Article 5 Transfer value payments
If a person to whom this Order applies, within 3 months after the date on which he entered such other employment as aforesaid or within 6 months after the date of the coming into operation of this Order (whichever period last expires), or within such longer period as the persons administering the transferring scheme may in any particular case allow, gives notice in writing to the persons administering that scheme that he desires a transfer value payment to be made in respect of him under the provisions of this Order to the receiving scheme and within the same period, or within such longer period as the persons administering the receiving scheme may in any particular case allow, pays to the persons administering the receiving scheme an amount equal to the sum (if any) which was paid by the persons administering the transferring scheme to him by way of a return of contributions (other than voluntary contributions) and interest thereon on his ceasing to be eligible to participate in that scheme, then, as soon as may be after the said notice has been given and the said payment (if any) made, the persons administering the transferring scheme shall, on being satisfied that the conditions prescribed in paragraph (2) of this Article are satisfied in relation to the receiving scheme, pay to the persons administering the receiving scheme a transfer value payment calculated in accordance with paragraph (3) of this Article.
The prescribed conditions as respects a receiving scheme are:—
the scheme is an approved scheme, and
the scheme is a scheme under which the person entering it will be entitled to benefits which are equitable in all the circumstances of the case if a transfer value payment is made in respect of him under the provisions of this Order; and
the scheme is a scheme which will treat as an employer's contribution for the purpose thereof the amount (if any) by which any transfer value payment which may be made under the provisions of this Order in respect of the person entering it exceeds the aggregate of—
the contributions actually paid by that person under the provisions of the transferring scheme,
any interest which under the terms of the transferring scheme would have been payable on these contributions if a refund thereof had been claimed by that person, and
in a case where that person has participated in another pension scheme before becoming a member of the transferring scheme and a transfer value had been paid to the persons administering the transferring scheme in respect of such previous participation, any sum which is for the purpose of the transferring scheme treated as that person's own contributions under such other pension scheme.
The amount of the transfer value payment under the provisions of this Order shall be such sum as may be determined by the persons administering the transferring scheme, in consultation with an actuary appointed by them, to represent the value of the pension right under that scheme of the person in question, having regard to the period or aggregate of periods of his service ranking for benefit thereunder, but reduced by the aggregate of the following—
the amount of any sum actually paid by the persons administering the transferring scheme to that person by way of a return of contributions and interest thereon on his ceasing to be eligible to participate therein, and
the amount of any income tax on that sum payable by virtue of regulations made under section 379 of the Income Tax Act 1952.
Where a transfer value payment in respect of any person is made under the provisions of this Order by the persons administering the transferring scheme, no other benefit shall be granted to or in respect of that person under that scheme.