PART II Occupational Pension Schemes

Recognition

F158 Transfer of benefit between schemes: linked qualifying service.

(1)

In this Act—

(a)

“transfer credits” means rights allowed to an earner under the rules of an occupational pension scheme by reference to a transfer to that scheme of his accrued rights from another scheme;

(b)

“accrued rights”, in relation to a scheme, includes any transfer credits allowed under that scheme; and

(c)

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and in this subsection “rights” includes rights to benefit and also options to have benefit paid in a particular form or at a particular time.

(2)

F3Subject to subsections (2A) and (2B) belowfor the purposes of this Act, any period of an earner’s service in an employment is linked qualifying service in relation to a later period of service (whether in the same or another employment) if—

F4(a)

under the rules of a scheme applying to him in the earlier period of service—

(i)

there was made a transfer of his accrued rights under that scheme to another scheme applying to him in the later period of service; or

(ii)

those rights were secured by a policy of insurance or an annuity contract and were subsequently transferred to another scheme applying to him in the later period of service;F5and

(b)

in consequence of F6the transfer of his accrued rights to the second scheme, there are (or were) allowed to him transfer credits under the rules of that other scheme,

except that, for any service to be taken into account as linked qualifying service, it must be actual service, no regard being had to any scheme rule which provides for service to be treated, for any purposes of benefit or otherwise, as longer or shorter than it actually is.

F7(2A)

Only so much of the earlier period as is a period of service in respect of which there accrued under the first scheme any of the rights transferred to the second scheme shall be linked qualifying service in relation to the later period of service.

(2B)

As respects any case where the rules of a scheme provide—

(a)

that an earner is not entitled to become a member unless he satsfies specified conditions, but

(b)

that, if he becomes a member, rights are to accrue to him in respect of periods of service before he satisfied any such conditions,

regulations may provide for any such periods to be treated, in such cases and to such an extent as may be prescribed, as linked qualifying service with later periods of service.

(3)–(5)

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