74(1)An individual's “transferable sum” is the amount of cash equivalent set out in a statement of entitlement which the Fund trustees provide to the individual under section 93A of the Pension Schemes Act 1993 (c. 48) (but see rules 76 to 78 which provide for enhancement and reduction of transferable sums).S
(2)That section applies for the purposes of the scheme in relation to an individual who—
(a)is aged 64 or over, and
(b)stopped being a participating member no longer than 6 months ago,
in the same way as it applies in relation to an individual aged under 64.
75SAn individual's transferable sum must be transferred from the Pension Fund if the following conditions are met—
| Condition 1 | The individual— (a) has been but is no longer a participating member, and (b) is not a scheme pensioner. |
| Condition 2 | The individual has total reckonable service of at least 3 months. |
| Condition 3 | The Fund trustees have given the individual a statement of entitlement in pursuance of section 93A of the Pension Schemes Act 1993 (c. 48). |
| Condition 4 | The individual gives the Fund trustees notice (a “transfer-out notice”)— (a) specifying the way in which the transferable sum is to be transferred, and (b) setting out any other information which the Fund trustees may reasonably require in relation to the transfer. |
| Condition 5 | The transfer-out notice is given before the later of— (a) the day falling 6 months after the individual stopped being a participating member, and (b) the individual's 64th birthday. |
| Condition 6 | The transfer-out notice is given within 3 months of the guarantee date relating to the statement of entitlement (see [F1section 93A(4)] of the Pension Schemes Act 1993 (c. 48)). |
| Condition 7 | The way in which the transferable sum is to be transferred is permitted by section 95(2) of the Pension Schemes Act 1993 (c. 48). |
| Condition 8 | The transfer— (a) would be a recognised transfer for the purposes of section 169 of the Finance Act 2004 (c. 12), and (b) is not prohibited by any other enactment. |
Textual Amendments
F1Words in sch. 1 para. 75 substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 43(2) (with s. 87)
76(1)A transferable sum of less than amount A is to be increased to amount A.S
(2)Amount A, in relation to an individual, means the total of—
(a)the individual's scheme member contributions,
(b)any transfer-in sums paid into the Pension Fund in relation to the individual, and
(c)any instalments or lump sums paid by the individual to buy added years.
77SWhere section 96(2) of the Pension Schemes Act 1993 (c. 48) applies in relation to a transfer under rule 75, the Fund trustees may reduce the transferable sum by an amount equal to the proportion of that sum which represents the individual's accrued rights—
(a)to a guaranteed minimum pension, or
(b)attributable to service in contracted-out employment (within the meaning of section 8 of the Pension Schemes Act 1993 (c. 48)).
78(1)Where rule 75 requires a transfer to be made, the transferable sum is to be paid from the Pension Fund in the way specified in the transfer-out notice by no later than—S
(a)the individual's 65th birthday, or
(b)if later, the day falling 6 months after the transfer notice was given.
(2)If payment is made later than 6 months after the guarantee date relating to the statement of entitlement by reference to which the transferable sum was determined, the transferable sum is to be increased by—
(a)the amount, if any, by which it falls short of what the transferable sum would have been if the guarantee date had been the date of payment, or
(b)if greater, the amount of interest on the transferable sum calculated on a daily basis over the period from the guarantee date to the date of payment (calculated at an annual rate of 1% above the Bank of England base rate).
79SThe Fund trustees may extend any time limit set out in this Chapter in relation to a particular transfer if they think it reasonable to do so.
80SA transfer under rule 75 extinguishes the rights of all persons to receive scheme benefits in respect of the individual (other than any accrued rights in respect of which the transferable sum was reduced under rule 77).