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Paragraph 5 Ways in which transfer value payments may be applied

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

A member who is entitled to a guaranteed cash equivalent transfer value payment under Chapter IV of Part IV of the 1993 Act may only require the authority to apply the guaranteed cash equivalent transfer value payment in one or more of the ways permitted under section 95 of that Act.

(2)

A member who is not entitled to a guaranteed cash equivalent transfer value payment under Chapter IV of Part IV of the 1993 Act may only require the authority to apply the guaranteed cash equivalent transfer value payment in one of the ways permitted under section 95 of that Act.

(3)

The whole of the guaranteed cash equivalent transfer value payment must be applied, unless paragraph (4) applies.

(4)

The benefits attributable to—

(a)

the member’s accrued rights to a guaranteed minimum pension, or

(b)

the member’s accrued rights attributable to service in contracted-out employment on or after 6th April 1997,

may be excluded from the guaranteed cash equivalent transfer value payment if section 96(2) of the 1993 Act applies (trustees or managers of certain receiving schemes or arrangements able and willing to accept a transfer payment only in respect of the member’s other rights).

(5)

A transfer payment may only be made to—

(a)

a pension scheme that is registered under Chapter 2 of Part 4 of the Finance Act 2004, or

(b)

an arrangement that is a qualifying recognised overseas pension scheme for the purposes of that Part (see section 169(2) of that Act).