# The Occupational Pension Schemes (Preservation of Benefit) Regulations 1991, Regulation 6: Means of assuring short service benefit


(1) For the purposes of section 73(1) of the Act, short service benefit that is not payable directly out of the resources of the scheme may be assured to the member by means of a transaction to which section 19 of the Act (extinguishment of liability of scheme for pensions secured by insurance policies or annuity contracts) applies, and which satisfies the requirements of paragraph (2) of this regulation ....
(2) A transaction satisfies the requirements of this paragraph if—
(a) it results in the member’s short service benefit being secured by one or more policies of insurance or annuity contracts that are appropriate for the purposes of section 19 of the Act; and
(b) the member will be able to assign or surrender the insurance policies or annuity contracts on the conditions set out in regulation 3 of the Occupational Pension Schemes (Discharge of Liability) Regulations 1997 (conditions on which policies of insurance and annuity contracts may be assigned or surrendered).
(3) For the purposes of paragraph (2) of this regulation, a policy of insurance or annuity contract which is taken out or entered into with an authorised friendly society, but which otherwise satisfies the conditions for being “appropriate” for the purposes of section 19 of the Act, is to be treated as if it were appropriate for the purposes of that section provided the terms of such policy or contract are not capable of being amended, revoked or rescinded.
(4) In this regulation—
“friendly society” has the same meaning as in the Friendly Societies Act 1992 (including any society which by virtue of section 96(2) of that Act is to be treated as a registered friendly society within the meaning of that Act);
“authorised friendly society” means a friendly society which is authorised under section 32 of the Friendly Societies Act 1992 to carry on long term business under any of the Classes specified in Head A of Schedule 2 to that Act.

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Source: https://www.legislation.gov.uk/uksi/1991/167/regulation/6 (the official version)
Page: https://openlegislation.uk/occupational-pension-schemes-preservation-of-benefit-regulations-1991/regulation-6
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.