Social Security Act 1986

26 (1) Section 52C (cases where scheme's liability is discharged) shall have effect and shall he deemed always to have had effect as if the following subsections were substituted for subsections (1) to (3)—

“(1) A transaction to which this section applies discharges the trustees or managers of an occupational pension scheme from their liability to provide for or in respect of any person either the requisite benefits or short service benefit or any alternative to short service benefit—

(a) if it is carried out not earlier than the time when that person's pensionable service terminates ; and

(b) if and to the extent that it results in—

(i) the requisite benefits ; or

(ii) short service benefit, or an alternative to short service benefit, for or in respect of that person being appropriately secured ; and

(c) in a case where the transaction takes place on or after 1st January 1986, if and to the extent that the requirements set out in any one of paragraphs (a), (b) and (c) of subsection (5) below are satisfied.

(2) This section applies to the following transactions—

(a) the taking out or the transfer of the benefit of a policy of insurance or a number of such policies ;

(b) the entry into or the transfer of the benefit of an annuity contract or a number of such contracts.”.

(2) Subsection (5) of that section shall have effect and shall be deemed always to have had effect as if " (1) " were substituted for "(2)(b) ".

(3) In relation to transactions which take place after the commencement of section 8 above section 52C(1) of the [1975 c. 60.] Social Security Pensions Act 1975 shall have effect with the substitution of the words "guaranteed minimum pensions" for the words " the requisite benefits ", in both places where they occur.