Requirements to be satisfied by transferee schemes, annuities etc.
8.—(1) For the purpose of section 74(3)(a) (discharge of liability to or in respect of a member by the acquisition of transfer credits under another occupational pension scheme), the requirements to be satisfied by the other scheme are the same as those which would apply by virtue of section 95(2)(a) of the Pension Schemes Act 1993(1) (ways of taking right to cash equivalent) if—
(a)the member were entitled to a cash equivalent under Chapter IV of Part IV of that Act in respect of the rights liability in respect of which is being discharged, and
(b)he required his cash equivalent to be used to acquire transfer credits allowed under the rules of the scheme.
(2) For the purpose of section 74(3)(b) (discharge of liability to or in respect of a member by the acquisition of rights under a personal pension scheme), the requirements to be satisfied by the personal pension scheme are the same as those which would apply by virtue of section 95(2)(b) of that Act if the member were so entitled and he required his cash equivalent to be used to acquire rights allowed under the rules of the scheme.
(3) For the purpose of section 74(3)(c) (discharge of liability to or in respect of a member by the purchase of one or more annuities) the requirements to be satisfied by the annuities are the same as those which would apply by virtue of section 95(2)(c) of that Act if the member were so entitled and he required his cash equivalent to be used to purchase annuities from such insurance companies as are mentioned in section 95(2)(c).
(4) For the purpose of section 74(3)(d) (discharge of liability to or in respect of a member by subscribing to other pension arrangements satisfying prescribed requirements) the discharge of a liability to or in respect of a member may be provided for by transferring to him, or to any person who is entitled to benefits in respect of him, the benefit—
(a)of one or more contracts to provide annuities which—
(i)satisfy the requirements mentioned in paragraph (3); and
(ii)are provided by insurance companies which consent to the transfer; or
(b)of one or more policies of insurance which satisfy the requirements mentioned in section 19(4) of the Pension Schemes Act 1993(1) (appropriate policies and annuity contracts).
(5) For the purpose of section 74(3)(d), the discharge of a liability to or in respect of a member of a contracted-out scheme may also be provided for in a case where sub-paragraph (3B) of paragraph 5 of Schedule 2 to the Pension Schemes Act 1993(2) applies by a payment to the Secretary of State of the amount mentioned in paragraph (b) of that sub-paragraph (amount required for restoring the member’s State scheme rights) if—
(a)the member has duly made such an application as is required for the restoration of his State scheme rights in accordance with that provision, or
(b)in a case where such an application may be made by the trustees or managers, they have duly made such an application;
and in this paragraph “State scheme rights” has the same meaning as in that sub-paragraph.
Sub-paragraphs (3A) to (3E) were inserted in paragraph 5 of Schedule 2 by section 141(2) of the Pensions Act 1995 (c. 26).