SCHEDULES
C1SCHEDULE 2 Transfer of accrued benefits
Part II Transfers out
Method of taking cash benefit
6
1
A qualifying member who acquires a right to a cash equivalent under paragraph 5 above may only take it by exercising the option conferred by this paragraph.
2
The option is that of requiring the Treasury to use the cash equivalent in whichever of the following ways the qualifying member chooses—
a
for acquiring transfer credits allowed under the rules of another occupational pension scheme—
i
whose trustees or managers are able and willing to accept him; and
ii
which satisfies prescribed requirements;
b
for acquiring rights allowed under the rules of a personal pension scheme—
i
whose trustees or managers are able and willing to accept him; and
ii
which satisfies prescribed requirements;
c
for purchasing from one or more authorised F1insurers—
i
chosen by the qualifying member, and
ii
willing to accept payment on his account from the Treasury,
one or more annuities which satisfy prescribed requirements;
d
for subscribing to other pension arrangements which satisfy prescribed requirements.
3
Without prejudice to the generality of the power to prescribe requirements under sub-paragraph (2) above, such requirements may provide that pension arrangements or a scheme or annuity must satisfy such requirements of the Commissioners of Inland Revenue as may be prescribed.
4
A qualifying member may exercise his option in different ways in relation to different portions of his cash equivalent.
5
A qualifying member who exercises his option must do so in relation to the whole of his cash equivalent or, where sub-paragraph (6) below applies, in relation to the whole of the reduced cash equivalent.
6
Where—
a
the trustees or managers of—
i
an occupational pension scheme which is not a contracted-out scheme, or
ii
iii
a self-employed pension arrangement within the meaning of regulation 2D of the M1Occupational Pension Schemes (Transfer Values) Regulations 1985, regulation 2D of the M2Occupational Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1985, regulation 2A of the M3Personal Pension Schemes (Transfer Values) Regulations 1987, regulation 2A of the M4Personal Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1987 or any other prescribed provision,
are able or willing to accept a transfer payment only in respect of a qualifying member’s rights other than his accrued rights to a guaranteed minimum pension F6or his protected rights; and
b
the member has not required the Treasury to use the portion of his cash equivalent which represents a guaranteed minimum pension F4or protected rights in any of the ways specified in sub-paragraph (2) above,
paragraph 5 above, this paragraph and paragraph 7 below are to be read as conferring on the member an option only in respect of the reduced cash equivalent.
7
In this paragraph “reduced cash equivalent” means a sum equal to the balance of the cash equivalent to which the qualifying member would be entitled if sub-paragraph (6) above did not apply, after deduction of an amount sufficient for the Treasury to meet its liability in respect of the member’s guaranteed minimum pension or F5protected rights or thoseF5that of his widow, or her widower.
Sch. 2 applied (with modifications) (31.3.1995) by 1967 c. 13, Sch.1 para. 4(1) (as substituted (31.3.1995) by 1993 c. 8, s. 25, Sch. 4 Pt. II para. 2; S.I. 1995/631, art. 2)
Sch. 2 applied (with modifications) (31.3.1995) by S.I. 1987/460 (N.I. 5), art.4A (as inserted (31.5.1995) by 1993 c. 8, s. 25, Sch. 4 Pt. IV para. 5(4); S.I. 1995/631, art. 2)
Sch. 2 applied (with modifications) (31.3.1995) by 1969 c. 10 (N.I.), Sch.1A para. 4(1) (as inserted (31.3.1995) by 1993 c. 8, s. 25, Sch. 4 Pt. V para. 6(6); S.I. 1995/631, art. 2)
Sch. 2 extended (with modifications) (16.7.1996) by S.I. 1996/1298 (N.I. 8), art. 5(4), Sch. 1 para. 6(2)(3)(4)
Sch. 2 extended (with modifications) (16.7.1996) by S.I 1996/1297 (N.I. 7), art. 4(4), Sch. 1 para. 6(2)(3)(4)