PART 4Transfers

Payment of transfer values31

1

A transfer value is to be paid in respect of a person who has ceased to be in pensionable employment and has become subject to another registered pension scheme (“the receiving scheme”).

2

Paragraph (1) is subject to the following provisions of this regulation and to the limitations in regulation 32 (limitation on payment of transfer values under regulation 31).

3

This regulation does not however affect a person's entitlement to a cash equivalent.

4

A transfer value may only be paid in respect of a person who has become subject to a personal pension scheme if the person was in pensionable employment after 31st December 1985.

5

A transfer value may only be paid under this regulation if—

a

the person makes a written application to the Secretary of State, and

b

the application is made within 12 months after the day on which the person became subject to the receiving scheme, except where the receiving scheme is comparable British service.

6

Except as provided in paragraph (8) a transfer value is not to be paid under this regulation in respect of a person to whom, when the application was received, retirement benefits or a short-service serious ill health grant have become payable.

7

Paragraph (6)—

a

prevents a transfer value referable to the person's NPA 60 reckonable service being paid where—

i

the person is a person with mixed service, and

ii

a Case applies to that person's NPA 60 reckonable service, but not to the person's NPA 65 reckonable service, but

b

does not prevent a transfer value referable to a person's further employment from being paid where neither retirement benefits nor a short-service serious ill health grant have become payable in respect of the further employment even though either retirement benefits or a short-service serious ill health grant have become payable in respect of previous employment.

8

A transfer value is however to be paid under this regulation if—

a

the employment in which the person has become subject to the receiving scheme is comparable British service, and

b

the person entered it—

i

immediately after ceasing to be in pensionable employment, or

ii

on or before the person's 60th birthday, in the case of a pre-2007 entrant, or the person's 65th birthday in any other case, and

c

the person has not applied for payment of any benefit.

9

For the purposes of paragraph (8)(c) a person who was receiving phased retirement benefits before ceasing to be in pensionable employment is not to be treated as having applied for the payment of any benefit.

10

A transfer value is not to be paid under this regulation in respect of a person to whom, when the application was received, a short-service annuity has become payable.

11

A transfer value in respect of any pension credit rights or pension credit benefits is not to be paid under this regulation.

12

Part 1 of Schedule 6 (transfer values) has effect for determining the amount of transfer values payable under this regulation.