Paragraph 25 The Pension Schemes Act

(1)

Section 174 (linked qualifying service) is amended as follows.

(2)

In subsection (1)(a)—

(a)

for “the rules of a scheme” substitute “Chapter 4 or 5 of Part IV or under the rules of a scheme”,

(b)

for sub-paragraph (i) substitute—

“(i)

there was made a transfer of his rights (including any transfer credits allowed) under that scheme, or a transfer payment in respect of those rights, to, or to the trustees or managers of, another scheme applying to him in the later period of service;”,

(c)

for “and” at the end of sub-paragraph (ii), substitute “or”, and

(d)

after that sub-paragraph add—

“(iii)

a cash equivalent (within the meaning of Chapter 4 of Part IV) or cash transfer sum (within the meaning of Chapter 5 of that Part) was paid in respect of him to the trustees or managers of another scheme applying to him in the later period of service; and”.

(3)

In subsection (1)(b), after “second scheme,” insert “or the payment to the trustees or managers of that scheme,”.