10.—(1) Subject to paragraph (2), the Secretary of State shall, in circumstances where a transfer payment in respect of a person is provided and used in accordance with regulation M1 of the Pension Scheme Regulations (member’s right to transfer or buy-out), pay a transfer value representing the value of the investments made in relation to that person under regulation 7(1), 8(2) or, as the case may be, 9(4) at that person’s option to one of the following schemes in which that person may be participating—
(a)an approved scheme which provides additional benefits by virtue of additional voluntary contributions but does not fall within section 591(2)(h) of the Taxes Act (discretionary approval);
(b)a personal pension scheme; or
(c)any other arrangement which has been approved by the Board of Inland Revenue to accept transfer payments, provided that the transfer value shall not be used to purchase benefits in the form of a tax free lump sum.
(2) Where the Secretary of State is required to make a transfer payment under this regulation, he shall do so by whichever is the earlier of—
(a)the end of the period of 6 months beginning with the guarantee date; or
(b)if the person in respect of whom the transfer payment is to be made—
(i)is no longer making contributions to the National Health Service Pension Scheme on a date prior to his attaining the age of 59 years; and
(ii)made his application for a transfer payment during the period of 6 months beginning with that date,
the date on which he attains the age of 60 years.
(3) In this regulation “the guarantee date” has the meaning given to it in section 93A(2) of the Pension Schemes Act 1993(1) (salary related schemes: right to statement of entitlement).
Section 93A was inserted by section 153 of the Pensions Act 1995.