 
 calculated and paid in accordance with Rules 8 to 13. 
 If before a Member’s Normal Retirement Age his Pensionable
Service is terminated by him leaving Service or withdrawing from membership of the Staff Section whilst remaining in Service, and he does not become entitled to any early retirement pension under Rules 9 to 12, the benefits payable to and in respect
of him are determined in accordance with Section 7 of these Rules. 
 7.2 OTHER PROVISIONS APPLICABLE TO RETIREMENT PENSIONS 
 A Member’s pension payable under Rules 8 to 13:- 
 (1) shall be reduced
in accordance with Rules 14 or 15 if the Member exercises his commutation or surrender options under them; 
 (2) shall be payable in accordance with Rule
27; and 
 (3) shall be subject to increases in accordance with Rule 28. 
 7.3 SUPPLEMENTS TO RETIREMENT PENSIONS 
 Members’ retirement pensions under Rule 8 to 13 may be supplemented:-

 (1) as a result of the Member having paid additional voluntary contributions in accordance with sub-Rule 3.4 or the Former Provisions; 
 (2) as a result of a transfer payment or transfer payments having been received in respect of the Member under Clause 18 in Schedule 2 to this Deed or under the Former
Provisions; or 
 (3) as a result of the exercise of the augmentation powers contained in Clause 21 in Schedule 2 to this Deed. 
 The extent to which Rules 14 (commutation option), 15 (surrender option), 27 (payment of pensions) and 28 (pension increases) apply to any supplement to the
Member’s retirement pension referred to in sub-Rule 7.3 depends on the terms agreed between the Member and the Trustees in the case of additional voluntary contributions and transfer payments and on the terms specified by the Trustees in the
case of augmentations. 
  

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 7.4 CONTRACTING-OUT AND INLAND REVENUE REQUIREMENTS 
 The Trustees must ensure:- 
 (1) that if the Member was in Contracted-out Employment in relation to the Scheme before
6 April 1997, the Member’s retirement pension attributable to Pensionable Service prior to 6 April 1997 complies with the GMP Rules; and 
 (2) that the Member’s retirement benefits do not exceed the limits applicable to them under the Revenue Limits Rules. 
 8 NORMAL RETIREMENT

 8.1 MEMBER’S ENTITLEMENT TO PENSION FROM NORMAL RETIREMENT AGE 
 A Member whose Pensionable Service terminates as a result of his retirement from Service at Normal Retirement Age shall be entitled to a normal retirement pension from the Scheme which shall commence to be payable with effect from the day
following his Normal Retirement Age for the remainder of his lifetime and which shall be calculated in accordance with this Rule. 
 8.2 INITIAL ANNUAL
AMOUNT OF MEMBER’S PENSION 
 The initial annual amount of a Member’s pension under sub-Rule 8.1 shall be calculated by using the following
formula:- 
 Final Pensionable Earnings x Staff Pensionable Service 
 60 
 8.3 TRANSFERRED RACAL RBS MEMBERS 
 A Member who becomes entitled to a normal retirement pension in accordance with sub-Rule 8.1 and who is a Transferred Racal RBS Member shall also be entitled to a cash sum calculated by using the following formula:-

 Final Pensionable Earnings x Racal RBS Service 
 480 
 9 EARLY RETIREMENT: (A) GENERALLY 
 9.1 CIRCUMSTANCES IN WHICH MEMBER’S PENSION MAY COMMENCES EARLY 
 A Member’s retirement pension may commence before
his Normal Retirement Age in any of the following circumstances:- 
 (1) voluntary early retirement under Rule 10; 
 (2) redundancy early retirement under Rule 11; or 
 (3) early retirement due
to Serious Ill-health under Rule 12. 
  

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 9.2 PRESERVATION REQUIREMENTS 
 In accordance with Regulation 8(4) of the Preservation Regulations, the Trustees must be reasonably satisfied that when any Member’s pension becomes payable under Rules 10, 11 or 12 before his Normal Pension Age, the total value of the
Member’s benefits is at least equal in value to the benefits that have accrued to or in respect of him under the Rules (on the basis that the Rules are the “applicable rules” for the purpose of section 94(2) of the Pension Schemes
Act). 
 9.3 GMP REQUIREMENTS 
 If any Member whose pension
commences before Normal Retirement Age under this rule was in Contracted-out Employment in relation to the Scheme before 6 April 1997, the Trustees shall have power to adjust any pension payable under this rule to such extent as may be
necessary to ensure that when the Member attains State Pensionable Age (as defined in the GMP Rules), the Member’s pension attributable to Pensionable Service prior to 6 April 1997 is not less than the amount required under the GMP Rules.

 10 EARLY RETIREMENT: (B) VOLUNTARY 
 10.1 WHEN PAYABLE

 If:- 
 (1) a Member’s Pensionable Service terminates on
or after the date when he attains age 50 and 
 (2) the Principal Employer consents to the immediate commencement of his retirement pension (except that in
the case of a Pre-88 Member, such consent shall not be required to the commencement of the pension on or after the Member’s 60th birthday); 
 he shall
be entitled to an early retirement pension from the Scheme which shall commence to be payable with effect from the day after his Pensionable Service terminates (or such later date as the Trustees shall agree with him) and which shall continue to be
payable for the remainder of his lifetime. 
 10.2 INITIAL ANNUAL AMOUNT 
 Subject to sub-Rules 10.3 and 10.4, the initial annual amount of a Member’s voluntary early retirement pension under sub-Rule 10.1 shall be calculated in two stages:- 
 (1) first, by using the following formula:- 
 Final Pensionable Earnings x Staff Pensionable Service; 

 60 
 (2) secondly, by applying an early
retirement reduction factor to the amount determined at the first stage of the calculation in respect of the period from the date when the pension becomes payable until the Member’s Normal 
  

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 Retirement Age in order to take account of the fact that the pension is likely to be payable for longer than if it were
to commence at the Member’s Normal Retirement Age. The amount of the reduction factor shall be determined by the Trustees and the Principal Employer after consulting the Actuary. 
 10.3 ADJUSTMENT FOR MALE PRE-88 MEMBERS 
 If the Member is a male Pre-88 Member the reduction under paragraph (2) of
sub-Rule 10.2 shall be determined as follows:- 
 (a) the part of the pension attributable to Staff Pensionable Service before 17 May 1990 shall be
reduced in respect of the period from the date it becomes payable until the Member’s Normal Retirement Age; 
 (b) the part of the pension attributable
to Staff Pensionable Service on or after 17 May 1990 but before 1 September 1993 shall be reduced in respect of the period (if any) from the date it becomes payable until the Member’s 60th birthday; and 
 (c) the part of the pension attributable to Staff Pensionable Service on or after 1 September 1993 shall be reduced in respect of the period from the date it
becomes payable until the Member’s Normal Retirement Age. 
 10.4 ADJUSTMENT FOR FEMALE PRE-88 MEMBERS 
 If the Member is a female Pre-88 Member the reduction under paragraph (2) of sub-Rule 10.2 shall be determined as follows:- 
 (a) the part of the pension attributable to Staff Pensionable Service before 1 September 1993 shall be reduced in respect of the period (if any) from the date it
becomes payable until the Member’s 60th birthday; and 
 (b) the part of the pension attributable to Staff Pensionable Service on or after
1 September 1993 shall be reduced in respect of the period from the date it becomes payable until the Member’s Normal Retirement Age. 
 10.5
TRANSFERRED RACAL RBS MEMBERS 
 A Member who becomes entitled to an early retirement pension in accordance with sub-Rule 10.1 and who is a Transferred Racal
RBS Member shall also be entitled to a cash sum calculated in two stages:- 
 (1) first by using the following formula:- 
 Final Pensionable Earnings x Racal RBS Service 
 480 
 (2) secondly, by applying an early retirement reduction factor to the amount determined at the first stage of the calculation in respect from
the date when the cash sum became payable until in the case of a male Member 

  

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his Normal Retirement Age and in the case of a female member her 60th birthday. The amount of the reduction factor shall be determined by the Trustees and
the Principal Employer after consulting the Actuary. 
 11 EARLY RETIREMENT: (C) REDUNDANCY 
 11.1 WHEN PAYABLE 
 If a Member’s Pensionable Service terminates on or
after the date when he attains age 50 and his Employer certifies to the Trustees that this occurred because his Service terminated by reason of redundancy then, provided that both the Trustees and his Employer consent to the immediate commencement
of his retirement pension, he shall be entitled to an early retirement pension from the Scheme which shall commence to be payable with effect from the date after his Pensionable Service terminates (or such later date as his Employer and the Trustees
shall agree with him) and which shall continue to be payable for the remainder of his lifetime. 
 11.2 INITIAL ANNUAL AMOUNT 
 Subject to sub-Rules 11.3 and 11.4, the initial annual amount of a Member’s redundancy early retirement pension under sub-Rule 11.1 shall be calculated in the same
way as a voluntary early retirement pension under sub-Rule 10.2 except that the early retirement reduction factor under sub-Rule 10.2(2) shall be applied only in respect of the period (if any) from the date when the pension becomes payable until the
Member’s 60th birthday. 
 11.3 ADJUSTMENT FOR MALE PRE-88 MEMBERS 
 If the Member is a male Pre-88 Member, and the redundancy early retirement pension commences before the Member’s 60th birthday, the early retirement reduction factor shall be applied only as follows:- 
 (a) the part of the pension attributable to Staff Pensionable Service before 17 May 1990 shall be reduced in respect of the period from the date when the pension
commences until the Member’s 60th birthday; 
 (b) the part of the pension attributable to Staff Pensionable Service on or after 17 May 1990 but
before 1 September 1993 shall be reduced in respect of the period (if any) from the date when the pension commences until the Member’s 55th birthday; and 
 (c) the part of the pension attributable to Staff Pensionable Service on or after 1 September 1993 shall be reduced in respect of the period from the date when the pension commences until the Member’s 60th birthday. 
 11.4 ADJUSTMENT FOR FEMALE PRE-88 MEMBERS 
 If the Member is a female Pre-88
Member and the redundancy early retirement pension commences before the Member’s 60th birthday, the early retirement reduction factor shall be applied only as follows:- 
  

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 (a) the part of the pension attributable to Staff Pensionable Service before 1 September 1993 shall be reduced in
respect of the period (if any) from the date when the pension commences until the Member’s 55th birthday; and 
 (b) the part of the pension
attributable to Staff Pensionable Service on or after 1 September 1993 shall be reduced only in respect of the period from the date when the pension commences until the Member’s 60th birthday. 
 11.5 RELIANCE BY TRUSTEES ON STATEMENTS FROM EMPLOYERS 
 The Trustees may
rely on a statement from the Member’s Employer that the Member’s Pensionable Service has terminated in the circumstances mentioned in sub-Rule 11.1. 
 11.6 TRANSFERRED RACAL RBS MEMBERS 
 A Member who becomes entitled to an early retirement pension in accordance with sub-Rule 11.1 and who is a
Transferred Racal RBS Member shall also be entitled to a cash sum calculated in two stages:- 
 (1) first by using the following formula:- 
 Final Pensionable Earnings x Racal RBS Service 
 480 
 (2) secondly, by applying an early retirement reduction factor to the amount determined at the first stage of the calculation in respect from
the date when the cash sum became payable until in the case of a male Member his Normal Retirement Age and in the case of a female member her 60th birthday. The amount of the reduction factor shall be determined by the Trustees and the Principal
Employer after consulting the Actuary. 
 12 EARLY RETIREMENT: (D) SERIOUS ILL-HEALTH 
 12.1 WHEN PAYABLE 
 If a Member’s Pensionable Service terminates because of Serious Ill-health, he may be granted an
ill-health early retirement pension from the Scheme subject to and in accordance with the following sub-Rules of this Rule. 
 12.2 PROCEDURE 
 Before his Pensionable Service terminates the Member must request his Employer to support his application to the Trustees for a Serious Ill-health pension to be granted.
The Employer may only make such an application if it is satisfied that the Member’s state of health is such as to warrant his retirement from employment with the Employer. 
 If any Employer supports an application to the Trustees following a request from a Member in accordance with this sub-Rule, the Trustees shall decide whether the Member is suffering from Serious Ill-health, and notify
the Employer and the Member of their decision. 
  

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 12.3 MEDICAL EVIDENCE BEFORE COMMENCEMENT OF PENSION 
 For the purpose of sub-Rule 12.2, the Employer and the Trustees shall be entitled to such medical evidence (if any) as they may respectively require. The Member must co-operate in providing all such evidence,
including undergoing any medical examination(s) which the Employer or the Trustees may require. 
 12.4 COMMENCEMENT 
 A Serious Ill-health early retirement pension shall commence to be payable with effect from the day after the Member’s Pensionable Service terminates (or such later
date as the Trustees shall agree with him) and which shall, subject to sub-Rules 12.6 and 12.7, continue to be payable for the remainder of his lifetime. 
 12.5 INITIAL ANNUAL AMOUNT 
 Subject to sub-Rule 12.6, the initial annual amount of a Member’s Serious Ill-health early retirement pension
shall be the amount of a voluntary early retirement pension calculated in accordance with sub-Rule 10.2 or if the Trustees and the Principal Employer consider a higher amount to be appropriate in the circumstances, such higher amount as the Trustees
with the consent of the Principal Employer shall decide, but not greater than the amount which would have been payable under Rule 8 if he had remained in Pensionable Service until his Normal Retirement Age (based on the Member’s Final
Pensionable Earnings at his Scheme Exit Date). 
 12.6 SUBSEQUENT ADJUSTMENT 
 If:- 
 (1) a Member’s pension is a Serious Ill-health early retirement pension; and 
 (2) at any time or times between the date when his pension commences and his Normal Retirement Age, in the Trustees’ opinion (having taken such medical evidence as
they may require) his state of health improves, or deteriorates; 
 the Member’s entitlement thereafter shall be of such pension (if any) as the
Trustees, with the consent of the Principal Employer, decide to be appropriate in the circumstances, but so that with effect from the Member’s Normal Retirement Age his pension shall be not less than it would have been under Rule 23 if on the
date of his retirement he had become an early leaver with a preserved pension payable under that Rule but reduced to such extent as the Trustees decide to be appropriate to take account of any part of the Serious Ill-health early retirement pension
which the Member commuted for a lump sum. 
 12.7 MEDICAL EVIDENCE AFTER COMMENCEMENT OF PENSION 
 A Member shall not be entitled to the continued payment of a Serious Ill-health pension unless after it comes into payment he co-operates in providing all such 

  

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evidence, including undergoing any medical examination(s) which the Trustees may from time to time require. 
 12.8 TRANSFERRED RACAL RBS MEMBERS 
 A Member who becomes entitled to an
ill-health early retirement pension in accordance with sub-Rule 12.1 and who is a Transferred Racal RBS Member shall also be entitled to a cash sum calculated by using the following formula:- 
 Final Pensionable Earnings x Racal RBS Service 
 480 
 13 LATE RETIREMENT 
 13.1 COMMENCEMENT OF LATE RETIREMENT PENSION 

If with the consent of his Employer a Member continues in Service after his Normal Retirement Age, the commencement of his pension shall be postponed until he retires
from Service except in the following circumstances. 
 (1) If he is a Pre-87 Limits Member of an 87 Limits Member for the purposes of the Revenue Limits
Rules, he may with the prior written consent of the Principal Employer commence to draw his pension with effect from any day after he attains Normal Retirement Age. 
 (2) If he is an 89 Limits Member for the purposes of the Revenue Limits Rules, he may not commence to draw his pension from the Scheme until his Service terminates except that his pension from the Scheme must come
into payment at the latest when he attains age 75. 
 13.2 INITIAL ANNUAL AMOUNT OF LATE RETIREMENT PENSION 
 Where the commencement of a Member’s pension has been postponed in accordance with sub-Rule 13.1 until after he attains Normal Retirement Age, the initial annual
amount of his pension shall be equal to the normal retirement pension which would have been payable to the Member under Rule 8 if the Member had retired on attaining his Normal Retirement Age increased by such late retirement factor as the Trustees
having consulted the Actuary consider appropriate having regard to the period of postponement. 
 13.3 TRANSFERRED RACAL RBS MEMBERS 
 A Member whose pension is paid in accordance with this Rule 13 and who is a Transferred Racal RBS Member shall also be entitled to a cash sum calculated by using the
following formula:- 
 Final Pensionable Earnings x Racal RBS Service 
 480 
 and adjusting the amount thereby obtained in the same manner as his pension is adjusted in
accordance with sub-Rule 13.2. 
  

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 SECTION 5: ALTERNATIVES TO MEMBER’S PENSION 
 14 COMMUTATION 
 14.1 MEMBER’S RIGHT TO COMMUTE 
 A Member who becomes entitled to a pension from the Scheme may elect to commute part of it for a lump sum subject to and in accordance with this Rule. 
 14.2 MEMBER’S ELECTION TO COMMUTE 
 A Member’s election under sub-Rule 14.1 shall be made by giving to the Trustees
such notice within such period as the Trustees may require. 
 14.3 MAXIMUM LUMP SUM 
 The maximum lump sum for which a Member may commute part of his pension pursuant to sub-Rule 14.1 shall be:- 
 (1) the
amount determined by taking 3/80ths of the Member’s Final Pensionable Earnings and multiplying it by the Member’s Staff Pensionable Service (or, if the Member is entitled to an ill-health early retirement pension, the period of Staff
Pensionable Service he would have completed if he had remained in Pensionable Service until Normal Retirement Age); or 
 (2) such greater amount as the
Trustees may agree and which will not exceed Revenue Limits. 
 14.4 MEMBER CONTINUING IN SERVICE AFTER NORMAL RETIREMENT AGE 
 A Member who continues in Service after his Normal Retirement Age may not receive a lump sum by way of commutation pursuant to this Rule until he commences to receive his
pension from the Scheme unless he is a Pre-87 Limits Member or an 87 Limits Member for the purpose of the Revenue Limits Rules. If the Member is a Pre-87 Limits Member or on 87 Limits Member he may with the prior written consent of the Principal
Employer make an election pursuant to sub-Rule 14.1 at any time from his Normal Retirement Age to the date when his late retirement pension commences to be paid. 
 14.5 BENEFITS FROM MEMBER’S VOLUNTARY CONTRIBUTIONS 
 If before April 1987 a Member had entered into arrangements for the payment of voluntary
contributions under the Scheme or under another retirement benefits scheme established by, or to which contributions were paid:- 
 (1) by, his Employer; or

 (2) by an employer in respect of which his Employer is a relevant employer (within the meaning of Regulation 2 of the Occupational Pension Schemes
(Transitional Provisions) Regulations 1988 (SI 1988 No. 1436)); 
  

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 any pension secured by his voluntary contributions to the Scheme may be commuted pursuant to sub-Rule 14.1. Otherwise,
such pension may not be so commuted although it may be taken into account in the calculation of the lump sum. 
 14.6 EXCEPTIONAL CIRCUMSTANCES OF SERIOUS
ILL-HEALTH 
 If a Member is in exceptional circumstances of serious ill-health such that the Trustees are advised by a medical practitioner that the
Member’s expectation of life is very short (in the sense of being measured in months rather than years) and the Trustees determine that in the circumstances a pension is not a reasonable provision for the Member, the Trustees shall have power
to commute the whole of the Member’s pension for a lump sum. 
 14.7 TRIVIAL PENSIONS 
 Notwithstanding sub-Rule 14.3, if a Member’s benefit has become payable or the Scheme is being wound up and that benefit does not exceed the Triviality Limit:- 
 (1) the Member may make an election pursuant to sub-Rule 14.1 in respect of the whole of it; or 
 (2) the Trustees shall have the power to commute the whole of it for a lump sum if they determine that it would be conducive to the efficient administration of the Scheme to do so. 
 14.8 COMMUTATION FACTORS 
 In determining the amount by which the
Member’s pension is to be reduced in any case of partial commutation the Trustees shall use such commutation factors as, having taken advice from the Actuary, they may from time to time agree with the Principal Employer and adopt for the
purposes of this Rule. 
 The amount of the lump sum to be paid in full commutation of (a) the benefits of a Member who is in exceptional circumstances
of serious ill-health, or (b) trivial benefits, shall be calculated on a basis agreed by the Trustees and the Principal Employer having been certified as reasonable by the Actuary. 
 14.9 GMP REQUIREMENTS 
 If a Member was in Contracted-out Employment in relation to the Scheme before 6 April 1997, then
insofar as his Scheme pension represents his Guaranteed Minimum Pension it may only be commuted in accordance with the GMP Rules. 
 15 SURRENDER OPTION

 15.1 TRUSTEES’ DISCRETION TO PERMIT SURRENDER 
 With the
agreement of the Trustees a Member may elect to surrender part of his pension in return for the provision by the Scheme of a pension or pensions for the Member’s spouse and/or such one or more of his Dependants approved by the Trustees as he
may nominate payable from the date of the Member’s death if, but 
  

 108 

 only if, the Member dies after he commences to receive a pension from the Scheme. Any pension payable as a result of such
an election is additional to any pension payable to the spouse or any Dependent Child of the Member pursuant to the Rules concerning benefits payable on the Member’s death, and shall be payable for such period as the Member may agree with the
Trustees. 
 15.2 MEMBER’S ELECTION TO SURRENDER 
 A
Member’s election under sub-Rule 15.1 shall be made by giving to the Trustees such notice within such period (and with such evidence of good health) as the Trustees may require and must in any event be made before the Member’s own pension
commences. The person or persons nominated by the Member must be the Member’s spouse or a Dependant or Dependants at the date on which the notice is given. The Trustees may in the absence of such evidence of good health, refuse to accept a
Member’s election. 
 15.3 REVENUE AND CONTRACTING-OUT LIMITS ON SURRENDER 
 The surrender of a Member’s pension under this Rule is subject to the following restrictions:- 
 (1) the amount or
aggregate amount of any pensions provided for a Member’s spouse or Dependant or Dependants by virtue of an election made pursuant to sub-Rule 15.1 shall not exceed the reduced pension payable to the Member following the surrender; and

 (2) if the Member is a Contracted-out Member the reduction in the Member’s pension attributable to Pensionable Service before 6 April 1997
resulting from an election made pursuant to sub-Rule 15.1 must not be such as to reduce the Member’s pension below his Guaranteed Minimum Pension. 
 15.4 SURRENDER FACTORS 
 In determining the rate at which a Member’s pension may be surrendered pursuant to this Rule in return for the
provision by the Scheme of a pension or pensions for the Member’s spouse and/or one or more of the Member’s Dependants, the Trustees shall use such surrender factors as, having taken advice from the Actuary, they shall think fit and the
Principal Employer shall approve. 
 15.5 EFFECT OF DEATH OF SPOUSE OR NOMINATED DEPENDANT 
 If the spouse or any Dependant of a Member who is entitled to a pension from the Scheme as a result of an election made by the Member pursuant to sub-Rule 15.1 dies before the Member but on or after the date when the
Member’s own pension has commenced to be paid, the Member’s election made pursuant to this Rule shall remain in force and he shall remain entitled only to the part of his pension which he has not surrendered. 
 If the spouse or any Dependant of a Member who is entitled to a pension form the Scheme as a result of an election made by the Member pursuant to sub-Rule 15.1 dies
before the Member dies and before the date when the Member’s pension 

  

 109 

 
commences to be paid, the Member’s election in respect of such spouse or such Dependant shall be cancelled automatically with effect from the
spouse’s or Dependant’s death and the Member’s entitlement to pension from the Scheme shall be the same as it would have been if in respect of such spouse or Dependant that election had not been made. 
 15.6 REVOCATION OF MEMBER’S ELECTION 
 An election made by a Member
pursuant to sub-Rule 15.1 may be revoked:- 
 (1) by the Member only with the Trustees’ consent and only prior to the earlier of his Normal Retirement
Age and the commencement of his pension from the Scheme; and 
 (2) by the Trustees if the Member retires from Service prior to his Normal Retirement Age.

 In either such case the Member’s entitlement to pension from the Scheme shall be the same as it would have been if that election had not been made.

 15.7 FURTHER ELECTION FOLLOWING CANCELLATION OR REVOCATION 
 Following the cancellation or revocation of a Member’s election under (as the case may be) sub-Rule 15.5 or 15.6 above the Member may, if he so wishes but subject always to sub-Rule 15.2 and the agreement of the Trustees, make a
further election in accordance with sub-Rule 15.1 
  

 110 

 SECTION 6: BENEFITS ON MEMBER’S DEATH 
 16 BENEFITS ON MEMBER’S DEATH: GENERAL 
 16.1 CATEGORIES OF BENEFIT PAYABLE 
 If a Member dies, benefits will be provided from the Staff Section in one or more of the following categories:- 
 (1) a lump sum; 
 (2) a spouse’s pension; 
 (3) a Financial Dependant’s pension; and 
 (4) children’s
pensions. 
 The particular benefits payable on the Member’s death depend on whether the Member dies in Pensionable Service (Rule 17), in Service on or
after Normal Retirement Age (Rule 18) or after the commencement of his own pension (Rule 19). 
 If a Member dies after his Pensionable Service has
terminated but before the commencement of his own pension, the benefits payable on his death are determined in accordance with Section 7 of these Rules. 
  

	16.2	PROVISIONS APPLICABLE TO PENSIONS ON MEMBER’S DEATH 

  

	16.2.1	COMMENCEMENT 

 A spouse’s or Dependent Child’s
pension shall commence on the day which next follows the date of the Member’s death. 
  

	16.2.2	TERMINATION 

  

	 	(a)	SPOUSE’S PENSION. A spouse’s pension shall terminate with the last instalment paid before the spouse dies 

  

	 	(b)	FINANCIAL DEPENDANT’S PENSION. A Financial Dependant’s pension shall terminate in accordance with sub-Rule 17.3, 18.3 or 19.4 (as the case may be).

  

	 	(c)	DEPENDENT CHILD’S PENSION. A Dependent Child’s pension shall terminate with the last instalment paid before the earliest of the following dates:- 

 

	 	(1)	if the Dependent Child does not continue in full-time educational or vocational training after attaining age 18, when the Dependent Child attains age 18; 

 

	 	(2)	 if the Dependent Child does continue in full-time educational or vocational training after attaining age 18, 

  

 111 

	 	 
when the Dependent Child ceases to be in full-time educational or vocational training or attains age 21 if earlier; or 

  

	 	(3)	the date of the Dependent Child’s death; 

 except
that in the case of a child who is a Dependent Child as a result of being wholly or partly financially dependent on the Member by reason of physical or mental incapacity, the Dependent Child’s pension shall terminate at such time as the
Trustees shall decide. 
  

	16.2.3	PENSION INCREASES 

 Pensions payable to Member’s
spouses, Financial Dependants and Dependent Children under these Rules shall be increased in accordance with Rule 28. 
  

	16.2.4	COMMUTATION 

 A pension payable to a Member’s spouse,
Financial Dependant or Dependent Child may only be commuted if the pension is Trivial. Such a pension may be commuted when it becomes payable or when the Member’s own pension is commuted on grounds of triviality. 
  

	16.2.5	GMP REQUIREMENTS 

 To the extent that any part of a pension
payable to the Member’s spouse is a Guaranteed Minimum Pension:- 
  

	 	(1)	it is subject to the overriding guarantee set out in the GMP Rules; and 

  

	 	(2)	it may only be commuted in accordance with the GMP Rules. 

 17 DEATH IN
PENSIONABLE SERVICE 
 17.1 LUMP SUM BENEFIT 
 If a Member dies in
Pensionable Service before his Normal Retirement Age, there shall be payable in accordance with Clause 22 in Schedule 2 to this Deed a lump sum equal to three times the Member’s Pensionable Earnings. 
 The amount payable under this sub-Rule upon the death of any Member shall not exceed the amount which the Trustees receive, as a result of the Member’s death, under
any policy by which the Member’s life is for the time being assured; but this paragraph of this sub-Rule shall not limit the amount which the Trustees are entitled to claim from the underwriter or underwriters of the policy in question.

  

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 17.2 SPOUSE’S PENSION 
 If a Member:- 
 (1) dies in Pensionable Service before Normal Retirement Age; and 
 (2) is survived by a spouse to whom the Member was married at the date of his death; 
 the Member’s spouse shall be
entitled to a pension from the Scheme of an initial annual amount equal to one half of the pension to which Member would have been entitled under Rule 8 if he had remained in Pensionable Service until his Normal Retirement Age (based on the
Member’s Final Pensionable Earnings at the date of his death). 
 17.3 FINANCIAL DEPENDENT’S PENSION 
 If a Member:- 
 (1) dies in Pensionable Service before Normal Retirement Age;

 (2) is not survived by a spouse to whom the Member was married at the date of his death; but 
 (3) is survived by a Financial Dependent; 
 the Trustees may if they think
fit grant a pension under the Scheme to the Financial Dependent of such initial annual amount (not exceeding the amount which would have been payable under sub-Rule 17.2 if the Member had been survived by a spouse) for such period and in all other
respects on such terms and subject to such conditions as they may in their discretion think fit. 
 17.4 CHILDREN’S PENSIONS:- 
  

	17.4.1	NO PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDENT 

 If
a Member:- 
  

	 	(1)	dies in Pensionable Service before Normal Retirement Age; 

  

	 	(2)	is not survived by a spouse; 

  

	 	(3)	is not survived by a Financial Dependent to whom the Trustees decide to award a pension under sub-Rule 17.3; but 

  

	 	(4)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, if more than one, those Dependent Children) a pension (or pensions) calculated as follows: 
  

 113 

	 	(a)	if there is only one Dependent Child, a pension of an initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule 17.2 if the
Member had been survived by a spouse; or 

  

	 	(b)	if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule
17.2 if the Member had been survived by a spouse, and such pensions shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 

  

	17.4.2	PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDENT 

 If:-

  

	 	(1)	a pension is payable to a Member’s spouse under sub-Rule 17.2 or a Member’s Financial Dependent under sub-Rule 17.3; and 

  

	 	(2)	on the death of the Member’s spouse or that Financial Dependent there is any child living who: 

  

	 	(i)	was a Dependent Child of the Member at the date of the Member’s death; and 

  

	 	(ii)	continues to be a Dependent Child at the date of the spouse’s or Financial Dependent’s death; 

 the spouse’s or Financial Dependent’s pension shall from then on be paid to that Dependent Child. If there is more than one such Dependent
Child, the spouse’s or Financial Dependent’s pension shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 
  

	17.4.3	ADDITIONAL PENSION 

 If a Member:- 
  

	 	(1)	dies in Pensionable Service before Normal Retirement Age; and 

  

	 	(2)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, if more than one, those Dependent Children) in addition to any pension or pensions payable under sub-Rules 17.4.1 or 17.4.2, a pension (or pensions) calculated as follows:- 
  

	 	(a)	if there is only one Dependent Child, a pension of an initial annual amount equal to 5 per cent of the Member’s Pensionable Earnings; or 

  

	 	(b)	 if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to 5 per cent of the 

  

 114 

	 	 
Member’s Pensionable Earnings in respect of each child (but limited to a maximum of 15 per cent) and which shall be divided amongst the Dependent
Children in such shares as the Trustees may think fit. 

 18 DEATH IN SERVICE ON OR AFTER NORMAL RETIREMENT AGE 
 18.1 LUMP SUM BENEFIT 
 If a Member dies in Service on or after his Normal
Retirement Age, there shall be payable in accordance with Clause 22 in Schedule 2 to this Deed a lump sum equal to five times what would have been the initial annual rate of the Member’s pension from the Scheme under Rule 13 if he had retired
on the day before his death. 
 18.2 SPOUSE’S PENSION 
 If a
Member:- 
 (1) dies in Service on or after Normal Retirement Age; and 
 (2) is survived by a spouse to whom the Member was married at the date of his death; 
 the Member’s spouse shall be entitled to a pension from
the Scheme of an initial annual amount calculated using the formula:- 
 1/2 x Member’s Pension 
 where “Member’s Pension” is what would have been the initial amount of the Member’s pension from the Scheme under Rule 13 if he had retired on the
day before his death and any exercise by the Member of his options under Rules 14 (commutation) or 15 (surrender) were disregarded. 
 18.3 FINANCIAL
DEPENDENT’S PENSION 
 If a Member:- 
 (1) dies in Service
on or after Normal Retirement Age; 
 (2) is not survived by a spouse to whom the Member was married at the date of his death; but 
 (3) is survived by a Financial Dependent; 
 the Trustees may if they think
fit grant a pension under the Scheme to the Financial Dependent of such initial amount (not exceeding the amount which would have been payable under sub-Rule 18.2 if the Member had been survived by a spouse) for such period and in all other respects
on such terms and subject to such conditions as they may in their discretion think fit. 
  

 115 

 18.4 CHILDREN’S PENSIONS 
  

	18.4.1	NO PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDENT 

 If
a Member:- 
  

	 	(1)	dies in Service on or after Normal Retirement Age; 

  

	 	(2)	is not survived by a spouse; 

  

	 	(3)	is not survived by a Financial Dependent to whom the Trustees decide to award a pension under sub-Rule 18.3; but 

  

	 	(4)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, if more than one, those Dependent Children) a pension (or pensions) calculated as follows:- 
  

	 	(a)	if there is only one Dependent Child, a pension of an initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule 18.2 if the
Member had been survived by a spouse; or 

  

	 	(b)	if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule
18.2 if the Member had been survived by a spouse, and such pensions shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 

  

	18.4.2	PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDENT 

 If:-

  

	 	(1)	a pension is payable to a Member’s spouse under sub-Rule 18.2 or a Member’s Financial Dependent under sub-Rule 18.3; and 

  

	 	(2)	on the death of the Member’s spouse or that Financial Dependent there is any child living who:- 

  

	 	(i)	was a Dependent Child of the Member at the date of the Member’s death; and 

  

	 	(ii)	continues to be a Dependent Child at the date of the spouse’s or Financial Dependent’s death; 

 the spouse’s or Financial Dependent’s pension shall from then on be paid to that Dependent Child. If there is more than one such Dependent
Child, the spouse’s or Financial Dependent’s pension shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 
  

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 19 DEATH AFTER RETIREMENT 
 19.1 LUMP SUM BENEFIT: (A) 5 YEAR GUARANTEE 
 If a Member dies within the period of five years from and including the date when his pension
from the Scheme commences to be payable, there shall be payable in accordance with Clause 22 in Schedule 2 to this Deed a lump sum equal to the difference between:- 
 (a) the aggregate amount of pension which the Member would have received during that five year period if he had survived to the end of the period (calculated on the basis that the annual rate of pension payable at the
date of his death would have continued to apply for the remainder of the period); and 
 (b) the amount of pension actually paid to him before his death.

 19.2 LUMP SUM BENEFIT: (B) CONTINUED LIFE COVER IN SPECIAL CASES 
 Where a Member retires with an immediate early retirement pension:- 
 (1) under Rule 11 (redundancy early retirement) where the Member’s
Pensionable Service commenced before 1 October 1991; or 
 (2) under Rule 12 (early retirement due to Serious Ill-health); 
 and the Member dies on or after the commencement of his early retirement pension but before his Normal Retirement Age, then:- 
 (a) if his pension is a redundancy early retirement pension, a lump sum equal to three times the Member’s Pensionable Earnings shall be payable to his personal
representatives; or 
 (b) if his pension is a Serious Ill-health early retirement pension, a lump sum equal to three times the Member’s Pensionable
Earnings (or, if he is in receipt of a Serious Ill-Health pension which is less than the maximum permitted under sub-Rule 12, a lump sum of such amount as the Trustees may decide) shall be payable in accordance with Clause 22 in Schedule 2 to this
Deed. 
 19.3 SPOUSE’S PENSION 
 If a Member:- 

(1) dies on or after the date when his pension from the Scheme commences to be payable; and 
 (2) is survived by a spouse to whom the Member was married at the date of his death; 
  

 117 

 the Member’s spouse shall be entitled to a pension from the Scheme of an initial annual amount calculated using the
formula:- 
 1/2 x Member’s Pension 
 where “Member’s Pension” means the amount of the Member’s pension from the Scheme at the date of his death or, if the Member had exercised either of his options under Rules 14 (commutation) or 15 (surrender), what would
have been the amount of the Member’s pension from the Scheme at the date of his death if he had not exercised those options. 
 19.4 FINANCIAL
DEPENDENT’S PENSION 
 If a Member:- 
 (1) dies on or after
the date when his pension from the Scheme commences to be payable; and 
 (2) is not survived by a spouse to whom the Member was married at the date of his
death; but 
 (3) is survived by a Financial Dependent; 
 the
Trustees may if they think fit grant a pension under the Scheme to the Financial Dependent of such initial amount (not exceeding the amount which would have been payable under sub-Rule 19.3 if the Member had been survived by a spouse) for such
period and in all other respects on such terms and subject to such conditions as they may in their discretion think fit. 
 19.5 CHILDREN’S PENSIONS

  

	19.5.1	NO PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDENT 

 If
a Member:- 
  

	 	(1)	dies on or after the date when his pension from the Scheme commences to be payable; 

  

	 	(2)	is not survived by a spouse; 

  

	 	(3)	is not survived by a Financial Dependent to whom the Trustees decide to award a pension under sub-Rule 19.4; but 

  

	 	(4)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, if more than one, those Dependent Children) a pension (or pensions) calculated as follows:- 
  

	 	(a)	 if there is only one Dependent Child, a pension of an initial annual amount equal to the amount which would have been payable as 

  

 118 

	 	 
a spouse’s pension under sub-Rule 19.3 if the Member had been survived by a spouse; or 

  

	 	(b)	if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule
19.3 if the Member had been survived by a spouse, and such pensions shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 

  

	19.5.2	PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDENT 

 If:-

  

	 	(1)	a pension is payable to a Member’s spouse under sub-Rule 19.3 or a Member’s Financial Dependent under sub-Rule 19.4; and 

  

	 	(2)	on the death of the Member’s spouse or that Financial Dependent there is any child living who:- 

  

	 	(i)	was a Dependent Child of the Member at the date of the Members death; and 

  

	 	(ii)	continues to be a Dependent Child at the date of the spouse’s or Financial Dependent’s death; 

 the spouse’s or Financial Dependent’s pension shall from then on be paid to that Dependent Child. If there is more than one such Dependent
Child, the spouse’s or Financial Dependent’s pension shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 
  

 119 

 SECTION 7: EARLY LEAVERS 
 20
EARLY LEAVERS: GENERAL 
 20.1 APPLICATION OF THIS SECTION TO EARLY LEAVERS 
 This Section applies where, before a Member attains Normal Retirement Age, his Pensionable Service is terminated by him leaving Service or withdrawing from membership of the Staff Section whilst remaining in Service,
and he does not become entitled to an early retirement pension under Rules 9 to 12. 
 20.2 EARLY LEAVERS NOT QUALIFYING FOR PRESERVED BENEFITS 

If:- 
 (a) the Member has completed less than two years’ Qualifying
Service when his Pensionable Service terminates; and 
 (b) no transfer payment has been made to the Scheme in respect of his rights under a personal pension
scheme; 
 he is entitled to a refund of contributions in accordance with Rule 21. 
 20.3 EARLY LEAVERS WHO QUALIFY FOR PRESERVED BENEFITS 
 If:- 
 (a) the Member has completed at least two years’ Qualifying Service when his Pensionable Service terminates; or 
 (b) a
transfer payment has been made to the Scheme in respect of his rights under a personal pension scheme; 
 he is entitled to preserved benefits in accordance
with Rule 22. 
 21 EARLY LEAVER NOT ENTITLED TO PRESERVED BENEFITS 
 21.1 REFUND OF CONTRIBUTIONS 
 Where, as provided in sub-Rule 20.2, a Member is not entitled to preserved benefits under the Scheme, there shall be
payable to him, in substitution for all other benefits payable to or in respect of him under the Scheme, an amount equal to his Member’s Contributions less:- 
 (1) such amount as the Trustees are entitled to retain out of the refund by virtue of section 61 of the Pension Schemes Act as a result of electing to pay a contributions equivalent premium in respect of such Member (being so much of the
premium as is attributable to primary Class 1 contributions); and 
  

 120 

 (2) such tax as the Trustees may be required to deduct. 
 21.2 TRANSFER OPTION 
 A Member to whom sub-Rule 21.1 applies may instead of taking a refund of his Member’s
Contributions elect by giving prior written notice to the Trustees to have an amount equal to his Member’s Contributions paid to another occupational pension scheme or a personal pension scheme pursuant to Clause 19 in Schedule 2. 

2.22 EARLY LEAVER ENTITLED TO PRESERVED BENEFITS 
 22.1 ENTITLEMENT TO
PRESERVED BENEFITS 
 Where, as provided in sub-Rule 20.3, a Member is entitled to preserved benefits under the Scheme, the Member is a Deferred Member and
the benefits payable to and in respect of him from the Scheme upon the termination of his Pensionable Service shall be determined in accordance with this Rule and Rules 23 to 26. 
 22.2 COMMUTATION AND/OR SURRENDER OF PRESERVED PENSION 
 The preserved pension payable to any Deferred Member may be:-

 (1) commuted for a lump sum, subject to and in accordance with the provisions of Rule 14; and/or 
 (2) surrendered in return for the provision by the Scheme of a pension or pensions for one or more of his Dependents, subject to and in accordance with the provisions of
Rule 15. 
 22.3 OTHER PROVISIONS APPLICABLE TO PRESERVED PENSIONS 
 Any pension payable under this rule:- 
 (1) shall be reduced in accordance with Rule 14 or 15 to the extent that it is commuted or surrendered
under either of those Rules. 
 (2) shall be payable in accordance with Rule 27; and 
 (3) shall, after it commences, be subject to increases in accordance with Rule 28. 
 22.4 SUPPLEMENTS TO PRESERVED PENSIONS

 Deferred Members’ preserved pensions under Rules 23 to 25 may be supplemented:- 
 (1) as a result of the Member having paid additional voluntary contributions in accordance with sub-Rule 3.4 or the Former Provisions; 
  

 121 

 (2) as a result of a transfer payment or transfer payments having been received in respect of the Member under Clause 18
in Schedule 2 to this Deed or under the Former Provisions; or 
 (3) as a result of the exercise of the augmentation powers contained in Clause 21 in
Schedule 2 to this Deed. 
 The extent to which Rules 14 (commutation option), 15 (surrender option), 27 (payment of pensions) and 28 (pension increases)
apply to any supplement to the Member’s retirement pension referred to in this sub-Rule 22.4 depends on the terms agreed between the Member and the Trustees in the case of additional voluntary contributions and transfer payments and on the
terms specified by the Trustees in the case of augmentations. 
 22.5 CONTRACTING-OUT AND INLAND REVENUE REQUIREMENTS 
 The Trustees must ensure:- 
 (1) that if the Member was in Contracted-out
Employment in relation to the Scheme before 6 April 1997, the Member’s retirement pension attributable to Pensionable Service prior to 6 April 1997 complies with the GMP Rules; and 
 (2) that the Member’s retirement benefits do not exceed the limits applicable to them under the Revenue Limits Rules. 
 22.6 ALTERNATIVES TO PRESERVED BENEFITS 
 If a Deferred Member:- 

(1) has acquired a right under section 94 of the Pension Schemes Act to the cash equivalent of the benefits which have accrued to or in respect of him under the
Scheme; and 
 (2) he has not lost that right in accordance with section 100 of the Pension Schemes Act; 
 he may require the Trustees to use the cash equivalent in one or more of the ways specified in section 95 of the Pension Schemes Act. In that case the provisions of Part
IV of Chapter IV of time Pension Schemes Act shall apply generally, including the discharge of the Trustees pursuant to section 99 of the Pension Schemes Act. 
 Except to the extent that a Deferred Member is entitled to exercise, and exercises, the option conferred by section 95 of the Pension Schemes Act, if he wishes the benefits accrued to and in respect of him under the Scheme to be bought out
or transferred to another retirement benefits scheme or personal pension scheme, he may request the Trustees to exercise their powers under Clauses 19 or 20 in Schedule 2 to this Deed. 
  

 122 

 23 COMMENCEMENT OF PRESERVED BENEFITS AT NRA 
 23.1 PAYMENT 
 At his Normal Retirement Age a Deferred Member shall be entitled to a pension from the Scheme payable for the
remainder of his lifetime. 
 23.2 INITIAL ANNUAL AMOUNT 
 The
initial annual amount of a Deferred Member’s pension at Normal Retirement Age under sub-Rule 23.1 shall be determined as follows:- 
 (1) by first
calculating his preserved pension prior to revaluation by using the following formula:- 
 Final Pensionable Earnings x Staff Pensionable
Service; 
 60 
 (2) by revaluing the part
(if any) of the amount determined pursuant to paragraph (1) of this sub-Rule which is equal to the Member’s Guaranteed Minimum Pension in accordance with the GMP Rules; and 
 (3) by revaluing the part of the amount determined pursuant to paragraph (1) of this sub-Rule which exceeds the Member’s Guaranteed Minimum Pension in accordance with the provisions of Chapter II of Part IV
of the Pension Schemes Act if the benefits payable to and in respect of the Member under the Scheme are required to be revalued under that Chapter. 
 23.3
TRANSFERRED RACAL RBS MEMBERS 
 A Deferred Member who becomes entitled to a pension at Normal Retirement Age in accordance with sub-Rule 23.1 and who is a
Transferred Racal RBS Member shall also be entitled to a cash sum calculated by using the following formula:- 
 Final Pensionable Earnings
x Racal RBS Service 
 480 
 24 COMMENCEMENT
OF PRESERVED BENEFITS BEFORE NRA 
 24.1 CONDITIONS FOR EARLY COMMENCEMENT 
 A Deferred Member may elect that his pension shall commence from a date before his Normal Retirement Age if the following conditions are satisfied:- 
 (1) (a) the Deferred Member has attained the age of 50 or 
 (b) in the Trustees’ opinion after taking medical
advice he has become incapable of following his normal employment by reason of Serious Ill-health; and 
 (2) the Trustees agree to the commencement of his
pension from that date (except that in the case of a Pre-88 Member, such consent shall not be 

  

 123 

 
required to the commencement of the pension on or after the Member’s 60th birthday). 
 24.2 INITIAL ANNUAL AMOUNT 
 Subject to sub-Rules 24.3 and 24.4 the initial amount of a Deferred Member’s pension under
sub-Rule 24.1 shall be determined as follows:- 
 (1) by calculating the amount referred to in paragraph (1) of sub-Rule 23.2 and revaluing such amount in
the manner provided for in paragraphs (2) and (3) of sub-Rule 23.2 to the date when the pension is to commence; and 
 (2) by applying an early
retirement reduction factor to the amount determined pursuant to paragraph (1) of this sub-Rule in respect of the period from the date when the pension becomes payable until the Member’s Normal Retirement Age in order to take account of
the fact that the pension is likely to be payable for longer than if it were to commence at the Member’s Normal Retirement Age. The amount of the reduction factor shall be determined by the Trustees and the Principal Employer after consulting
the Actuary. 
 24.3 ADJUSTMENT FOR MALE PRE-88 MEMBERS 
 If the
Member is a male Pre-88 Member the reduction under paragraph (2) of sub-Rule 24.2 shall be determined as follows:- 
 (a) the part of the pension
attributable to Staff Pensionable Service before 17 May 1990 shall be reduced in respect of the period from the date it becomes payable until the Member’s Normal Retirement Age; 
 (b) the part of the pension attributable to Staff Pensionable Service on or after 17 May 1990 but before 1 September 1993 shall be reduced in respect of the
period (if any) from the date it becomes payable until the Member’s 60th birthday; and 
 (c) the part of the pension attributable to Staff Pensionable
Service on or after 1 September 1993 shall be reduced in respect of the period from the date it becomes payable until the Member’ s Normal Retirement Age. 
 24.4 ADJUSTMENT FOR FEMALE PRE-88 MEMBERS 
 If the Member is a female Pre-88 Member the reduction under paragraph (2) of
sub-Rule 24.2 shall be as follows:- 
 (a) the part of the pension attributable to Staff Pensionable Service before 1 September 1993 shall be reduced in
respect of the period (if any) from the date it becomes payable until the Member’s 60th birthday; and 
  

 124 

 (b) the part of the pension attributable to Staff Pensionable Service on or after 1 September 1993 shall be reduced
in respect of the period from the date it becomes payable until the Member’s Normal Retirement Age. 
 24.5 TRANSFERRED RACAL RBS MEMBERS 
 A Deferred Member whose pension commences before Normal Retirement Age in accordance with sub-Rule 24.1 and who is a Transferred Racal RBS Member shall also be entitled
to a cash sum calculated in two stages:- 
 (1) first by using the following formula:- 
 Final Pensionable Earnings x Racal RBS Service 
 480 
 (2) secondly, by applying an early retirement reduction factor to the amount determined at the first stage of the calculation in respect from the date when the cash sum
became payable until in the case of a male Member his Normal Retirement Age and in the case of a female member her 60th birthday. The amount of the reduction factor shall be determined by the Trustees and the Principal Employer after consulting the
Actuary. 
 24.6 PRESERVATION REQUIREMENTS 
 In accordance with
Regulation 8(4) of the Preservation Regulations the Trustees must be reasonably satisfied that, when any Member’s benefits become payable under this Rule before his Normal Pension Age, the total value of the Member’s benefits is at least
equal in value to the benefits that have accrued to or in respect of him under the Rules (on the basis that the Rules are the “applicable rules” for the purpose of Section 94(2) of the Pension Schemes Act). 
 25 COMMENCEMENT OF PRESERVED BENEFITS AFTER NRA 
 25.1 CONDITIONS FOR LATE
COMMENCEMENT: (a) 89 LIMITS MEMBERS 
 If a Deferred Member:- 
 (1) is an 89 Limits Member for the purposes of the Revenue Limits Rules; 
 (2) leaves Service before his Normal Retirement Age; and 
 (3) continues in employment (other than Service) after his Normal Retirement Age; 
 he may, with the consent of the Trustees, elect that the commencement of his pension shall be postponed until a date which is after his Normal Retirement Age but not later than his 75th birthday. 
 25.2 CONDITIONS FOR LATE COMMENCEMENT: (b) OTHER MEMBERS 
 (1) is a
Pre-87 Limits Member or an 87 Limits Member for the purposes of the Revenue Limits Rules: 
  

 125 

 (2) leaves Service before his Normal Retirement Age; and 
 (3) continues in employment (other than Service) after his Normal Retirement Age; 
 he may with the consent of the Trustees,
elect that the commencement of his pension shall be postponed until his employment terminates or his 7Oth birthday if earlier. 
 25.3 INITIAL ANNUAL AMOUNT

 Where the commencement of a Deferred Member’s pension has been postponed in accordance with sub-Rules 25.1 or 25.2, the initial annual amount of his
pension shall be determined as follows: 
 (1) by calculating his preserved pension at Normal Retirement Age in accordance with sub-Rule 23.2; and

 (2) by increasing the amount determined pursuant to paragraph (1) of this sub-Rule by such late retirement factor as the Trustees having consulted
the Actuary consider appropriate having regard to the period of postponement. 
 25.4 TRANSFERRED RACAL RBS MEMBERS 
 A Member whose pension is paid in accordance with this Rule 25 and who is a Transferred RBS Racal Member shall also be entitled to a cash sum calculated by using the
following formula:- 
 Final Pensionable Earnings x Racal RBS Service 
 480 
 and adjusting the amount thereby obtained in the same manner as his pension is adjusted in
accordance with sub-Rule 25.3(2). 
 25.5 PRESERVATION REQUIREMENTS 
 In accordance with Regulation 8(4) of the Preservation Regulations the Trustees must be reasonably satisfied that, when any Member’s pension becomes payable under this Rule after his Normal Pension Age, the total value of the
Member’s benefits is at least equal in value to the benefits that have accrued to or in respect of him under the Rules (on the basis that the Rules are the “applicable rules” for the purpose of section 94(2) of the Pension Schemes
Act). 
 26 BENEFITS ON DEATH OF EARLY LEAVER WITH PRESERVED BENEFITS 
 26.1 LUMP SUM ON DEATH OF DEFERRED MEMBER WHILST BENEFITS PRESERVED 
 If a Deferred Member dies before his preserved pension commences to be paid,
there shall be payable from the Scheme to the Member’s estate a lump sum equal to the Member’s Contributions. 
  

 126 

 26.2 SPOUSE’S PENSION ON DEATH OF DEFERRED MEMBER WHILST BENEFITS PRESERVED 
 If a Deferred Member:- 
 (1) dies before his preserved pension commences to
be paid; and 
 (2) is survived by a spouse to whom the Member was married at the date of his death; 
 the Member’s spouse shall be entitled to a pension from the Scheme of an initial annual amount, determined as follows:- 
 (1) by first calculating the amount found by using the formula:- 
 Final Pensionable Earnings x Staff Pensionable Service; and 
 160 
 (2) by then revaluing the part of the amount found under paragraph (1) of this sub-Rule which is attributable to the Member’s Pensionable Service on or after
6 April 1997 in accordance with section 84 of the Pension Schemes Act as though it were a benefit of the kind mentioned in section 83(1)(a) of the Pension Schemes Act. 
 26.3 FINANCIAL DEPENDENT’S PENSION 
 If a Member:- 
 (1) dies before his preserved pension commences to be paid; 
 (2) is not survived by a spouse to whom the Member was married
at the date of his death; but 
 (3) is survived by a Financial Dependent; 
 the Trustees may if they think fit grant a pension under the Scheme to the Financial Dependent of such initial annual amount (not exceeding the amount which would have been payable under sub-Rule 26.2 if the Member
had been survived by a spouse) for such period and in all other respects on such terms and subject to such conditions as they may in their discretion think fit. 
 26.4 BENEFITS ON DEATH OF DEFERRED MEMBER AFTER PENSION COMMENCES 
 If a Deferred Member dies on or after the date when his pension from the Scheme
commences to be payable, benefits shall be payable in respect of him in accordance with Rule 19. 
 26.5 OTHER PROVISIONS APPLICABLE TO SURVIVORS’
PENSIONS 
 The provisions of Rule 16 shall apply to the pensions payable to the spouses and Financial Dependents of deceased Deferred Members under this
Rule. 
  

 127 

 SECTION 8: PENSIONS - PAYMENT ARRANGEMENTS AND INCREASES 
 27 PAYMENT OF PENSIONS 
 27.1 PAYMENT ARRANGEMENTS 
 Subject to sub-Rule 27.2, all pensions payable from the Scheme shall be paid in advance by monthly installments on such working day in the month as the Trustee may from time to time decide except that the first
installment of any pension may be paid in arrears as soon as is reasonably practicable after the pension commences. 
 27.2 POWER TO CHANGE PAYMENT
ARRANGEMENTS 
 The Trustees shall have power with the Principal Employer’s consent to alter the date on which and/or intervals at which pensions are
paid from the Scheme (including power to make alterations which result in pensions being payable otherwise than in advance) and when doing so to make such arrangements for apportionment in respect of the commencement and termination of pensions and
such transitional arrangements in respect of any such alteration in each case as they may consider necessary or desirable. 
 27.3 OVERPAYMENT OF PENSIONS

 If any installment of any pension is paid after the person entitled to it has died, such installment (or all of them if more than one) shall be repayable
to the Trustees by the recipient or his personal representatives (as the case may be). 
 28 PENSION INCREASES 
 28.1 GUARANTEED MINIMUM PENSIONS 
 Insofar as any pension payable from the
Scheme and attributable to Pensionable Service before 6 April 1997 is a Guaranteed Minimum Pension, it shall be increased to the extent required by the GMP Rules. 
 28.2 OTHER PENSIONS 
 Insofar as any pension payable from the Scheme is attributable to Pensionable Service before
6 April 1997 and is not a Guaranteed Minimum Pension, or is attributable to Pensionable Service on or after 6 April 1997, its annual rate shall be increased with effect from 1 April each year by the lesser of:- 
 (1) the percentage increase in the RPI during the year ended on the preceding 30 September; and 
 (2) five per cent. 
  

 128 

 28.3 MEMBERS IN PENSIONABLE SERVICE ON 1 SEPTEMBER 1993 
 In the case of any pension which is payable from the Scheme to or in respect of a Member who was in Pensionable Service on 1 September 1993, the annual rate of the increases under sub-Rules 28.1 and 28.2 shall be
not less than 4 per cent. 
 28.4 FIRST ANNUAL INCREASE 
 On
the 1 April which first follows the date on which any pension commences to be paid, the increase under sub-Rule 28.2 shall be 1/12th of the percentage increase provided for in that sub-Rule multiplied by the number of complete months in the
period from the date on which the pension commences to the following 31 March. 
  

 129 

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 130 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 SCHEDULE 4: EXECUTIVE MANAGER AND SENIOR
MANAGER SECTION RULES 
  

							
	 SECTION 1: INTRODUCTION, ELIGIBILITY AND MEMBERSHIP
	  	137
			
	 1
	    	INTRODUCTION	  	137
		    	1.1	    	Interpretation	  	137
		    	1.2	    	Defined terms	  	137
		    	1.3	    	Application	  	138
		    	1.4	    	Transfer to another Section	  	138
		    	1.5	    	Member categories	  	138
			
	 2
	    	ELIGIBILITY AND MEMBERSHIP	  	138
		    	2.1	    	Eligibility conditions	  	138
		    	2.2	    	Evidence as to fulfillment of conditions	  	139
		    	2.3	    	Admission of new Employees to membership when first eligible	  	139
		    	2.4	    	Medical and other evidence	  	139
		    	2.5	    	Discretionary admission to membership	  	139
		    	2.6	    	Effect of admission to membership	  	139
		    	2.7	    	Opting out	  	140
		    	2.8	    	Re-joining the Scheme after opting out	  	140
		    	2.9	    	Effect of providing incomplete or inaccurate information	  	140
		
	 SECTION 2: MEMBERS’ CONTRIBUTIONS
	  	141
			
	 3
	    	MEMBERS’ CONTRIBUTIONS	  	141
		    	3.1	    	Compulsory contributions	  	141
		    	3.2	    	Voluntary contributions	  	141
		    	3.3	    	Notice to be given by Members concerning voluntary contributions	  	141
		    	3.4	    	Benefits in respect of voluntary contributions	  	141
		    	3.5	    	Repayment of surplus voluntary contributions	  	142
		    	3.6	    	Deduction of contributions from salary or pay	  	142
		    	3.7	    	Termination of Member’s contributions	  	142
		    	3.8	    	Member’s contributions during temporary absence	  	142
		
	 SECTION 3: PENSIONABLE SERVICE AND TEMPORARY ABSENCE
	  	143
			
	 4
	    	CALCULATION OF VODAFONE MANAGERS PENSIONABLE SERVICE	  	143
		    	4.1	    	Purpose of this Rule	  	143
		    	4.2	    	Vodafone Managers Pensionable Service	  	143
		    	4.3	    	More than one period of Vodafone Managers Pensionable Service	  	143
		    	4.4	    	Change of Scheme Employer	  	144
			
	 5
	    	MEMBERS IN PART-TIME EMPLOYMENT	  	144
		    	5.1	    	Purpose of this Rule	  	144
		    	5.2	    	Interpretation	  	144

  

 131 

							
		    	5.3	    	Members to whom this Rule applies	  	144
		    	5.4	    	Conversion into full-time equivalent	  	145
		    	5.5	    	Treatment of notional Pensionable Service	  	145
			
	 6
	    	CONSEQUENCES OF TEMPORARY ABSENCE	  	145
		    	6.1	    	Purpose of this Rule	  	145
		    	6.2	    	Maternity absence: (a) paid	  	146
		    	6.3	    	Maternity absence: (b) unpaid	  	146
		    	6.4	    	Other causes of temporary absence	  	147
		
	 SECTION 4: MEMBER’S RETIREMENT BENEFITS
	  	149
			
	 7
	    	MEMBER’S RETIREMENT BENEFITS: GENERAL	  	149
		    	7.1	    	Member’s retirement benefits	  	149
		    	7.2	    	Other provisions applicable to retirement pensions	  	149
		    	7.3	    	Supplements to retirement pensions	  	149
		    	7.4	    	Contracting-out and Inland Revenue requirements	  	150
			
	 8
	    	NORMAL RETIREMENT	  	150
		    	8.1	    	Member’s entitlement to pension from Normal Retirement Age	  	150
		    	8.2	    	Initial annual amount of Member’s pension	  	150
		    	8.3	    	Transferred Pensionable Service	  	150
		    	8.4	    	Transferred Racal RBS Members	  	151
			
	 9
	    	EARLY RETIREMENT: (A) GENERALLY	  	151
		    	9.1	    	Circumstances in which Member’s pension may commence early	  	151
		    	9.2	    	Preservation requirements	  	151
		    	9.3	    	GMP requirements	  	151
			
	 10
	    	EARLY RETIREMENT: (B) VOLUNTARY	  	152
		    	10.1	    	When payable	  	152
		    	10.2	    	Initial annual amount	  	152
		    	10.3	    	Adjustment for male Pre-88 Members	  	152
		    	10.4	    	Adjustment for female Pre-88 Members	  	153
		    	10.5	    	Transferred Pensionable Service	  	153
		    	10.6	    	Transferred Racal RBS Members	  	153
			
	 11
	    	EARLY RETIREMENT: (C) REDUNDANCY	  	154
		    	11.1	    	When payable	  	154
		    	11.2	    	Initial annual amount	  	154
		    	11.3	    	Adjustment for male Pre-88 Members	  	154
		    	11.4	    	Adjustment for female Pre-88 Members	  	155
		    	11.5	    	Reliance by Trustees on statements from Employers	  	155
		    	11.6	    	Transferred Racal RBS Members	  	155
			
	 12
	    	EARLY RETIREMENT: (D) SERIOUS ILL-HEALTH	  	155
		    	12.1	    	When payable	  	155
		    	12.2	    	Procedure	  	156
		    	12.3	    	Medical evidence before commencement of pension	  	156
		    	12.4	    	Commencement	  	156

  

 132 

							
		    	12.5	    	Initial annual amount	  	156
		    	12.6	    	Subsequent adjustment	  	156
		    	12.7	    	Medical evidence after commencement of pension	  	157
		    	12.8	    	Transferred Racal RBS Members	  	157
			
	 13
	    	LATE RETIREMENT	  	157
		    	13.1	    	Commencement of late retirement pension	  	157
		    	13.2	    	Initial annual amount of late retirement pension	  	158
		    	13.3	    	Transferred Racal RBS Members	  	158
		
	 SECTION 5: ALTERNATIVES TO MEMBER’S PENSION
	  	159
			
	 14
	    	COMMUTATION	  	159
		    	14.1	    	Member’s right to commute	  	159
		    	14.2	    	Member’s election to commute	  	159
		    	14.3	    	Maximum lump sum	  	159
		    	14.4	    	Member continuing in Service after Normal Retirement Age	  	159
		    	14.5	    	Benefits from Member’s voluntary contributions	  	159
		    	14.6	    	Exceptional circumstances of serious ill-health	  	160
		    	14.7	    	Trivial pensions	  	160
		    	14.8	    	Commutation factors	  	160
		    	14.9	    	GMP requirements	  	160
			
	 15
	    	SURRENDER OPTION	  	161
		    	15.1	    	Trustees’ discretion to permit surrender	  	161
		    	15.2	    	Member’s election to surrender	  	161
		    	15.3	    	Revenue and contracting-out limits on surrender	  	161
		    	15.4	    	Surrender factors	  	161
		    	15.5	    	Effect of death of spouse or nominated Dependent	  	162
		    	15.6	    	Revocation of Member’s election	  	162
		    	15.7	    	Further election following cancellation or revocation	  	162
		
	 SECTION 6: BENEFITS ON MEMBER’S DEATH
	  	163
			
	 16
	    	BENEFITS ON MEMBER’S DEATH: GENERAL	  	163
		    	16.1	    	Categories of benefit payable	  	163
		    	16.2	    	Provisions applicable to pensions on Member’s death	  	163
			
	 17
	    	DEATH IN PENSIONABLE SERVICE	  	164
		    	17.1	    	Lump sum benefit	  	164
		    	17.2	    	Spouse’s pension	  	165
		    	17.3	    	Financial Dependent’s pension	  	165
		    	17.4	    	Children’s pensions:	  	165
			
	 18
	    	DEATH IN SERVICE ON OR AFTER NORMAL RETIREMENT AGE	  	167
		    	18.1	    	Lump sum benefit	  	167
		    	18.2	    	Spouse’s pension	  	167
		    	18.3	    	Financial Dependent’s pension	  	167
		    	18.4	    	Children’s pensions	  	168

  

 133 

							
	 19
	    	DEATH AFTER RETIREMENT	  	169
		    	19.1	    	Lump sum benefit: (a) 5 year guarantee	  	169
		    	19.2	    	Lump sum benefit: (b) continued life cover in special cases	  	169
		    	19.3	    	Spouse’s pension	  	170
		    	19.4	    	Financial Dependents pension	  	170
		    	19.5	    	Children’s pensions	  	170
		
	 SECTION 7: EARLY LEAVERS
	  	172
			
	 20
	    	EARLY LEAVERS: GENERAL	  	172
		    	20.1	    	Application of this Section to early leavers	  	172
		    	20.2	    	Early leavers not qualifying for preserved benefits	  	172
		    	20.3	    	Early leavers who qualify for preserved benefits	  	172
			
	 21
	    	EARLY LEAVER NOT ENTITLED TO PRESERVED BENEFITS	  	173
		    	21.1	    	Refund of contributions	  	173
		    	21.2	    	Transfer option	  	173
			
	 22
	    	EARLY LEAVER ENTITLED TO PRESERVED BENEFITS	  	173
		    	22.1	    	Entitlement to preserved benefits	  	173
		    	22.2	    	Commutation and/or surrender of preserved pension	  	173
		    	22.3	    	Other provisions applicable to preserved pensions	  	173
		    	22.4	    	Supplements to preserved pensions	  	173
		    	22.5	    	Contracting-out and Inland Revenue requirements	  	174
		    	22.6	    	Alternatives to preserved benefits	  	174
			
	 23
	    	COMMENCEMENT OF PRESERVED BENEFITS AT NRA	  	175
		    	23.1	    	Payment	  	175
		    	23.2	    	Initial annual amount	  	175
		    	23.3	    	Transferred Pensionable Service	  	175
		    	23.4	    	Transferred Racal RBS Members	  	176
			
	 24
	    	COMMENCEMENT OF PRESERVED BENEFITS BEFORE NRA	  	176
		    	24.1	    	Conditions for early commencement	  	176
		    	24.2	    	Initial annual amount	  	176
		    	24.3	    	Adjustment for male Pre-88 Members	  	176
		    	24.4	    	Adjustment for female Pre-88 Members	  	177
		    	24.5	    	Transferred Racal RBS Members	  	177
		    	24.6	    	Preservation requirements	  	177
			
	 25
	    	COMMENCEMENT OF PRESERVED BENEFITS AFTER NRA	  	178
		    	25.1	    	Conditions for late commencement: (a) 89 Limits Members	  	178
		    	25.2	    	Conditions for late commencement: (b) other Members	  	178
		    	25.3	    	Initial annual amount	  	178
		    	25.4	    	Transferred Racal RBS Members	  	179
		    	25.5	    	Preservation requirements	  	179
			
	 26
	    	BENEFITS ON DEATH OF EARLY LEAVER WITH PRESERVED BENEFITS	  	179
		    	26.1	    	Lump sum on death of Deferred Member whilst benefits preserved	  	179
		    	26.2	    	Spouse’s pension on death of Deferred Member whilst benefits preserved	  	179

  

 134 

							
		    	26.3	    	Members with Transferred Pensionable Service	  	180
		    	26.4	    	Financial Dependent’s pension	  	180
		    	26 5	    	Benefits on death of Deferred Member after pension commences	  	180
		    	26.6	    	Other provisions applicable to survivors’ pensions	  	180
		
	 SECTION 8: PENSIONS - PAYMENT ARRANGEMENTS AND INCREASES
	  	181
			
	 27
	    	PAYMENT OF PENSIONS	  	181
		    	27.1	    	Payment arrangements	  	181
		    	27.2	    	Power to change payment arrangements	  	181
		    	27.3	    	Over-payment of pensions	  	181
			
	 28
	    	PENSION INCREASES	  	181
		    	28.1	    	Guaranteed Minimum Pensions	  	181
		    	28.2	    	Other pensions	  	181
		    	28.3	    	First annual increase	  	182

  

 135 

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 136 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE TRUST DEED AND RULES 
 SCHEDULE 4: EXECUTIVE MANAGER AND
SENIOR MANAGER SECTION RULES 
 SECTION 1: INTRODUCTION; ELIGIBILITY AND MEMBERSHIP 
 1 INTRODUCTION 
 1.1 INTERPRETATION 
 These Rules shall be interpreted in accordance with Schedule I to this Deed. 
 Any reference in this Schedule to a numbered Rule is to one of these
Rules unless the reference is to a rule in one of the other Schedules. 
 Any reference in this Schedule to a Member is to a Member to whom this Schedule
applies as stated in sub-Rule 1.3. 
 1.2 DEFINED TERMS 
 In
these Rules the following words and expressions have the following meanings respectively:- 
 “Normal Retirement Age” means the date of the
Member’s 65th birthday; 
 “Racal RBS Service” means, in relation to a Transferred Racal RBS Member, service which qualified for benefit under
the Racal RBS Scheme expressed in complete months; 
 “Racal EM&SM Pensionable Service” means, in relation to any Member, any period of
pensionable service under the Racal EM&SM Scheme which he has been notified by the Trustees counts towards his benefits under the Executive Manager and Senior Manager Section of this Scheme; 
 “Transferred Pensionable Service” means Racal EM&SM Pensionable Service or Vodafone Staff Pensionable Service; and 
 “Transferred Racal RBS Member” means a Member who:- 
 (1) was a
member of the Racal RBS Scheme on 31 October 1988; 
 (2) joined this Scheme on 1 November 1988 as a full contributory Member; and 
 (3) became a Member of this Section of this Scheme on or after the Revision Date (whether or not following any period of pensionable service under the Vodafone EM&SM
Scheme); 
  

 137 

 “Vodafone Managers pensionable Service” means the total of the periods referred to in sub-Rule 4.2: 

“Vodafone Staff Pensionable Service” means, in relation to any Member, any period of Pensionable Service under this Scheme before the Revision Date and/or
pensionable service under the Staff Section of this Scheme on or after the Revision Date which he has been notified by the Trustees counts towards his benefits under the Executive Manager and Senior Manager Section of this Scheme. 
 1.3 APPLICATION 
 These Rules apply:- 
 (1) to all Members who are in Pensionable Service on the Revision Date and immediately before the Revision Date were in pensionable service under the Vodafone EM&SM
Scheme; and 
 (2) to all Members who become Members of the Executive Manager and Senior Manager Section on or after the Revision Date in accordance with
Rule 2. 
 1.4 TRANSFER TO ANOTHER SECTION 
 When any Member of
this Section becomes a Member of another Section of the Scheme, he shall cease to be entitled to benefits under this Section. 
 1.5 MEMBER CATEGORIES

 Pre-88 Members had Normal Retirement Ages of 65 in the case of men and 60 in the case of women until 31 August 1993. Irrespective of their sex, Normal
Retirement Age under this Scheme or the Vodafone EM&SM Scheme (whichever was applicable) for these Members became their 65th birthday with effect from 1 September 1993. 
 Members whose Service (as opposed to their Pensionable Service) commenced on or after 1 January 1988 have always had a Normal Retirement Age of 65 which applies to both sexes. Members whose Service commences on
or after the Revision Date also have a Normal Retirement Age of 65. 
 2 ELIGIBILITY AND MEMBERSHIP 
 2.1 ELIGIBILITY CONDITIONS 
 An Employee is eligible to become a Member if he
fulfills the following eligibility conditions unless he is informed by the Principal Employer that he is not eligible to become a Member:- 
 (1) he is
employed by one or more of the Employers as an executive manager or senior manager; and 
  

 138 

 (2) he is aged 18 years or over but under 64 years 11 months. 
 An Employee is not eligible to become a Member if and for so long as he pays contributions to a personal pension scheme approved or for which approval is being sought
under Chapter IV of Part XIV of the Taxes Act. 
 2.2 EVIDENCE AS TO FULFILLMENT OF CONDITIONS 
 The Trustees may rely on a statement from an Employer as to the fulfillment of the conditions in sub-Rule 2.1 in respect of any Employee. 
 2.3 ADMISSION OF NEW EMPLOYEES TO MEMBERSHIP WHEN FIRST ELIGIBLE 
 An Employee shall be admitted to membership of the
Executive Manager and Senior Manager Section with effect from the first date on which he satisfies all the eligibility conditions set out in sub-Rule 2.1 subject to the Trustees’ powers under sub-Rule 2.4 and (having regard to section 160 of
the Pension Schemes Act) with the right under sub-Rule 2.7 to opt out if he does not wish to be or remain a Member. 
 2.4 MEDICAL AND OTHER EVIDENCE

 Before being admitted to membership of the Executive Manager and Senior Manager Section an Employee shall produce such evidence of health, age and such
other matters (if any) as the Trustees may require. 
 If when required to do so pursuant to this sub-Rule an Employee fails to produce evidence of good
health to the satisfaction of the Trustees, the Trustees may decline to admit him to membership or they may offer him membership on such special terms (including as to modified or partial benefits) as the Trustees with the consent of the Principal
Employer shall decide. 
 2.5 DISCRETIONARY ADMISSION TO MEMBERSHIP 
 An Employee who would not otherwise be eligible for membership of the Executive Manager and Senior Manager Section may be admitted to membership of the Executive Manager and Senior Manager Section with the consent of the Principal Employer
and the Trustees and on such terms and at such time as may be agreed between the Trustees and the Principal Employer. 
 2.6 EFFECT OF ADMISSION TO
MEMBERSHIP 
 Upon being admitted to membership of the Executive Manager and Senior Manager Section an Employee becomes a Member and is bound by the Trust
Deeds. 
  

 139 

 2.7 OPTING OUT 
 A Member may
at any time withdraw from active membership of the Executive Manager and Senior Manager Section by giving to his Employer for recording and transmission to the Trustees not less than one month’s notice to that effect ending on the last day of
any month on such form as the Trustees may prescribe for that purpose, or such lesser period of notice (if any) as the Trustees and the Employee may agree to accept. Upon the expiration of such notice the Member concerned shall be treated for the
purposes of the Scheme as having terminated his Pensionable Service. If the Member gives such notice before paying any contributions to the Scheme, he shall be treated as if he had never become Member. 
 2.8 RE-JOINING THE SCHEME AFTER OPTING OUT 
 A Member who withdraws from
active membership of the Executive Manager and Senior Manager Section pursuant to sub-Rule 2.7 may, at the discretion of the Trustees and with the consent of the Principal Employer, be re-admitted to membership of the Executive Manager and Senior
Manager Section provided he then fulfills the eligibility conditions mentioned in sub-Rule 2.1 and satisfies the requirements of sub-Rule 2.4. Such re-admission shall be for such benefits and subject to such conditions as the Trustees and the
Principal Employer shall decide. 
 2.9 EFFECT OF PROVIDING INCOMPLETE OR INACCURATE INFORMATION 
 Without prejudice to sub-Rule 2.4, if when required to do so any Employee or Member fails to provide the Trustees with information or provides them with information which
is incomplete or inaccurate, the Trustees may with the consent of the Principal Employer modify the benefits payable to or in respect of the Member under the Scheme to such extent as they may consider appropriate in the circumstances. 
  

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 SECTION 2: MEMBERS’ CONTRIBUTIONS 
 3 MEMBERS’ CONTRIBUTIONS 
 3.1 COMPULSORY CONTRIBUTIONS 
 In each Scheme Year each Member shall pay contributions to the Scheme in equal installments at the same time as he receives pay from his Employer at the rate of 3.5% of his Pensionable Earnings (or, in the case of a
Member who is an 89 Limits Member for the purposes of the Revenue Limits Rules, the Permitted Maximum (as defined in the Revenue Limits Rules), if less). 
 3.2 VOLUNTARY CONTRIBUTIONS 
 A Member may pay voluntary contributions to the Scheme of such amounts or at such rates (subject to the limits on
Member’s contributions mentioned in the Revenue Limits Rules) and at such intervals as he may agree with the Trustees. The assets representing such voluntary contributions and the income from them and any additions to them shall be held by the
Trustees separate from all the other assets of the Fund. 
 3.3 NOTICE TO BE GIVEN BY MEMBERS CONCERNING VOLUNTARY CONTRIBUTIONS 
 A Member must give the Trustees such notice as the Trustees may require (not exceeding the maximum period of notice allowed by Regulation 2(4) of the Pension Schemes
(Voluntary Contributions Requirements and Voluntary and Compulsory Membership) Regulations 1987 (SI 1987 No. 1108)) of his intention to pay voluntary contributions at a specified rate or of a specified amount, or to vary that rate or amount.

 3.4 BENEFITS IN RESPECT OF VOLUNTARY CONTRIBUTIONS 
 The
Trustees shall secure:- 
 (1) that any voluntary contributions paid by a Member are used to provide such benefits for or in respect of him under the Scheme
as the Trustees and the Member may agree or, in the absence of agreement, as the Trustees may decide and that such benefits:- 
 (a) shall be additional to
the benefits provided for or in respect of him under the following Rules: and 
 (b) shall be money purchase benefits within the meaning of section 181 of
the Pension Schemes Act; and 
 (2) that the value of the additional benefits is reasonable having regard to the amount of the voluntary contributions.

  

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 3.5 REPAYMENT OF SURPLUS VOLUNTARY CONTRIBUTIONS 
 This sub-Rule applies if a Member pays voluntary contributions under this Rule and on his Scheme Exit Date the benefits which have accrued to him are found to exceed the maximum total benefits which may be provided by
the Scheme to or in respect of him under Revenue Limits. 
 (1) To the extent that the excessive benefits have been secured by the Member’s voluntary
contributions the amount of the Scheme assets which secure the excessive benefits and consist of or relate to those contributions shall be determined by the Trustees (for which purpose they may rely on the advice of the Actuary). 
 (2) The Trustees shall then pay that amount to the Member (or, if the Member has died, to the Member’s estate) after deducting such tax as they may be required to
deduct and account for to the Inland Revenue. 
 (3) The Trustees shall also comply with the requirements of Regulation 5 of the Retirement Benefits Schemes
(Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993 (SI 1993 No. 3016), and, where the Scheme is the “leading scheme” in relation to the Member, with the requirements of Regulation 6 of those
Regulations so far as they concern main schemes. 
 3.6 DEDUCTION OF CONTRIBUTIONS FROM SALARY OR PAY 
 Each Member’s Employer shall deduct from the Member’s salary or pay the amounts payable by the Member to the Scheme as compulsory and voluntary contributions
and pay them to the Trustees promptly and in any event so as to comply with section 49(8) of the Pensions Act and regulations made under it (being at the date of this Deed regulation 16 of the Administration Regulations which requires the payment to
the Trustees to be made within 19 days commencing from the end of the month in which the amount is deducted from the Member’s earnings). 
 3.7
TERMINATION OF MEMBER’S CONTRIBUTIONS 
 Unless a Member’s Employer determines otherwise and notifies the Member accordingly, but subject always to
such Inland Revenue consent as may from time to time be required, no contributions shall be payable or may be paid by a Member after his Normal Retirement Age or the date when his Pensionable Service terminates, if earlier. 
 3.8 MEMBER’S CONTRIBUTIONS DURING TEMPORARY ABSENCE 
 Where a Member is
temporarily absent from work with his Employer, the payment of his contributions under this Rule is governed by Rule 6. 
  

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 SECTION 3: PENSIONABLE SERVICE AND TEMPORARY ABSENCE 
 4 CALCULATION OF VODAFONE MANAGERS PENSIONABLE SERVICE 
 4.1 PURPOSE OF THIS RULE 
 Most of the benefits payable to or in respect of a Member under the Executive Manager and Senior Manager Section are determined by reference to the Member’s Vodafone
Managers Pensionable Service. This Rule explains how a Member’s Vodafone Managers Pensionable Service is calculated. 
 4.2 VODAFONE MANAGERS
PENSIONABLE SERVICE 
 Subject to sub-Rule 43, a Member’s Vodafone Managers Pensionable Service for the purpose of calculating the benefits payable to
and in respect of him under the Executive Manager and Service Manager Section is the total of the following periods (which shall be expressed in complete years with complete months which are not part of a complete year being expressed as a fraction
of a year):- 
 (1) the period during which he was in Pensionable Service under the Executive Manager and Senior Manager Section; and 
 (2) if he was in pensionable service under the Vodafone EM&SM Scheme immediately before the Revision Date, the period during which he was in pensionable service
under the Vodafone EM&SM Scheme ending on the day before the Revision Date. 
 There shall be deducted any part of such period or periods which does not
count as Vodafone Managers Pensionable Service due to temporary absence from work as provided in Rule 6 or the applicable temporary absence rule prevailing at the time when the absence occurred. 
 4.3 MORE THAN ONE PERIOD OF VODAFONE MANAGERS PENSIONABLE SERVICE 
 If a
member who has been in Pensionable Service leaves Service or withdraws from active membership of the Executive Manager and Senior Manager Section and subsequently rejoins the Executive Manager and Senior Manager Section, each of the periods of
Vodafone Managers Pensionable Service shall count as a separate period of Vodafone Managers Pensionable Service unless:- 
 (a) the Trustees with the consent
of the Principal Employer agree to aggregate them; or 
 (b) the Member is a female Member who is absent from work wholly or partly because of pregnancy or
confinement and the periods of Pensionable Service separated by the period of maternity absence are required to be treated as continuous by Part VIII of the Employment Rights Act 1996. 
  

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 Where a Member has any period of Vodafone Managers Pensionable Service which is not aggregated in accordance with this
sub-Rule with his most recent period of Vodafone Managers Pensionable Service, the benefits payable to and in respect of him in respect of the earlier period or periods are determined in accordance with the Rules relating to early leavers.

 4.4 CHANGE OF SCHEME EMPLOYER 
 Where a Member is employed by
one Employer and immediately after the termination of his employment with that Employer he becomes an employee of another Employer, his Vodafone Managers Pensionable Service shall not be treated as having been broken by reason only of such change of
employment. 
 5 MEMBERS IN PART-TIME EMPLOYMENT 
 5.1 PURPOSE OF
THIS RULE 
 This Rule explains the adjustments required where any Member’s Vodafone Managers Pensionable Service includes both full-time and part-time
employment or variable part-time employment. 
 5.2 INTERPRETATION 
 In this Rule:- 
 (1) “Full-time Employment” means in respect of any Employer and any period, employment with the Employer which, by
reason of the number of hours per week (or month) for which the Member is contracted to work, is treated by the Employer as full-time employment; and 
 (2)
“Part-time Employment” means employment with the Employer which is less than Full-time Employment. 
 5.3 MEMBERS TO WHOM THIS RULE APPLIES

 This Rule applies to any Member where during the Member’s Vodafone Managers Pensionable Service:- 
 (a) the Member has periods both of Full-time Employment and Part-time Employment; or 
 (b) the Member has periods of Part-time Employment in respect of which there is a difference in the number of hours per week (or month) for which he is contracted to work as a proportion of the number of hours
required for Full-time Employment. 
 The Trustees may rely on a statement from the Employer as to the hours per week (or month) for which any Member is or
was contracted to work and the number of hours which are or were required for Full-time Employment with the Employer. 
  

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 5.4 CONVERSION INTO FULL-TIME EQUIVALENT 
 Where by virtue of sub-Rule 5.3 this Rule applies to any Member, in respect of each period during which the number of hours per week (or month) for which the November is required to work bears the same proportion to
the number of hours required for Full-time Employment, his Final Pensionable Earnings and Vodafone Managers Pensionable Service shall be converted into their full-time equivalent and the benefit attributable to each such period shall then be
aggregated. For this purpose:- 
 (1) the Member’s Final Pensionable Earnings shall be converted into its full-time equivalent by multiplying it by the
fraction FTH/CH; and 
 (2) the Member’s Vodafone Managers Pensionable Service shall be converted into its full time equivalent by multiplying it by the
fraction CH/FTH; 
 where:- 
 (a) “FTH” is the number
of hours per week (or month) required for Full-time Employment at the end of such period; and 
 (b) “CH” is the number of hours per week (or
month) for which the Member is contracted to work at the end of the period in question. 
 5.5 TREATMENT OF NOTIONAL PENSIONABLE SERVICE 
 Where any benefit under the Rules is required to be calculated taking into account notional Pensionable Service after a Member’s actual Pensionable Service has
terminated, it shall be assumed that the number of hours for which the Member was contracted to work and the number of hours required for Full-time Employment in each case as at the date when his Pensionable Service terminated would have continued
to apply if he had remained in Pensionable Service. 
 6 CONSEQUENCES OF TEMPORARY ABSENCE 
 6.1 PURPOSE OF THIS RULE 
 This rule determines:- 
 (1) whether and the extent to which any period during which a Member is temporarily absent from work with his Employer, but remains in Service, is to be included in the Member’s Vodafone Managers Pensionable
Service; 
 (2) whether and the extent to which the Member is obliged to pay contributions during or in respect of any such period of temporary absence; and

  

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 (3) whether the Members death during any such period of temporary absence is to count as death in Pensionable Service for
the purpose determining benefits on death in Pensionable Service under Section 6 of these Rules. 
 6.2 MATERNITY ABSENCE: (A) PAID 
 If a female Member is absent from work wholly or partly because of pregnancy or confinement whilst remaining in Service, then to the extent that the period of absence is
a period of paid maternity absence within the meaning of paragraph 5(3) of Schedule 5 to the Social Security Act 1989 or a maternity leave per within the meaning of section 235(1) of the Employment Rights Act 1996 effect of the Member’s absence
shall be as provided in the following sub-Rule of this Rule. 
  

	6.2.1	CONTINUATION OF MEMBERSHIP. The Member shall be deemed to continue in Pensionable Service throughout the period of paid maternity absence or maternity leave period.

  

	6.2.2	CONTRIBUTIONS DURING ABSENCE. The Member shall continue to pay contributions in accordance with Rule 3 during the period of paid maternity absence calculated by reference to her
actual earnings from her Employer instead of by reference to her Pensionable Earnings. 

  

	6.2.3	PERIOD OF PENSIONABLE SERVICE. The period of paid maternity absence maternity leave period shall be included in the Member’s Vodafone Managers Pensionable Service.

  

	6.2.4	DEATH DURING ABSENCE. If a Member dies in Service during the period of paid maternity absence or maternity leave period she shall be treated as dying in Pensionable Service for the
purpose of Section 6 of these Rules. To the extent that the benefits under Section 6 fall to be determined by reference to her earnings during a period which includes a period of paid maternity absence, they shall be determined in
accordance with the normal employment requirement within the meaning of paragraph 5(3) of Schedule 5 to the Social Security Act 1989. 

 6.3
MATERNITY ABSENCE: (B) UNPAID 
 If a female Member is absent from work wholly or partly because of pregnancy or confinement whilst remaining in Service,
then to the extent that the periods absence is not a period of paid maternity absence within the meanings paragraph 5(3) of Schedule 5 to the Social Security Act 1989 or a maternity leave period within the meaning of section 235(1) of the Employment
Rights Act 1996 the effect of the Member’s absence shall be as provided in the following sub-Rules of this Rule. 
  

	6.3.1	CONTINUATION OF MEMBERSHIP. The Member shall be to deemed continue in Pensionable Service throughout the period in question. 

  

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	6.3.2	CONTRIBUTIONS DURING ABSENCE. The Member shall cease to pay contributions in accordance with Rule 3 during the period of absence but may following her return to work pay the
contributions calculated by reference to her full Pensionable Salary which she would have paid if this sub-Rule had not applied in such installments and over such period as she may agree with the Trustees. 

  

	6.3.3	PERIOD OF PENSIONABLE SERVICE. Any period of maternity absence to which this sub-Rule 6.3 applies shall be included in the Member’s Vodafone Managers Pensionable Service only
to the extent that the Member pays contributions in respect of it, by way of arrears of contributions paid following her return to work in accordance with sub-Rule 6.3.2. 

  

	6.3.4	DEATH DURING ABSENCE. If the Member dies in Service during a period of maternity absence to which this sub-Rule 6.3 applies she shall be treated as dying in Pensionable Service for
the purpose of Section 6 of these Rules. 

 6.4 OTHER CAUSES OF TEMPORARY ABSENCE 
 If a Member is temporarily absent from work and the Member is not a female Member whose absence comes within sub-Rules 6.2 or 6.3, the effect of the Member’s absence
shall be as provided in the following sub-Rules of this Rule. 
  

	6.4.1	CONTINUATION OF MEMBERSHIP. The Member shall be deemed to have left Pensionable Service upon the expiry of the following periods:- 

  

	 	(a)	if the absence is due to illness or injury, 30 months from the date when the absence commences; or 

  

	 	(b)	if the absence is for any other reason, 12 months from the date when the absence commences; 

 or such longer period (if any) as the Trustees and the Principal Employer may agree. 
  

	6.4.2	CONTRIBUTIONS DURING ABSENCE. For so long as the Member receives salary or pay from his Employer at not less than half the rate of his salary or pay immediately before the absence
commenced, he shall continue to pay contributions in accordance with Rule 3 during the period of absence calculated by reference to his full Pensionable Earnings. For so long as any Member receives salary or pay from his Employer at less than half
the rate of his salary or pay immediately before the absence commenced, he shall cease to pay contributions in accordance with Rule 3 during the period of absence but may following his return to work pay the contributions (calculated by reference to
his full Pensionable Earnings) which he would have paid if this sub-Rule had not applied in such instalments and over such period as he may agree with the Trustees. 

  

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	6.4.3	PERIOD OF PENSIONABLE SERVICE. Any period of temporary absence shall be included in the Member’s Vodafone Managers Pensionable Service only to the extent that the Member pays
contributions in respect of it, either during the period of absence or by way of arrears of contributions paid following his return to work in accordance with sub-Rule 6.4.2. 

  

	6.4.4	DEATH DURING ABSENCE. If a Member dies in Service whilst absent from work and he has not been deemed to have left Pensionable Service in accordance with sub-Rule 6.4.1, he shall be
treated as dying in Pensionable Service for the purpose of Section 6 of these Rules. 

  

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 SECTION 4: MEMBERS RETIREMENT BENEFITS 
 7 MEMBER’S RETIREMENT BENEFITS: GENERAL 
 7.1 MEMBERS RETIREMENT BENEFITS 
 On retirement from Pensionable Service:- 
 (1) a Member is entitled to a
pension; and 
 (2) a Transferred Racal RBS Member is also entitled to a cash sum; 
 calculated and paid in accordance with Rules 8 to 13. 
 If before a Member’s Normal Retirement Age his Pensionable
Service is terminated by him leaving Service or withdrawing from membership of the Executive Manager and Senior Manager Section whilst remaining in Service, and he does not become entitled to any early retirement pension under Rules 9 to 12; the
benefits payable to and in respect of him are determined in accordance with Section 7 of these Rules. 
 7.2 OTHER PROVISIONS APPLICABLE TO RETIREMENT
PENSIONS 
 A Member’s pension payable under Rules 8 to 13:- 
 (1) shall be reduced in accordance with Rules 14 or 15 if the Member exercises his commutation or surrender options under them; 
 (2) shall be
payable in accordance with Rule 27; and 
 (3) shall be subject to increases in accordance with Rule 28. 
 7.3 SUPPLEMENTS TO RETIREMENT PENSIONS 
 Members’ retirement pensions
under Rules 8 to 13 may be supplemented:- 
 (1) as a result of the Member having paid additional voluntary contributions in accordance with sub-Rule 3.4 or
the Former Provisions; 
 (2) as a result of a transfer payment or transfer payments having been received in respect of the Member under Clause 18 in
Schedule 2 to this Deed or under the Former Provisions; or 
 (3) as a result of the exercise of the augmentation powers contained in Clause 21 in Schedule 2
to this Deed. 
 The extent to which Rules 14 (commutation option), 15 (surrender option). 27 (payment of pensions) and 28 (pension increases) apply to any
supplement to the Member’s retirement pension referred to in sub-Rule 7.3 depends on the terms 

  

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agreed between the Member and the Trustees in the case of additional voluntary contributions and transfer payments and on the terms specified by the Trustees
in the case of augmentations. 
 7.4 CONTRACTING-OUT AND INLAND REVENUE REQUIREMENTS 
 The Trustees must ensure:- 
 (1) that if the Member was in Contracted-out Employment in relation to the Scheme before
6 April 1997, the Member’s retirement pension attributable to Pensionable Service prior to 6 April 1997 complies with the GMP Rules; and 
 (2) that the Member’s retirement benefits do not exceed the limits applicable to them under the Revenue Limits Rules. 
 8 NORMAL RETIREMENT

 8.1 MEMBER’S ENTITLEMENT TO PENSION FROM NORMAL RETIREMENT AGE 
 A Member whose Pensionable Service terminates as a result of his retirement from Service at Normal Retirement Age shall be entitled to a normal retirement pension from the Scheme which shall commence to be payable with effect from the day
following his Normal Retirement Age for the remainder of his lifetime and which shall be calculated in accordance with this Rule. 
 8.2 INITIAL ANNUAL
AMOUNT OF MEMBER’S PENSION 
 The initial annual amount of a Member’s pension under sub-Rule 8.1 by virtue of his Vodafone Managers Pensionable
Service shall be calculated by using the following formula:- 
 Final Pensionable Earnings x Vodafone Managers Pensionable Service 

 50 
 8.3 TRANSFERRED PENSIONABLE SERVICE

 A Member who becomes entitled to a normal retirement pension in accordance with sub-Rule 8.1 and who has Transferred Pensionable Service shall be entitled
to additional pension of an initial annual amount calculated by multiplying his Final Pensionable Earnings by the following:- 
 (1) any period of Vodafone
Staff Pensionable Service divided by 60; 
 (2) any period of Racal EM&SM Pensionable Service before 1 April 1986 divided by 60; and 
 (3) any period of Racal EM&SM Pensionable Service on or after 1 April 1986 divided by 50. 
  

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 8.4 TRANSFERRED RACAL RBS MEMBERS 
 A Member who becomes entitled to a normal retirement pension in accordance with sub-Rule 8.1 and who is a Transferred Racal RBS Member shall also be entitled to a cash sum calculated by using the following formula:- 
 Final Pensionable Earnings x Racal RBS Service 
 480 
 9 EARLY RETIREMENT: (A) GENERALLY 
 9.1
CIRCUMSTANCES IN WHICH MEMBER’S PENSION MAY COMMENCE EARLY 
 A Member’s retirement pension may commence before his Normal Retirement Age in any of
the following circumstances:- 
 (1) voluntary early retirement under Rule 10; 
 (2) redundancy early retirement under Rule 11; or 
 (3) early retirement due to Serious Ill-health under Rule 12.

 9.2 PRESERVATION REQUIREMENTS 
 In accordance with Regulation
8(4) of the Preservation Regulations, the Trustees must be reasonably satisfied that when any Member’s pension becomes payable under Rules 10, 11 or 12 before his Normal Pension Age, the total value of the Member’s benefits is at least
equal in value to the benefits that have accrued to or in respect of him under the Rules (on the basis that the Rules are the “applicable rules” for the purpose of section 94(2) of the Pension Schemes Act). 
 9.3 GMP REQUIREMENTS 
 If any Member whose pension commences before Normal
Retirement Age under this Rule is entitled to any Guaranteed Minimum Pension, the Trustees shall have power to adjust any pension payable under this rule to such extent as may be necessary to ensure that when the Member attains State Pensionable Age
(as defined in the GMP Rules), the Member’s pension attributable to Contracted-out Employment prior to 6 April 1997 is not less than the amount required under the GMP Rules. 
  

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 10 EARLY RETIREMENT. (B) VOLUNTARY 
 10.1 WHEN PAYABLE 
 If:- 
 (1) a
Member’s Pensionable Service terminates on or after the date when he attains age 50 and 
 (2) the Principal Employer consents to the immediate
commencement of his retirement pension (except that in the case of a Pre-88 Member, such consent shall not be required to the commencement of the pension on or after the Member’s 60th birthday); 
 he shall be entitled to an early retirement pension from the Scheme which shall commence to be payable with effect from the day after his Pensionable Service terminates
(or such later date as the Trustees shall agree with him) and which shall continue to be payable for the remainder of his lifetime. 
 10.2 INITIAL ANNUAL
AMOUNT 
 Subject to sub-Rules 10.3 and 10.4, the initial annual amount of a Member’ voluntary early retirement pension under sub-Rule 10.1 shall be
calculated in two stages:- 
 (1) first, by using the following formula:- 
 Final Pensionable Earnings x Vodafone Managers Pensionable Service; 
 50 
 (2) secondly, by applying an early retirement reduction factor to the amount determined at the first stage of the calculation in respect of the period from the date when
the pension becomes payable until the Member’s Normal Retirement Age in order to take account of the fact that the pension is likely to be payable for longer than if it were to commence at the Member’s Normal Retirement Age. The amount of
the reduction factor shall be determined by the Trustees and the Principal Employer after consulting the Actuary. 
 10.3 ADJUSTMENT FOR MALE PRE-88 MEMBERS

 If the Member is a male Pre-88 Member the reduction under paragraph (2) of sub-Rule 10.2 shall be determined as follows:- 
 (a) the part of the pension attributable to Vodafone Managers Pensionable Service before 17 May 1990 shall be reduced in respect of the period from the date it
becomes payable until the Member’s Normal Retirement Age; 
 (b) the part of the pension attributable to Vodafone Managers Pensionable Service on or
after 17 May 1990 but before 1 September 1993 shall be 

  

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reduced in respect of the period (if any) from the date it becomes payable until the Member’s 60th birthday; and 
 (C) the part of the pension attributable to Vodafone Managers Pensionable Service on or after 1 September 1993 shall be reduced in respect of the period from the
date it becomes payable until the Member’s Normal Retirement Age. 
 10.4 ADJUSTMENT FOR FEMALE PRE-88 MEMBERS 
 If the Member is a female Pre-88 Member the reduction under paragraph (2) of sub-Rule 10.2 shall be determined as follows:- 
 (a) the part of the pension attributable to Vodafone Managers Pensionable Service before 1 September 1993 shall be reduced in respect of the period (if any) from
the date it becomes payable until the Member’s 60th birthday; and 
 (b) the part of the pension attributable to Vodafone Managers Pensionable Service
on or after 1 September 1993 shall be reduced in respect of the period from the date it becomes payable until the Member’s Normal Retirement Age. 
 10.5 TRANSFERRED PENSIONABLE SERVICE 
 A Member who becomes entitled to an early retirement pension in accordance with sub-Rule 10.1 and who has
Transferred Pensionable Service shall also be entitled to have added at the first stage of the calculation in sub-Rule 10.2(1) the amount calculated in accordance with sub-Rule 8.3 (using the Member’s Final-Pensionable Earnings at and
Pensionable Service to his Scheme Exit Date). Such amount shall also be subject to deduction in accordance with sub-Rules 10.2(2) to 10.4 by treating Transferred Pensionable Service before, at or after the dates in question in the same way as
Vodafone Managers Pensionable Service. 
 10.6 TRANSFERRED RACAL RBS MEMBERS 
 A Member who becomes entitled to an early retirement pension in accordance with sub-Rule 10.1 and who is a Transferred Racal RBS Member shall also be entitled to a cash sum calculated in two stages:- 
 (1) first by using the following formula:- 
 Final
Pensionable Earnings x Racal RBS Service 
 480 
 (2) secondly, by applying an early retirement reduction factor to the amount determined at the first stage of the calculation in respect from the date when the cash sum became payable until in the case of a male Member his Normal Retirement
Age and in the case of a female member her 60th 

  

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birthday. The amount of the reduction factor shall be determined by the Trustees and the Principal Employer after consulting the Actuary. 
 11 EARLY RETIREMENT: (C) REDUNDANCY 
 11.1 WHEN PAYABLE 
 If a Member’s Pensionable Service terminates on or after the date when he attains age 50 and his Employer certifies to the Trustees that this occurred because his
Service terminated by reason of redundancy then, provided that both the Trustee and his Employer consent to the immediate commencement of his retirement pension, he shall be entitled to an early retirement pension from the Scheme which shall
commence to be payable with effect from the date after his Pensionable Service terminates (or such later date as his Employer and the Trustees shall agree with him) and which shall continue to be payable for the remainder of his lifetime.

 11.2 INITIAL ANNUAL AMOUNT 
 Subject to sub-Rules 11.3 and
11.4, the initial annual amount of a Member redundancy early retirement pension under sub-Rule 11.1 shall be calculated in the same way as a voluntary early retirement pension under sub-Rule 10.2 (plus, in the case of a Member who has Transferred
Pensionable Service, any additional pension under sub-Rule 10.5) except that the early retirement reduction factor under sub-Rule 10.2(2) shall be applied only in respect of the period (if any) from the date when the pension becomes payable until
the Member’s 60th birthday. 
 11.3 ADJUSTMENT FOR MALE PRE-88 MEMBERS 
 If the Member is a male Pre-88 Member, and the redundancy early retirement pension commences before the Member’s 60th birthday, the early retirement reduction factor shall be applied only as follows:- 

(a) the part of the pension attributable to Vodafone Managers Pensionable Service or Transferred Pensionable Service before 17 May 1990 shall be reduced in
respect of the period from the date when the pension commences until the Member’s 60th birthday; 
 (b) the part of the pension attributable to Vodafone
Managers Pensionable Service or Transferred Pensionable Service on or after 17 May 1990 and before 1 September 1993 shall be reduced in respect of the period (if any from the date when the pension commences until the Member’s 5
birthday; and 
 (c) the part of the pension attributable to Vodafone Managers Pensionable Service or Transferred Pensionable Service on or after
1 September 1993 shall be reduced in respect of the period from the date when the pension commences until the Member’s 60th birthday. 
  

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 11.4 ADJUSTMENT FOR FEMALE PRE-88 MEMBERS 
 If the Member is a female Pre-88 Member and the redundancy early retirement pension commences before the Member’s 60th birthday, the early retirement reduction factor shall be applied only as follows:-

 (a) the part of the pension attributable to Vodafone Managers Pensionable Service or Transferred Pensionable Service before 1 September 1993 shall be
reduced in respect of the period (if any) from the date when the pension commences until the Member’s 55th birthday; and 
 (b) the part of the pension
attributable to Vodafone Managers Pensionable Service or Transferred Pensionable Service on or after 1 September 1993 shall be reduced only in respect of the period from the date when the pension commences until the Member’s 60th birthday.

 11.5 RELIANCE BY TRUSTEES ON STATEMENTS FROM EMPLOYERS 
 The
Trustees may rely on a statement from the Member’s Employer that the Member’s Pensionable Service has terminated in the circumstances mentioned in sub-Rule 11.1. 
 11.6 TRANSFERRED RACAL RBS MEMBERS 
 A Member who becomes entitled to an early retirement pension in accordance with sub-Rule
11.1 and who is a Transferred Racal RBS Member shall also be entitled to a cash sum calculated in two stages:- 
 (1) first by using the following formula:-

 Final Pensionable Earnings x Racal RBS Service 
 480 
 (2) secondly, by applying an early retirement reduction factor to the amount determined at the first stage of the
calculation in respect from the date when the cash sum became payable until in the case of a male Member his Normal Retirement Age and in the case of a female member her 60th birthday. The amount of the reduction factor shall be determined by the
Trustees and the Principal Employer after consulting the Actuary. 
 12 EARLY RETIREMENT: (D) SERIOUS ILL-HEALTH 
 12.1 WHEN PAYABLE 
 If a Member’s Pensionable Service terminates because
of Serious Ill-health, he may be granted an ill-health early retirement pension from the Scheme subject to and in accordance with the following sub-Rules of this Rule. 
  

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 12.2 Procedure 
 Before his
Pensionable Service terminates the Member must request his Employer to support his application to the Trustees for a Serious Ill-health Pension to be granted. The Employer may only make such in application if it is satisfied that the Member’s
state of health is such as to warrant his retirement from employment with the Employer. 
 If any Employer supports an application to the Trustees following
a request from a Member in accordance with this sub-Rule, the Trustees shall decide whether the Member is suffering from Serious Ill-health, and notify the Employer and the Member of their decision. 
 12.3 Medical evidence before commencement of pension 
 For the purpose of
sub-Rule 12.2, the Employer and the Trustees shall be entitled to such medical evidence (if any) as they may respectively require. The Member must operate in providing all such evidence, including undergoing any medical examination(s) which the
Employer or the Trustees may require. 
 12.4 Commencement 
 A
Serious Ill-health early retirement pension shall commence to be payable with effect from the day after the Member’s Pensionable Service terminates (or such later date as the Trustees shall agree with him) and which shall, subject to sub-Rules
12.6 and 12.7, continue to be payable for the remainder of his lifetime. 
 12.5 Initial annual amount 
 The initial annual amount of a Member’s Serious Ill-health early retirement pension shall be the amount of a voluntary early retirement pension calculated in
accordance with sub-Rule 10.2 (plus, in the case of a Member with Transferred Pensionable Service, any additional pension under sub-Rule 10.5) or if the Trustees and the Principal Employer consider a higher amount to be appropriate in the
circumstances, such higher amount as the Trustees with the consent of the Principal Employer shall decide, but not greater than the amount which would have been payable under Rule 8 if he had remained in Pensionable Service until his Normal
Retirement Age (based on the Member’s Final Pensionable Earnings at his Scheme Exit Date). 
 12.6 Subsequent adjustment 
 If.- 
 (1) a Member’s pension is a Serious Ill-health early retirement
pension; and 
 (2) at any time or times between the date when his pension commences and his Normal Retirement Age, in the Trustees’ opinion (having
taken such 

  

 156 

 
medical evidence as they may require) his state of health improves, or deteriorates the Member’s entitlement thereafter shall be of such pension (if
any) as the Trustees, with the consent of the Principal Employer, decide to be appropriate in the circumstances but so that with effect from the Member’s Normal Retirement Age his pension shall be not less than it would have been under Rule 23
if on the date of his retirement he had become an early leaver with a preserved pension payable under that Rule but reduced to such extent as the Trustees decide to be appropriate to take account of any part of the Serious Ill-health early
retirement pension which the Member commutes for a lump sum. 
 12.7 MEDICAL EVIDENCE AFTER COMMENCEMENT OF PENSION 
 A Member shall not be entitled to the continued payment of a Serious Ill-health pension unless after it comes into payment he co-operates in providing all such evidence,
including undergoing any medical examination(s) which the Trustees may from time to time require. 
 12.8 TRANSFERRED RACAL RBS MEMBERS 
 A Member who becomes entitled to an ill-health early retirement pension in accordance with sub-Rule 12.1 and who is a Transferred Racal RBS Member shall also be entitled
to a cash sum calculated by using the following formula:- 
 Final Pensionable Earnings x Racal RBS Service 
 480 
 13 LATE RETIREMENT 
 13.1 COMMENCEMENT OF LATE RETIREMENT PENSION 
 If with the consent of his
Employer a Member continues in Service after his Normal Retirement Age, the commencement of his pension shall be postponed until he retires from Service except in the following circumstances. 
 (1) If he is a Pre-87 Limits Member or an 87 Limits Member for the purposes of the Revenue Limits Rules, he may with the prior written consent of the Principal Employer
commence to draw his pension with effect from any day after he attains Normal Retirement Age. 
 (2) If he is an 89 Limits Member for the purposes of the
Revenue Limits Rules, he may not commence to draw his pension from the Scheme until his Service terminates except that his pension from the Scheme must come into payment at the latest when he attains age 75. 
  

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 13.2 INITIAL ANNUAL AMOUNT OF LATE RETIREMENT PENSION 
 Where the commencement of a Member’s pension has been postponed in accordance with sub-Rule 13.1 until after he attains Normal Retirement Age, the initial annual amount of his pension shall be equal to the normal
retirement pension which would have been payable to the Member under Rule 8 if the Member had retired on attaining his Normal Retirement Age increased by such late retirement factor as the Trustees having consulted the Actuary consider appropriate
having regard to the period of postponement. 
 13.3 TRANSFERRED RACAL RBS MEMBERS 
 A Member whose pension is paid in accordance with this Rule 13 and who is a Transferred Racal RBS Member shall also be entitled to a cash sum calculated by using the following formula:- 
 Final Pensionable Earnings x Racal RBS Service 
 480 
 and adjusting the amount thereby obtained in the same manner as his pension is adjusted in accordance with sub-Rule 13.2. 
  

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 SECTION 5: ALTERNATIVES TO MEMBER’S PENSION 
 14 COMMUTATION 
 14.1 MEMBER’S RIGHT TO COMMUTE 
 A Member who becomes entitled to a pension from the Scheme may elect to commute part of it for a lump sum subject to and in accordance with this Rule. 
 14.2 MEMBER’S ELECTION TO COMMUTE 
 A Member’s election under sub-Rule 14.1 shall be made by giving to the Trustees
such notice within such period as the Trustees may require. 
 14.3 MAXIMUM LUMP SUM 
 The maximum lump sum for which a Member may commute part of his pension pursuant to sub-Rule 14.1 shall be:- 
 (1) the
amount determined by multiplying by 2.25 the initial annual amount of the Member’s pension from the Scheme: or 
 (2) such greater amount as the
Trustees may agree and which will not exceed Revenue Limits. 
 14.4 MEMBER CONTINUING IN SERVICE AFTER NORMAL RETIREMENT AGE 
 A Member who continues in Service after his Normal Retirement Age may not receive a lump sum by way of commutation pursuant to this Rule until he commences to receive his
pension from the Scheme unless he is a Pre-87 Limits Member, or an 87 Limits Member for the purpose of the Revenue Limits Rules. If the Member is a Pre-87 Limits Member or on 87 Limits Member he may with the prior written consent of the Principal
Employer make an election pursuant to sub-Rule 14.1 at any time from his Normal Retirement Age to the date when his late retirement pension commences to be paid. 
 14.5 BENEFITS FROM MEMBER’S VOLUNTARY CONTRIBUTIONS 
 If before April 1987 a Member had entered into arrangements for the payment of voluntary
contributions under another retirement benefits scheme established by, or to which contributions were paid:- 
 (1) by, his Employer; or 
 (2) by an employer in respect of which his Employer is a relevant employer (within the meaning of Regulation 2 of the Occupational Pension Schemes (Transitional
Provisions) Regulations 1988 (SI 1988 No. 1436)); 
  

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 any pension secured by his voluntary contributions to the Scheme may be commuted pursuant to sub-Rule 14.1. Otherwise,
such pension may not be so commuted although it may be taken into account in the calculation of the lump sum. 
 14.6 EXCEPTIONAL CIRCUMSTANCES OF SERIOUS
ILL-HEALTH 
 If a Member is in exceptional circumstances of serious ill-health such that the Trustees are advised by a medical practitioner that the
Member’s expectation of life is very short (in the sense of being measured in months rather than years) and the Trustees determine that in the circumstances a pension is not a reasonable provision for the Member, the Trustees shall have power
to commute the whole of the Member’s pension for a lump sum. 
 14.7 TRIVIAL PENSIONS 
 Notwithstanding sub-Rule 14.3, if a Member’s benefit has become payable or the Scheme is being wound up and that benefit does not exceed the Triviality Limit:- 
 (1) the Member may make an election pursuant to sub-Rule 14.1 in respect of the whole of it; or 
 (2) the Trustees shall have the power to commute the whole of it for a lump sum if they determine that it would be conducive to the efficient administration of the Scheme to do so. 
 14.8 COMMUTATION FACTORS 
 In determining the amount by which the
Member’s pension is to be reduced in any case of partial commutation the Trustees shall use such commutation factors as, having taken advice from the Actuary, they may from time to time agree with the Principal Employer and adopt for the
purposes of this Rule. 
 The amount of the lump sum to be paid in full commutation of (a) the benefits of a Member who is in exceptional circumstances
of serious ill-health, or (b) trivial benefits, shall be calculated on a basis agreed by the Trustees and the Principal Employer having been certified as reasonable by the Actuary. 
 14.9 GMP REQUIREMENTS 
 If a Member was in Contracted-out Employment before 6 April 1997, then insofar as his Scheme
pension represents any Guaranteed Minimum Pension it may only be commuted in accordance with the GMP Rules. 
  

 160 

 15 SURRENDER OPTION 
 15.1
TRUSTEES’ DISCRETION TO PERMIT SURRENDER 
 With the agreement of the Trustees a Member may elect to surrender part of his pension in return for the
provision by the Scheme of a pension or pensions for the Member’s spouse and/or such one or more of his Dependents approved by the Trustees as he may nominate payable from the date of the Member’s death if, but only if, the Member dies
after he commences to receive a pension from the Scheme. Any pension payable as a result of such an election is additional to any pension payable to the spouse or any Dependent Child of the Member pursuant to the Rules concerning benefits payable on
the Member’s death, and shall be payable for such period as the Member may agree with the Trustees. 
 15.2 MEMBER’S ELECTION TO SURRENDER

 A Member’s election under sub-Rule 15.1 shall be made by giving to the Trustees such notice within such period (and with such evidence of good health)
as the Trustees may require and must in any event be made before the Member’s own pension commences. The person or persons nominated by the Member must be the Member’s spouse or a Dependent or Dependents at the date on which the notice is
given. The Trustees may in the absence of such evidence of good health, refuse to accept a Member’s election. 
 15.3 REVENUE AND CONTRACTING-OUT LIMITS
ON SURRENDER 
 The surrender of a Member’s pension under this Rule is subject to the following restrictions:- 
 (1) the amount or aggregate amount of any pensions provided for a Member’s spouse or Dependent or Dependents by virtue of an election made pursuant to sub-Rule 15.1
shall not exceed the reduced pension payable to the Member following the surrender; and 
 (2) if the Member is a Contracted-out Member the reduction in the
Member’s pension attributable to Contracted-out Employment before 6 April 1997 resulting from an election made pursuant to sub-Rule 15.1 must not be such as to reduce the Member’s pension below his Guaranteed Minimum Pension.

 15.4 SURRENDER FACTORS 
 In determining the rate at which a
Member’s pension may be surrendered pursuant to this Rule in return for the provision by the Scheme of a pension or pensions for the Member’s spouse and/or one or more of the Member’s Dependents, the Trustees shall use such surrender
factors as having taken advice from the Actuary, they shall think fit and the Principal Employer shall approve. 
  

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 15.5 EFFECT OF DEATH OF SPOUSE OR NOMINATED DEPENDENT 
 If the Spouse or any Dependent of a Member who is entitled to a pension from the Scheme as a result of an election made by the Member pursuant to sub-Rule 15 dies before the Member but on or after the date when the
Member’s own pension has commenced to be paid, the Member’s election made pursuant to this Rule shall remain in force and he shall remain entitled only to the part of his pension which he has not surrendered. 
 If the spouse or any Dependent of a Member who is entitled to a pension from the Scheme as a result of an election made by the Member pursuant to sub-Rule 15 dies before
the Member dies and before the date when the Member’s pension commences to be paid, the Member’s election in respect of such spouse or such Dependent shall be canceled automatically with effect from the spouse’s Dependent’s death
and the Member’s entitlement to pension from the Scheme shall be the same as it would have been if in respect of such spouse or Dependant if that election had not been made. 
 15.6 REVOCATION OF MEMBER’S ELECTION 
 An election made by a Member pursuant to sub-Rule 15.1 may be revoked:-

 (1) by the Member only with the Trustees’ consent and only prior to the earlier of his Normal Retirement Age and the commencement of his pension from
the Scheme; and 
 (2) by the Trustees if the Member retires from Service prior to his Normal Retirement Age. 
 In either such case the Member’s entitlement to pension from the Scheme shall be the same as it would have been if that election had not been made. 
 15.7 FURTHER ELECTION FOLLOWING CANCELLATION OR REVOCATION 
 Following the
cancellation or revocation of a Member’s election under (as the case may be) sub-Rule 15.5 or 15.6 above the Member may, if he so wishes but subject always to sub-Rule 15.2 and the agreement of the Trustees, make a further election in
accordance with sub-Rule 15.1 
  

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 SECTION 6: BENEFITS ON MEMBER’S DEATH 
 16 BENEFITS ON MEMBER’S DEATH: GENERAL 
 16.1 CATEGORIES OF BENEFIT PAYABLE 
 If a Member dies, benefits will be provided from the Executive Manager and Senior Manager Section in one or more of the following categories:- 
 (1) a lump sum; 
 (2) a spouse’s pension; 
 (3) a Financial Dependent’s pension; and 
 (4) children’s
pensions. 
 The particular benefits payable on the Member’s death depend on whether the Member dies in Pensionable Service (Rule 17), in Service on or
after Normal Retirement Age (Rule 18) or after the commencement of his own pension (Rule 19). 
 If a Member dies after his Pensionable Service has
terminated but before the commencement of his own pension, the benefits payable on his death are determined in accordance with Section 7 of these Rules. 
 16.2 PROVISIONS APPLICABLE TO PENSIONS ON MEMBER’S DEATH 
  

	16.2.1	COMMENCEMENT 

 A spouse’s or Dependent Child’s
pension shall commence on the day which next follows the date of the Member’s death. 
  

	16.2.2	TERMINATION 

  

	 	(a)	Spouse’s pension. A spouse’s pension shall terminate with the last installment paid before the spouse dies 

  

	 	(b)	Financial Dependent’s pension. A Financial Dependent’s pension shall terminate in accordance with sub-Rule 17.3, 18.3 or 19.4 (as the case may be).

  

	 	(c)	Dependent Child’s pension. A Dependent Child’s pension shall terminate with the last installment paid before the earliest of the following dates:-

  

	 	(1)	if the Dependent Child does not continue in full-time educational or vocational training after attaining age 18, when the Dependent Child attains age 18; 

 

 163 

	 	(2)	if the Dependent Child does continue in full-time educational or vocational training after attaining age 18, when the Dependent Child ceases to be in full-time educational or
vocational training or attains age 21 if earlier; or 

  

	 	(3)	the date of the Dependent Child’s death; 

 except
that in the case of a child who is a Dependent Child as a result of being wholly or partly financially dependent on the Member by reason of physical or mental incapacity, the Dependent Child’s pension shall terminate at such time as the
Trustees shall decide. 
  

	16.2.3	PENSION INCREASES 

 Pension payable to Member’s
spouses, Financial Dependants and Dependent Children under these Rules shall be increased in accordance with Rule 28. 
  

	16.2.4	COMMUTATION 

 A pension payable to a Member’s spouse,
Financial Dependant or Dependent Child may only be commuted if the pension is Trivial. Such a pension may be commuted when it becomes payable or when the Member’s own pension is commuted on grounds of triviality. 
  

	16.2.5	GMP REQUIREMENTS 

 To the extent that any part of a pension
payable to the Member’s spouse is a Guaranteed Minimum Pension:- 
  

	 	(1)	It is subject to the overriding guarantee set out in the GMP Rules: and 

  

	 	(2)	it may only be commuted in accordance with the GMP Rules. 

 17 DEATH IN A
PENSIONABLE SERVICE 
 17.1 LUMP SUM BENEFIT 
 If a Member dies in
a Pensionable Service before his Normal Retirement Age, there shall be payable in accordance with Clause 22 in Schedule 2 to this Deed a lump sum equal to three times the Member’s Pensionable Earnings. 
 The amount payable under the previous paragraph of this sub-Rule upon the death of any Member shall not exceed the amount which the Trustees receive, as a result of the
Member’s death, under any policy by which the Member’s life is for the time being assured; but this paragraph of this sub-Rule shall not limit the amount which the Trustees are entitled to claim from the underwriter or underwriters of the
Policy in question. 
  

 164 

 In the case of a Member with Racal EM&SM Pensionable Service, there shall also be payable in accordance with Clause
22 in Schedule 2 to this Deed a lump sum equal to the Member’s contributions to the Racal EM&SM Scheme before 1 April 1986, without interest. 
 17.2 SPOUSE’S PENSION 
 If a Member:- 
 (1) dies
in Pensionable Service before Normal Retirement Age; and 
 (2) is survived by a spouse to whom the Member was married at the date of his death; 

the Member’s spouse shall be entitled to a pension from the Scheme of an initial annual amount equal to one half of the pension to which Member would have been
entitled under Rule 8 if he had remained in the Pensionable Service until his Normal Retirement Age (based on the Member’s Final Pensionable Earnings at the date of his death). 
 17.3 FINANCIAL DEPENDANT’S PENSION 
 If a Member:- 
 (1) dies in Pensionable Service before Normal Retirement Age:- 
 (2) is not survived by a spouse to whom the Member was
married at the date of his death; but 
 (3) is survived by a Financial Dependant; 
 the Trustees may if they think fit grant a pension under the Scheme to the Financial Dependant of such initial annual amount (not exceeding the amount which would have been payable under sub-Rule 17.2 if the Member
had been survived by a spouse) for such period and in all other respects on such terms and subject to such conditions as they may in their discretion think fit. 
 17.4 CHILDREN’S PENSIONS:- 
  

	17.4.1	NO PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDANT 

 If
a Member:- 
  

	 	(1)	dies in Pensionable Service before Normal Retirement Age; 

  

	 	(2)	is not survived by a spouse; 

  

	 	(3)	is not survived by a Financial Dependant to whom the Trustees decide to award a pension under sub-Rule 17.3; but 

  

 165 

	 	(4)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, more than one, those Dependent Children) a pension (or pensions) calculated as follows:- 
  

	 	(a)	if there is only one Dependent Child, a pension of an initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule 17.2 if the
Member had been survived by a spouse; or 

  

	 	(b)	if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule
17.2 if the Member had been survived by a spouse, and such pensions shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 

  

	17.4.2	PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDANT 

 if:-

  

	 	(1)	a pension is payable to a Member’s spouse under sub-Rule 17.2 or a Member’s Financial Dependant under sub-Rule 17.3; and 

  

	 	(2)	on the death of a Member’s spouse or that Financial Dependant there is any child living who:- 

  

	 	(i)	was a Dependent Child of the Member at the date of the Member’s death; and 

  

	 	(ii)	continues to be a Dependent Child at the date of the spouse’s of Financial Dependant’s death; 

 the spouse’s of Financial Dependant’s pension shall from then on be paid to that Dependent Child. If there is more than one such Dependent
Child, the spouse’s or Financial Dependant’s pension shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 
  

	17.4.3	ADDITIONAL PENSION 

 If a Member:- 
  

	 	(1)	dies in Pensionable Service before Normal Retirement Age; and 

  

	 	(2)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, if more than one, those Dependent Children) in addition to any pension or pensions payable under sub-Rules 17.4.1 or 17.4.2, a pension (or pensions) calculated as follows:- 
  

 166 

	 	(a)	if there is only one Dependent Child, a pension of an initial annual amount equal to 5 percent of the Member’s Pensionable Earnings; or 

  

	 	(b)	if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to 5 percent of the Member’s Pensionable Earnings in respect of each child (but
limited to a maximum of 15 percent) and which shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 

 18 DEATH IN SERVICE ON OR AFTER NORMAL RETIREMENT AGE 
 18.1 LUMP SUM BENEFIT 
 If a Member dies in Service or after his Normal Retirement Age, there shall be payable in accordance with Clause 22 in Schedule 2 to this Deed a lump sum equal to five times what would have been the initial annual
rate of the Member’s pension from the Scheme under Rule 13 if he had retired on the day before his death. 
 18.2 SPOUSE’S PENSION 
 If a Member:- 
 (1) dies in Service on or after Normal Retirement Age; and

 (2) is survived by a spouse to whom the Member was married at the date of his death; 
 the Member’s spouse shall be entitled to a pension from the Scheme of an initial annual amount calculated using the formula:- 
 1/2 x Member’s Pension 
 where “Member’s Pension” is what would have been the initial amount of
the Member’s pension from the Scheme under Rule 13 if he had retired on the day before his death and any exercise by the Member of his options under Rules 14 (commutation) or 15 (surrender) were disregarded. 
 18.3 FINANCIAL DEPENDANT’S PENSION 
 If a Member:- 
 (1) dies in Service on or after Normal Retirement Age:- 
 (2) is not
survived by a spouse to whom the Member was married at the date of his death; but 
 (3) is survived by a Financial Dependant; 
  

 167 

 the Trustees may if they think fit grant a pension under the Scheme to the Financial Dependant of such initial amount
(not exceeding the amount which would have been payable under sub-Rule 18.2 if the Member had been survived by a spouse) for such period and in all other respects on such terms and subject to such conditions as they may in their discretion think
fit. 
 18.4 CHILDREN’S PENSIONS 
  

	18.4.1	NO PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDANT 

 If
a Member:- 
  

	 	(1)	dies in Service on or after Normal Retirement Age; 

  

	 	(2)	is nor survived by a spouse 

  

	 	(3)	is not survived by a Financial Dependant to whom the Trustees decide to award a pension under sub-Rule 18.3; but 

  

	 	(4)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, if more than one, those Dependent Children) a pension (or pensions) calculated as follows:- 
  

	 	(a)	if there is only one Dependent Child, a pension of an initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule 18.2 if the
Member had been survived by a spouse; or 

  

	 	(b)	if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule
18.2 if the Member had been survived by a spouse, and such pensions shall be divided amongst the Dependent Children in such shares as the Trustees may see fit. 

  

	18.4.2	PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDANT 

 If:-

  

	 	(1)	a pension is payable to a Member’s spouse under sub-Rule 18.2 or a Member’s Financial Dependant under sub-Rule 18.3 and 

  

	 	(2)	on the death of the Member’s spouse or that Financial Dependant there is any child living who:- 

  

	 	(i)	was a Dependent Child of the Member at the date of the Member’s death; and 

  

 168 

	 	(ii)	continues to be a Dependent Child at the date of the spouse’s or Financial Dependant’s death; 

 the spouse’s or Financial Dependant’s pension shall from then on be paid to that Dependent Child. If there is more than one such Dependent
Child, the spouse’s or Financial Dependant’s pension shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 
 19 DEATH AFTER RETIREMENT 
 19.1 LUMP SUM BENEFIT: (a) 5 YEAR GUARANTEE 
 If a Member dies within the period of five years from and including the date when his pension from the Scheme commences to be payable, there shall be payable in accordance with Clause 22 in Schedule 2 to this Deed, a
lump sum equal to the difference between:- 
 (a) the aggregate amount of pension which the Member would have received during that five year period if he had
survived to the end of the period (calculated on the basis that the annual rate of pension payable at the date of his death would have continued to apply for the remainder of the period); and 
 (b) the amount of pension actually paid to him before his death. 
 19.2 LUMP
SUM BENEFIT: (b) CONTINUED LIFE COVER IN SPECIAL CASES 
 Where a Member retires with an immediate early retirement pension:- 
 (1) Under Rule 11 (redundancy early retirement) where the Member’s Pensionable Service commenced before 1 October 1991; or 
 (2) under Rule 12 (early retirement due to Serious Ill-health); 
 and the
Member dies on or after the commencement of his early retirement pension but before his Normal Retirement Age, then:- 
 (a) if his pension is a redundancy
early retirement pension, a lump sum equal to three times the Member’s Pensionable Earnings shall be payable to his personal representatives; or 
 (b)
if his pension is a Serious Ill-health early retirement pension, a lump sum equal to three times the Member’s Pensionable Earnings (or, if he is in receipt of a Serious Ill-Health pension which is less than the maximum permitted under sub-Rule
12, a lump sum of such amount as the Trustees may decide) shall be payable in accordance with Clause 22 in Schedule 2 to this Deed. 
  

 169 

 19.3 SPOUSE’S PENSION 
 If a Member:- 
 (1) dies on or after the date when his pension from the Scheme commences to be payable; and 
 (2) is survived by a spouse to whom the Member was married at the date of his death; 
 the Member’s spouse shall be entitled to a pension from the Scheme of an initial annual amount calculated using the formula:- 
 1/2 x Member’s Pension 
 where Member’s Pension” means the amount of the Member’s pension from
the Scheme at the date of his death or, if the Member had exercised either of his options under Rules 14 (commutation) or 15 (surrender), what would have been the amount of the Member’s pension from the Scheme at the date of his death if he had
not exercised those options. 
 19.4 FINANCIAL DEPENDANT’S PENSION 
 If a Member:- 
 (1) dies on or after the date when his pension from the Scheme commences to be payable; and 
 (2) is not survived by a spouse to whom the Member was married at the date of his death; but 
 (3) is survived by a Financial Dependant; 
 the Trustees may if they think fit grant a pension under the Scheme to the
Financial Dependant of such initial amount (not exceeding the amount which would have been payable under sub-Rule 19.3 if the Member had been survived by a spouse) for such period and in all other respects on such terms and subject to such
conditions as they may in their discretion think fit. 
 19.5 CHILDREN’S PENSIONS 
  

	19.5.1	No prior pension paid to spouse or Financial Dependant 

 If
a Member:- 
  

	 	(1)	dies on or after the date when his pension from the Scheme commences to be payable; 

  

	 	(2)	is not survived by a spouse; 

  

 170 

	 	(3)	is not survived by a Financial Dependant to whom the Trustees decide to award a pension under sub-Rule 19.4; but 

  

	 	(4)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, if more than one, those Dependent Children) a pension (or pensions) calculated as follows:- 
  

	 	(a)	if there is only one Dependent Child, a pension of an initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule 19.3 if the
Member had been survived by a spouse; or 

  

	 	(b)	if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule
19.3 if the Member had been survived by a spouse, and such pensions shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 

  

	19.5.2	PRIOR PENSION PAID TO SPOUSE OF FINANCIAL DEPENDANT 

 If:-

  

	 	(1)	a pension is payable to a Member’s spouse under sub-Rule 19.3 or a Member’s Financial Dependent under sub-Rule 19.4; and 

  

	 	(2)	on the death of the Member’s spouse or that Financial Dependant there is any child living who:- 

  

	 	(i)	was a Dependent Child of the Member at the date of the Member’s death; and 

  

	 	(ii)	continues to be a Dependent Child at the date of the spouse’s or Financial dependant’s death; 

 the spouse’s or Financial Dependant’s pension shall from then on be paid to that Dependent Child. If there is more than one such Dependent
Child, the spouse’s or Financial Dependant’s pension shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 
  

 171 

	 	(3)	is not survived by a Financial Dependant to whom the Trustees decide to award a pension under sub-Rule 19.4; but 

  

	 	(4)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, if more than one, those Dependent Children) a pension (or pensions) calculated as follows:- 
  

	 	(a)	if there is only one Dependent Child, a pension of an initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule 19.3 if the
Member had been survived by a spouse; or 

  

	 	(b)	if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule
19.3 if the Member had been survived by a spouse, and such pensions shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 

  

	19.5.2	Prior pension paid to spouse or Financial Dependant 

 If.-

  

	 	(1)	a pension is payable to a Member’s spouse under sub-Rule 19-3 or a Member’s Financial Dependant under sub-Rule 19.4; and 

  

	 	(2)	on the death of the Member’s spouse or that Financial Dependant there is any child living who:- 

  

	 	(i)	was a Dependent Child of the Member at the date of the Member’s death; and 

  

	 	(ii)	continues to be a Dependent Child at the. date of the spouse’s or Financial Dependant’s death; 

 the spouse’s or Financial Dependant’s pension shall from then on be paid to that Dependent Child. If there is more than one such Dependent
Child, the spouse’s or Financial Dependant’s pension shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 
 SECTION 7: EARLY LEAVERS 
 20 EARLY LEAVERS: GENERAL 
 20.1 Application of this Section to early leavers 
 This Section applies where, before a Member attains Normal Retirement Age, his Pensionable
Service is terminated by him leaving Service or withdrawing from membership of the Executive Manager and Senior Manager Section whilst remaining in Service, and he does not become entitled to an early retirement pension under Rules 9 to 12.

 20.2 Early leavers not qualifying for preserved benefits 
 if:- 
 (a) the Member has completed less than two years’ Qualifying Service when his Pensionable Service terminates; and 
 (b) no transfer payment has been made to the Scheme in respect of his rights under a personal pension scheme; 
 he is entitled to a refund of contributions in accordance with Rule 21. 
 20.3 Early leavers who qualify for preserved benefits 
 if.- 
 (a) the Member has completed at least two years’ Qualifying Service when his Pensionable Service terminates; or 
 (b) a transfer payment has
been made to the Scheme in respect of his rights under a personal pension scheme; 
 he is entitled to preserved benefits in accordance with Rule 22.

  

 172 

 21 EARLY LEAVER NOT ENTITLED TO PRESERVED BENEFITS 
 21.1 Refund of contributions 
 Where, as provided in sub-Rule 20.2, a Member is not entitled to preserve benefits under the
Scheme, there shall be payable to him, in substitution for all other benefits payable to or in respect of him under the Scheme, an amount equal to his Member’s Contributions less:- 
 (1) such amount as the Trustees are entitled to retain out of the refund by virtue of section 61 of the Pension Schemes Act as a result of electing to pay a contributions equivalent premium in respect of such Member
(being so much of the premium as is attributable to primary Class I contributions); and 
 (2) such tax as the Trustees may be required to deduct.

 21.2 Transfer option 
 A Member to whom sub-Rule 21.1 applies
may instead of taking a refund of his Member’s Contributions elect by giving prior written notice to the Trustees to have an amount equal to his Member’s Contributions paid to another occupational pension scheme or a personal pension
scheme pursuant to Clause 19 in Schedule 2. 
 22 EARLY LEAVER ENTITLED TO PRESERVED BENEFITS 
 22.1 Entitlement to preserved benefits 
 Where, as provided in sub-Rule 20.3, a Member is entitled to preserved benefits
under the Scheme, the Member is a Deferred Member and the benefits payable to and in respect of him from the Scheme upon the termination of his Pensionable Service shall be determined in accordance with this Rule and Rules 23 to 26. 
 22.2 Commutation and/or surrender of preserved pension 
 The preserved
pension payable to any Deferred Member may be:- 
 (1) commuted for a lump sum, subject to and in accordance with the provisions of Rule 14; and/or

 (2) surrendered in return for the provision by the Scheme of a pension or pensions for one or more of his Dependants, subject to and in accordance with
the provisions of Rule 15. 
 22.3 Other provisions applicable to preserved pensions 
 Any pension payable under this Rule:- 
 (1) shall be reduced in accordance with Rule 14 or 15 to the extent that it is
commuted or surrendered under either of those Rules, 
 (2) shall be payable in accordance with Rule 27; and 
 (3) shall, after it commences, be subject to increases in accordance with Rule 28. 
 22.4 Supplements to preserved pensions 
 Deferred Members’ preserved pensions under Rules 23 to 25 may be supplemented:- 
  

 173 

 (1) as a result of the Member having paid additional voluntary contributions in accordance with sub-Rule 3.4 or the
Former Provisions; 
 (2) as a result of a transfer payment or transfer payments having been received in respect of the Member under Clause 18 in Schedule 2
to this Deed or under the Former Provisions; or 
 (3) as a result of the exercise of the augmentation powers contained in Clause 21 in Schedule 2 to this
Deed. 
 The extent to which Rules 14 (commutation option), 15 (surrender option), 27 (payment of pensions) and 28 (pension increases) apply to any
supplement to the Member’s retirement pension referred to in this sub-Rule 22.4 depends on the terms agreed between the Member and the Trustees in the case of additional voluntary contributions and transfer payments and on the terms specified
by the Trustees in the case of augmentations. 
 22.5 CONTRACTING-OUT AND INLAND REVENUE REQUIREMENTS 
 The Trustees must ensure:- 
 (1) that if the Member was in Contracted-out
Employment in relation to the Scheme before 6 April 1997, the Member’s retirement pension attributable to Pensionable Service prior to 6 April 1997 complies with the GMP Rules; and 
 (2) that the Member’s retirement benefits do not exceed the limits applicable to them under the Revenue Limits Rules. 
 22.6 ALTERNATIVE TO PRESERVED BENEFITS 
 If a Deferred Member:- 

(1) has acquired a right under section 94 of the Pension Schemes Act to the cash equivalent of the benefits which have accrued to or in respect of him under the
Scheme; and 
 (2) he has not lost that right in accordance with section 100 of the Pension Schemes Act; 
 he may require the Trustees to use the cash equivalent in one or more of the ways specified in section 95 of the Pension Schemes Act. In that case the provisions of Part
IV of Chapter IV of the Pension Schemes Act shall apply generally, including the discharge of the Trustees pursuant to section 99 of the Pension Schemes Act. 
 Except to the extent that a Deferred Member is entitled to exercise, and exercises, the option conferred by section 95 of the Pension Schemes Act, if he wishes the benefits accrued to and in respect of him under the Scheme to be bought out
or transferred to another retirement benefits scheme or personal pension scheme, he 

  

 174 

 
may request the Trustees to exercise their powers under Clauses 19 or 20 in Schedule 2 to this Deed. 
 23 COMMENCEMENT OF PRESERVED BENEFITS AT NRA 
 23.1 PAYMENT 
 At his Normal Retirement Age a Deferred Member shall be entitled to a pension from the Scheme payable for the remainder of his lifetime. 
 23.2 INITIAL ANNUAL AMOUNT 
 The initial annual amount of a Deferred
Member’s pension at Normal Retirement Age under sub-Rule 23.1 shall be determined as follows:- 
 (1) by first calculating his preserved pension prior
to revaluation by using the following formula:- 
 Final Pensionable Earnings x VODAFONE MANAGERS PENSIONABLE SERVICE: 
 50 
 (2) by revaluing the part (if any) of the amount
determined pursuant to paragraph (1) of this sub-Rule which exceeds the Member’s Guaranteed Minimum Pension in accordance with the GMP Rules; and 
 (3) by revaluing the part of the amount determined pursuant to paragraph (1) of this sub-Rule which exceeds the Member’s Guaranteed Minimum Pension in accordance with the provisions of Chapter II of Part IV of the Pension Schemes
Act if the benefits payable to and in respect of the Member under the Scheme are required to be revalued under that Chapter. 
 23.3 TRANSFERRED PENSIONABLE
SERVICE 
 A Deferred Member who becomes entitled to a pension at Normal Retirement Age in accordance with sub-Rule 23.1 and who has Transferred Pensionable
Service shall also be entitled to have taken into account under paragraph (1) of sub-Rule 23.2 the amount calculated in accordance with sub-Rule 8.3 (using the Member’s Final Pensionable Earnings at and Pensionable Service to his Scheme
Exit Date). Such amount shall also be subject to revaluation in accordance with paragraphs (2) and (3) of sub-Rule 23.2. 
 23.4 TRANSFERRED RACAL
RBS MEMBERS 
 A Deferred Member who becomes entitled to a pension at Normal Retirement Age in accordance with sub-Rule 23.1 and who is a Transferred Racal
RBS Member shall also be entitled to a cash sum calculated by using the following formula:- 
  

 175 

 Final Pensionable Earnings x Racal RBS Service 
 480 
 24 COMMENCEMENT OF PRESERVED BENEFITS BEFORE NRA

 24.1 CONDITIONS FOR EARLY COMMENCEMENT 
 A Deferred Member may
elect that his pension shall commence from a date before his Normal Retirement Age if the following conditions are satisfied:- 
 (1) (a) the Deferred
Member has attained the age of 50 or 
 (b) in the Trustees’ opinion after taking medical advice he has become incapable of following his normal
employment by reason of Serious Ill-health; and 
 (2) the Trustees agree to the commencement of his pension from that date (except that in the case of a
Pre-88 Member, such consent shall not be required to the commencement of the pension on or after the Member’s 60th birthday). 
 24.2 INITIAL ANNUAL
AMOUNT 
 Subject to sub-Rules 24.3 and 24.4 the initial amount of a Deferred Member’s pension under sub-Rule 24.1 shall be determined as follows:-

 (1) by calculating the amount referred to in paragraph (1) of sub-Rule 23.2 (plus, in the case of a Member with Transferred Pensionable Service, any
additional pension under sub-Rule 23.3) and revaluing such amount in the manner provided for in paragraphs (2) and (3) of sub-Rule 23.2 to the date when the pension is to commence; and 
 (2) by applying an early retirement reduction factor to the amount determined pursuant to paragraph (1) of this sub-Rule in respect of the period from the date when
the pension becomes payable until the Member’s Normal Retirement Age in order to take account of the fact that the pension is likely to be payable for longer than if it were to commence at the Member’s Normal Retirement Age. The amount of
the reduction factor shall be determined by the Trustees and the Principal Employer after consulting the Actuary. 
 24.3 ADJUSTMENT FOR MALE PRE-88 MEMBERS

 If a Member is a male Pre-88 Member the reduction under paragraph (2) of sub-Rule 24.2 shall be determined as follows:- 
 (a) the part of the pension attributable to Vodafone Managers Pensionable Service or Transferred Pensionable Service before 17 May 1990 shall be reduced in respect
of the period from the date it becomes payable until the Member’s Normal Retirement Age; 
  

 176 

 (b) the part of the pension attributable to Vodafone Managers Pensionable Service or Transferred Pensionable Service on
or after 17 May 1990 but before 1 September 1993 shall be reduced in respect of the period (if any) from the date it becomes payable until the Member’s 60th birthday; and 
 (c) the part of the pension attributable to Vodafone Managers Pensionable Service or Transferred Pensionable Service on or after 1 September 1993 shall be reduced in respect of the period from the date it becomes
payable until the Member’s Normal Retirement Age. 
 24.4 ADJUSTMENT FOR FEMALE PRE-88 MEMBER 
 If the Member is a female Pre-88 Member the reduction under paragraph (2) of sub-Rule 24.2 shall be as follows:- 
 (a) the part of the pension attributable to Vodafone Managers Pensionable Service or Transferred Pensionable Service before 1 September 1993 shall be reduced in respect
of the period (if any) from the date it becomes payable until the Member’s 60th birthday; and 
 (b) the part of the pension attributable to Vodafone
Managers Pensionable Service or Transferred Pensionable Service on or after 1 September 1993 shall be reduced in respect of the period from the date it becomes payable until the Member’s Normal Retirement Age. 
 24.5 TRANSFERRED RACAL RBS MEMBERS 
 A Deferred Member whose pension
commences before Normal Retirement Age in accordance with sub-Rule 24.1 and who is a Transferred Racal RBS Member shall also be entitled to a cash sum calculated in two stages:- 
 (1) first by using the following formula:- 
 Final Pensionable Earnings x Racal RBS Service

 480 
 (2) secondly, by applying an early
retirement reduction factor to the amount determined at the first stage of the calculation in respect from the date when the cash sum became payable until in the case of a male Member his Normal Retirement Age and in the case of a female Member her
60th birthday. The amount of the reduction factor shall be determined by the Trustees and the Principal Employer after consulting the Actuary. 
 24.6
PRESERVATION REQUIREMENTS 
 In accordance with Regulation 8(4) of the Preservation Regulations the Trustees must be reasonably satisfied that, when any
Member’s benefits become payable under this Rule before his Normal Pension Age, the total value of the Member’s benefits is at least equal in value to the benefits that have accrued to or in respect 

  

 177 

 
of him under the Rules (on the basis that the Rules are the “applicable rules” for the purpose of section 94(2) of the Pension Schemes Act).

 25 COMMENCEMENT OF PRESERVED BENEFITS AFTER NRA 
 25.1
CONDITIONS FOR LATE COMMENCEMENT: (a) 89 LIMITS MEMBERS 
 If a Deferred Member:- 
 (1) is an 89 Limits Member for the purposes of the Revenue Limits Rules; 
 (2) leaves Service before his Normal Retirement
Age; and 
 (3) continues in employment (other than Service) after his Normal Retirement Age; 
 he may, with the consent of the Trustees, elect that the commencement of his pension shall be postponed until a date which is after his Normal Retirement Age but not later than his 75th birthday. 
 25.2 CONDITIONS FOR LATE COMMENCEMENT: (b) OTHER MEMBERS 
 (1) is a
pre-87 Limits Member or an 87 Limits Member for the purposes of the Revenue Limits Rules; 
 (2) leaves Service before his Normal Retirement Age; and

 (3) continues in employment (other than Service) after his Normal Retirement Age; 
 he may with the consent of the Trustees, elect that the commencement of his pension shall be postponed until his employment terminates or his 70th birthday if earlier. 
 25.3 INITIAL ANNUAL AMOUNT 
 Where the commencement of a Deferred
Member’s pension has been postponed in accordance with sub-Rules 25.1 and 25.2, the initial annual amount of his pension shall be determined as follows:- 
 (1) by calculating his preserved pension at Normal Retirement Age in accordance with sub-Rule 23.2 (plus, in the case of a Member with Transferred Pensionable Service, any additional pension under sub-Rule 23.3); and 
 (2) by increasing the amount determined pursuant to paragraph (1) of this sub-Rule by such late retirement factor as the Trustees having consulted the Actuary
consider appropriate having regard to the period of postponement. 
  

 178 

 25.4 TRANSFERRED RACAL RBS MEMBERS 
 A Member whose pension is paid in accordance with this Rule 25 and who is a Transferred RBS Racal Member shall also be entitled to a cash sum calculated by using the following formula:- 
 Final Pensionable Earnings x Racal RBS Service 
 480 
 and adjusting the amount thereby obtained in the same manner as his pension is adjusted in accordance with sub-Rule 25.3(2). 
 25.5 PRESERVATION REQUIREMENTS 
 In accordance with Regulation 8(4) of the
Preservation Regulations the Trustees must be reasonably satisfied that, when any Member’s pension becomes payable under this Rule after his Normal Pension Age, the total value of the Member’s benefits is at least equal in value to the
benefits that have accrued to or in respect of him under the Rules (on the basis that the Rules are the “applicable rules” for the purpose of section 94(2) of the Pension Schemes Act). 
 26 BENEFITS ON DEATH OF EARLY LEAVER WITH PRESERVED BENEFITS 
 26.1 LUMP SUM
ON DEATH OF DEFERRED MEMBER WHILST BENEFITS PRESERVED 
 If a Deferred Member dies before his preserved pension commences to be paid, there shall be payable
from the Scheme to the Member’s estate a lump sum equal to the Member’s Contributions. 
 26.2 SPOUSE’S PENSION ON DEATH OF DEFERRED MEMBER
WHILST BENEFITS PRESERVED 
 If a Deferred Member:- 
 (1) dies
before his preserved pension commences to be paid; and 
 (2) is survived by a spouse to whom the Member was married at the date of his death; 
 the Member’s spouse shall be entitled to a pension from the Scheme of an initial annual amount, determined as follows:- 
 (1) by first calculating the amount found by using the formula:- 
 Final Pensionable Earnings x VODAFONE MANAGERS PENSIONABLE SERVICE: 
 160 
 (2) by then revaluing the part of the amount found under paragraph (1) of this sub-Rule which is attributable to the Member’s Pensionable Service on or after
6 April 1997 in accordance with section 84 of the Pension Schemes 
  

 179 

 Act as though it were a benefit of the kind mentioned in section 83(1)(a) of the Pension Schemes Act. 
 26.3 MEMBERS WITH TRANSFERRED PENSIONABLE SERVICE 
 In the case of the spouse
of a Member with Transferred Pensionable Service, the Member’s spouse to whom a pension is payable under sub-Rule 26.2 shall be entitled to additional pension of an initial annual amount determined as follows:- 
 (1) by first calculating the amount found by using the formula:- 
 Final Pensionable Earnings x Transferred Pensionable Service: 
 160 
 (2) by then revaluing the part of the amount found under paragraph (1) of this sub-Rule which is attributable to the Member’s Pensionable Service on or after
6 April 1997 in accordance with section 84 of the Pension Schemes Act as though it were a benefit of the kind mentioned in section 83(1)(a) of the Pension Schemes Act. 
 26.4 FINANCIAL DEPENDANT’S PENSION 
 If a Member:- 
 (1) dies before his preserved pension commences to be paid; 
 (2) is not survived by a spouse to whom the Member was married
at the date of his death; but 
 (3) is survived by a Financial Dependant; 
 the Trustees may if they think fit grant a pension under the Scheme to the Financial Dependant of such initial annual amount (not exceeding the amount which would have been payable under sub-Rule 26.2 (and sub-Rule
26.3 if applicable) if the Member had been survived by a spouse) for such period and in all other respects on such terms and subject to such conditions as they may in their discretion think fit. 
 26.5 BENEFITS ON DEATH OF DEFERRED MEMBER AFTER PENSION COMMENCES 
 If a
Deferred Member dies on or after the date when his pension from the Scheme commences to be payable, benefits shall be payable in respect of him in accordance with Rule 19. 
 26.6 OTHER PROVISIONS APPLICABLE TO SURVIVORS’ PENSIONS 
 The provisions of Rule 16 shall apply to the pensions payable
to the spouses and Financial Dependants of deceased Deferred Members under this Rule. 
  

 180 

 SECTION 8: PENSIONS - PAYMENT ARRANGEMENTS AND INCREASES 
 27 PAYMENT OF PENSIONS 
 27.1 PAYMENT ARRANGEMENTS 
 Subject to sub-Rule 27.2, all pensions payable from the Scheme shall be pad in advance by monthly instalments on such working day in the month as the Trustees may from time to time decide except that the first
instalment of any pension may be paid in arrears as soon as is reasonably practicable after the pension commences. 
 27.2 POWER TO CHANGE PAYMENT
ARRANGEMENT 
 The Trustees shall have power with the Principal Employer’s consent to alter the date on which and/or intervals at which pensions are paid
from the Scheme (including power to make alterations which result in pensions being payable otherwise than in advance) and when doing so to make such arrangements for apportionment in respect of the commencement and termination of pensions and such
transitional arrangements in respect of any such alternation in each case as they may consider necessary of desirable. 
 27.3 OVERPAYMENT OF PENSIONS

 If any instalment of any pension is paid after the person entitled to it has died, such instalment (or all of them if more than one) shall be repayable to
the Trustees by the recipient or his personal representatives (as the case may be). 
 28 PENSION INCREASES 
 28.1 GUARANTEED MINIMUM PENSIONS 
 Insofar as any pension payable from the
Scheme and attributable to Pensionable Service before 6 April 1997 is a Guaranteed Minimum Pension, it shall be increased to the extent required by the GMP Rules. 
 28.2 OTHER PENSIONS 
 Insofar as any pension payable from the Scheme is attributable to Pensionable Service before
6 April 1997 and is not a Guaranteed Minimum Pension, or is attributable to Pensionable Service on or after 6 April 1997, its annual rate shall be increased with effect from 1 April each year by the lesser of:- 
 (1) the percentage increase in the RPI during the year ended on the preceding 30 September: and 
 (2) five per cent; 
  

 181 

 but so that its annual increase, in respect of Members who were in Pesnionable Service on 1 September 1993, shall be
not less than 4 per cent. 
 28.3 FIRST ANNUAL INCREASE 
 On
the 1 April which first follows the date on which any pension commences to be paid, the increase under sub-Rule 28.2 shall be 1/12th of the percentage increase provided for in that sub-Rule multiplied by the number of complete months in the
period from the date on which the pension commences to the following 31 March. 
  

 182 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 SCHEDULE 5: DIRECTORS SECTION RULES 

  

							
	 SECTION 1: INTRODUCTION: ELIGIBILITY AND MEMBERSHIP
	  	189
			
	 1
	    	 INTRODUCTION
	  	189
		    	1.1	    	Interpretation	  	189
		    	1.2	    	Defined Terms	  	189
		    	1.3	    	Application	  	190
		    	1.4	    	Transfer to another Section	  	190
			
	 2
	    	 ELIGIBILITY AND MEMBERSHIP
	  	190
		    	2.1	    	Eligibility conditions	  	190
		    	2.2	    	Evidence as to fulfillment of conditions	  	190
		    	2.3	    	Admission of new Employees to membership when first eligible	  	191
		    	2.4	    	Medical and other evidence	  	191
		    	2.5	    	Discretionary admission to membership	  	191
		    	2.6	    	Effect of admission to membership	  	191
		    	2.7	    	Opting out	  	191
		    	2.8	    	Re-joining the Scheme after opting out	  	191
		    	2.9	    	Effect of providing incomplete or inaccurate information	  	192
		
	 SECTION 2: MEMBERS’ CONTRIBUTIONS
	  	193
			
	 3
	    	 MEMBERS CONTRIBUTIONS
	  	193
		    	3.1	    	Compulsory contributions	  	193
		    	3.2	    	Voluntary contributions	  	193
		    	3.3	    	Notice to be given by Members concerning voluntary contributions	  	193
		    	3.4	    	Benefits in respect of voluntary contributions	  	193
		    	3.5	    	Repayment of surplus voluntary contributions	  	194
		    	3.6	    	Deduction of contributions from salary or pay	  	194
		    	3.7	    	Termination of Member’s contributions	  	194
		    	3.8	    	Member’s contributions during temporary absence	  	194
		
	 SECTION 3: PENSIONABLE SERVICE AND TEMPORARY ABSENCE
	  	195
			
	 4
	    	 CALCULATION OF VODAFONE DIRECTORS PENSIONABLE SERVICE
	  	195
		    	4.1	    	Purpose of this Rule	  	195
		    	4.2	    	Vodafone Directors Pensionable Service	  	195
		    	4.3	    	More than one period of Vodafone Directors Pensionable Service	  	195
		    	4.4	    	Chance of Scheme Employer	  	196
			
	 5
	    	 MEMBER IN PART-TIME EMPLOYMENT
	  	196
		    	5.1	    	Purpose of this Rule	  	196
		    	5.2	    	Interpretation	  	196
		    	5.3	    	Members to whom this Rule applies	  	196

  

 183 

							
		  	5.4	    	Conversion into full-time equivalent	  	197
		  	5.5	    	Treatment of notional Pensionable Service	  	197
			
	 6
	  	 CONSEQUENCES OF TEMPORARY ABSENCE
	  	197
		  	6.1	    	Purpose of this Rule	  	197
		  	6.2	    	Maternity Absence: (a) paid	  	198
		  	6.3	    	Maternity Absence: (b) unpaid	  	198
		  	6.4	    	Other causes of temporary absence	  	199
		
	 SECTION 4: MEMBER’S RETIREMENT BENEFITS
	  	201
			
	 7
	  	 MEMBER’S RETIREMENT BENEFITS: GENERAL
	  	201
		  	7.1	    	Member’s retirement benefits	  	201
		  	7.2	    	Other provisions applicable to retirement pensions	  	201
		  	7.3	    	Supplements to retirement pensions	  	201
		  	7.4	    	Contracting-out and Inland Revenue requirements	  	202
		  	7.5	    	Revenue Limits: alternative calculations disregarding retained benefits	  	202
			
	 8
	  	 NORMAL RETIREMENT
	  	202
		  	8.1	    	Member’s entitlement to pension from Normal Retirement Age	  	202
		  	8.2	    	Initial annual amount of pension: (a) Pre September 93 Directors	  	202
		  	8.3	    	Initial annual amount of pension: (b) Post September 93 Directors	  	203
			
	 9
	  	 EARLY RETIREMENT: (A) GENERALLY
	  	204
		  	9.1	    	Circumstances in which Member’s pension may commence early	  	204
		  	9.2	    	Preservation requirements	  	204
		  	9.3	    	GMP requirements	  	204
			
	 10
	  	 EARLY RETIREMENT: (B) VOLUNTARY
	  	204
		  	10.1	    	When payable	  	204
		  	10.2	    	Initial annual amount: (a) Pre September 93 Directors	  	205
		  	10.3	    	Initial annual amount: (b) Post September 93 Directors	  	206
			
	 11
	  	 EARLY RETIREMENT: (C) REDUNDANCY
	  	207
		  	11.1	    	When payable	  	207
		  	11.2	    	Initial annual amount	  	207
		  	11.3	    	Reliance by Trustees on statements from Employers	  	207
			
	 12
	  	 EARLY RETIREMENT: (D) SERIOUS ILL-HEALTH
	  	207
		  	12.1	    	When payable	  	207
		  	12.2	    	Procedure	  	207
		  	12.3	    	Medical evidence before commencement of pension	  	208
		  	12.4	    	Commencement	  	208
		  	12.5	    	Initial annual amount	  	208
		  	12.6	    	Subsequent adjustment	  	208
		  	12.7	    	Medical evidence after commencement of pension	  	209
			
	13	  	 LATE RETIREMENT
	  	209
		  	13.1	    	Commencement of late retirement pension	  	209
		  	13.2	    	Initial annual amount of late retirement pension	  	209

  

 184 

									
	 SECTION 5: ALTERNATIVES TO MEMBER’S PENSION
	  	210
				
	 14
	  	 COMMUTATION
	 		  	210
		  	14.1	    	Member’s right to commute	  	210
		  	14.2	    	Member’s election to commute	  	210
		  	14.3	    	Maximum lump sum	  	210
		  	14.4	    	Member continuing in Service after Normal Retirement Age	  	210
		  	14.5	    	Benefits from Member’s voluntary contributions	  	210
		  	14.6	    	Exceptional circumstances of serious ill-health	  	211
		  	14.7	    	Trivial pensions	  	211
		  	14.8	    	Commutation factors	  	211
		  	14.9	    	GMP requirements	  	211
				
	 15
	  	 SURRENDER OPTION
	 		  	212
		  	15.1	    	Trustees’ discretion to permit surrender	  	212
		  	15.2	    	Member’s elections to surrender	  	212
		  	15.3	    	Revenue and contracting-out limits on surrender	  	212
		  	15.4	    	Surrender factors	  	212
		  	15.5	    	Effect of death of spouse or nominated Dependant	  	213
		  	15.6	    	Revocation of Member’s election	  	213
		  	15.7	    	Further election following cancellation or revocation	  	213
		
	SECTION 6: BENEFITS ON MEMBER’S DEATH	  	214
			
	16	  	 BENEFITS ON MEMBER’S DEATH: GENERAL
	  	214
		  	16.1	    	Categories of benefit payable	  	214
		  	16.2	    	Provisions applicable to pensions on Member’s death	  	214
			
	17	  	 DEATH IN PENSIONABLE SERVICE
	  	215
		  	17.1	    	Lump sum benefit	  	215
		  	17.2	    	Spouse’s pension	  	216
		  	17.3	    	Financial Dependant’s pension	  	216
		  	17.4	    	Children’s pension	  	216
			
	 18
	  	 DEATH IN SERVICE ON OR AFTER NORMAL RETIREMENT AGE
	  	218
		  	18.1	    	Lump sum benefit	  	218
		  	18.2	    	Spouse’s pension	  	218
		  	18.3	    	Financial Dependant’s pension	  	218
		  	18.4	    	Children’s pension	  	219
			
	 19
	  	 DEATH AFTER RETIREMENT
	  	220
		  	19.1	    	Lump sum benefit:	 	(a) 5 year guarantee	  	220
		  	19.2	    	Lump sum benefit:	 	(b) continued life cover in special cases	  	220
		  	19.3	    	Spouse’s pension	  	220
		  	19.4	    	Financial Dependant’s pension	  	221
		  	19.5	    	Children’s pensions	  	221

  

 185 

							
	 SECTIONS 7: EARLY LEAVERS
	  	223
			
	 20
	  	EARLY LEAVERS: GENERAL	  	223
		  	20.1	    	Requirements for entitlement to preserved benefits	  	223
		  	20.2	    	Early leavers not qualifying for preserved benefits	  	223
		  	20.3	    	Early leavers who qualify for preserved benefits	  	223
			
	 21
	  	EARLY LEAVER NOT ENTITLED TO PRESERVED BENEFITS	  	223
		  	21.1	    	Refund of Contributions	  	223
		  	21.2	    	Transfer Option	  	224
			
	 22
	  	EARLY LEAVER ENTITLED TO PRESERVED BENEFITS	  	224
		  	22.1	    	Entitlement to preserved benefits	  	224
		  	22.2	    	Commutation and/or surrender of preserved pension	  	224
		  	22.3	    	Other provisions applicable to preserved pensions	  	224
		  	22.4	    	Supplements to preserved pensions	  	224
		  	22.5	    	Contracting-out and Inland Revenue requirements	  	225
		  	22.6	    	Revenue Limits: alternative calculations disregarding retained benefits	  	225
		  	22.7	    	Alternatives to preserved benefits	  	226
			
	 23
	  	COMMENCEMENT OF PRESERVED BENEFITS AT NRA	  	226
		  	23.1	    	Payment	  	226
		  	23.2	    	Initial annual amount: (a) Pre September 93 Directors	  	226
		  	23.3	    	Initial annual amount: (b) Post September 93 Directors	  	227
			
	 24
	  	COMMENCEMENT OF PRESERVED BENEFITS BEFORE NRA	  	228
		  	24.1	    	Conditions for early commencement	  	228
		  	24.2	    	Initial annual amount	  	228
		  	24.3	    	Preservations requirements	  	228
			
	 25
	  	COMMENCEMENT OF PRESERVED BENEFITS AFTER NRA	  	229
		  	25.1	    	Conditions for late commencement: (a) 89 Limits Members	  	229
		  	25.2	    	Conditions for late commencement: (b) other Members	  	229
		  	25.3	    	Initial annual amount	  	229
		  	25.4	    	Preservation requirements	  	230
			
	 26
	  	BENEFITS ON DEATH OF EARLY LEAVER WITH PRESERVED BENEFITS	  	230
		  	26.1	    	Lump sum on death of Deferred Member whilst benefits preserved	  	230
		  	26.2	    	Spouse’s pension on death of Deferred Member whilst benefits preserved	  	230
		  	26.3	    	Members with Transferred Pensionable Service	  	230
		  	26.4	    	Financial Dependant’s pension	  	231
		  	26.5	    	Benefits on death of Deferred Member after pension commences	  	231
		  	26.6	    	Other provisions applicable to survivors’ pensions	  	231
		
	SECTION 8: PENSIONS - PAYMENT ARRANGEMENTS AND INCREASES	  	232
			
	27	  	PAYMENT OF PENSIONS	  	232
		  	 27.1
	    	Payment of arrangements	  	232
		  	 27.2
	    	Power to change payment arrangements	  	232
		  	 27.3
	    	Overpayment of pensions	  	232

  

 186 

							
	28	  	PENSION INCREASES	  	232
		  	 28.1
	    	Guaranteed Minimum Pensions	  	232
		  	 28.2
	    	Other Pensions	  	232
		  	 28.3
	    	First annual increase	  	232

  

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 188 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE TRUST DEED AND RULES 
 SCHEDULE 5: DIRECTORS SECTION RULES

 SECTION 1: INTRODUCTION; ELIGIBILITY AND MEMBERSHIP 
 1
INTRODUCTION 
 1.1 INTERPRETATION 
 These Rules shall be
interpreted in accordance with Schedule 1 to this Deed. 
 Any reference in this Schedule to a numbered Rule is to one of these Rules unless the reference is
to a rule in one of the other Schedules. 
 Any reference in this Schedule to a Member is to a Member to whom this Schedule applies, as stated in sub-Rule
1.3. 
 1.2 DEFINED TERMS 
 In these Rules the following words
and expressions have the following meanings respectively:- 
 “NORMAL RETIREMENT AGE” means the date of the Member’s 60th birthday;

 “POST SEPTEMBER 93 DIRECTOR” means any Member of this Section who is not a Pre September 93 Director; 
 “PRE SEPTEMBER 93 DIRECTOR” means any Member of this Section who was a member of Vodafone Directors Scheme immediately before the Revision Date and joined the
Vodafone Directors Scheme before 1 September 1993; 
 “RACAL DIRECTORS PENSIONABLE SERVICE” means, in relation to any Member, any period of
pensionable service under the Racal Directors Scheme which he has been notified by the Trustees counts towards his benefits under the Directors Section of this Scheme; 
 “TRANSFERRED PENSIONABLE SERVICE” means Racal Directors Pensionable Service, Vodafone Managers Pensionable Service or Vodafone Staff Pensionable Service; 
 “VODAFONE DIRECTORS PENSIONABLE SERVICE” means the total of 
 the periods referred to in sub-Rule 4.2; 
 “VODAFONE MANAGERS PENSIONABLE SERVICE” means, in relation to any
Member, any period of pensionable service under the Vodafone EM&SM Scheme or the Executive Manager and Senior Manager Section of this Scheme which he has been 

  

 189 

 
notified by the Trustees counts toward his benefits under the Directors Section of this Scheme; 
 “VODAFONE STAFF PENSIONABLE SERVICE” means, in relation to any Member, any period of Pensionable Service under this Scheme before the Revision Date and/or
pensionable service under the Staff Section of this Scheme on or after the Revision Date which he has been notified by the Trustees counts toward his benefits under the Executive Manager and Senior Manager Section of this Scheme. 
 1.3 APPLICATION 
 These Rules apply:- 
 (1) to all Members who are in Pensionable Service on the Revision Date and immediately before the Revision Date were in pensionable service under the Vodafone Directors
Scheme; and 
 (2) to all Members who become Members of the Directors Section on or after that date in accordance with Rule 2. 
 1.4 TRANSFER TO ANOTHER SECTION 
 When any Member of this Section becomes a
Member of another Section of the Scheme, he shall cease to be entitled to benefits under this Section. 
 2 ELIGIBILITY AND MEMBERSHIP 
 2.1 ELIGIBILITY CONDITIONS 
 An Employee is eligible to become a Member is he
fulfils the following eligibility conditions unless he is informed by the Principal Employer that he is not eligible to become a Member-: 
 (1) he is
employed by one or more of the Employers as an executive director; and 
 (2) he is aged 21 years or over but under 60 years. 
 An Employee is not eligible to become a Member if and for so long as he pays contributions to a personal pension scheme approved or for which approval is being sought
under Chapter IV of Part XIV of the Taxes Act. 
 2.2 EVIDENCE AS TO FULFILMENT OF CONDITIONS 
 The Trustees may rely on a statement from an Employer as to the fulfilment of conditions in sub-Rule 2.1 in respect of any Employee. 
  

 190 

 2.3 ADMISSION OF NEW EMPLOYEES TO MEMBERSHIP WHEN FIRST ELIGIBLE 
 An Employee shall be admitted to membership of the Directors Section with effect from the first date on which he satisfies all the eligibility conditions set out in
sub-Rule 2.1 subject to the Trustees’ powers under sub-Rule 2.4 and (having regard to section 160 of the Pension Schemes Act) with the right under sub-Rule 2.7 to opt out if he does not wish to be or remain a Member. 
 2.4 MEDICAL AND OTHER EVIDENCE 
 Before being admitted to membership of the
Directors Section an Employee shall produce such evidence of health, age and such other matters (if any) as the Trustees may require. 
 If when required to
do so pursuant to this sub-Rule an Employee fails to produce evidence of good health to the satisfaction of the Trustees, the Trustees may decline to admit him to membership or they may offer him membership on such special terms (including as to
modified or partial benefits) as the Trustees with the consent of the Principal Employer shall decide. 
 2.5 DISCRETIONARY ADMISSION TO MEMBERSHIP

 An Employee who would not otherwise be eligible for membership of the Directors Section may be admitted to membership of the Directors Section with the
consent of the Principal Employer and the Trustees and on such terms and at such time as may be agreed between the Trustees and the Principal Employer. 
 2.6 EFFECT OF ADMISSION TO MEMBERSHIP 
 Upon being admitted to membership of the Directors Section an Employee becomes a Member and is bound by the
Trust Deeds. 
 2.7 OPTING OUT 
 A Member may at any time
withdraw from active membership of the Directors Section by giving to his Employer for recording and transmission to the Trustees not less than one month’s notice to that effect ending on the last day of any month on such form as the Trustees
may prescribe for that purpose, or such lesser period of notice (if any) as the Trustees and the Employer may agree to accept. Upon the expiration of such notice the Member concerned shall be treated for the purposes of the Scheme as having
terminated his Pensionable Service. If the Member gives such notice before paying any contributions to the Scheme, he shall be treated as if he had never become a Member. 
 2.8 RE-JOINING THE SCHEME AFTER OPTING OUT 
 A Member who withdraws from active membership of the Directors Section pursuant
to sub-Rule 2.7 may, at the discretion of the Trustees and with the consent of the Principal Employer, be re-admitted to membership of the Directors 
  

 191 

 Section provided he then fulfils the eligibility conditions mentioned in sub-Rule 2.1 and satisfies the requirements of
sub-Rule 2.4. Such re-admission shall be for such benefits and subject to such conditions as the Trustees and the Principal Employer shall decide. 
 2.9
EFFECT OF PROVIDING INCOMPLETE OR INACCURATE INFORMATION 
 Without prejudice to sub-Rule 2.4, if when required to do so any Employee or Member fails to
provide the Trustees with information or provides them with information which is incomplete or inaccurate, the Trustees may with the consent of the Principal Employer modify the benefits payable to or in respect of the Member under the Scheme to
such extent as they may consider appropriate in the circumstances. 
  

 192 

 SECTION 2: MEMBERS’ CONTRIBUTIONS 
 3 MEMBERS’ CONTRIBUTION 
 3.1 COMPULSORY CONTRIBUTIONS 
 In each Scheme Year each Member shall pay contributions to the Scheme in equal instalments at the same time as he receives pay from his Employer at the rate of 3.5% of his Pensionable Earnings (or, in the case of a
Member who in an 89 Limits Member for the purposes of the Revenue Limits Rules, the Permitted Maximum (as defined in the Revenue Limits Rules), if less). 
 3.2 VOLUNTARY CONTRIBUTIONS 
 A Member may pay voluntary contributions to the Scheme of such amounts or at such rates (subject to the limits on
Member’s contributions mentioned in the Revenue Limits Rules) and at such intervals as he may agree with the Trustees. The assets representing such voluntary contributions and the income from them and any additions to them shall be held by the
Trustee separate from all the other assets of the Fund. 
 3.3 NOTICE TO BE GIVEN BY MEMBERS CONCERNING VOLUNTARY CONTRIBUTIONS 
 A Member must give the Trustees such notice as the Trustees may require (not exceeding the maximum period of notice allowed by Regulation 2(4) of the Pension Schemes
(Voluntary Contributions Requirements and Voluntary and Compulsory Membership) Regulations 1987 (SI 1987 No. 1108)) of his intention to pay voluntary contributions at a specified rate or of a specified amount, or to vary the rate or amount.

 3.4 BENEFITS IN RESPECT OF VOLUNTARY CONTRIBUTIONS 
 The
Trustees shall secure:- 
 (1) that any voluntary contributions paid by a Member are used to provide such benefits for or in respect of him under the Scheme
as the Trustees and the Member may agree or, in the absence of agreement, as the Trustees may decide and that such benefits:- 
 (a) shall be additional to
the benefits provided for or in respect of him under the following Rules: and 
 (b) shall be money purchase benefits within the meaning of section 181 of
the Pension Schemes Act; and 
 (2) that the value of the additional benefits is reasonable having regard to the amount of the voluntary contributions.

  

 193 

 3.5 REPAYMENT OF SURPLUS VOLUNTARY CONTRIBUTIONS 
 This sub-Rule applies if a Member pays voluntary contributions under this Rule and on his Scheme Exit Date the benefits which have accrued to him are found to exceed the maximum total benefits which may be provided by
the Scheme to or in respect of him under Revenue Limits. 
 (1) To the extent that the excessive benefits have been secured by the Member’s voluntary
contributions the amount of the Scheme assets which secure the excessive benefits and consist of or relate to those contributions shall be determined by the Trustees (for which purpose they may rely on the advice of the Actuary). 
 (2) The Trustees shall then pay that amount to the Member (or, if the Member has died, to the Member’s estate) after deducting such tax as they may be required to
deduct and account for to the Inland Revenue. 
 (3) The Trustees shall also comply with the requirements of Regulation 5 of the Retirement Benefit Schemes
(Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993 (SI 1993 No. 3016), and, where the Scheme is the “leading scheme” in relation to the Member, with the requirements or Regulation 6 of those
Regulations so far as they concern main schemes. 
 3.6 DEDUCTION OF CONTRIBUTIONS FROM SALARY OR PAY 
 Each Member’s Employer shall deduct from the Member’s salary or pay the amounts payable by the Member to the Scheme as compulsory and voluntary contributions
and pay them to the Trustees promptly and in any event so as to comply with section 49(8) of the Pensions Act and regulations made under it (being at the date of this Deed regulation 16 of the Administration Regulations which requires the payment to
the Trustees to be made within 19 days commencing from the end of the month in which the amount is deducted from the Member’s earnings). 
 3.7
TERMINATION OF MEMBER’S CONTRIBUTIONS 
 Unless a Member’s Employer determines otherwise and notifies the Member accordingly, but subject always to
such Inland Revenue consent as may from time to time be required, no contributions shall be payable or may be paid by a Member after his Normal Retirement Age or the date when his Pensionable Service terminates, if earlier. 
 3.8 MEMBER’S CONTRIBUTIONS DURING TEMPORARY ABSENCE 
 Where a Member is
temporarily absent from work with his Employer, the payment of his contributions under this Rule is governed by Rule 6. 
  

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 SECTION 3: PENSIONABLE SERVICE AND TEMPORARY SERVICE 
 4 CALCULATION OF VODAFONE DIRECTORS PENSIONABLE SERVICE 
 4.1 PURPOSE OF THIS RULE 
 Most of the benefits payable to or in respect of a Member under the Directors Section are determined by reference to the Member’s Vodafone Directors Pensionable
Service. This Rule explains how a Member’s Vodafone Directors Pensionable Service is calculated. 
 4.2 VODAFONE DIRECTORS PENSIONABLE SERVICE

 Subject to sub-Rule 4.3, a Member’s Vodafone Directors Pensionable Service for the purpose of calculating the benefits payable to and in respect of
him under the Directors Section is the total of the following periods (which shall be expressed in complete years with complete months which are not part of a complete year being expressed as a fraction of a year):- 
 (1) the period during which he was in Pensionable Service under the Directors Section; and 
 (2) if he was in pensionable service under the Vodafone Directors Scheme immediately before the Revision Date, the period during which he was in pensionable service under the Vodafone Directors Scheme ending on the
day before the Revision Date. 
 There shall be deducted any part of such period or periods which does not count as Pensionable Service due to temporary
absence from work as provided in Rule 6 or the applicable temporary absence rule prevailing at the time when the absence occurred. 
 4.3 MORE THAN ONE
PERIOD OF VODAFONE DIRECTORS PENSIONABLE SERVICE 
 If a Member who has been in Pensionable Service leaves Service or withdraws from active membership of the
Directors Section and subsequently rejoins the Directors Section, each of the periods of Vodafone Directors Pensionable Service shall count as a separate period of Vodafone Directors Pensionable Service unless:- 
 (a) the Trustees with the consent of the Principal Employer agree to aggregate them; or 
 (b) the Member is a female Member who is absent from work wholly or partly because of pregnancy or confinement and the periods of Pensionable Service separated by the period of maternity absence are required to be
treated as continuous by Part VIII of the Employment Rights Act 1996. 
  

 195 

 Where a Member has any period of Vodafone Directors Pensionable Service which is not aggregated in accordance with this
sub-Rule with his most recent period of Vodafone Directors Pensionable Service, the benefits payable to and in respect of him in respect of the earlier period or periods are determined in accordance with the Rules relating to early leavers.

 4.4 CHANGE OF SCHEME EMPLOYER 
 Where a Member is employed by
one Employer and immediately after the termination of his employment with that Employer he becomes an employee of another Employee, his Vodafone Directors Pensionable Service shall not be treated as having been broken by reason only of such change
of employment. 
 5. MEMBERS IN PART-TIME EMPLOYMENT 
 5.1
PURPOSE OF THIS RULE 
 This Rule explains the adjustments required where any Member’s Vodafone Directors Pensionable Service includes both full-time and
part-time employment or variable part-time employment. 
 5.2 INTERPRETATION 
 In this Rule:- 
 (1) “FULL-TIME EMPLOYMENT” means in respect of any Employer and any period, employment with the
Employer which, by reason of the number of hours per week (or month) for which the Member is contracted to work, is treated by the Employer as full-time employment; and 
 (2) “PART-TIME EMPLOYEMENT” means employment with the Employer which is less than Full-time Employment. 
 5.3
MEMBERS TO WHOM THIS RULE APPLIES 
 This Rule applies to any Member where during the Member’s Vodafone Directors Pensionable Service:- 
 (a) the Member has periods both of Full-time Employment and Part-time Employment; or 
 (b) the Member has periods of Part-time Employment in respect of which there is a difference in the number of hours per week (or month) for which he is contracted to work as a proportion of the number of hours
required for Full-time Employment. 
 The Trustees may rely on a statement from the Employer as to the hours per week (or month) for which any Member is or
was contracted to work and the number of hours which are or were required for Full-time Employment with the Employer. 
  

 196 

 5.4 CONVERSION INTO FULL-TIME EQUIVALENT 
 Where by virtue of sub-Rule 5.3 this Rule applies to any Member, in respect of each period during which the number of hours per week (or month) for which the Member is required to work bears the same proportion to the
number of hours required for Full-time Employment, his Final Pensionable Earnings and Vodafone Directors Pensionable Service shall be converted into their full-time equivalent and the benefit attributable to each such period shall then be
aggregated. For this purpose:- 
 (1) the Member’s Final Pensionable Earnings shall be converted into its full-time equivalent by multiplying it by the
fraction FTH/CH; and 
 (2) the Member’s Vodafone Directors Pensionable Service shall be converted into its full time equivalent by multiplying it by
the fraction CH/FTH; 
 where:- 
 (a) “FTH” is the
number of hours per week (or month) required for Full-time Employment at the end of such period; and 
 (b) “CH” is the number of hours per week
(or month) for which the Member is contracted to work at the end of the period in question. 
 5.5 TREATMENT OF NOTIONAL PENSIONABLE SERVICE 
 Where any benefit under the Rules is required to be calculated taking into account notional Pensionable Service after a Member’s actual Pensionable Service has
terminated, it shall be assumed that the number of hours for which the Member was contracted to work and the number of hours required for Full-time Employment in each case as at the date when his Pensionable Service terminated would have continued
to apply if he had remained in Pensionable Service. 
 6 CONSEQUENCES OF TEMPORARY ABSENCE 
 6.1 PURPOSE OF THIS RULE 
 This Rule determines:- 
 (1) whether and the extent to which any period during which a Member is temporarily absent from work with his Employer, but remains in Service, is to be included in the Member’s Vodafone Directors Pensionable
Service; 
 (2) whether and the extent to which the Member is obliged to pay contributions during or in respect of any such period of temporary absence; and

  

 197 

 (3) whether the Member’s death during any such period of temporary absence is to count as death in Pensionable
Service for the purpose of determining benefits on death in Pensionable Service under Section 6 of these Rules. 
 6.2 MATERNITY ABSENCE: (a) PAID

 If a female Member is absent from work wholly or partly because of pregnancy or confinement whilst remaining in Service, then to the extent that the period
of absence is a period of paid maternity absence within the meaning of paragraph 5(3) of Schedule 5 to the Social Security Act 1989 or a maternity leave period within the meaning of section 235(1) of the Employment Rights Act 1996 the effect of the
Member’s absence shall be as provided in the following sub-Rules of this Rule. 
  

	6.2.1	CONTINUATION OF MEMBERSHIP. The Member shall be deemed to continue in Pensionable Service throughout the period of paid maternity absence or maternity leave period.

  

	6.2.2	CONTRIBUTIONS DURING ABSENCE. The Member shall continue to pay contributions in accordance with Rule 3 during the period of paid maternity absence calculated by reference to her
actual earnings from her Employer instead of by reference to her Pensionable Earnings. 

  

	6.2.3	PERIOD OF PENSIONABLE SERVICE. The period of paid maternity absence or maternity leave period shall be included in the Member’s Vodafone Directors Pensionable Service.

  

	6.2.4	DEATH DURING ABSENCE. If a member dies in Service during the period of paid maternity absence or maternity leave period she shall be treated as dying in Pensionable Service for the
purpose of Section 6 of these Rules. To the extent that the benefits under Section 6 fail to be determined by reference to her earnings during a period which included a period of paid maternity absence, they shall be determined in
accordance with the normal employment requirement within the meaning of paragraph 5(3) of Schedule 5 to the Social Security Act 1989. 

 6.3
MATERNITY ABSENCE: (b) UNPAID 
 If a female Member is absent from work wholly or partly because of pregnancy or confinement whilst remaining in Service,
then to the extent that the period of absence is not a period of paid maternity absence within the meaning of paragraph 5(3) of Schedule 5 to the Social Security Act 1989 or a maternity leave period within the meaning of section 234(1) of the
Employment Rights Act 1996 the effect of the Member’s absence shall be as provided in the following sub-Rules of this Rule. 
  

	6.3.1	CONTINUATION OF MEMBERSHIP. The Member shall be deemed to continue in Pensionable Service throughout the period in question. 

  

 198 

	6.3.2	CONTRIBUTIONS DURING ABSENCE. The Member shall cease to pay contributions in accordance with Rule 3 during the period of absence but may following her return to work pay the
contributions calculated by reference to her full Pensionable Salary which she would have paid if this sub-Rule had not applied in such instalments and over such period as she may agree with the Trustees. 

  

	6.3.3	PERIOD OF PENSIONABLE SERVICE. Any period of maternity absence to which this sub-Rule 6.3 applies shall be included in the Member’s Vodafone Directors Pensionable Service only
to the extent that the Member pays contributions in respect of it, by way of arrears of contributions paid following her return to work in accordance with sub-Rule 6.3.2. 

  

	6.3.4	DEATH DURING ABSENCE. If the Member dies in Service during a period of maternity absence to which this sub-Rule 6.3 applies she shall be treated as dying in Pensionable Service for
the purpose of Section 6 of these Rules. 

 6.4 OTHER CAUSES OF TEMPORARY ABSENCE 
 If a Member is temporarily absent from work and the Member is not a female Member whose absence comes within sub-Rules 6.2 or 6.3, the effect of the Member’s absence
shall be as provided in the following sub-Rules of this Rule. 
  

	6.4.1	CONTINUATION OF MEMBERSHIP. The Member shall be deemed to have left Pensionable Service upon the expiry of the following periods:- 

  

	 	(a)	if the absence is due to illness or injury, 30 months from the date when the absence commences; or 

  

	 	(b)	if the absence is for any other reason, 12 months from the date when the absence commences; 

 or such longer period (if any) as the Trustees and the Principal Employer may agree. 
  

	6.4.2	CONTRIBUTIONS DURING ABSENCE. For so long as the Member receives salary or pay from his Employer at not less than half the rate of his salary or pay immediately before the absence
commenced, he shall continue to pay contributions in accordance with Rule 3 during the period or absence calculated by reference to his full Pensionable Earnings. For so long as any Member receives salary or pay from his Employer at less than half
the rate of his salary or pay immediately before the absence commenced, he shall cease to pay contributions in accordance with Rule 3 during the period of absence but may following his return to work pay the contributions (calculated by reference to
his full Pensionable Earnings) which he would have paid if this sub-Rule had not applied in such instalments and over such period as he may agree with the Trustees. 

  

 199 

	6.4.3	PERIOD OF PENSIONABLE SERVICE. Any period of temporary absence shall be included in the Member’s Vodafone Directors Pensionable Service only to the extent that the Member pays
contributions in respect of it, either during the period of absence or by way of arrears of contributions paid following his return to work in accordance with sub-Rule 6.4.2. 

  

	6.4.4	DEATH DURING ABSENCE. If a Member dies in Service whilst absent from work and he has not been deemed to have left Pensionable Service in accordance with sub-Rule 6.4.1, he shall be
treated as dying in Pensionable Service for the purpose of Section 6 of these Rules. 

  

 200 

 SECTION 4: MEMBER’S RETIREMENT BENEFITS 
 7 MEMBER’S RETIREMENT BENEFITS: GENERAL 
 7.1 MEMBER’S RETIREMENT BENEFITS 
 On retirement from Pensionable Service a Member is entitled to a pension calculated and paid in accordance with Rules 8 to 13. 
 If before a Member’s Normal Retirement Age his Pensionable Service is terminated by him leaving Service or withdrawing from membership of the Directors Section
whilst remaining in Service, and he does not become entitled to any early retirement pension under Rules 9 to 12, the benefits payable to and in respect of him are determined in accordance with Section 7 of these Rules. 
 7.2 OTHER PROVISIONS APPLICABLE TO RETIREMENT PENSIONS 
 A Member’s
pension payable under Rules 8 to 13:- 
 (1) shall be reduced in accordance with Rules 14 or 15 if the Member exercises his commutation or surrender options
under them; 
 (2) shall be payable in accordance with Rule 27; and 
 (3) shall be subject to increases in accordance with Rule 28. 
 7.3 SUPPLEMENTS TO RETIREMENT PENSIONS 
 Members’ retirement pensions under Rules 8 to 13 may be supplemented:- 
 (1) as a result of the Member having paid additional voluntary contributions in accordance with sub-Rule 3.4 or the Former Provisions; 
 (2) as a
result of a transfer payment or transfer payments having been received in respect of the Member under Clause 18 in Schedule 2 to this Deed or under the Former Provisions; or 
 (3) as a result of the exercise of the augmentation powers contained in Clause 21 in Schedule 2 to this Deed. 
 The extent
to which Rules 14 (commutation option), 15 (surrender option), 27 (payment of pensions) and 28 (pension increases) apply to any supplement to the Member’s retirement pension referred to in sub-Rule 7.3 depends on the terms agreed between the
Member and the Trustees in the case of additional voluntary contributions and transfer payments and on the terms specified by the Trustees in the case of augmentations. 
  

 201 

 7.4 CONTRACTING-OUT AND INLAND REVENUE REQUIREMENTS 
 The Trustees must ensure:- 
 (1) that if the Member was in Contracted-out Employment in relation to the Scheme before
6 April 1997, the Member’s retirement pension attributable to Pensionable Service prior to 6 April 1997 complies with the GMP Rules; and 
 (2) that the Member’s retirement benefits do not exceed the limits applicable to them under the Revenue Limits Rules. 
 7.5 REVENUE LIMITS:
ALTERNATIVE CALCULATION DISREGARDING RETAINED BENEFITS 
 If having regard to the treatment of retained benefits for the purpose of applying Revenue Limits to
any Member’s pension, the amount calculated using the formula:- 
 Final Pension Earnings x (VDPS + TPS) 
 60 
 where:- 
 “VDPS” is the Member’s Vodafone Directors Pensionable Service; and 
 “TPS” is his Transferred Pensionable Service (if any); 
 would exceed the amounts calculated in accordance with the formulae set out in
the Rules in this Section 4, then the amount calculated using the formula above shall be substituted for the amount calculated in accordance with the formulae set out in the Rules in this Section 4 and, in cases of early retirement, then
reduced in accordance with whichever of sub-Rules 10.2(2) or 10.3(2) is applicable to him. 
 8 NORMAL RETIREMENT 
 8.1 MEMBER’S ENTITLEMENT TO PENSION FROM NORMAL RETIREMENT AGE 
 A member
whose Pensionable Service terminates as a result of his retirement from Service at Normal Retirement Age shall be entitled to a normal retirement pension from the Scheme which shall commence to be payable with effect from the day following his
Normal Retirement Age for the remainder of his lifetime and which shall be calculated in accordance with this Rule. 
 8.2 INITIAL ANNUAL AMOUNT OF PENSION:
(a) PRE SEPTEMBER 93 DIRECTORS 
 In the case of a Pre September 93 Director, the initial annual amount of the Member’s pension under sub-Rule 8.1
shall be calculated as follows:- 
  

 202 

 (1) if the aggregate of his Vodafone Directors Pensionable Service and Transferred Pensionable Service (if any) does not
exceed 20 years, by using the following formula:- 
 Final Pensionable Earnings x (VDPS + TPS) 
 30 
 where:- 
 “VDPS” is his Vodafone Directors Pensionable 
 Service; and 
 “TPS” is his Transferred Pensionable 
 Service; or 
 (2) if the aggregate of his Vodafone Directors Pensionable Service and his Transferred
Pensionable Service (if any) exceeds 20 years, by using the following formula 
 Final Pensionable Earnings x 2 
 3 
 8.3 INITIAL ANNUAL AMOUNT OF PENSION: (b) POST
SEPTEMBER 93 DIRECTORS 
 In the case of a Post September 93 Director, the initial annual amount of a Member’s pension under sub-Rule 8.1 by virtue of
his Vodafone Directors Pensionable Service and his benefits in respect of Vodafone EM&SM Pensionable Service or Vodafone Staff Pensionable Service shall be calculated as follows:- 
 (1) if he has no Transferred Pensionable Service, it shall be calculated by taking his Final Pensionable Earnings and multiplying them by the following:- 
 VODAFONE DIRECTORS PENSIONABLE SERVICE 
 VDPS Denominator

 (2) if he has Transferred Pensionable Service, it shall be calculated by taking his Final Pensionable Earnings and multiplying them by the aggregate
of the following:- 
 (a) Vodafone Staff Pensionable Service 
 60 
 (b) Vodafone Managers Pensionable Service 
 50 
 (c) Vodafone Directors Pensionable Service 
 VDPS Denominator 
 For the purpose of this sub-Rule the “VDPS DENOMINATOR” is 30
except that if the amount calculated pursuant to paragraph (1), or the aggregate amount calculated pursuant to paragraph (2), would then exceed two-thirds of the 

  

 203 

 
Member’s Final Pensionable Earnings, it shall be such higher figure as shall be required to ensure that the amount so calculated is equal to two-thirds
of the Member’s Final Pensionable Earnings. 
 9 EARLY RETIREMENT: (A) GENERALLY 
 9.1 CIRCUMSTANCES IN WHICH MEMBER’S PENSION MAY COMMENCE EARLY 
 A Member’s retirement pension may commence before
his Normal Retirement Age in any of the following circumstances:- 
 (1) voluntary early retirement under Rule 10; 
 (2) redundancy early retirement under Rule 11; or 
 (3) early retirement due
to Serious Ill-health under Rule 12. 
 9.2 PRESERVATION REQUIREMENTS 
 In accordance with Regulation 8(4) of the Preservation Regulations, the Trustees must be reasonably satisfied that when any Member’s pension becomes payable under Rules 10, 11 or 12 before his Normal Pension Age, the total value of the
Member’s benefits is at least equal in value to the benefits that have accrued to or in respect of him under the Rules (on the basis that the Rules are the “applicable rules” for the purpose of section 94(2) of the Pension Schemes
Act). 
 9.3 GMP REQUIREMENTS 
 If any Member whose pension
commences before Normal Retirement Age under this Rule is entitled to any Guaranteed Minimum Pension, the Trustees shall have power to adjust any pension payable under this rule to such extent as may be necessary to ensure that when the Member
attains State Pensionable Age (as defined in the GMP Rules), the Member’s pension attributable Contracted-out Employment prior to 6 April 1997 is not less than the amount required under the GMP Rules. 
 10 EARLY RETIREMENT: (B) VOLUNTARY 
 10.1 WHEN PAYABLE 
 If:- 
 (1) a Member’s Pensionable Service terminates on or after the
date when he attains age 50 and 
 (2) the Principal Employer consents to the immediate commencement of his retirement pension (but such consent shall not be
required if the Member has attained the age of 55); 
  

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 he shall be entitled to an early retirement pension from the Scheme which shall commence to be payable with effect from
the day after his Pensionable Service terminates (or such later date as the Trustees shall agree with him) and which shall continue to be payable for the remainder of his lifetime. 
 10.2 INITIAL ANNUAL AMOUNT: (a) PRE SEPTEMBER 93 DIRECTORS 
 In the case of a Pre September 93 Director, the initial
annual amount of the Member’s voluntary early retirement pension under sub-Rule 10.1 shall be calculated in two stages:- 
  

									
	(1)	    	(a)	  	if by remaining in Pensionable Service until Normal Retirement Age the Member’s normal retirement pension would have been calculated under sub-Rule 8.2(1), by first [illegible]
amount payable in accordance with the formula [illegible} Rule but using his Final Pensionable Earnings at and Pensionable Service to his Scheme Exit date; or
			
		    	(b)	  	if by remaining in Pensionable Service until Normal Retirement Age the Member’s normal retirement position would have been calculated under sub-Rule 8.2(2), by first calculating
the amount found by the following formula:-
			
		    		  	 Final Pensionable Earnings
 [illegible]                               

				
		    		  	where:-	    	
					
		    		  	“N”	  	=	    	the Member’s Vodafone Directors Pensionable Service (or, in the case of a Member with Transferred Pensionable Service, the aggregate of his Vodafone Directors Pensionable Service and his
Transferred Pensionable Service); and
					
		    		  	“NS”	  	=	    	what would have been the Member’s Vodafone Directors Pensionable Service (or, in the case of a Member with Transferred Pensionable Service, the aggregate of his Vodafone Directors
Pensionable Service and his Transferred Pensionable Service) if he had remained in Pensionable Service until his Normal Retirement Age (or 40 year if less);

 (2) secondly, by applying an early retirement reduction factor to the amount determined at the first stage of the
calculation in respect of the period (if any) from the date when the pension becomes payable until the date when the Member attains the age of 55 in order to take account of the fact that the pension is likely to be payable for longer than if it
were to commence at the Member’s Normal Retirement Age. The amount of the reduction factor shall be determined by the Trustees and the Principal Employer after consulting the Actuary. 
  

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 10.3 INITIAL ANNUAL AMOUNT: (b) POST SEPTEMBER 93 DIRECTORS 
 In the case of a Post September 93 Director the initial annual amount of the Member’s voluntary early retirement pension under sub-Rule 10.1 shall be calculated in
two stages:- 
  

									
	(1)	  	(a)	  	if by remaining in Pensionable Service until Normal Retirement Age (and taking into account any Transferred Pensionable Service) the Member’s normal retirement pension
calculated under sub-Rule 8.3 would have been less than two-thirds of his Final Pensionable Earnings, by first calculating the amount payable in accordance with the formula in sub-Rule 8.3(1), or, if he has Transferred Pensionable Service, sub-Rule
8.3(2) but:-
				
		  		  	(i)	    	using his Final Pensionable Earnings at and Pensionable Service to his Scheme Exit Date; and
				
		  		  	(ii)	    	in respect of his Vodafone Directors Pensionable Service, using a VDPS Denominator of 30 (being the same VDPS Denominator as would have been used if he had remained in Pensionable
Service until Normal Retirement Age); or
			
		  	(b)	  	if by remaining in Pensionable Service until Normal Retirement Age (and taking into account any Transferred Pensionable Service) the Member’s normal retirement position
calculated under sub-Rule 8.3 would have been equal to two-thirds of his Final Pensionable Earnings, by first calculating the amount found by the following formula:-

  

											
		    		    	Final Pensionable Earnings x	 	2	 	x	 	 N 
		    		    		 	3	 		 	NS

  

											
		    		    		    	where:-
						
		    		    		    	“N”	    	=	    	the Member’s Vodafone Directors Pensionable Service (or, in the case of a Member with Transferred Pensionable Service, the aggregate of his Vodafone Directors Pensionable Service and his
Transferred Pensionable Service); and
						
		    		    		    	“NS”	    	=	    	what would have been the Member’s Vodafone Directors Pensionable Service (or, in the case of a Member with Transferred Pensionable Service, the aggregate of his Vodafone Directors
Pensionable Service and his Transferred Pensionable Service) if he had remained in Pensionable Service until his Normal Retirement Age (or 40 years if less);

 (2) secondly, by applying an early retirement reduction factor to the amount determined at the first stage of the
calculation in respect of the period (if any) from the date when the pension becomes payable until the date when 
  

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 the Member attains the age of 55 in order to take account of the fact that the pension is likely to be payable for longer
than if it were to commence at the Member’s Normal Retirement Age. The amount of the reduction factor shall be determined by the Trustees and the Principal Employer after consulting the Actuary. 
 11 EARLY RETIREMENT: (C) REDUNDANCY 
 11.1 WHEN PAYABLE 
 If a Member’s Pensionable Service terminates on or after the date when he attains age 50 and his Employer certifies to the Trustees that this occurred because his
Service terminated by reason of redundancy then, provided that both the Trustees and his Employer consent to the immediate commencement of his retirement pension, he shall be entitled to an early retirement pension from the Scheme which shall
commence to be payable with effect from the date after his Pensionable Service terminates (or such later date as his Employer and the Trustees shall agree with him) and which shall continue to be payable for the remainder of his lifetime.

 11.2 INITIAL ANNUAL AMOUNT 
 The initial annual amount of a
Member’s redundancy early retirement pension under sub-Rule 11.1 shall be calculated in the same way as a voluntary early retirement pension under whichever of sub-Rule 10.2 or 10.3 applies to him except that no early retirement reduction
factor shall be applied under sub-Rule 10.2(2) or 10.3(2)(whichever applies to him). 
 11.3 RELIANCE BY TRUSTEES ON STATEMENTS FROM EMPLOYERS 
 The Trustees may rely on a statement from the Member’s Employer that the Member’s Pensionable Service has terminated in the circumstances mentioned in sub-Rule
11.1. 
 12 EARLY RETIREMENT: (D) SERIOUS ILL-HEALTH 
 12.1
WHEN PAYABLE 
 If a Member’s Pensionable Service terminates because of Serious Ill-health, he may be granted an ill-health early retirement pension from
the Scheme subject to and in accordance with the following sub-Rules of this Rule. 
 12.2 PROCEDURE 
 Before his Pensionable Service terminates the Member must request his Employer to support his application to the Trustees for a Serious Ill-health pension to be granted.
The Employer may only make such an application if it is satisfied that the Member’s state of health is such as to warrant his retirement from employment with the Employer. 
  

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 If any Employer supports an application to the Trustees following a request from a Member in accordance with this
sub-Rule, the Trustees shall decide whether the Member is suffering from Serious Ill-health, and notify the Employer and the Member of their decision. 
 12.3 MEDICAL EVIDENCE BEFORE COMMENCEMENT OF PENSION 
 For the purpose of sub-Rule 12.2, the Employer and the Trustees shall be entitled to such
medical evidence (if any) as they may respectively require. The Member must co-operate in providing all such evidence, including undergoing any medical examination(s) which the Employer or the Trustees may require. 
 12.4 COMMENCEMENT 
 A Serious Ill-health early retirement pension shall
commence to be payable with effect from the day after the Member’s Pensionable Service terminates (or such later date as the Trustees shall agree with him) and which shall, subject to sub-Rules 12.6 and 12.7, continue to be payable for the
remainder of his lifetime. 
 12.5 INITIAL ANNUAL AMOUNT 
 The
initial annual amount of a Member’s Serious Ill-health early retirement pension shall be the amount of a voluntary early retirement pension calculated in accordance with whichever of sub-Rules 10.2 or 10.3 applies to him or if the Trustees and
the Principal Employer consider a higher amount to be appropriate in the circumstances, such higher amount as the Trustees with the consent of the Principal Employer shall decide, but not greater than the amount which would have been payable under
Rule 8 if he had remained in Pensionable Service until his Normal Retirement Age (based on the Member’s Final Pensionable Earnings at his Scheme Exit Date). 
 12.6 SUBSEQUENT ADJUSTMENT 
 If:- 
 (1) a Member’s
pension is a Serious Ill-health early retirement pension; and 
 (2) at any time or times between the date when his pension commences and his Normal
Retirement Age, in the Trustees’ opinion (having taken such medical evidence as they may require) his state of health improves, or deteriorates; 
 the
Member’s entitlement thereafter shall be of such pension (if any) as the Trustees, with the consent of the Principal Employer, decide to be appropriate in the circumstances, but so that with effect from the Member’s Normal Retirement Age
his pension shall be not less than it would have been under Rule 23 if on the date of his retirement he had become an early leaver with a preserved pension payable under that Rule but reduced to such extent as the Trustees decide to be appropriate
to take account of any part of the Serious Ill-health early retirement pension which the Member commuted for a lump sum. 
  

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 12.7 MEDICAL EVIDENCE AFTER COMMENCEMENT OF PENSION 
 A Member shall not be entitled to the continued payment of a Serious Ill-health pension unless after it comes into payment he co-operates in providing all such evidence, including undergoing any medical examination(s)
which the Trustees may from time to time require. 
 13 LATE RETIREMENT 
 13.1 COMMENCEMENT OF LATE RETIREMENT PENSION 
 If with the consent of his Employer a Member continues in Service after his Normal Retirement Age,
the commencement of his pension shall be postponed until he retires from Service except in the following circumstances. 
 (1) If he is a Pre-87 Limits
Member or an 87 Limits Member for the purposes of the Revenue Limits Rules, he may with prior written consent of the Principal Employer commence to draw his pension with effect from any day he attains Normal Retirement Age. 
 (2) If he is an 89 Limits Member for the purposes of the Revenue Limits Rules, he may not commence to draw his pension from the Scheme until his Service terminates
except that his pension from the Scheme must come into payment at the latest when he attains age 75. 
 13.2 INITIAL ANNUAL AMOUNT OF LATE RETIREMENT PENSION

 Where the commencement of a Member’s pension has been postponed in accordance with sub-Rule 13.1 until after he attains Normal Retirement Age, the
initial annual amount of his pension shall be equal to the normal retirement pension which would have been payable to the Member under Rule 8 if the Member had retired on attaining his Normal Retirement Age increased by such late retirement factor
as the Trustees having consulted the Actuary consider appropriate having regard to the period of postponement. 
  

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 SECTION 5: ALTERNATIVES TO MEMBER’S PENSION 
 14 COMMUTATION 
 14.1 MEMBER’S RIGHT TO COMMUTE 
 A Member who becomes entitled to a pension from the Scheme may elect to commute part of it for a lump sum subject to and in accordance with this Rule. 
 14.2 MEMBER’S ELECTION TO COMMUTE 
 A Member’s election under sub-Rule 14.1 shall be made by giving to the Trustees
such notice within such period as the Trustees may require. 
 14.3 MAXIMUM LUMP SUM 
 The maximum lump sum for which a Member may commute part of his pension pursuant to sub-Rule 14.1 shall be:- 
 (1) the
amount determined by multiplying by 2.25 the initial annual amount of the Member’s pension from the Scheme; or 
 (2) such greater amount as the
Trustees may agree and which will not exceed Revenue Limits. 
 14.4 MEMBER CONTINUING IN SERVICE AFTER NORMAL RETIREMENT AGE 
 A Member who continues in Service after his Normal Retirement Age may not receive a lump sum by way of commutation pursuant to this Rule until he commences to receive his
pension from the Scheme unless he is a Pre-87 Limits Member or an 87 Limits Member for the purpose of the Revenue Limits Rules. If the Member is a Pre-87 Limits Member or on 87 Limits Member he may with the prior written consent of the Principal
Employer make an election pursuant to sub-Rule 14.1 at any time from his Normal Retirement Age to the date when his late retirement pension commences to be paid. 
 14.5 BENEFITS FROM MEMBER’S VOLUNTARY CONTRIBUTIONS 
 If before April 1987 a Member had entered into arrangements for the payment of voluntary
contributions under another retirement benefits scheme established by, or to which contributions were paid:- 
 (1) by, his Employer; or 
 (2) by an employer in respect of which his Employer is a relevant employer (within the meaning of Regulation 2 of the Occupational Pension Schemes (Transitional
Provisions) Regulations 1988 (SI 1988 No. 1436)); 
  

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 any pension secured by his voluntary contributions to the Scheme may be commuted pursuant to sub-Rule 14.1. Otherwise,
such pension may not be so commuted although it may be taken into account in the calculation of the lump sum. 
 14.6 EXCEPTIONAL CIRCUMSTANCES OF SERIOUS
ILL-HEALTH 
 If a Member is in exceptional circumstances of serious ill-health such that the Trustees are advised by a medical practitioner that the
Member’s expectation of life is very short (in the sense of being measured in months rather than years) and the Trustees determine that in the circumstances a pension is not a reasonable provision for the Member, the Trustees shall have power
to commute the whole of the Member’s pension for a lump sum. 
 14.7 TRIVIAL PENSIONS 
 Notwithstanding sub-Rule 14.3, if a Member’s benefit has become payable or the Scheme is being wound up and that benefit does not exceed the Triviality Limit:- 
 (1) the Member may make an election pursuant to sub-Rule 14.1 in respect of the whole of it; or 
 (2) the Trustees shall have the power to commute the whole of it for a lump sum if they determine that it would be conducive to the efficient administration of the Scheme to do so. 
 14.8 COMMUTATION FACTORS 
 In determining the amount by which the
Member’s pension is to be reduced in any case of partial commutation the Trustees shall use such commutation factors as, having taken advice from the Actuary, they may from time to time agree with the Principal Employer and adopt for the
purposes of this Rule. 
 The amount of the lump sum to be paid in full commutation of (a) the benefits of a Member who is in exceptional circumstances
of serious ill-health, or (b) trivial benefits, shall be calculated on a basis agreed by the Trustees and the Principal Employer having been certified as reasonable by the Actuary. 
 14.9 GMP REQUIREMENTS 
 If a Member was in Contracted-Out Employment before 6 April 1997, then insofar as his Scheme
pension represents any Guaranteed Minimum Pension it may only be commuted in accordance with the GMP Rules. 
  

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 15 SURRENDER OPTION 
 15.1
TRUSTEES’ DISCRETION TO PERMIT SURRENDER 
 With the agreement of the Trustees a Member may elect to surrender part of his pension in return for the
provision by the Scheme of a pension or pensions for the Member’s spouse and/or such one or more of his Dependents approved by the Trustees as he may nominate payable from the date of the Member’s death if, but only if, the Member dies
after he commences to receive a pension from the Scheme. Any pension payable as a result of such an election is additional to any pension payable to the spouse or any Dependent Child of the Member pursuant to the Rules concerning benefits payable on
the Member’s death, and shall be payable for such period as the Member may agree with the Trustees. 
 15.2 MEMBER’S ELECTION TO SURRENDER

 A Member’s election under sub-rule 15.1 shall be made by giving to the Trustees such notice within such period (and with such evidence of good health)
as the Trustees may require and must in any event be made before the Member’s own pension commences. The person or persons nominated by the Member must be the Member’s spouse or a Dependent or Dependants at the date on which the notice is
given. The Trustees may in the absence of such evidence of good health, refuse to accept a Member’s election. 
 15.3 REVENUE AND CONTRACTING-OUT LIMITS
ON SURRENDER 
 The surrender of a Member’s pension under this Rule is subject to the following restrictions:- 
 (1) the amount or aggregate amount of any pensions provided for a Member’s spouse or Dependant or Dependants by virtue of an election made pursuant to sub-Rule 15.1
shall not exceed the reduced pension payable to the Member following the surrender; and 
 (2) if the Member is a Contracted-out Member the reduction in the
Member’s pension attributable to Contracted-out Employment before 6 April 1997 resulting from an election made pursuant to sub-Rule 15.1 must not be such as to reduce the Member’s pension below his Guaranteed Minimum Pension.

 15.4 SURRENDER FACTORS 
 In determining the rate at which a
Member’s pension may be surrendered pursuant to this Rule in return for the provision by the Scheme of a pension or pensions for the Member’s spouse and/or one or more of the Member’s Dependants, the Trustees shall use such surrender
factors as, having taken advice from the Actuary, they shall think fit and the Principal Employer shall approve. 
  

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 15.5 EFFECT OF DEATH OF SPOUSE OR NOMINATED DEPENDANT 
 If the spouse or any Dependant of a Member who is entitled to a pension from the Scheme as a result of an election made by the Member pursuant to sub-Rule 15.1 dies before the Member but on or after the date when the
Member’s own pension has commenced to be paid, the Member’s election made pursuant to this Rule shall remain in force and he shall remain entitled only to the part of his pension which he has not surrendered. 
 If the spouse or any Dependant of a Member who is entitled to a pension from the Scheme as a result of an election made by the Member pursuant to sub-Rule 15.1 dies
before the Member dies and before the date when the Member’s Pension commences to be paid, the Member’s election in respect of such spouse or such Dependant shall be cancelled automatically with effect from the spouse’s or
Dependant’s death and the Member’s entitlement to pension from the Scheme shall be the same as it would have been if in respect of such spouse or Dependant that election had not been made. 
 15.6 REVOCATION OF MEMBER’S ELECTION 
 An election made by a Member
pursuant to sub-Rule 15.1 may be revoked:- 
 (1) by the Member only with the Trustees’ consent and only prior to the earlier of his Normal Retirement
Age and the commencement of his pension from the Scheme; and 
 (2) by the Trustee if the Member retires from Service prior to his Normal Retirement Age.

 In either such case the Member’s entitlement to pension from the Scheme shall be the same as it would have been if that election had not been made.

 15.7 FURTHER ELECTION FOLLOWING CANCELLATION OR REVOCATION 
 Following the cancellation or revocation of a Member’s election under (as the case may be) sub-Rule 15.5 or 15.6 above the Member may, if he so wishes but subject always to sub-Rule 15.2 and the agreement of the Trustees, make a
further election in accordance with sub-Rule 15.1 
  

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 SECTION 6: BENEFITS ON MEMBER’S DEATH 
 16 BENEFITS ON MEMBER’S DEATH: GENERAL 
 16.1 CATEGORIES OF BENEFIT PAYABLE 
 If a Member dies, benefits will be provided from the Directors Section in one or more of the following categories:- 
 (1) a lump sum; 
 (2) a spouse’s pension; 
 (3) a Financial Dependant’s pension; and 
 (4) children’s
pensions. 
 The particular benefits payable on the Member’s death depend on whether the Member dies in Pensionable Service (Rule 17), in Service on or
after Normal Retirement age (Rule 18) or after the commencement of his own pension (Rule 19). 
 If a Member dies after his Pensionable Service has
terminated but before the commencement of his own pension, the benefits payable on his death are determined in accordance with Section 7 of these Rules. 
  

									
	16.2	    	PROVISIONS APPLICABLE TO PENSIONS ON MEMBER’S DEATH
			
		    	16.2.1	    	COMMENCEMENT
			
		    		    	A spouse’s or Dependant Child’s pension shall commence on the day which next follows the date of the Member’s death
			
		    	16.2.2	    	TERMINATION
				
		    		    	(a)	    	SPOUSE’S PENSION. A spouse’s pension shall terminate with the last instalment paid before the spouse dies
				
		    		    	(b)	    	FINANCIAL DEPENDANT’S PENSION. A Financial Dependant’s pension shall terminate in accordance with sub-Rule 17.3, 18.3 or 19.4 (as the case may be).
				
		    		    	(c)	    	DEPENDENT CHILD’S PENSION. A Dependent Child’s pension shall terminate with the last instalment paid before the earliest of the following dates:-
					
		    		    		    	(1)	  	if the Dependent Child does not continue in full-time educational or vocational training after attaining age 18, when the Dependent Child attains age 18;

  

 214 

									
		    		    		    	(2)	    	if the Dependent Child does continue in full-time education or vocational training after attaining age 18, when the Dependent Child ceases to be in full-time educational or vocational training
or attains age 21 if earlier; or
					
		    		    		    	(3)	    	the date of the Dependent Child’s death;
				
		    		    		    	except that in the case of a child who is a Dependent Child as a result of being wholly or partly financially dependent on the Member by reason of physical or mental incapacity, the
Dependent Child’s pension shall terminate at such time as the Trustees shall decide.
			
		    	16.2.3	    	PENSION INCREASES
			
		    		    	Pensions payable to Member’s spouses, Financial Dependants and Dependent Children under these Rules shall be increased in accordance with Rule 28.
			
		    	16.2.4	    	COMMUTATION
			
		    		    	A pension payable to a Member’s spouse, Financial Dependant or Dependent Child may only be commuted if the pension is Trivial. Such a pension may be commuted when it becomes
payable or when the Member’s own pension is commuted on grounds of triviality.
			
		    	16.2.5	    	GMP REQUIREMENTS
			
		    		    	To the extent that any part of a pension payable to the Member’s spouse is a Guaranteed Minimum Pension:-
				
		    		    	(1)	    	it is subject to the overriding guarantee set out in the GMP Rules; and
				
		    		    	(2)	    	it may only be commuted in accordance with the GMP Rules.

 17 DEATH IN PENSIONABLE SERVICE 
 17.1 LUMP SUM BENEFIT 
 If a Member dies in Pensionable Service before his Normal Retirement Age, there shall be payable in
accordance with Clause 22 in Schedule 2 to this Deed a lump sum equal to four times the Member’s Pensionable Earnings. 
 The amount payable under this
sub-Rule upon the death of any Member shall not exceed the amount which the Trustees receive, as a result of the Member’s death, under any policy by which the Member’s life is for the time being assured; but this paragraph of this sub-Rule
shall not limit the amount which the Trustees are entitled to claim from the underwriter or underwriters of the policy in question. 
  

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 17.2 SPOUSE’S PENSION 
 If a Member:- 
 (1) dies in Pensionable Service before Normal Retirement Age; and 
 (2) is survived by a spouse to whom the Member was married at the date of his death; 
 the Member’s spouse shall be
entitled to a pension from the Scheme of an initial annual amount equal to one half of the pension to which Member would have been entitled under Rule 8 if he had remained in Pensionable Service until his Normal Retirement Age (based on the
Member’s Final Pensionable Earnings at the date of his death). 
 17.3 FINANCIAL DEPENDANT’S PENSION 
 If a Member:- 
 (1) dies in Pensionable Service before Normal Retirement Age;

 (2) is not survived by a spouse to whom the Member was married at the date of his death; but 
 (3) is survived by a Financial Dependant; 
 the Trustees may if they think
fit grant a pension under the Scheme to the Financial Dependant of such initial annual amount (not exceeding the amount which would have been payable under sub-Rule 17.2 if the Member had been survived by a spouse) for such period and in all other
respects on such terms and subject to such conditions as they may in their discretion think fit. 
 17.4 CHILDREN’S PENSIONS: 
  

	17.4.1	NO PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDANT 

 If
a Member:- 
  

	 	(1)	dies in Pensionable Service before Normal Retirement Age; 

  

	 	(2)	is not survived by a spouse; 

  

	 	(3)	is not survived by a Financial Dependant to whom the Trustees decide to award a pension under sub-Rule 17.3; but 

  

	 	(4)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, if more than one, those Dependent Children) a pension (or pensions) calculated as follows:- 
  

 216 

	 	(a)	if there is only one Dependent Child, a pension of an initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule 17.2 if the
Member had been survived by a spouse; or 

  

	 	(b)	if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule
17.2 if the Member had been survived by a spouse, and such pensions shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 

  

	17.4.2	PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDANT 

 If:-

  

	 	(1)	a pension is payable to a Member’s spouse under sub-Rule 17.2 or a Member’s Financial Dependant under sub-Rule 17.3; and 

  

	 	(2)	on the death of the Member’s spouse or that Financial Dependant there is a any child living who:- 

  

	 	(i)	was a Dependent Child of the Member at the date of the Member’s death; and 

  

	 	(ii)	continues to be a Dependent Child at the date of the spouse’s or Financial Dependant’s death; 

 the spouse’s or Financial Dependant’s pension shall from then on be paid to the Dependent Child. If there is more than one such Dependent Child,
the spouse’s or Financial Dependant’s pension shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 
  

	17.4.3	ADDITIONAL PENSION 

 If a Member:- 
  

	 	(1)	dies in Pensionable Service before Normal Retirement Age; and 

  

	 	(2)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, if more than one, those Dependent Children) in addition to any pension or pensions payable under sub-Rule 17.4.1 or 17.4.2, a pension (or pensions) calculated as follows:- 
  

	 	(a)	if there is only one Dependent Child, a pension of an initial annual amount equal to 5 per cent of the Member’s Pensionable Earnings; or 

  

 217 

	 	(b)	if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to 5 per cent of the Member’s Pensionable Earnings in respect of each child
(but limited to a maximum of 15 per cent) and which shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 

 18 DEATH IN SERVICE ON OR AFTER NORMAL RETIREMENT AGE 
 18.1 LUMP SUM BENEFITS 
 If a Member dies in Service on or after his Normal Retirement Age, there shall be payable in accordance with Clause 22 in Schedule 2 to this Deed a lump sum equal to five
times what would have been the initial annual rate of the Member’s pension from the Scheme under Rule 13 if he had retired on the day before his death. 
 18.2 SPOUSE’S PENSION 
 If a Member:- 
 (1) dies
in Service on or after Normal Retirement Age; and 
 (2) is survived by a spouse to whom the Member was married at the date of his death; from the Scheme of
an initial annual amount calculated using the formula:- 
 the Member’s spouse shall be entitled to a pension from the Scheme of an initial annual
amount calculated using the formula:- 
 1/2 x Member’s Pension 
 where “Member’s Pension” is what would have been the initial amount of the Member’s pension from the Scheme under Rule 13 if he had retired on the day before his death and any exercise by the
Member of his options under Rules 14 (commutation) or 15 (surrender) were disregarded. 
 18.3 FINANCIAL DEPENDANT’S PENSION 
 If a Member:- 
 (1) dies in Service on or after Normal Retirement Age;

 (2) is not survived by a spouse to whom the Member was married at the date of his death; but 
 (3) is survived by a Financial Dependant; 
 the Trustees may if they think
fit grant a pension under the Scheme to the Financial Dependant of such initial amount (not exceeding the amount which would have been payable under sub-Rule 18.2 if the Member had been survived 

  

 218 

 
by a spouse) for such period and in all other respects on such terms and subject to such conditions as they may in their discretion think fit. 
 18.4 CHILDREN’S PENSIONS 
  

	18.4.1	NO PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDANT 

 If
a Member:- 
  

	 	(1)	dies in Service on or after Normal Retirement Age; 

  

	 	(2)	is not survived by a spouse; 

  

	 	(3)	is not survived by a Financial Dependant to whom the Trustees decide to award a pension under sub-Rule 18.3; but 

  

	 	(4)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, if more than one, those Dependent Children) a pension (or pensions) calculated as follows:- 
  

	 	(a)	if there is only one Dependent Child, a pension of an initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule 18.2 if the
Member had been survived by a spouse; or 

  

	 	(b)	if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule
18.2 if the Member had been survived by a spouse, and such pensions shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 

  

	18.4.2	PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDANT 

 If:-

  

	 	(1)	a pension is payable to a Member’s spouse under sub-Rule 18.2 or a Member’s Financial Dependant under sub-Rule 18.3; and 

  

	 	(2)	on the death of the Member’s spouse or that Financial Dependant there is any child living who:- 

  

	 	(i)	was a Dependent Child of the Member at the date of the Member’s death; and 

  

	 	(ii)	continues to be a Dependent Child at the date of the spouse’s or Financial Dependant’s death; 

 the spouse’s or Financial Dependant’s pension shall from then on be paid to that Dependent Child. If there is more than one such Dependent
Child, 

  

 219 

 
the spouse’s or Financial Dependant’s pension shall be divided amongst the Dependent Children in such shares as the Trustees may think fit.

 19 DEATH AFTER RETIREMENT 
 19.1 LUMP SUM BENEFIT: (a) 5
YEAR GUARANTEE 
 If a Member dies within the period of five years from and including the date when his pension from the Scheme commences to be payable, there
shall be payable in accordance with Clause 22 in Schedule 2 to this Deed a lump sum equal to the difference between:- 
 (a) the aggregate amount of pension
which the Member would have received during that five year period if he had survived to the end of the period (calculated on the basis that the annual rate of pension payable at the date of his death would have continued to apply for the remainder
of the period); and 
 (b) the amount of pension actually paid to him before his death. 
 19.2 LUMP SUM BENEFIT: (b) CONTINUED LIFE COVER IN SPECIAL CASES 
 Where a Member retires with an immediate early
retirement pension:- 
 (1) under Rule 11 (redundancy early retirement) where the Member’s Pensionable Service commenced before 1 October 1991; or

 (2) under Rule 12 (early retirement due to Serious Ill-health); 
 and the Member dies on or after the commencement of his early retirement pension but before his Normal Retirement Age, then:- 
 (a) if his pension
is a redundancy early retirement pension, a lump sum equal to four times the Member’s Pensionable Earnings shall be payable to his personal representatives; or 
 (b) if his pension is a Serious Ill-health early retirement pension, a lump sum equal to four times the Member’s Pensionable Earnings (or, if he is in receipt of a Serious Ill-Health pension which is less than
the maximum permitted under sub-Rule 12, a lump sum of such amount as the Trustees may decide) shall be payable in accordance with Clause 22 in Schedule 2 to this Deed. 
 19.3 SPOUSE’S PENSION 
 If a Member:- 
 (1) dies on or after the date when his pension from the Scheme commences to be payable; and 
  

 220 

 (2) is survived by a spouse to whom the Member was married at the date of his death; 
 the Member’s spouse shall be entitled to a pension from the Scheme of an initial annual amount calculated using the formula:- 
 1/2 x Member’s Pension 
 where
“Member’s Pension” means the amount of the Member’s pension from the Scheme at the date of his death or, if the Member had exercised either of his options under Rules 14 (commutation) or 15 (surrender), what would have been the
amount of the Member’s pension from the Scheme at the date of his death if he had not exercised those options. 
 19.4 FINANCIAL DEPENDANT’S
PENSION 
 If a Member:- 
 (1) dies on or after the date when his
pension from the Scheme commences to be payable; and 
 (2) is not survived by a spouse to whom the Member was married at the date of his death; but

 (3) is survived by a Financial Dependant; 
 the Trustees may
if they think fit grant a pension under the Scheme to the Financial Dependant of such initial amount (not exceeding the amount which would have been payable under sub-Rule 19.3 if the Member had been survived by a spouse) for such period and in all
other respects on such terms and subject to such conditions as they may in their discretion think fit. 
 19.5 CHILDREN’S PENSIONS 
  

	19.5.1	NO PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDANT 

 If
a Member:- 
  

	 	(1)	dies on or after the date when his pension from the Scheme commences to be payable; 

  

	 	(2)	is not survived by a spouse; 

  

	 	(3)	is not survived by a Financial Dependant to whom the Trustees decide to award a pension under sub-Rule 19.4; but 

  

	 	(4)	is survived by a Dependent Child or Dependent Children; 

 there shall be payable to that Dependent Child (or, if more than one, those Dependent Children) a pension (or pensions) calculated as follows:- 
  

 221 

	 	(a)	if there is only one Dependent Child, a pension of an initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule 19.3 if the
Member had been survived by a spouse; or 

  

	 	(b)	if there is more than one Dependent Child, pensions of an aggregate initial annual amount equal to the amount which would have been payable as a spouse’s pension under sub-Rule
19.3 if the Member had been survived by a spouse, and such pensions shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 

  

	19.5.2	PRIOR PENSION PAID TO SPOUSE OR FINANCIAL DEPENDANT 

 If:-

  

	 	(1)	a pension is payable to a Member’s spouse under sub-Rule 19.3 or a Member’s Financial Dependant under sub-Rule 19.4; and 

  

	 	(2)	on the death of the Member’s spouse or that Financial Dependant there is any child living who:- 

  

	 	(i)	was a Dependent Child of the Member at the date of the Member’s death; and 

  

	 	(ii)	continues to be a Dependent Child at the date of the spouse’s or Financial Dependant’s death; 

 the spouse’s or Financial Dependant’s pension shall from then on be paid to that Dependent Child. If there is more than one such Dependent
Child, the spouse’s or Financial Dependant’s pension shall be divided amongst the Dependent Children in such shares as the Trustees may think fit. 
  

 222 

 SECTION 7: EARLY LEAVERS 
 20
EARLY LEAVERS: GENERAL 
 20.1 REQUIREMENTS FOR ENTITLEMENT TO PRESERVED BENEFITS 
 This Section applies where, before a Member attains Normal Retirement Age, his Pensionable Service is terminated by him leaving Service or withdrawing from membership of the Directors Section whilst remaining in
Service, and he does not become entitled to an early retirement pension under Rules 9 to 12. 
 20.2 EARLY LEAVERS NOT QUALIFYING FOR PRESERVED BENEFITS

 If:- 
 (a) the Member has completed less than two years’
Qualifying Service when his Pensionable Service terminates; and 
 (b) no transfer payment has been made to the Scheme in respect of his rights under a
personal pension scheme; 
 he is entitled to a refund of contributions in accordance with Rule 21. 
 20.3 EARLY LEAVERS WHO QUALIFY FOR PRESERVED BENEFITS 
 If:- 
 (a) the Member has completed at least two years’ Qualifying Service when his Pensionable Service terminates; or 
 (b) a transfer payment has been made to the Scheme in respect of his rights under a personal pension scheme; 
 he is entitled to preserved benefits in accordance with Rule 22. 
 21. EARLY
LEAVER NOT ENTITLED TO PRESERVED BENEFITS 
 21.1 REFUND OF CONTRIBUTIONS 
 Where, as provided in sub-Rule 20.2, a Member is not entitled to preserved benefits under the Scheme, there shall be payable to him, in substitution for all other benefits payable to or in respect of him under the Scheme, an amount equal to
his Member’s Contributions less:- 
 (1) such amount as the Trustees are entitled to retain out of the refund by virtue of section 61 of the Pension
Schemes Act as a result of electing to pay a contributions equivalent premium in respect of such Member (being so much of the Premium as is attributable to primary Class 1 contributions); and 
  

 223 

 (2) such tax as the Trustees may be required to deduct. 
 21.2 TRANSFER OPTION 
 A Member to whom sub-Rule 21.1 applies may instead of taking a refund of his Member’s
Contributions elect by giving prior written notice to the Trustees to have an amount equal to his Member’s Contributions paid to another occupational pension scheme or a personal pension scheme pursuant to Clause 19 in Schedule 2. 

22 EARLY LEAVER ENTITLED TO PRESERVED BENEFITS 
 22.1 ENTITLEMENT TO
PRESERVED BENEFITS 
 Where, as provided in sub-Rule 20.3, a Member is entitled to preserved benefits under the Scheme, the Member is a Deferred Member and
the benefits payable to and in respect of him from the Scheme upon the termination of his Pensionable Service shall be determined in accordance with this Rule and Rules 23 to 26. 
 22.2 COMMUTATION AND/OR SURRENDER OF PRESERVED PENSION 
 The preserved pension payable to any Deferred Member may be:-

 (1) commuted for a lump sum, subject to and in accordance with the provisions of Rule 14: and/or 
 (2) surrendered in return for the provision by the Scheme of a pension or pensions for one or more of his Dependants, subject to and in accordance with the provisions of
Rule 15. 
 22.3 OTHER PROVISIONS APPLICABLE TO PRESERVED PENSIONS 
 Any pension payable under this Rule:- 
 (1) shall be reduced in accordance with Rule 14 or 15 to the extent that it is commuted or surrendered
under either of those Rules. 
 (2) shall be payable in accordance with Rule 27; and 
 (3) shall, after it commences, be subject to increases in accordance with Rule 28. 
 22.4 SUPPLEMENTS TO PRESERVED PENSIONS

 Deferred Members’ preserved pensions under Rules 23 to 25 may be supplemented:- 
 (1) as a result of the Member having paid additional voluntary contributions in accordance with sub-Rule 3.4 or the Former Provisions; 
  

 224 

 (2) as a result of a transfer payment or transfer payments having been received in respect of the Member under Clause 18
in Schedule 2 to this Deed or under the Former Provisions; or 
 (3) as a result of the exercise of the augmentation powers contained in Clause 21 in
Schedule 2 to this Deed. 
 The extent to which Rules 14 (commutation option), 15 (surrender option), 27 (payment of pensions) and 28 (pension increases)
apply to any supplement to the Member’s retirement pension referred to in this sub-Rule 22.4 depends on the terms agreed between the Member and the Trustees in the case of additional voluntary contributions and transfer payments and on the
terms specified by the Trustees in the case of augmentations. 
 22.5 CONTRACTING-OUT AND INLAND REVENUE REQUIREMENTS 
 The Trustees must ensure:- 
 (1) that if the Member was in Contracted-out
Employment in relation to the Scheme before 6 April 1997, the Member’s retirement pension attributable to Pensionable Service prior to 6 April 1997 complies with the GMP Rules; and 
 (2) that the Member’s retirement benefits do not exceed the limits applicable to them under the Revenue Limits Rules. 
 22.6 REVENUE LIMITS: ALTERNATIVE CALCULATION DISREGARDING RETAINED BENEFITS 
 If having regard to the treatment of retained benefits for the purpose of applying Revenue Limits to any Deferred Member’s pension, the amount calculated using the formula:- 
 Final Pensionable Earnings x (VDPS + TPS) 
 60 
 where:- 
 “VDPS” is the Member’s Vodafone Directors
Pensionable Service; and 
 “TPS” is his Transferred Pensionable Service (if any); 
 would exceed the amounts calculated in accordance with the formulae set out or referred to in the Rules in this Section 7, then the amount calculated using the formula above shall be substituted for the amount
calculated in accordance with the formulae set out in the Rules in this Section 7 and then revalued, reduced or increased as required by whichever of Rules 23, 24 or 25 is applicable to him. 
  

 225 

 22.7 ALTERNATIVES TO PRESERVED BENEFITS 
 If a Deferred Member:- 
 (1) has acquired a right under section 94 of the Pension Schemes Act to the cash equivalent of the
benefits which have accrued to or in respect of him under the Scheme; and 
 (2) he has not lost that right in accordance with section 100 of the Pension
Schemes Act; 
 he may require the Trustees to use the cash equivalent in one or more of the ways specified in section 95 of the Pension Schemes Act. In that
case the provisions of Part IV of Chapter IV of the Pension Schemes Act shall apply generally, including the discharge of the Trustees pursuant to section 99 of the Pension Schemes Act. 
 Except to the extent that a Deferred Member is entitled to exercise, and exercises, the option conferred by section 95 of the Pension Schemes Act, if he wishes the benefits accrued to and in respect of him under the
Scheme to be bought out or transferred to another retirement benefits scheme or personal pension scheme, he may request the Trustees to exercise their powers under Clauses 19 or 20 in Schedule 2 to this Deed. 
 23 COMMENCEMENT OF PRESERVED BENEFITS AT NRA 
 23.1 PAYMENT 
 At his Normal Retirement Age a Deferred Member shall be entitled to a pension from the Scheme payable for the remainder of his lifetime. 
 23.2 INITIAL ANNUAL AMOUNT: (a) PRE SEPTEMBER 93 DIRECTORS 
 In the case
of a Pre September 93 Director, the initial annual amount of the Deferred Member’s pension at Normal Retirement Age shall be calculated as follows:- 
  

	(1)     (a)	if by remaining in Pensionable Service until Normal Retirement Age the Member’s normal retirement pension would have been calculated under sub-Rule 8.2(1), by first calculating
the amount payable in accordance with the formula in that sub-Rule but using his Final Pensionable Earnings at and Pensionable Service to his Scheme Exit Date; 

  

	         (b)	if by remaining in Pensionable Service until Normal Retirement Age the Member’s normal retirement position would have been calculated under sub-Rule 8.2(2), by first
calculating the amount found by the following formula:- 

 Final Pensionable Earnings x 2 x N 
 3 NS 
  

 226 

 where:- 
  

	“N”   =	the Member’s Vodafone Directors Pensionable Service (or, in the case of a Member with Transferred Pensionable Service, the aggregate of his Vodafone Directors Pensionable
Service and his Transferred Pensionable Service); and 

  

	“NS” =	what would have been the Member’s Vodafone Directors Pensionable Service (or, in the case of a Member with Transferred Pensionable Service, the aggregate of his Vodafone
Directors Pensionable Service and his Transferred Pensionable Service) if he had remained in Pensionable Service until his Normal Retirement Age (or 40 years if less); 

 (2) by revaluing the part (if any) of the amount determined pursuant to paragraph (1) of this sub-Rule which is equal to the Member’s Guaranteed Minimum Pension in accordance with the GMP Rules; and

 (3) by revaluing the part of the amount determined pursuant to paragraph (1) of this sub-Rule which exceeds the Member’s Guaranteed Minimum
Pension in accordance with the provisions of Chapter II of Part IV of the Pension Schemes Act if the benefits payable to and in respect of the Member under the Scheme are required to be revalued under that Chapter. 
 23.3 INITIAL ANNUAL AMOUNT: (b) POST SEPTEMBER 93 DIRECTORS 
 In the
case of a Post September 93 Director, the initial annual amount of the Deferred Member’s pension at Normal Retirement Age shall be calculated as follows:- 
 (1) by first calculating the amount payable in accordance with the formula in sub-Rule 8.3(1), or, if he has Transferred Pensionable Service, sub-Rule 8.3(2), but:- 
 (i) using his Final Pensionable Earnings at and Pensionable Service to his Scheme Exit Date; and 
 (ii) in respect of his
Vodafone Directors Pensionable Service, using the same VDPS Denominator as would have been used if he had remained in Pensionable Service until Normal Retirement Age; 
 (2) by revaluing the part (if any) of the amount determined pursuant to paragraph (1) of this sub-Rule which is equal to the Member’s Guaranteed Minimum Pension in accordance with the GMP Rules; and

 (3) by revaluing the part of the amount determined pursuant to paragraph (1) of this sub-Rule which exceeds the Member’s Guaranteed Minimum
Pension in accordance with the provisions of Chapter II of Part IV of the 

  

 227 

 
Pension Schemes Act if the benefits payable to and in respect of the Member under the Scheme are required to be revalued under that Chapter. 
 24 COMMENCEMENT OF PRESERVED BENEFITS BEFORE NRA 
 24.1 CONDITIONS FOR EARLY
COMMENCEMENT 
 A Deferred Member may elect that his pension shall commence from a date before his Normal Retirement Age if the following conditions are
satisfied:- 
 (1) (a) the Deferred Member has attained the age of 50 or (b) in the Trustees’ opinion after taking medical advice he has
become incapable of following his normal employment by reason of Serious Ill-health; and 
 (2) the Trustees agree to the commencement of his pension from
that date. 
 24.2 INITIAL ANNUAL AMOUNT 
 The initial amount of
a Deferred Member’s pension under sub-Rule 24.1 shall be determined as follows:- 
 (1) by calculating the amount referred to in paragraph (1) of
whichever of sub-Rules 23.2 or 23.3 applies to him and revaluing such amount in the manner provided for in paragraphs (2) and (3) of sub-Rule 23.2 or 23.3 (whichever is applicable) to the date when the pension is to commence; and

 (2) by applying an early retirement reduction factor to the amount determined pursuant to paragraph (1) of this sub-Rule in respect of the period
from the date when the pension becomes payable until the Member’s Normal Retirement Age in order to take account of the fact that the pension is likely to be payable for longer than if it were to commence at the Member’s Normal Retirement
Age. The amount of the reduction factor shall be determined by the Trustees and the Principal Employer after consulting the Actuary. 
 24.3 PRESERVATION
REQUIREMENTS 
 In accordance with Regulation 8(4) of the Preservation Regulations the Trustees must be reasonably satisfied that, when any Member’s
benefits become payable under this Rule before his Normal Pension Age, the total value of the Member’s benefits is at least equal in value to the benefits that have accrued to or in respect of him under the Rules (on the basis that the Rules
are the “applicable rules” for the purpose of section 94(2) of the Pension Schemes Act). 
  

 228 

 25 COMMENCEMENT OF PRESERVED BENEFITS AFTER NRA 
 25.1 CONDITIONS FOR LATE COMMENCEMENT: (a) 89 LIMITS MEMBERS 
 If a Deferred Member:- 
 (1) is an 89 Limits Member for the purposes of the Revenue Limits Rules; 
 (2) leaves Service before his Normal Retirement Age; and 
 (3) continues in employment (other than Service) after his Normal Retirement Age;

 he may, with the consent of the Trustees, elect that the commencement of his pension shall be postponed until a date which is after his Normal Retirement
Age but not later than his 75th birthday. 
 25.2 CONDITIONS FOR LATE COMMENCEMENT: (b) OTHER MEMBERS 
 (1) is a Pre-87 Limits Member or an 87 Limits Member for the purposes of the Revenue Limits Rules; 
 (2) leaves Service before his Normal Retirement Age; and 
 (3) continues in employment (other than Service) after his Normal
Retirement Age; 
 he may with the consent of the Trustees, elect that the commencement of his pension shall be postponed until his employment terminates or
his 70th birthday if earlier. 
 25.3 INITIAL ANNUAL AMOUNT 
 Where the commencement of a Deferred Member’s pension has been postponed in accordance with sub-Rules 25.1 or 25.2, the initial annual amount of his pension shall be determined as follows:- 
 (1) by calculating his preserved pension at Normal Retirement Age in accordance with whichever of sub-Rules 23.2 or 23.3 applies to him; and 
 (2) by increasing the amount determined pursuant to paragraph (1) of this sub-Rule by such late retirement factor as the Trustees having consulted the Actuary
consider appropriate having regard to the period of postponement. 
  

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 25.4 PRESERVATION REQUIREMENTS 
 In accordance with Regulation 8(4) of the Preservation Regulations the Trustees must be reasonably satisfied that, when any Member’s pension becomes payable under this Rule after his Normal Pension Age, the total value of the
Member’s benefits is at least equal in value to the benefits that have accrued to or in respect of him under the Rules (on the basis that the Rules are the “applicable rules” for the purpose of section 94(2) of the Pension Schemes
Act). 
 26 BENEFITS ON DEATH OF EARLY LEAVER WITH PRESERVED BENEFITS 
 26.1 LUMP SUM ON DEATH OF DEFERRED MEMBER WHILST BENEFITS PRESERVED 
 If a Deferred Member dies before his preserved pension commences to be paid,
there shall be payable from the Scheme to the Member’s estate a lump sum equal to the Member’s Contributions. 
 26.2 SPOUSE’S PENSION ON
DEATH OF DEFERRED MEMBER WHILST BENEFITS PRESERVED 
 If a Deferred Member:- 
 (1) dies before his preserved pension commences to be paid; and 
 (2) is survived by a spouse to whom the Member was married
at the date of his death; 
 the Member’s spouse shall be entitled to a pension from the Scheme of an initial annual amount, determined as follows:-

 (1) by first calculating the amount found by using the formula:- 
 Final Pensionable Earnings x Vodafone Directors Pensionable Service; and 
 160 
 (2) by then revaluing the part of the amount found under paragraph (1) of this sub-Rule which is attributable to the Member’s Pensionable Service on or after
6 April 1997 in accordance with section 84 of the Pension Schemes Act as though it were a benefit of the kind mentioned in section 83(1)(a) of the Pension Schemes Act. 
 26.3 MEMBERS WITH TRANSFERRED PENSIONABLE SERVICE 
 In the case of the spouse of a Member with Transferred Pensionable
Service, the Member’s spouse to whom a pension is payable under sub-Rule 26.2 shall be entitled to additional pension of an initial annual amount determined as follows:- 
 (1) by first calculating the amount found by using the formula:- 
 Final Pensionable Earnings x
Transferred Pensionable Service; and 
 160 
  

 230 

 (2) by then revaluing the part of the amount found under paragraph (1) of this sub-Rule which is attributable to the
Member’s Pensionable Service on or after 6 April 1997 in accordance with section 84 of the Pension Schemes Act as though it were a benefit of the kind mentioned in section 83(1)(a) of the Pension Schemes Act. 
 26.4 FINANCIAL DEPENDANT’S PENSION 
 If a Member:- 
 (1) dies before his preserved pension commences to be paid; 
 (2) is not
survived by a spouse to whom the Member was married at the date of his death; but 
 (3) is survived by a Financial Dependant; 
 the Trustees may if they think fit grant a pension under the Scheme to the Financial Dependant of such initial annual amount (not exceeding the amount which would have
been payable under sub-Rule 26.2 (and sub-Rule 26.3 if applicable) if the Member had been survived by a spouse) for such period and in all other respects on such terms and subject to such conditions as they may in their discretion think fit.

 26.5 BENEFITS ON DEATH OF DEFERRED MEMBER AFTER PENSION COMMENCES 
 If a Deferred Member dies on or after the date when his pension from the Scheme commence to be payable, benefits shall be payable in respect of him in accordance with Rule 19. 
 26.6 OTHER PROVISIONS APPLICABLE TO SURVIVORS’ PENSIONS 
 The provisions of Rule 16 shall apply to the pensions payable
to the spouses and Financial Dependants of deceased Deferred Members under this Rule. 
  

 231 

 SECTION 8: PENSIONS - PAYMENT ARRANGEMENTS AND INCREASES 
 27 PAYMENT OF PENSIONS 
 27.1 PAYMENT ARRANGEMENTS 
 Subject to sub-Rule 27.2, all pensions payable from the Scheme shall be paid in advance by monthly installments on such working day in the month as the Trustees may from time to time decide except that the first
instalment of any pension may be paid in arrears as soon as is reasonably practicable after the pension commences. 
 27.2 POWER TO CHANGE PAYMENT
ARRANGEMENTS 
 The Trustees shall have power with the Principal Employer’s consent to alter the date on which and/or intervals at which pensions are
paid from the Scheme (including power to make alterations which result in pensions being payable otherwise than in advance) and when doing so to make such arrangements for apportionment in respect of the commencement and termination of pensions and
such transitional arrangements in respect of any such alteration in each case as they may consider necessary or desirable. 
 27.3 OVERPAYMENT OF PENSIONS

 If any instalment of any pension is paid after the person entitled to it has died, such instalment (or all of them if more than one) shall be repayable to
the Trustees by the recipient or his personal representatives (as the case may be). 
 28 PENSION INCREASES 
 28.1 GUARANTEED MINIMUM PENSIONS 
 Insofar as any pension payable from the
Scheme and attributable to Pensionable Service before 6 April 1997 is a Guaranteed Minimum Pension, it shall be increased to the extent required by the GMP Rules. 
 28.2 OTHER PENSIONS 
 Insofar as any pension payable from the Scheme is attributable to Pensionable Service before
6 April 1997 and is not a Guaranteed Minimum Pension, or is attributable to Pensionable Service on or after 6 April 1997, its annual rate shall be increased with effect from 1 April each year by five per cent. 
 28.3 FIRST ANNUAL INCREASE 
 On the 1 April which first follows the date
on which any pension commences to be paid, the increase under sub-Rule 28.2 shall be 1/12th of the percentage 

  

 232 

 
increase provided for in that sub-Rule multiplied by the number of complete months in the period from the date on which the pension commences to the
following 31 March. 
  

 233 

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 234 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 SCHEDULE 6: REVENUE LIMITS RULES

  

							
	 1
	  	 INTERPRETATION
	  	237
		  	1.1	    	Interpretation generally	  	237
		  	1.2	    	Categories of Member	  	237
		  	1.3	    	Other defined terms	  	238
		  	1.4	    	Amount of Member’s Final Remuneration	  	240
		  	1.5	    	Rules for calculating Final Remuneration	  	241
			
	2	  	 LIMITS APPLICABLE TO 89 LIMITS MEMBERS
	  	242
		  	2.1	    	Maximum benefits	  	242
		  	2.2	    	Member’s Aggregate Retirement Benefit	  	243
		  	2.3	    	Member’s Lump Sum Retirement Benefit	  	243
		  	2.4	    	Lump sum death benefit before commencement of pension	  	244
		  	2.5	    	Dependant’s pension	  	244
		  	2.6	    	Aggregate Dependant’s pensions	  	244
		  	2.7	    	Member’s contributions	  	244
		  	2.8	    	Continued life cover	  	245
		  	2.9	    	Payment of retirement benefits	  	245
			
	3	  	 LIMITS APPLICABLE TO PRE-87 AND 87 LIMITS MEMBERS
	  	245
		  	3.1	    	Maximum benefits	  	245
		  	3.2	    	Member’s Aggregate Retirement Benefit	  	245
		  	3.3	    	Member’s Lump Sum Retirement Benefit	  	246
		  	3.4	    	Lump sum death benefit before commencement of pension	  	247
		  	3.5	    	Dependant’s pension	  	247
		  	3.6	    	Aggregate Dependants’ pensions	  	247
		  	3.7	    	Member continuing in Service after Normal Retirement Age	  	248
		  	3.8	    	Controlling Directors	  	248
		  	3.9	    	Member’s contributions	  	248
		  	3.10	    	Transfers	  	249
			
	4	  	 LIMITS APPLICABLE TO ALL MEMBERS
	  	249
		  	4.1	    	Increases to pensions in payment	  	249
		  	4.2	    	Surplus AVCs	  	249
		  	4.3	    	Transfers	  	249
			
	5	  	 ELECTION BY PRE-87 AND 87 LIMITS MEMBERS FOR POST-89 REGIME
	  	250
		  	5.1	    	When election may be made	  	250
		  	5.2	    	Effect of making an election	  	250

  

 235 

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 236 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 SCHEDULE 6: REVENUE LIMITS RULES

 1 INTERPRETATION 
 1.1 INTERPRETATION GENERALLY

 These Rules shall be interpreted in accordance with this Rule and Schedule 1 to this Deed. Any reference in this Schedule to a numbered Rule is to one of
the Rules set out in this Schedule unless the reference is to a rule in one of the other Schedules. 
 1.2 CATEGORIES OF MEMBER 
 For the purpose of this Schedule, Members fall within one or other of three categories depending on which Revenue Limits apply to them:- 
 “PRE-87 LIMITS MEMBER” means any Member:- 
  

									
	(1)	    	(a)	  	who joined the Scheme before 17 March 1987; or
			
		    	(b)	  	who joined the Scheme on or after 17 March 1987 but, to whom regulation 3 of The Occupational Pension Schemes (Transitional Provisions) Regulations 1988 (SI 1988 No 1436)
applies; and
		
	(2)	    	who has not elected pursuant to Rule 5 to become an 89 Limits Member;

 “87 LIMITS MEMBER” means any Member:- 
  

									
	(1)	    	(a)	  	who joined the Scheme on or after 17 March 1987 and before 1 June 1989; or
			
		    	(b)	  	who joined the Scheme on or after 1 June 1989 but who falls with the circumstances set out in regulation 3 of The Retirement Benefits Schemes (Continuation of Rights of Members
of Approved Schemes) Regulations 1990 (SI 1990 No 2101); and
		
	(2)	    	who does not fall within the circumstances set out in regulation 3 of the Occupational Pension Schemes (Transitional Provisions) Regulations 1988 (SI 1988 No 1436);
and
		
	(3)	    	who has not elected pursuant to Rule 5 to become an 89 Limits Member;

 “89 LIMITS MEMBER” means any Member who is not a Pre-87 Limits Member or an 87 Limits Member.

  

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 1.3 OTHER DEFINED TERMS 
 In
this Schedule the following words and expressions shall have the following meanings respectively:- 
 “AGGREGATE RETIREMENT BENEFIT” means, in
relation to any Member, the aggregate of:- 
 (1) his pension under this Scheme and any Associated Scheme; and 
 (2) the pension equivalent of his Lump Sum Retirement Benefit. 
 “ASSOCIATED EMPLOYER” means, in relation to any Employer, any other employer where one is controlled by the other, or both are controlled by a third party (for which purpose control has the meaning in section 840 of the Taxes Act,
or in the case of a close company, section 417 of the Taxes Act); 
 “ASSOCIATED SCHEME” means any Relevant Scheme providing benefits in respect of
Service; 
 “CONNECTED SCHEME” means any Relevant Scheme which is connected with the Scheme in relation to the Member by reason of the fact that:-

 (1) there is a period during which the Member has been the employee of two Associated Employers; 
 (2) that period counts under both schemes as a period in respect of which benefits are payable; and 
 (3) the period counts under one scheme for service with one employer and under the other for service with the other employer; 
 “CONTROLLING DIRECTOR” means a Member who, at any time on or after 17 March 1987 and in the last 10 years before his Scheme Exit Date has, in relation to his Employer, been both within the definition of a director in section
612(1) of the Taxes Act and within paragraph (b) of section 417(5) of the Taxes Act; 
 “FLUCTUATING EMOLUMENTS” means any part of
Member’s earnings which are not paid on a fixed basis and are additional to the basic wage or salary for which purpose:- 
 (1) fluctuating emoluments
include overtime, commission, bonuses or benefits in kind as long as they are assessable to tax under Case I or II Schedule E; 
 (2) profit related pay
(whether relieved from income tax or not) may be treated as a fluctuating emolument; and 
 (3) directors’ fees may rank as fluctuating emoluments
according to the basis on which they are voted. 
  

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 “LUMP SUM RETIREMENT BENEFIT” means, in relation to a Member, the total value of all retirement benefits
payable in any form other than non-commutable pension under this Scheme and any Associated Scheme; 
 “PERMITTED MAXIMUM” is to be construed in
accordance with section 590C(2) of the Taxes Act; 
 “RELEVANT SCHEME” means:- 
 (1) any other scheme approved or in respect of which approval is being sought under Chapter I Part XIV of the Taxes Act; and 
 (2) in respect of an 89 Limits Member who is a Controlling Director also the following insofar as they provide benefits secured by contributions in respect of Service:-

 (a) any retirement annuity contract or trust scheme approved under Chapter III Part XIV of the Taxes Act; or 
 (b) any personal pension scheme approved under Chapter IV Part XIV of the Taxes Act; 
 “REMUNERATION” means, in relation to any year and any Member, the aggregate of his emoluments for the year in question from the Employer which are assessable to Income Tax under Schedule E, but:- 

(1) excluding:- 
 (a) any amounts which arise from the acquisition or
disposal of shares or any interest in shares or a right to acquire shares; or 
 (b) anything in respect of which tax is chargeable by virtue of section 148
of the Taxes Act; and 
 (2) in the case of an 89 Limits Member, disregarding any emoluments in excess of the Permitted Maximum; 
 “RETAINED DEATH BENEFITS” means any lump sum benefits payable on the Member’s death from the following schemes and arrangements to which the following
provisions of his Taxes Act are applicable:- 
 (a) retirement benefits schemes approved or in respect of which approval is being sought under Chapter I Part
XIV, or relevant statutory schemes as defined in section 611A; 
 (b) funds to which section 608 applies; 
 (c) retirement benefits schemes which have been accepted by the Inland Revenue as “corresponding” in respect of a claim made on behalf of the Member for the
purpose of section 596(2)(b); 
  

 239 

 (d) retirement annuity contracts approved under Chapter III Part XIV; or 
 (e) personal pension schemes approved under Chapter IV 
 Part
XIV; 
 (f) transfer payments from overseas schemes held in a type of arrangement defined in paragraphs (a), (d) or (e) of this definition;

 in respect of previous employments or periods of self-employment (whether alone or in partnership) but if such benefits do not exceed (pound)2,500 in
total they may be ignored; 
 “SERVICE” means service with:- 
 (a) the Employer; or 
 (b) an Associated Employer; or 
 (c) an employer who is associated with the Employer only by virtue of a permanent community of interest (except in relation to an 89 Limits Member who is a Controlling Director of either employer). 
 1.4 AMOUNT OF MEMBER’S FINAL REMUNERATION 
 For the purposes of this
Schedule, a Member’s “FINAL REMUNERATION” means whichever of the following is the greater amount:- 
 (a) his highest Remuneration upon which
tax liability has been determined for any one of the five years preceding his Scheme Exit Date being the aggregate of:- 
 (1) his basic pay for the year in
question, and 
 (2) the yearly average over three or more consecutive years ending with the expiry of the corresponding basic pay year, of any Fluctuating
Emoluments, for which purpose:- 
 (i) Fluctuating Emoluments of a year other than the basic pay year may be increased in proportion to the increase in the
RPI from the last day of that year up to the last day of the basic pay year; and 
 (ii) Remuneration which the Member receives after his Scheme Exit Date
and upon which tax liability has been determined will be treated as a Fluctuating Emolument (providing it was earned or qualified for prior to the Scheme Exit Date) and may be included provided the yearly average of three or more consecutive years
begins no later than the commencement of the basic pay year; or 
 (b) the yearly average of the Member’s total emoluments from his Employer which are
assessable to income tax under Case I or II of Schedule E and upon which tax liability has been determined for any three or more 
  

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 consecutive years ending not earlier than ten years before the Member’s Scheme Exit Date, for which purpose, where
such emoluments are received after his Scheme Exit Date but are earned or qualified for prior to that date, they may be included provided that in these circumstances the yearly average of three or more consecutive years begins no later than the
commencement of the year ending with the Scheme Exit Date. 
 1.5 RULES FOR CALCULATING FINAL REMUNERATION 
 For the purpose of sub-Rule 1.4:- 
 (1) Remuneration and total emoluments do
not include any amounts which arise from the acquisition or disposal of shares or any interest in shares or from a right to acquire shares (except where the shares or rights etc which give rise to such an amount liable to tax under Schedule E had
been acquired before 17 March 1987) or anything in respect of which tax is chargeable by virtue of section 148 of the Taxes Act. 
 (2) In relation to a
Controlling Director, Final Remuneration shall be the amount ascertained in accordance with paragraph (b) of sub-Rule 1.4 and paragraph (a) of sub-Rule 1.4 shall not apply. 
 (3) In relation to any other employee whose Remuneration in any year subsequent to 5 April 1987 used for the purpose of calculating benefits has exceeded (pound)100,000, (or such other figure as may be prescribed
by the Treasury), Final Remuneration shall not exceed the amount ascertained in accordance with paragraph (b) of sub-Rule 1.4 and paragraph (a) of sub-Rule 1.4 shall not apply, unless the individual chooses to adopt (pound)100,000 (or such
other figure as may be prescribed by the Treasury). 
 (4) Where the Final Remuneration is computed by reference to any year other than the last complete
year ending on the Member’s Scheme Exit Date, the Member’s Remuneration or total emoluments of any year may be increased in proportion to any increase in the RPI from the last day of that year up to the Scheme Exit Date. For a Pre-87
Limits Member this paragraph shall not apply to the calculation of the maximum lump sum retirement benefit unless the member’s aggregate total benefits are similarly increased beyond the maximum amount which could be paid but for this paragraph
and/or the first sentence of paragraph (a)(2) of sub-Rule 1.4 and then only to the same proportionate extent. 
 (5) For 89 Limits Members, Final
Remuneration shall not exceed the Permitted Maximum. 
 (6) For the purpose of calculating the maximum lump sum retirement benefit of an 87 Limits Member,
Final Remuneration shall not in any event exceed (pound)100,000 (or such other figure as may be prescribed by the Treasury). 
 (7) An employee who remains,
or is treated as remaining, in service but by reason of Incapacity is in receipt of a much reduced Remuneration eg under a sick pay or 

  

 241 

 
permanent health insurance scheme, for more than ten years up to his Scheme Exit Date, may calculate Final Remuneration under paragraphs (a) or
(b) of sub-Rule 1.4 with the Final Remuneration calculated at the cessation of normal pay and increased in accordance with the RPI. 
 (8) The total
amount of any profit related pay (whether relieved from income tax or not) may be classed as pensionable remuneration and treated as a Fluctuating Emolument. 
 (9) An early retirement pension in payment from the Employer may not be included in Final Remuneration. 
 Except as provided in paragraph
(1) of this sub-Rule, benefits in kind may be taken into account when they are assessed to income tax as emoluments under Schedule E, and will normally be regarded as Fluctuating Emoluments. If benefits are not so assessable, they may not be
included as part of final remuneration except with the agreement of the Inland Revenue. 
 For the purposes of providing immediate benefits at the
Member’s Scheme Exit Date it will be permitted to calculate Final Remuneration on the appropriate basis above using remuneration assessable to tax under Case I or II of Schedule E and upon which tax liability has not been determined. On
determination of this liability Final Remuneration must be recalculated. Should this result in a lower Final Remuneration then benefits in payment should be reduced if this is necessary to ensure that they do not exceed the maximum approvable based
on the lower Final Remuneration. Where Final Remuneration is greater it will be possible to augment benefits in payment but such augmentation must take the form of a non-commutable pension. 
 Where immediate benefits are not being provided or where a transfer payment is to be made in respect of accrued pension benefits then Final Remuneration may only be
calculated using Remuneration assessable to income tax under Case I or II of Schedule E and upon which tax liability has been determined. 
 2 LIMITS
APPLICABLE TO 89 LIMITS MEMBERS 
 2.1 MAXIMUM BENEFITS 
 Notwithstanding anything to the contrary in the Scheme provisions:- 
 (1) Any term used in the Scheme as a measure of the annual earnings of an 89
Limits Member for the purpose of calculating benefits is to be interpreted as though those earnings are no greater than the Permitted Maximum. The benefits so calculated may be augmented up to the maximum limits referred to in paragraph (2) of
this sub-Rule. 
 (2) The benefits payable to an 89 Limits Member or his Dependants or other beneficiaries in respect of him shall not, when aggregated with
all benefits of a like nature provided under all Associated Schemes exceed the limits set out in this Rule. 
  

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 2.2 MEMBER’S AGGREGATE RETIREMENT BENEFIT 
 The Member’s Aggregate Retirement Benefit shall not exceed:- 
 (a) on retirement at any time between attaining age 50
and attaining age 75, except before Normal Retirement Age on grounds of Incapacity, a pension of 1/60th of Final Remuneration for each year of Service (not exceeding 40 years) or such greater amount as will not prejudice Approval; 
 (b) on retirement at any time before Normal Retirement Age on grounds of Incapacity a pension of the amount which could have been provided at Normal Retirement Age in
accordance with paragraph (a) of this sub-Rule, with Final Remuneration being computed as at the actual date of retirement; 
 (c) on leaving
Pensionable Service before attaining age 75, a pension of 1/60th of Final Remuneration for each year of Service prior to leaving Pensionable Service (not exceeding 40 years) or such greater amount as will not prejudice Approval. The amount computed
may be increased by 5% for each complete year or if greater, in proportion to any increase in the RPI which has occurred between the date of termination of Pensionable Service and the date on which the pension begins to be payable. Any further
increase necessary to comply with Social Security legislation is also allowable. 
 Benefits for an 89 Limits Member are further restricted to ensure that
his total retirement benefit from this Scheme and from any Associated Scheme or Connected Scheme does not exceed a pension of 1/30th of the Permitted Maximum for each year of service, subject to a maximum of 20/30ths. For the purpose of this limit,
service is the aggregate of Service and any period of service which gives rise to benefits under a Connected Scheme provided that no period is to be counted more than once. 
 For the purpose of calculating the Aggregate Retirement Benefit or the total retirement benefit in this sub-Rule, the pension equivalent of any Lump Sum Retirement Benefit is one twelfth of its total cash value.

 2.3 MEMBER’S LUMP SUM RETIREMENT BENEFIT 
 The
Member’s Lump Sum Retirement Benefit (if any) shall not exceed:- 
 (a) on retirement at any time between attaining age 50 and attaining age 75, except
before Normal Retirement Age on grounds of Incapacity, 3/80ths of Final Remuneration for each year of Service (not exceeding 40 years) or such greater amount as will not prejudice Approval; 
 (b) on retirement at any time before Normal Retirement Age on grounds of Incapacity the amount which could have been provided at Normal Retirement Age in accordance with
paragraph (a) of this sub-Rule, with Final Remuneration being computed as at the actual date of retirement; 
  

 243 

 (c) on leaving Pensionable Service before attaining age 75, a lump sum of 3/80ths of Final Remuneration for each year of
Service prior to leaving Pensionable Service (not exceeding 40 years), or such greater amount as will not prejudice Approval. The amount computed may be increased in proportion to any increase in the RPI which has occurred between the date of
termination of Pensionable Service and the Date on which the benefit is first paid. 
 2.4 LUMP SUM DEATH BENEFIT BEFORE COMMENCEMENT OF PENSION 

The lump sum benefit (exclusive of any refund of the Member’s own contributions and any interest thereon) payable on the death of a Member while in Service or
(having left Service with a deferred pension) before the commencement of his pension shall not, when aggregated with all like benefits under Associated Schemes, exceed the greater of:- 
 (a) (pound)5,000, and 
 (b) four times the Member’s Final Remuneration (disregarding paragraph (1) of sub-Rule
1.5) less Retained Death Benefits; 
 or such greater amount as will not prejudice Approval. 
 2.5 DEPENDANT’S PENSION 
 Any pension for a Dependant, when aggregated with the pensions, other than those provided by
surrender of the Member’s own pension, payable to that Dependant under all Associated Schemes, shall not exceed an amount equal to 2/3rds of the maximum Aggregate Retirement Benefit payable in accordance with sub-Rule 2.1 had the Member retired
on grounds of Incapacity on the date of death entitled to no retained benefits from previous employments. 
 2.6 AGGREGATE DEPENDANT’S PENSIONS

 If pensions are payable to more than one Dependant of a Member, the aggregate of all Dependants’ pensions payable in respect of him under this Scheme
and all Associated Schemes shall not exceed the full amount of the maximum Aggregate Retirement Benefit payable in accordance with sub-Rule 2.2 had the Member retired on grounds of Incapacity on the date of death entitled to no retained benefits
from previous employments. 
 2.7 MEMBER’S CONTRIBUTIONS 
 Any retirement benefits secured by 89 Limits Members’ voluntary contributions must be in form of non-commutable pension except to the extent to which the provisions of the Scheme allow commutation of trivial pensions or on the grounds
of serious ill health. 
 The contributions paid to the Scheme by an 89 Limits Member in a year of assessment shall not exceed either: 
  

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 (i) when aggregated with the Member’s contributions to any other exempt approved schemes, 15 per cent of the
Member’s Remuneration; or 
 (ii) when aggregated with the Member’s contributions to any schemes which are Associated or Connected Schemes,
15 per cent of the Permitted Maximum. 
 2.8 CONTINUED LIFE COVER 
 Any provision in the rules to provide a lump sum benefit on the death of a Member occurring after retirement on pension (other than a payment under a guarantee of pension provision) shall be restricted in respect of a Member who joined the
Scheme on or after 1 October 1991 to exclude any provision other than on death occurring before the Normal Retirement Age and after retirement on grounds of Incapacity. The amount of the benefit shall not exceed the amount payable had the
Member died immediately before retirement increased in proportion to any increase in the RPI between the date of the Member’s retirement and the date of death. 
 2.9 PAYMENT OF RETIREMENT BENEFITS 
 The payment of an 89 Limits Member’s retirement benefits shall not commence earlier
than the Member attaining age 50, except on retirement on grounds of Incapacity, nor later than attaining age 75. 
 No part of an 89 Limits Member’s
retirement benefits is to be paid in advance of actual retirement except as necessary to comply with this sub-Rule or to the extent necessary to comply with the requirements of the Pension Schemes Act. 
 3 LIMITS APPLICABLE TO PRE-87 AND 87 LIMITS MEMBERS 
 3.1 MAXIMUM BENEFITS

 Notwithstanding anything to the contrary in the Scheme provisions, the benefits payable to an 87 Limits or a Pre-87 Limits Member or to his Dependants or
other beneficiaries in respect of him shall not when aggregated with all benefits of a like nature provided under all Associated Schemes exceed the limits set out in this Rule. 
 3.2 MEMBER’S AGGREGATE RETIREMENT BENEFIT 
 The Member’s Aggregate Retirement Benefit shall not exceed:-

 (a) on retirement at or before Normal Retirement Age, a pension of 1/60th of Final Remuneration for each year of Service (not exceeding 40 years) or such
greater amount as will not prejudice Approval; 
 (b) on retirement on grounds of Incapacity the amount calculated in accordance with paragraph (a) of
this sub-Rule as if the Member had remained in Service until his Normal Retirement Age, Final Remuneration being computed as at the actual date of retirement; 
  

 245 

 (c) on retirement after Normal Retirement Age, a pension of the greatest of:- 
 (i) the amount calculated in accordance with paragraph (a) of this sub-Rule on the basis that the actual date of retirement was the Member’s Normal Retirement
Age; 
 (ii) the amount which could have been provided at Normal Retirement Age in accordance with paragraph (a) of this sub-Rule increased either
actuarially in respect of the period of deferment or in proportion to any increase in the RPI during that period: and 
 (iii) where the Member’s total
Service has exceeded 40 years, the aggregate of 1/60th of Final Remuneration for each year of Service before Normal Retirement Age (not exceeding 40 such years) and of a further 1/60th of Final Remuneration for each year of Service after Normal
Retirement Age, with an overall maximum of 45 reckonable years; 
 (Final Remuneration being computed in respect of sub-paragraphs (i) and
(iii) above as at the actual date of retirement, but subject always to sub-Rule 3.7); 
 (d) on leaving Pensionable Service before Normal Retirement
Date, a pension of 1/60th of Final Remuneration for each year of Service prior to leaving Pensionable Service (not exceeding 40 years) or such greater amount as will not prejudice Approval. The amount computed may be increased by 5% for each
complete year or if greater, in proportion to any increase in the RPI which has occurred between the date of termination of Pensionable Service and the date on which the pension begins to be payable. Any further increase necessary to comply with
Social Security legislation is also allowable. 
 3.3 MEMBER’S LUMP SUM RETIREMENT BENEFIT. 
 The Member’s Lump Sum Retirement Benefit (if any) shall not exceed: 
 (a) on retirement at or before Normal Retirement Age, 3/80ths of Final Remuneration for each year of Service (not exceeding 40 years) or such greater amount as will not prejudice Approval; 
 (b) on retirement on grounds of Incapacity the amount calculated in accordance with paragraph (a) of this sub-Rule as if the Member had remained in Service until
his Normal Retirement Age. Final Remuneration being computed as at the actual date of retirement; 
 (c) on retirement after Normal Retirement Age, the
greatest of: 
 (i) the amount calculated in accordance with paragraph (a) of this sub-Rule on the basis that the actual date of retirement was the
Member’s Normal Retirement Age; 
  

 246 

 (ii) the amount which could have been provided at Normal Retirement Age in accordance with paragraph (a) of this
sub-Rule together with an amount representing interest on it. and 
 (iii) where the Member’s total Service has exceeded 40 years. the aggregate of
3/80ths of Final Remuneration for each year of Service before Normal Retirement Age (not exceeding 40 such years) and of a further 3/80ths of Final Remuneration for each year of Service after Normal Retirement Age, with an overall maximum of 45
reckonable years; 
 (Final Remuneration being computed in respect of paragraphs (i) and (iii) above as at the actual date of retirement, but
subject always to sub-Rule 3.7); 
 (d) on leaving Pensionable Service before Normal Retirement Age, a lump sum of 3/80th of Final Remuneration for each year
of Service prior to leaving Pensionable Service (not exceeding 40 years) or such greater amount as will not prejudice Approval. The amount computed as aforesaid may be increased in proportion to any increase in the RPI which has occurred between the
date of termination of Pensionable Service and the date on which the benefit is first paid. 
 3.4 LUMP SUM DEATH BENEFIT BEFORE COMMENCEMENT OF PENSION

 The lump sum benefit (exclusive of any refund of the Member’s own contributions and any interest thereon) payable on the death of a Member while in
Service or (having left Service with a deferred pension) before the commencement of his pension shall not, when aggregated with all like benefits under Associated Schemes, exceed the greater of:- 
 (a) (pounds) 5,000, and 
 (b) four times the Member’s Final
Remuneration (disregarding paragraph (1) of sub-Rule 1.5) less Retained Death Benefits; 
 or such greater amount as will not prejudice Approval.

 3.5 DEPENDANT’S PENSION 
 Any pension for a Dependant,
when aggregated with the pensions, other than those provided by surrender of the Member’s own pension, payable to that Dependant under all Associated Schemes, shall not exceed an amount equal to 2/3rds of the maximum Aggregate Retirement
Benefit payable in accordance with sub-Rule 3.2 had the Member retired on grounds of Incapacity on the date of death entitled to no retained benefits from previous employments. 
 3.6 AGGREGATE DEPENDANTS’ PENSIONS 
 If pensions are payable to more than one Dependant of a Member, the aggregate of
all Dependants’ pensions payable in respect of him under this Scheme and all 

  

 247 

 
Associated Schemes shall not exceed the full amount of the maximum Aggregate Retirement Benefit payable in accordance with sub-Rule 3.2 had the Member
retired on grounds of Incapacity on the date of death entitled to no retained benefits from previous employments. 
 3.7 MEMBER CONTINUING IN SERVICE AFTER
NORMAL RETIREMENT AGE 
 If a Member elects under Rule 13 in whichever of Schedules 3.4 or 5 applies to him to take any part of his benefits under this Scheme
in advance of actual retirement, the limits set out in sub-Rules 3.2 and 3.3 shall apply as if he had retired at the date of the election, no account being taken of subsequent Service, except that the maximum amount of any uncommuted pension not
commencing immediately may be increased either actuarially in respect of the period of deferment or in proportion to any increase in the RPI during that period. 
 3.8 CONTROLLING DIRECTORS 
 The preceding provisions of this Rule shall be modified in their application to a Member who is a Controlling Director
as follows:- 
 (a) the amount of the maximum Aggregate Retirement Benefit in sub-Rule 3.2 and of the maximum Lump Sum Retirement Benefit in sub-Rule 3.3
shall be reduced, where necessary for Approval, to take account of any corresponding benefits under retirement annuity contracts or trust schemes approved under Chapter III Part XIV of the Taxes Act or under personal pension schemes approved under
Chapter IV Part XIV of the Taxes Act: 
 (b) where retirement takes place after Normal Retirement Date but not later than the Member’s 70th birthday,
paragraph (c)(ii) and (iii) of sub-Rule 3.2 and paragraph (c)(ii) and (iii) of sub-Rule 3.3 shall not apply, and if retirement is later than the attainment of that age, those paragraphs shall apply as if the Member’s 70th birthday had
been specified in the Rules as his Normal Retirement Age, so as not to treat as Service after Normal Retirement Age any Service before the Member reaches the age of 70: 
 (c) where sub-Rule 3.7 applies to him, the rate of the actuarial increase referred to in it in relation to any period of deferment prior to his attaining the age of 70, shall not exceed the percentage increase in the
RPI during that period. 
 3.9 MEMBER’S CONTRIBUTIONS 
 Where a Pre-87 or 87 Limits Member’s voluntary contributions commence on or after 8 April 1987 any retirement benefits secured by them must be in the form of non-commutable pension except to the extent to which the provisions of
the Scheme allow commutation of trivial pensions or on the grounds of serious ill health. 
 The total contributions paid by a Pre-87 or 87 Limits Member in
a year of assessment to this and any Associated Scheme shall not exceed 15% of his Remuneration for that year. 
  

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 3.10 TRANSFERS 
 Any
retirement benefits arising by virtue of the receipt by the Scheme of a transfer value (other than from another scheme providing benefits in respect of Service) shall not be capable of commutation unless and then only to the extent that a
certificate has been obtained from the administrator of the transferring scheme showing the maximum lump sum payable from the transfer value. The amount so certified may be increased in proportion to any increase in the RPI since the date the
transfer payment was received. 
 When, on or after a transfer having been made to another occupational pension scheme, the administrator of that scheme
requests such a certificate as is referred to in the previous paragraph of this sub-Rule, the Trustees shall calculate as at the date of the transfer the maximum lump sum payable on retirement from the transfer value and certify that amount to the
receiving scheme. 
 4 LIMITS APPLICABLE TO ALL MEMBERS 
 4.1
INCREASES TO PENSIONS IN PAYMENT 
 The maximum amount of a pension ascertained in accordance with Rules 2 or 3 less any pension which has been commuted for a
lump sum or the pension equivalent of any benefits in lump sum form and any pension surrendered to provide a Dependant’s pension may be increased by 3% for each complete year or if greater, in proportion to any increase in the RPI since the
pension commenced. 
 4.2 SURPLUS AVCs 
 Where the application of
the limits in this Schedule requires the amount of the Aggregate Retirement Benefit to be restricted and the Member has paid additional voluntary contributions to supplement scheme benefits, that restriction shall first be effected on those
supplementary benefits so as to permit the repayment of the surplus additional voluntary contributions subject to section 599A of the Taxes Act. 
 4.3
TRANSFERS 
 The benefits arising on retirement from a transfer value shall not be capable of commutation nor shall they be paid in lump sum form if the
transfer is accompanied by a certificate from the administrator of the transferring scheme to the effect that the transfer value is not to be used to provide benefits in lump sum form. 
 When making a transfer to an approved personal pension scheme the Trustees shall provide a certificate of the maximum lump sum payable on retirement from the transfer value if the transferring Member:- 
 (a) was aged 45 or more at the tune that the transfer payment was made: or 
  

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 (b) has at any time within the ten years preceding the date on which the right to the cash equivalent being transferred
arose, been, in respect of any employment to which the transfer payment or any part of it relates either: 
 (i) a Controlling Director; or 
 (ii) in receipt of annual remuneration in excess of (pounds) 60,000 or, if greater, the allowable maximum (ie the equivalent for pension schemes of the Permitted
Maximum) for the year of assessment in which the date of transfer falls: or 
 (c) is entitled to benefits included in the transfer payment which arise from
an occupational pension scheme under which the normal retirement age is 45 or less. 
 5 ELECTION BY PRE-87 AND 87 LIMITS MEMBERS FOR POST-89 REGIME

 5.1 WHEN ELECTION MAY BE MADE 
 Any 87 Limits Member and any
Pre-87 Limits Member may by notice to the Trustees given before whichever of the following first occurs: 
 (1) his benefits commence to be payable:

 (2) his benefits are bought out or otherwise transferred outside the Scheme; or 
 (3) he attains age 75; 
 elect that the benefits payable to and in respect of him under the Scheme shall be determined on
the basis that he is and always has been an 89 Limits Member. 
 5.2 EFFECT OF MAKING AN ELECTION 
 Any Member who exercises his option under sub-Rule 5.1 shall thereupon cease to be an 87 Limits Member or a Pre-87 Limits Member (as the case may be) and shall thereupon
become an 89 Limits Member. 
  

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 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 SCHEDULE 7: GMP RULES 
  

							
	1	  	INTRODUCTION	  	253
				
		  	1.1	  	Application	  	253
		  	1.2	  	Interpretation	  	253
		  	1.3	  	Overriding effect	  	254
			
	2	  	MEMBER’S GMP	  	254
		  	2.1	  	Entitlement to a GMP at State Pensionable Age	  	254
		  	2.2	  	Amount of GMP	  	254
		  	2.3	  	Commencement and duration of Members GMP	  	255
		  	2.4	  	Postponement of GMP after State Pensionable Age	  	255
		  	2.5	  	Increase in GMP following postponement	  	255
		  	2.6	  	Increases after State Pensionable Age	  	255
			
	3	  	WIDOW’S AND WIDOWER’S GMP	  	255
		  	3.1	  	Entitlement to GMP	  	255
		  	3.2	  	Amount of widow’s GMP	  	255
		  	3.3	  	Amount of widower’s GMP	  	256
		  	3.4	  	Commencement and duration of widow’s GMP	  	256
		  	3.5	  	Commencement and duration of widower’s GMP	  	256
		  	3.6	  	Increases after commencement	  	256
			
	4	  	ANTI-FRANKING	  	256
			
	5	  	TRANSFERS OF GMPs INTO THE SCHEME	  	256
		  	5.1	  	Acceptance of transfers	  	256
		  	5.2	  	Revaluation of transferred-in GMPS	  	256
			
	6	  	COMMUTATION, SURRENDER AND FORFEITURE OF GMPs	  	257
		  	6.1	  	Commutation	  	257
		  	6.2	  	Suspension and forfeiture	  	257
			
	7	  	CONTRIBUTIONS EQUIVALENT PREMIUM	  	257
		  	7.1	  	Members GMP	  	257
		  	7.2	  	Widow’s or widower’s GMP	  	257
		  	7.3	  	Dispensation if amount of premium is inconsiderable	  	258

  

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 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 SCHEDULE 7: GMP RULES 
 1 INTRODUCTION 
 1.1 APPLICATION 
 These Rules apply:- 
 (1) to all Members in Pensionable Service on the
Revision Date who were in a Contracted-out Employment under the Scheme before the Revision Date; and 
 (2) to all Members who become Members on or after the
Revision Date and in relation to whom a transfer payment in respect of accrued rights to, or the liability for the payment of, GMPs is accepted by the Trustees. 
 1.2 INTERPRETATION 
 These Rules shall be interpreted in accordance with Schedule 1 to this Deed, and in addition the following words and
expressions are used only in these Rules and have the following meanings respectively:- 
 “CONTRACTING-OUT REGULATIONS” means The Occupational
Pension Schemes (Contracting-out) Regulations 1996 (SI 1996 No. 1172); 
 “EARNINGS FACTORS” shall be construed in accordance with sections 22
and 23 of the Social Security Contributions and Benefits Act 1992; 
 “FINAL RELEVANT YEAR” means the Tax Year which precedes the Tax Year in which
the Member attains State Pensionable Age; 
 “FIXED RATE REVALUATION” means the revaluation of Earnings Factors in accordance with section 17(3) of
the Pension Schemes Act and regulation 62 of the Contracting-out Regulations (revaluation at 6.25 per cent. compound); 
 “GUARANTEED MINIMUM”
shall be calculated in accordance with sections 14 to 17 of the Pension Schemes Act; 
 “GMP” means, in relation to any Member or the widow or
widower of any Member, the guaranteed minimum pension to be provided by the Scheme in accordance with the requirements of section 13 and 17 of the Pension Schemes Act; 
 “RELEVANT YEAR” means, in relation to any Member, any Tax Year in his working life (within the meaning of paragraph 5(8) of Schedule 3 to the Social Security Contributions and Benefits Act 1992) (not being
earlier than the Tax Year 1978-79 or later than the Tax Year 1996-97); 
  

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 “SECTION 148 ORDER” means an order made under section 148 of the Social Security Administration Act i992
(revaluation of Earnings Factors in order to maintain their value in relation to the general level of earnings): 
 “SECTION 148 REVALUATION” means
the revaluation of Earnings Factors in accordance with Section 148 Orders for the purpose of section 17(1) of the Pension Schemes Act; 
 “STATE
PENSIONABLE AGE” means, for the purpose only of these Rules (and in accordance with section 181(1) of the Pension Schemes Act), the age of 65 in the case of a male Member and the age of 60 in the case of a female Member. 
 1.3 OVERRIDING EFFECT 
 As required by regulation 55(1) of the
Contracting-out Regulations, Rules 2 and 3 override all other provisions of the Scheme, except any that are in accordance with the provisions of the Pension Schemes Act. 
 2 MEMBER’S GMP 
 2.1 ENTITLEMENT TO A GMP AT STATE PENSIONABLE AGE 
 As required by section 13 of the Pension Schemes Act and regulation 55(i)(a) of the Contracting-out Regulations, where a Member has a Guaranteed Minimum, he shall be
entitled at State Pensionable Age in respect of his Service before 6 April 1997 to a GMP. 
 2.2 AMOUNT OF GMP 
 Each GMP shall be payable at a rate which is equivalent to a weekly rate of not less than the Member’s Guaranteed Minimum. As permitted by section 17(2) of the
Pension Schemes Act, if a Member’s Service in Contracted-out Employment by reference to the Scheme is terminated on or after 6 April 1997 but before the Member’s Final Relevant Year:- 
 (1) his Earnings Factors for the purpose of calculating his Guaranteed Minimum shall be determined by reference to the last Section 148 Order to come into force
before the end of the Tax Year in which that Service ends; and 
 (2) as required by section 17(3) of the Pension Schemes Act and regulation 62 of the
Contracting-out Regulations, his Guaranteed Minimum shall be increased by at least 6.25 per cent compound (or such other percentage as applies when his Service terminates by virtue of regulations made under that section) for each Tax Year up to
and including his Final Relevant Year. 
  

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 2.3 COMMENCEMENT AND DURATION OF MEMBER’S GMP 
 As required by section 13(3) of the Pension Schemes Act, a Member’s GMP shall, subject to sub-Rule 2.4, commence on the date when the Member attains State Pensionable Age and shall continue for his life.

 2.4 POSTPONEMENT OF GMP AFTER STATE PENSIONABLE AGE 
 As
permitted by section 13(4) of the Pension Schemes Act, the commencement of a Member’s GMP may be postponed for any period for which he continues in employment after attaining Start Pensionable Age except that, as required by section 13(5) of
the Pension Schemes Act, the Member’s consent shall be required:- 
 (1) for any such postponement by virtue of employment to which the Scheme does not
relate: and 
 (2) for any such postponement after the duration of five years from the date on which the Member attains State Pensionable Age. 
 2.5 INCREASE IN GMP FOLLOWING POSTPONEMENT 
 Where in accordance with
sub-Rule 2.4, the commencement of any Member’s GMP is postponed for any period and there are at least seven complete weeks in that period, his Guaranteed Minimum shall be increased in accordance with section 15 of the Pension Schemes Act.

 2.6 INCREASES AFTER STATE PENSIONABLE AGE 
 To the extent that
any Member’s GMP is attributable to Earnings Factors for the Tax Years 1988-89 to 1996-97, it shall be increased in accordance with section 109 of the Pension Schemes Act, having regard to section 15(4) of the Pension Schemes Act where the
commencement of the GMP has been postponed. 
 3 WIDOW’S AND WIDOWER’S GMP 
 3.1 Entitlement to GMP 
 As required by section 17(1) of the Pension Schemes Act, if any Member to whom these Rules apply
dies leaving a widow or widower (whether before or after attaining State Pensionable Age), the widow or widower shall be entitled to a GMP under the Scheme. 
 3.2 AMOUNT OF WIDOW’S GMP 
 As required by section 17(2) of the Pension Schemes Act and regulation 55(1)(b) of the Contracting-out Regulations,
where a male Member has a Guaranteed Minimum, his widow shall be entitled in respect of the Member’s Service before 6 April 1997 to a GMP, being a pension under the Scheme payable at a rate which is equivalent to a weekly rate of not less
than half the Member’s Guaranteed Minimum. 
  

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 3.3 AMOUNT OF WIDOWER’S GMP 
 As required by section 17(2) of the Pension Schemes Act and regulation 55(1)(c) of the Contracting-out Regulations, where a female Member has a Guaranteed Minimum, her widower shall be entitled in respect of the Member’s Service before
6 April 1997 to a GMP, being a pension under the Scheme payable at a rate which is equivalent to a weekly rate of not less than half of that part of the Member’s Guaranteed Minimum which is attributable to Earnings Factors for the Tax Year
1988-89 and subsequent Tax Years up to and including the Tax Year 1996-97. 
 3.4 COMMENCEMENT AND DURATION OF WIDOW’S GMP 
 In accordance with section 17(5) of the Pension Schemes Act, the widow’s pension shall be payable to her for any period for which any such pension or allowance as is
mentioned in that section is payable to her. 
 3.5 COMMENCEMENT AND DURATION OF WIDOWER’S GMP 
 In accordance with section 17(6) of the Pension Schemes Act, the widower’s pension shall be payable to him in the circumstances and for the period prescribed by
regulations 57 and 58 of the Contracting-out Regulations. 
 3.6 INCREASES AFTER COMMENCEMENT 
 To the extent that a widow’s or widower’s GMP is attributable to Earnings Factors for the Tax Years 1988-89 to 1996-97, it shall be increased in accordance with section 109 of the Pension Schemes Act.

 4 ANTI-FRANKING 
 Chapter III of the Pension Schemes Act
applies to the Scheme so as to protect increases in GMPs. 
 5 TRANSFERS OF GMP INTO THE SCHEME 
 5.1 ACCEPTANCE OF TRANSFERS 
 The Trustees may accept a transfer payment in respect of accrued rights to, or the liability
for the payment of GMPs in the circumstances and subject to the conditions prescribed by the Contracting-out Transfer Regulations (or such other regulations as may be made under section 20 of the Pension Schemes Act). 
 5.2 REVALUATION OF TRANSFERRED-IN GMPs 
 Where on or after 6 April 1997
the Trustees accept a transfer payment in respect of the accrued rights to GMPs of any Member then in accordance with section 17(1) of the Pension Schemes Act (as modified by regulation 65 of the Contracting-out Regulations), the Member’s
Earnings Factors arising out of Contracted-out Employment in any Relevant Year in a period of linked qualifying service (within the meaning of section 179 of the Pension Schemes Act) shall be increased in accordance with whichever of the following

  

 256 

 
paragraphs of this sub-Rule the Trustees shall decide (in each case as contemplated by regulation 66 of the Contracting-out Regulations):- 
 (a) at the race by which they fell to be increased under the provisions of the transferring scheme (or would have fallen to be increased under the provisions of
that scheme relating to an earner whose service in Contracted-out Employment by reference to that scheme is terminated before he attains State Pensionable Age); or 
 (b) in accordance with the provisions of sections 17(2) and (3) of the Pension Schemes Act, or regulations made under section 17(3) of that Act (i.e. Fixed Rate Revaluation); or 
 (c) by reference to Section 148 Orders from the date of termination of the Member’s service in the period of Contracted-out Employment from which those
Earnings Factors arose. 
 6 COMMUTATION, SURRENDER AND FORFEITURE OF GMPs 
 6.1 COMMUTATION 
 As permitted by section 21(1) of the Pension Schemes Act, any Member’s, widow’s or widower’s
GMP payable by the Scheme may be commuted for a lump sum in the circumstances set out in regulation 60 of the Contracting-out Regulations. 
 6.2 SUSPENSION
AND FORFEITURE 
 As permitted by section 21(2) of the Pension Schemes Act, a Member’s widow’s or widower’s GMP:- 
 (a) may be suspended in the circumstances set out in regulation 61(1) of the Contracting-out Regulations; and 
 (b) may be forfeited in the circumstances set out in regulation 61(2) of the Contracting-out Regulations. 
 7 CONTRIBUTIONS EQUIVALENT PREMIUM 
 7.1 MEMBER’S GMP 
 As provided in section 60(4) of the Pension Schemes Act, the payment of a contributions equivalent premium in the circumstances mentioned in section 55(2A)(a) and (b),
(d) and (e) of that Act extinguishes a Member’s accrued rights to GMPs under the Scheme. 
 7.2 WIDOW’S OR WIDOWER’S GMP 

As provided in section 60(5) of the Pension Schemes Act, the payment of a contributions equivalent premium in the circumstances mentioned in section 55(2A)(c) of that
Act extinguishes any accrued rights to GMPs under the Scheme of any Member’s widow or widower. 
  

 257 

 7.3 DISPENSATION IF AMOUNT OF PREMIUM IS INCONSIDERABLE 
 As provided by paragraph 5(3) in Schedule 2 to the Pension Schemes Act and regulation 32(2) of the Contracting-out Regulations, where the amount of any contributions equivalent premium which is payable does not exceed
(pounds)17, the Trustees shall not be liable to pay it. 
  

 258 

 VODAFONE GROUP PENSION SCHEME 
 SECOND DEFINITIVE DEED AND RULES 
 SCHEDULE 8: LIST OF GOVERNING DOCUMENTS

 PART 1: THIS SCHEME 
  

									
	  	  	       DATE     
	  	 DEED
	  	 	  	 PARTIES

	 1
	  	10 Oct 1988	  	Interim Trust Deed	  	(1)	  	Racal Telecom Plc
		  		  		  	(2)	  	Racal Telecom (Staff) Trustee Ltd
					
	 2
	  	06 Feb 1990	  	Deed of Amendment	  	(1)	  	Racal Telecom Plc
		  		  		  	(2)	  	Racal Telecom (Staff) Trustee Ltd
					
	 3
	  	03 Aug 1990	  	Definitive Deed	  	(1)	  	Racal Telecom Plc
		  		  		  	(2)	  	Racal Voda-Retail
		  		  		  	(3)	  	Racal Telecom (Staff) Trustee Ltd
					
	 4
	  	23 Oct 1991	  	Deed of Amendment	  	(1)	  	Vodafone Group Plc
		  		  		  	(2)	  	Vodafone Group (Staff) Trustee Ltd
					
	 5
	  	30 Jan 1995	  	Deed of Amendment	  	(1)	  	Vodafone Group Plc
		  		  		  	(2)	  	Vodafone Group (Staff) Trustee Ltd
					
	 6
	  	30 Jan 1996	  	Deed of Amendment	  	(1)	  	Vodafone Group Plc
		  		  		  	(2)	  	Vodafone Group (Staff) Trustee Ltd
	
	PART 2: VODAFONE EM&SM SCHEME
					
	  	  	       DATE      
	  	 DOCUMENT
	  	 	  	 PARTIES

	 1
	  	03 Aug 1990	  	Definitive Deed	  	(1)	  	Racal Telecom Plc
		  		  		  	(2)	  	Racal Telecom (Senior Managers) Trustee Limited
					
	 2
	  	23 Oct 1991	  	Deed of Amendment	  	(1)	  	Vodafone Group Plc
		  		  		  	(2)	  	Vodafone Group (Senior Managers) Trustee Limited

  

 259 

									
	 3
	  	30 Jan 1995	  	Deed of Amendment	  	(1)	  	Vodafone Group Plc
		  		  		  	(2)	  	Vodafone Group (Senior Managers) Trustee Limited
					
	 4
	  	30 Jan 1996	  	Deed of Amendment	  	(1)	  	Vodafone Group Plc
		  		  		  	(2)	  	Vodafone Group (Senior Managers) Trustee Limited
					
	 5
	  	30 Mar 1999	  	Deed of Amendment	  	(1)	  	Vodafone Group Plc
		  		  		  	(2)	  	Vodafone Group (Senior Managers) Trustee Limited

 PART 3: VODAFONE DIRECTORS SCHEME 
  

									
	  	  	       DATE      
	  	 DOCUMENT
	  	 	  	 PARTIES

	 1
	  	03 Aug 1990	  	Definitive Deed	  	(1)	  	Racal Telecom Plc
		  		  		  	(2)	  	Racal Telecom (Directors) Trustee Limited
					
	 2
	  	23 Oct 1991	  	Deed of Amendment	  	(1)	  	Vodafone Group Plc
		  		  		  	(2)	  	Vodafone Group (Directors) Trustee Limited
					
	 3
	  	30 Jan 1995	  	Deed of Amendment	  	(1)	  	Vodafone Group Plc
		  		  		  	(2)	  	Vodafone Group (Directors) Trustee Limited
					
	 4
	  	30 Jan 1996	  	Deed of Amendment	  	(1)	  	Vodafone Group Plc
		  		  		  	(2)	  	Vodafone Group (Directors) Trustee Limited
					
	 5
	  	30 Mar 1999	  	Deed of Amendment	  	(1)	  	Vodafone Group Plc
		  		  		  	(2)	  	Vodafone Group (Directors) Trustee Limited

  

					
	SIGNED and DELIVERED as a deed	 	)	 	 /s/    KJ Hydun

	by VODAFONE GROUP PLC acting	 	)	 	Director
	by, KJ Hydun, Director and	 	)	 	
	by SR Scott, Secretary	 	)	 	 /s/    S.R. Scott

		 		 	Secretary

  

 260 

					
	SIGNED and DELIVERED as a deed	 	)	 	 /s/    S.R. Scott

	by VODAFONE GROUP PENSION	 	)	 	Director
	TRUSTEE LIMITED acting by SR Scott	 	)	 	
	Director and	 	)	 	 /s/    Mark Prudden

	by             , Director/Secretary	 	)	 	Directory/Secretary

  

 261

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