SCHEDULE 5CONTINUITY OPTION 1: TRANSFER OUT AND WINDING UP
Trustees’ powers
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1
The trustees of a scheme that is pursuing continuity option 1 may, without members’ consent, provide—
a
for either—
i
a member’s accrued rights and benefits (including any transfer credits allowed under the scheme) to be transferred, or
ii
a transfer payment in respect of a member’s rights to be made,
to a trustee default scheme or an employer default scheme in accordance with this Schedule, with a view to acquiring transfer credits for the member under that scheme; or
b
for arrangements to be made in accordance with paragraph 12 (trustees’ power to transfer otherwise than to a scheme).
2
A transfer payment made under sub-paragraph (1)(a)(ii) must be of an amount at least equal to the cash equivalent of the member’s rights under the scheme, calculated in accordance with paragraph 2.
3
The trustees of a scheme that is pursuing continuity option 1 may, where appropriate, decline a member’s request for a drawdown pension (as defined in paragraph 4 of Schedule 28 to the Finance Act 200471) (drawdown pension) in the transferring scheme.
4
A transfer, transfer payment or alternative arrangement under this paragraph is prescribed for the purposes of section 73(4)(b) of the 1993 Act (form of short service benefit and its alternatives).