SCHEDULES
SCHEDULE 17Automatic transfer of pension benefits etc
Part 1Automatic transfer of pension benefits
Regulations providing for transfer of cash equivalent of transferable benefits
1
1
The Secretary of State must make regulations with a view to ensuring that, where a qualifying member of an automatic transfer scheme has transferable benefits under another pension scheme, the cash equivalent of the transferable benefits—
a
is transferred to the automatic transfer scheme, and
b
is used to provide rights for the member under it.
2
In this Schedule “automatic transfer scheme” means—
a
a work-based pension scheme, other than a scheme of a prescribed description, which is registered under Chapter 2 of Part 4 of the Finance Act 2004 and is a money purchase scheme, or
b
a pension scheme of a prescribed description.
3
In this Schedule “qualifying member”, in relation to an automatic transfer scheme, means an active member of the scheme of a prescribed description.
4
For the purposes of this Schedule a person has transferable benefits under a pension scheme if—
a
the scheme is a transferable benefits scheme,
b
the person is a member of the scheme,
c
contributions to the scheme by, or on behalf or in respect of, the member have ceased,
d
the member has accrued rights to benefits under the F1scheme rules ,
e
all of those rights accrued on or after the prescribed date (which may be a date before the coming into force of this paragraph),
f
the cash equivalent of those benefits is less than the prescribed amount (but not nil), and
g
any other prescribed conditions are met.
5
In this Schedule “transferable benefits scheme” means—
a
a work-based pension scheme, other than a scheme of a prescribed description, which is registered under Chapter 2 of Part 4 of the Finance Act 2004 and is a money purchase scheme, or
b
a pension scheme of a prescribed description.
F26
In sub-paragraph (4)—
a
the reference to “scheme rules” is to be read in accordance with section 100B of the Pension Schemes Act 1993;
b
“benefits” means—
i
money purchase benefits other than money purchase benefits of a prescribed description, or
ii
benefits of a prescribed description.