Social Security Act 1986

9 (1) Effect may be given to protected rights—

(a) by the provision by the scheme of a pension which—

(i) complies with the requirements of sub-paragraph (7) below; and

(ii) satisfies such conditions as may be prescribed ; or

(b) in such circumstances and subject to such conditions as may be prescribed, by the making of a transfer payment—

(i) to another personal pension scheme; or

(ii) to an occupational pension scheme,

where the scheme to which the payment is made satisfies such requirements as may be prescribed.

(2) If—

(a) the rules of the scheme do not provide for a pension ; or

(b) the member so elects,

effect may be given to protected rights by the purchase by the scheme of an annuity which—

(i) complies with the requirements of sub-paragraphs (7) and (8) below; and

(ii) satisfies such conditions as may be prescribed.

(3) Effect may be given to protected rights by the provision of a lump sum if—

(a) the lump sum is payable on a date which is either the date on which the member attains pensionable age or such later date as has been agreed by him ; and

(b) the annual rate of a pension under sub-paragraph (1) above or an annuity under sub-paragraph (2) above giving effect to the protected rights and commencing on the date on which the lump sum is payable would not exceed the prescribed amount; and

(c) the circumstances are such as may be prescribed; and

(d) the amount of the lump sum is calculated in a manner satisfactory to the Occupational Pensions Board by reference to the amount of the pension or annuity.

(4) If the member has died without effect being given to protected rights under sub-paragraph (1), (2) or (3) above, effect may be given to them in such manner as may be prescribed.

(5) No transaction is to be taken to give effect to protected rights unless it falls within this paragraph.

(6) Effect need not be given to protected rights if they have been extinguished by the payment of a personal pension protected rights premium.

(7) A pension or annuity complies with this sub-paragraph if—

(a) it commences.—

(i) on the date on which the member attains pensionable age ; or

(ii) on such later date as has been agreed by him, and continues until the date of his death;

(b) in a case where the member dies while it is payable to him and is survived by a widow or widower—

(i) it is payable to the widow or widower in prescribed circumstances and for the prescribed period at an annual rate which at any given time is one-half of the rate at which it would have been payable to the member if the member had been living at that time; or

(ii) where that annual rate would not exceed a prescribed amount and the circumstances are such as may be prescribed, a lump sum calculated in a manner satisfactory to the Occupational Pensions Board is provided in lieu of it.

(8) An annuity complies with the requirements of this sub-paragraph if it is provided by an insurance company which—

(a) satisfies prescribed conditions ;

(b) complies with such conditions as may be prescribed as to the calculation of annuities provided by it and as to the description of persons by or for whom they may be purchased; and

(c) subject to sub-paragraph (9) below, has been chosen by the member.

(9) A member is only to be taken to have chosen an insurance company if he gives notice of his choice to the trustees or managers of the scheme within the prescribed period and in such manner and form as may be prescribed, and with any such supporting evidence as may be prescribed; and, if he does not do so, the trustees or managers may themselves choose the insurance company instead.