Part III Contracting-Out

Requirements for contracting-out

38 Transfer of accrued rights.

F1F2(1)

Regulations may prescribe circumstances in which and conditions subject to which—

(a)

there may be made by one occupational pension scheme to another or by an occupational pension scheme to a personal pension scheme a transfer of or a transfer payment in respect of—

(i)

an earner’s accrued rights to guaranteed minimum pensions under a contracted-out scheme;

(ii)

an earner’s accrued rights to pensions under an occupational pension scheme which is not contracted-out, to the extent that those rights derive from his accrued rights to guaranteed minimum pensions under a contracted-out scheme; or

(iii)

the liability for the payment of guaranteed minimum pensions to or in respect of any person who has become entitled to them;

(b)

there may be made to an occupational pension scheme or a personal pension scheme a transfer of or a transfer payment in respect of an earner’s accrued rights to guaranteed minimum pensions which are appropriately secured for the purposes of section 52C below.

(1A)

Any such regulations may be made so as to apply to earners who are not in employment at the time of the transfer.

(1B)

Regulations under subsection (1) above may provide that any provision of this Part of this Act shall have effect, where there has been a transfer to which they apply, subject to such modifications as may be specified in the regulations.

(1C)

Regulations under subsection (1) above shall have effect in relation to transfers whenever made unless they provide that they are only to have effect in relation to transfers which take place after they come into force.

(1D)

The power conferred by subsection (1) above is without prejudice to the generality of section 166(2) of the principal Act.

(3)

In this Part of this Act—

“accrued rights”, in relation to an earner, means the rights conferring prospective entitlement under the scheme in question to the pensions to be provided for him and his widow in accordance with sections 33 and 36 above, and references to an earner’s accrued rights to guaranteed minimum pensions shall be construed accordingly;

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(4)

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