Regulation 9 Bought out benefits

the member will be able to assign or surrender the insurance policy or annuity contract on the conditions set out in F4regulation 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); and

the requirements of paragraph (5) are satisfied.

the scheme is being wound up; or

the member has less than “5 years’ qualifying service” (as defined in paragraph 7 of Schedule 16 F5to the Social Security Act 1973 immediately before the coming into force of section 10 of the M1 Social Security Act 1986 (changes to preservation requirements)) and the requirements of paragraph (6) are satisfied; or

F6the trustees or managers of the scheme consider that, in the circumstances, it is reasonable for the scheme to provide the alternative without the member’s consent and the requirements of paragraph (6) are satisfied.

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the insurance policy is taken out or the annuity contract entered into more than 12 months after the member’s pensionable service terminates;

the trustees or managers of the scheme give the member at least 30 days’ written notice of their intention to take out the insurance policy or enter into the annuity contract unless the member exercises a right to a cash equivalent, as described in Chapter IV of Part IV of the Act (the notice being sent to the member F9in accordance with regulations 26 to 28 (giving information and documents) of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 or delivered to the member personally); and

when the trustees or managers of the scheme agree with the insurance company to take out the insurance policy or enter into the annuity contract, there is no outstanding application by the member for a cash equivalent.