Part IVProtection for early leavers
Chapter Ireservation of benefit under occupational schemes
77Assignment, surrender and commutation of benefit
1
Except as provided by this section, a scheme—
a
must contain rules preventing assignment of short service benefit; and
b
must not enable such benefit to be surrendered or commuted.
2
Subsection (1) does not apply to any assignment, surrender or commutation of a policy of insurance or annuity contract in accordance with conditions prescribed by regulations under section 19(4)(b) or (c).
3
A scheme may enable assignment in favour of the member’s widow or widower or dependant (whether or not the benefit is in payment).
4
A scheme may, at the option of the member, enable surrender—
a
to provide benefit for the member’s widow, widower or dependant;
b
to acquire for the member transfer credits under the rules of another occupational pension scheme or rights under the rules of a personal pension scheme or a self-employed pension arrangement;
c
to acquire for the member entitlement to further benefits under the same scheme, relating both to a period of pensionable service previously terminated and also to a subsequent period of service in relevant employment.
5
A scheme may enable a member’s benefit to be commuted—
a
in a case where he opts (at any time) to commute at or after normal pension age; or
b
in exceptional circumstances of serious ill-health; or
c
in such other circumstances as may be prescribed.
6
A scheme may enable benefit for a member’s widow, widower or dependant to be commuted in such circumstances as may be prescribed.
7
In the application of this section to Scotland, for references to assignment there shall be substituted references to assignation.