7.—(1) If a pension credit derives from a pension arrangement which is approved for the purposes of Part XIV of the[1988 c. 1.] Income and Corporation Taxes Act 1988, an arrangement is disqualified as a destination for the credit unless—
(a)it is also approved for those purposes, or
(b)it satisfies such requirements as the Department may prescribe by regulations.
(2) If the rights by reference to which the amount of a pension credit is determined are or include contracted-out rights or safeguarded rights, an arrangement is disqualified as a destination for the credit unless—
(a)it is of a description prescribed by the Department by regulations, and
(b)it satisfies such requirements as the Department may so prescribe.
(3) An occupational pension scheme is disqualified as a destination for a pension credit unless the rights to be acquired under the arrangement by the person entitled to the credit are rights whose value, when calculated in accordance with regulations made by the Department, equals the credit.
(4) An annuity contract or insurance policy is disqualified as a destination for a pension credit in such circumstances as the Department may prescribe by regulations.
(5) The requirements which may be prescribed under sub-paragraph (1)(b) include, in particular, requirements of the Inland Revenue.
(6) In sub-paragraph (2)—
“contracted-out rights” means such rights under, or derived from—
(a)an occupational pension scheme contracted-out by virtue of section 5(2) or (3) of the Pension Schemes Act, or
(b)a personal pension scheme which is an appropriate scheme for the purposes of that Act, as the Department may prescribe by regulations;
“safeguarded rights” has the meaning given by section 64A of the Pension Schemes Act.