SCHEDULES
SCHEDULE 5 Pension credits: mode of discharge
Funded pension schemes
I11
1
This paragraph applies to a pension credit which derives from—
a
a funded occupational pension scheme, or
b
a personal pension scheme.
2
The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit—
a
with his consent, or
b
in accordance with regulations made by the Secretary of State.
3
The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—
a
the qualifying arrangement is not disqualified as a destination for the credit,
b
the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and
c
payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Secretary of State.
4
For the purposes of sub-paragraph (2), no account is to be taken of consent of the person entitled to the pension credit unless—
a
it is given after receipt of notice in writing of an offer to discharge liability in respect of the credit by making a payment under sub-paragraph (3), or
b
it is not withdrawn within 7 days of receipt of such notice.