The Armed Forces Pension Regulations 2014

CHAPTER 2 Transfers out

Right to require payment of a transfer value

99.—(1) This Chapter applies to a member to whom Chapter 4 of Part 4 of the PSA 1993 (transfer values) applies.

(2) This Chapter—

(a) supplements the rights conferred by or under that Chapter; and

(b) is without prejudice to that Chapter.

(3) Accordingly, the deferred member is entitled to require payment of a transfer value in respect of the member’s right to accrued benefits under this scheme.

(4) Paragraph (3) does not apply to benefits that are attributable (directly or indirectly) to a pension credit.

(5) Paragraph (3) does not apply if the member is entitled under regulation 96 (repayment of contributions) to repayment of the contributions the member has paid during the period of service ending with the member’s ceasing to be an active member or acquires a right to a contribution refund under Chapter 5 of Part 4 of the PSA 1993.

Applications for statements of entitlement

100.—(1) A member who requires a transfer value payment must apply to the scheme administrator under section 93A(1) of the PSA 1993 for a statement of entitlement.

(2) The application must be in writing.

(3) The member may withdraw the application by notice in writing at any time before the statement is provided.

(4) The member may not make more than 2 applications in any period of 12 months.

Applications for a transfer value payment

101.—(1) A member who has been provided with a statement of entitlement may apply to the scheme administrator under section 95 of the PSA 1993 for a transfer value payment.

(2) The application must—

(a) specify the pension scheme or other pension arrangement to which the transfer value should be paid; and

(b) meet such other conditions as the scheme manager may require.

(3) The member may withdraw the application by notice in writing to the scheme administrator in accordance with section 100(1) of the PSA 1993.

(4) Under section 100(2) of that Act, a withdrawal is of no effect if an agreement for the use of the whole or part of the cash equivalent has already been entered into with a third party.

Calculating amount of the transfer value

102.—(1) If a transfer value payment is made later than 6 months after the guarantee date, the amount of the transfer value must be increased in accordance with regulations made under section 97 of the PSA 1993.

(2) If a transfer value is less than the minimum transfer value, the amount of the transfer value must be increased so that it is equal to the amount of the minimum transfer value.

(3) For the purpose of paragraph (2), “the minimum transfer value” is the sum of the following amounts—

(a) the amount of the member’s contributions under Part 7 (contributions to purchase added pension); and

(b) the amount of any transfer value payments and cash transfer sums accepted in relation to the member under this Part.

Ways in which a transfer value payment may be used

103.—(1) A member may only require the scheme manager to use a transfer value payment in a way specified in section 95(2) of the PSA 1993.

(2) The whole of the transfer value must be applied subject to paragraph (4).

(3) A transfer value payment may only be made to—

(a) a registered pension scheme; or

(b) a pension arrangement that is a qualifying recognised overseas pension scheme for the purposes of Part 4 of the FA 2004 (see section 169(2) of that Act).

(4) If section 96(2) of the PSA 1993 applies, there may be excluded from the transfer value payment the benefits attributable to—

(a) the member’s accrued rights to a guaranteed minimum pension; or

(b) the member’s accrued rights attributable to service in contracted-out employment on or after 6 April 1997.

Effect of transfers out

104.  If a transfer value payment is made under this Chapter in respect of a member’s accrued rights under this scheme, those rights are extinguished.