Conditions on which policies of insurance and annuity contracts may be assigned or surrendered
3. The conditions referred to in section 19(4)(b) of the 1993 Act (policy of insurance or annuity contract appropriate for the purposes if it may not be assigned or surrendered except on conditions which satisfy prescribed requirements) are—
(a)that the written consent of the earner or, if the earner has died, the earner’s widow or widower to the assignment or surrender is obtained; and
(b)that in consideration of the assignment or surrender the benefits previously secured by the policy of insurance or annuity contract become secured, or are replaced by benefits which are secured, by one or more of the following means—
(i)another policy of insurance or annuity contract which is appropriate within the meaning of section 19(4) of the 1993 Act,
(ii)subject to regulations 3, 5 and 6 of the Contracting-out (Transfer and Transfer Payment) Regulations 1996(1) in the case of benefits which include guaranteed minimum pensions, the award of supplementary credits under an occupational pension scheme which applies to the employment of the earner at the time of the assignment or surrender or the granting of rights to money purchase benefits under a personal pension scheme, or
(iii)in the case only of benefits which are not, and do not include guaranteed minimum pensions, the award of rights to money purchase benefits under a self-employed pension arrangement within the meaning of regulation 12(6)(a) of the Occupational Pension Schemes (Transfer Values) Regulations 1996(2) or regulation 2A of the Personal Pension Schemes (Transfer Values) Regulations 1987(3).