Part IV Protection for Early Leavers
Chapter I Preservation of Benefit Under Occupational Schemes
69 Form of short service benefit and its alternatives.
1
Subject to subsection (2) and section 77, a member’s short service benefit must be—
a
payable directly out of the resources of the scheme; or
b
assured to him by such means as may be prescribed.
2
Subject to subsections (3) to (5), a scheme may, instead of providing short service benefit, provide—
a
for the member’s accrued rights (including any transfer credits allowed under the scheme)—
i
to be transferred to another occupational pension scheme with a view to acquiring transfer credits for the member under the other scheme, or
ii
to be transferred to a personal pension scheme or a self-employed pension arrangement with a view to acquiring rights for the member under the rules of the scheme or arrangement; or
b
for such alternatives to short service benefit as may be prescribed.
3
The option conferred by subsection (2)(a) is additional to any obligation imposed by Chapter IV of this Part.
4
The alternatives specified in subsection (2)(a) and (b) may only be by way of complete or partial substitute for short service benefit—
a
if the member consents; or
b
in such other cases as may be prescribed.
5
An alternative prescribed under subsection (2)(b) may only include payment by way of return of contributions—
a
if they relate to a period of service before 6th April 1975; or
b
if there has been such a payment relating to a period of service before that date and the contributions relate to a period of service of less than 5 years after that date.