SCHEDULES

SCHEDULE 5 Pension credits: mode of discharge

Qualifying arrangements

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1

The following are qualifying arrangements for the purposes of this Schedule—

a

an occupational pension scheme,

b

a personal pension scheme,

c

an appropriate annuity contract,

d

an appropriate policy of insurance, and

e

an overseas arrangement within the meaning of the M1Contracting-out (Transfer and Transfer Payment) Regulations 1996.

2

An annuity contract or policy of insurance is appropriate for the purposes of sub-paragraph (1) if, at the time it is entered into or taken out, the insurance company with which it is entered into or taken out—

a

is carrying on ordinary long-term insurance business in the United Kingdom or any other member State, and

b

satisfies such requirements as the Secretary of State may prescribe by regulations.

3

In this paragraph, “ordinary long-term insurance business” has the same meaning as in the M2Insurance Companies Act 1982.