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(6) An order under this section may include provision for—

(a) treating a new public scheme as a salary-related contracted out scheme
for the purposes of Part 3 of the Pension Schemes Act 1993, and

(b) applying any provision of that Part with modifications.

(7) 5Provision made by an order under this section may have retrospective effect.

(8) The Secretary of State may—

(a) provide for a new public scheme to be administered by any person, and

(b) delegate to any person any functions exercisable by the Secretary of
State under a new public scheme.

17 10Division of the RMPP into different sections

(1) The Secretary of State may by order make provision for—

(a) the division of the RMPP into different sections,

(b) the participation of different companies in the different sections, and

(c) the allocation of assets, rights, liabilities or obligations between the
15different sections.

(2) Provision made by an order under this section may have retrospective effect.

18 Amendments of the RMPP

(1) The Secretary of State may by order make such amendments of the RMPP as
the Secretary of State considers appropriate in connection with any order made
20under section 16 or 17.

(2) The provision that may be made by an order under this section includes
provision authorising or requiring the amount of pensions or other benefits
payable to or in respect of qualifying members of the RMPP to be determined
in particular circumstances by reference to pensionable service under the
25RMPP before and after the qualifying time.

(3) Provision made by an order under this section may have retrospective effect.

19 Protection against adverse treatment

(1) Subsection (2) applies to the exercise by the Secretary of State of—

(a) the power to make an order under section 16 in a case where the order
30contains provision establishing a new public scheme or transferring
qualifying accrued rights to a new public scheme, and

(b) the power to make an order under section 17 or 18.

(2) In exercising the power the Secretary of State must ensure that the relevant
pensions provision in respect of each person who is or has been a member of
35the RMPP is, in all material respects, at least as good immediately after the
exercise of the power as it is immediately before the exercise of the power.

(3) “The relevant pensions provision” means the provision for the payment of
pensions or other benefits which is contained in the RMPP or in a new public
scheme.

(4) 40Subsections (1) to (3) do not require provision to be included in a new public
scheme if the Secretary of State is of the opinion that the provision would be

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incompatible with any enactment or EU obligation (including any enactment
applying as a result of any provision made under this Part).

(5) Nothing in subsections (1) to (3) is to be read as—

(a) requiring particular provisions of the RMPP or a new public scheme to
5take the same or similar form,

(b) requiring a new public scheme to be established in a particular way,

(c) requiring any power or duty conferred or imposed by the RMPP or a
new public scheme to be exercised or performed in a particular way, or

(d) affecting any power of any person to amend the RMPP or a new public
10scheme.

(6) The power of the Secretary of State to amend a new public scheme may not be
exercised in any manner which would or might adversely affect any provision
of the scheme made in respect of qualifying accrued rights unless—

(a) the consent requirements are satisfied in respect of the exercise of the
15power in that manner, or

(b) the scheme is amended in the prescribed manner.

(7) The consent requirements are those prescribed for the purpose of obtaining the
consent of members of the scheme to its amendment.

20 Transfer of assets of the RMPP

(1) 20The Secretary of State may by order make provision for the transfer of assets of
the RMPP to—

(a) the Secretary of State,

(b) a nominee of the Treasury, or

(c) a fund established by the Secretary of State for the purpose of holding
25the assets pending their disposal.

(2) An order under this section may be made only if an order under section 16 is
being, or has been, made.

(3) An order under this section may include provision for—

(a) the delegation to any person of the administration and management of
30any fund within subsection (1)(c), and

(b) the making of payments into the Consolidated Fund.

(4) This section needs to be read with section 21 (which contains restrictions on the
exercise of the power to make a transfer under this section).

21 Restriction on power to transfer assets

(1) 35The power of the Secretary of State to make an order under section 20 (a
“transfer order”) must be exercised so as to secure that the ratio of assets to
liabilities of the RMPP immediately after the relevant time is at least equal to
the ratio of the assets to liabilities of the RMPP immediately before that time.

(2) “The relevant time” is the time at which the order under section 16 in
40consequence of which the transfer order is made has effect.

(3) For the purposes of this section any reference to the assets or liabilities of the
RMPP is to their amount or value determined, calculated and verified by a
prescribed person and in the prescribed manner.

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(4) In calculating the value of any liabilities for those purposes, a provision of the
RMPP that limits the amount of its liabilities by reference to the amount of its
assets is to be disregarded.

(5) For the purposes of this section as it applies in relation to the transfer of assets
5after the relevant time by virtue of a transfer order—

(a) treat the assets as if they had been transferred at the relevant time, but

(b) disregard so much of the assets as were transferred to reflect the fact
that the assets were not actually transferred at the relevant time.

Supplementary provisions

22 10Taxation

(1) The Treasury may by regulations make provision for varying the way in which
any relevant tax would, apart from the regulations, have effect in relation to—

(a) a new public scheme,

(b) members of a new public scheme, or

(c) 15a fund within section 20(1)(c).

(2) Regulations under subsection (1) may include provision for treating a new
public scheme as a registered pension scheme.

(3) The Treasury may by regulations make provision for varying the way in which
any relevant tax would, apart from the regulations, have effect in relation to, or
20in connection with, anything done in relation to—

(a) the RMPP, or

(b) any members of the RMPP,

by or under, or in consequence of, an order made under this Part.

(4) Regulations under subsection (1) or (3) may include provision for any of the
25following—

(a) a tax provision not to apply or to apply with modifications,

(b) anything done to have or not to have a specified consequence for the
purposes of a tax provision, and

(c) the withdrawal of relief and the charging of a relevant tax.

(5) 30Provision made by regulations under subsection (1) or (3), other than provision
withdrawing a relief or charging a relevant tax, may have retrospective effect.

(6) The Treasury may by regulations make provision, in relation to qualifying
accounting periods, for extinguishing such losses made in a trade as they
consider are attributable to deductions made for, or in connection with,
35contributions in respect of qualifying members of the RMPP.

(7) A “qualifying” accounting period is one beginning on or after the date (“the
trigger date”) on which an order under section 16 is made establishing a new
public scheme or transferring qualifying accrued rights to a new public
scheme.

(8) 40Regulations under subsection (6) have effect only if the company whose losses
are extinguished is wholly owned by the Crown (within the meaning of Part 1)
on the day before the trigger date.

(9) In this section—

23 Information

(1) The Secretary of State may by order make provision for requiring any
prescribed person to disclose any information (whether in the form of a
15document or otherwise) to the Secretary of State for any purpose of this Part.

(2) Information that—

(a) relates to pensions or other benefits under the RMPP or a new public
scheme, or

(b) relates to the administration of the RMPP or a new public scheme in
20respect of those pensions or other benefits,

may be shared among relevant persons for the purpose of facilitating the
administration of the RMPP or new public scheme.

(3) “Relevant persons” means—

(a) the Secretary of State,

(b) 25any person who administers, or exercises functions under, a new public
scheme,

(c) the trustee of the RMPP,

(d) any person who exercises functions on behalf of the trustee of the
RMPP, or

(e) 30any person who is or has been an employer of a qualifying member of
the RMPP.

24 Orders and regulations

(1) Before making—

(a) an order under section 16 that contains provision establishing a new
35public scheme or transferring qualifying accrued rights to a new public
scheme, or

(b) any order under any other provision of this Part,

the Secretary of State must consult the trustee of the RMPP and a Royal Mail
company (within the meaning of Part 1).

(2) 40The Secretary of State may not make an order under any provision of this Part
(apart from section 23) unless the Treasury have consented to its making.

(3) Any order under this Part is subject to negative resolution procedure.

(4) Any order under this Part may provide for it (or any of its provisions) to come
into force on a specified day.

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(5) A “specified day” means a day specified in an order made by the Secretary of
State under this subsection (and different days may be specified for different
purposes).

Subsections (1) to (3) do not apply to an order under this subsection.

(6) 5A statutory instrument containing regulations under section 22 is subject to
annulment in pursuance of a resolution of the House of Commons.

(7) Nothing in any provision of this Part that authorises the inclusion of any
particular kind of provision in any order, regulations or scheme is to be read as
restricting the generality of the provision that may be included in the order,
10regulations or scheme.

25 Interpretation of Part 2

(1) In this Part—

(2) Any reference in this Part to amending the RMPP includes—

(a) amending the trust deed or rules of the RMPP or any other instrument
relating to the constitution, management or operation of the RMPP, and

(b) 40amending any instrument relating to the provision of financial support
to or in relation to the RMPP.

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Part 3 Regulation of postal services

Postal services

26 Postal services, postal packets and postal operators

(1) 5“Postal services” means—

(a) the service of conveying postal packets from one place to another by
post,

(b) the incidental services of receiving, collecting, sorting and delivering
postal packets, and

(c) 10any other service which relates to, and is provided in conjunction with,
any service within paragraph (a) or (b).

(2) “Postal packet” means a letter, parcel, packet or other article transmissible by
post.

(3) “Postal operator” means a person who provides—

(a) 15the service of conveying postal packets from one place to another by
post, or

(b) any of the incidental services of receiving, collecting, sorting and
delivering postal packets.

(4) A person is not to be regarded as a postal operator merely as a result of
20receiving postal packets in the course of acting as an agent for, or otherwise on
behalf of, another.

(5) The Secretary of State may make regulations prescribing circumstances in
which subsection (4) is not to apply.

(6) Regulations under subsection (5) are subject to affirmative resolution
25procedure.

27 General authorisation to provide postal services

(1) Persons may provide postal services without the need for any licence or
authorisation, but the provision of those services by postal operators may be
subject to regulatory conditions that OFCOM may impose on them under this
30Part.

(2) In this Part a “regulatory condition” means any of the following conditions—

(a) a designated USP condition (see sections 35 and 36),

(b) a USP access condition (see section 37 and Schedule 3),

(c) a USP accounting condition (see section 38),

(d) 35a general universal service condition (see section 40),

(e) an essential condition (see section 47),

(f) a general access condition (see section 48 and Schedule 3), and

(g) a consumer protection condition (see sections 49 and 50).

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The universal postal service

28 Duty to secure provision of universal postal service

(1) OFCOM must carry out their functions in relation to postal services in a way
that they consider will secure the provision of a universal postal service.

(2) 5Accordingly, the power of OFCOM to impose access or other regulatory
conditions is subject to the duty imposed by subsection (1).

(3) In performing their duty under subsection (1) OFCOM must have regard to—

(a) the need for the provision of a universal postal service to be financially
sustainable, and

(b) 10the need for the provision of a universal postal service to be efficient.

(4) OFCOM’s duty under subsection (1) includes a duty to carry out their
functions in relation to postal services in a way that they consider will secure
the provision of sufficient access points to meet the reasonable needs of users
of the universal postal service.

(5) 15In this Part “access point” means any box, receptacle or other facility provided
for the purpose of receiving postal packets, or any class of postal packets, for
onwards transmission by post.

29 The universal postal service

(1) OFCOM must by order (a “universal postal service order”) set out—

(a) 20a description of the services that they consider should be provided in
the United Kingdom as a universal postal service, and

(b) the standards with which those services are to comply.

(2) A universal postal service must, as a minimum, include each of the services set
out in section 30 (as read with sections 31 and 32).

(3) 25Before making or modifying a universal postal service order, OFCOM must
carry out an assessment of the extent to which the market for the provision of
postal services in the United Kingdom is meeting the reasonable needs of the
users of those services.

(4) Subsection (3) does not apply in relation to the making of the first universal
30postal service order; but OFCOM must carry out an assessment of the kind
mentioned in that subsection before the end of the period of 18 months
beginning with the day on which the provisions of this Part come generally
into force.

(5) The Secretary of State may direct OFCOM to secure that the first universal
35postal service order does not include services of a description specified in the
direction.

(6) OFCOM must notify the European Commission of—

(a) the universal postal service order, and

(b) any modifications of the order.

30 40Minimum requirements

This section sets out the services that must, as a minimum, be included in a

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universal postal service.

Requirement 1: delivery of letters or other postal packets

(1) At least one delivery of letters every Monday to Saturday—

(a) to the home or premises of every individual or other person
5in the United Kingdom, or

(b) to such identifiable points for the delivery of postal packets as
OFCOM may approve.

(2) At least one delivery of other postal packets every Monday to Friday
to the places within paragraph (1)(a) or (b).

(3) 10The references in this requirement to the delivery of letters or other
postal packets include the delivery of packets posted outside the
United Kingdom.

Requirement 2: collection of letters or other postal packets

(1) At least one collection of letters every Monday to Saturday from
15every access point in the United Kingdom used for the purpose of
receiving postal packets, or any class of them, for onwards
transmission in connection with the provision of a universal postal
service.

(2) At least one collection of other postal packets every Monday to
20Friday from every access point in the United Kingdom used for that
purpose.

(3) The references in this requirement to the onwards transmission of
letters or other postal packets include their onwards transmission to
places outside the United Kingdom.

25Requirement 3: service at affordable prices in accordance with uniform public tariff

(1) A service of conveying postal packets from one place to another by
post (including the incidental services of receiving, collecting,
sorting and delivering them) at affordable prices determined in
accordance with a public tariff which is uniform throughout the
30United Kingdom.

(2) The reference in this requirement to conveying postal packets from
one place to another includes conveying them to places outside the
United Kingdom.

Requirement 4: registered items service

35A registered items service at affordable prices determined in
accordance with a public tariff which is uniform throughout the
United Kingdom.

Requirement 5: insured items service

An insured items service at affordable prices determined in
40accordance with a public tariff which is uniform throughout the
United Kingdom.

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Requirement 6: services to blind or partially sighted

The provision free of charge of such postal services as are specified
in the universal postal service order to such descriptions of blind or
partially sighted persons as are so specified.

5Requirement 7: legislative petitions and addresses

A service of conveying free of charge qualifying legislative petitions
and addresses.

31 Section 30: definitions

(1) “Insured items service” means a service of conveying postal packets from one
10place to another by post which, in the event of the theft or loss of or damage to
the packets, provides for the payment of an amount up to the value of the
packets as declared by the sender.

(2) “Legislative petitions and addresses” means—

(a) petitions and addresses to Her Majesty meeting the weight and covers
15requirements which are sent by post to a member of a legislative body,

(b) petitions meeting those requirements which are addressed to a
legislative body and are sent by post to a member of such a body or to
the Clerk of the Scottish Parliament, or

(c) petitions and addresses forwarded to Her Majesty or, in Northern
20Ireland, to the Secretary of State.

(3) For the purposes of subsection (2)

(a) a “legislative body” means either House of Parliament, the Scottish
Parliament, the National Assembly for Wales or the Northern Ireland
Assembly, and

(b) 25petitions or addresses meet the “weight and covers requirements” if
they do not exceed 1 kilogram in weight and are sent without covers or
in covers open at the sides.

(4) “Registered items service” means a service of conveying postal packets from
one place to another by post which provides—

(a) 30for the registration of the packets in connection with their conveyance
by post, and

(b) for the payment of an amount determined by the person providing the
service in the event of the theft or loss of or damage to the packets.

(5) In this section references to conveying postal packets from one place to another
35include—

(a) the incidental services of receiving, collecting, sorting and delivering
them, and

(b) conveying them to places outside the United Kingdom.

32 Exceptions to minimum requirements

(1) 40Nothing in section 30 requires the doing of anything in relation to a letter or
other postal packet—

(a) whose weight exceeds 20 kilograms, or

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(b) whose dimensions fall outside the minimum and maximum
dimensions laid down in the Convention and the Agreement
concerning Postal Parcels adopted by the Universal Postal Union.

(2) The requirements in section 30 in respect of the delivery or collection of letters
5or other postal packets (requirements 1 and 2)—

(a) do not need to be met on any day which is (in the part of the United
Kingdom concerned) a public holiday, and

(b) do not need to be met in such geographical conditions or other
circumstances as OFCOM consider to be exceptional.

(3) 10Nothing in section 30 is to be read—

(a) as requiring a service to continue without interruption, suspension or
restriction in an emergency, or

(b) as preventing individual agreements as to prices from being concluded
with customers.

33 15Review of minimum requirements

(1) OFCOM may from time to time review the extent to which the provision made
by section 30 reflects the reasonable needs of the users of postal services
provided in the United Kingdom.

(2) A review under subsection (1) may, in particular, consider whether the
20requirements imposed by that section could be altered so as better to reflect
those needs.

(3) OFCOM must send a copy of each review under subsection (1) to the Secretary
of State.

(4) The Secretary of State may at any time direct OFCOM to carry out a review
25under subsection (1).

(5) Where OFCOM have carried out a review under subsection (1), the Secretary
of State may by order amend section 30.

(6) The provision that may be made by an order under subsection (5) does not
include the making of different provision in relation to different places in the
30United Kingdom.

(7) An order under subsection (5)

(a) is subject to affirmative resolution procedure, and

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