Contracting-out requirements affecting transfers out
121.—(1) There must be deducted from the transfer payment to be made in respect of any person –
(a)the amount of any contributions equivalent premium payable pursuant to section 51 of the Pension Schemes (Northern Ireland) Act 1993; or
(b)an amount sufficient to meet the liability in respect of his contracted-out rights.
(2) But the amount mentioned in paragraph (1)(b) may not be deducted where –
(a)the transfer payment is made to an occupational pension scheme which is contracted-out or an appropriate personal pension scheme; and
(b)that scheme’s trustees or managers undertake to accept liability for his contracted-out rights.
(3) Where the amount mentioned in paragraph (1)(a) is deducted, if the Committee thinks fit, that amount may be used in preserving the liability mentioned in paragraph (2)(b) in the fund.
(4) Otherwise, it must be used in paying the premium.
(5) Contracted-out rights, in relation to a member, are –
(a)his and his surviving spouse’s rights to guaranteed minimum pensions; and
(b)his section 5(2B) rights (as defined in regulation 1(2)) of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996)(1).
S.R. 1996 No. 493; the definition of “section 5(2B) rights” was substituted by S.R.1997 No. 160 Schedule 1, paragraph 5