Social Security Act 1973

9 (1) Subject to the following sub-paragraph, a member's short service benefit must either be payable (as mentioned in paragraph 6(2) above) directly out of the resources of the scheme or be assured to him by such means as may be prescribed.

(2) Subject to the following sub-paragraphs, a scheme may, instead of providing short service benefit, provide—

(a) for the member's accrued rights to be transferred to another scheme (whether recognised or not) with a view to the acquisition for him of transfer credits under the other scheme; or

(b) for such alternatives to short service benefit as may be prescribed.

(3) Either of the alternatives specified in sub-paragraph (2)(a) and (b) above may be by way of complete or partial substitute for short service benefit, but (except in such cases as may be prescribed) only with the member's consent.

(4) An alternative prescribed under sub-paragraph (2)(b) above must not include any payment by way of return of contributions, except in respect of—

(a) a period of service before the appointed day ; or

(b) a period of service of less than 5 years after that day if (and only if) there has been such a payment in respect of a period of service before that day.