The National Health Service Pension Scheme Regulations 2015

How transfer value payments may be applied E+W

138.—(1) If Chapter 4 of Part 4 of the 1993 Act applies to a member (M), M may require the scheme manager to apply the guaranteed cash equivalent transfer value payment only in one of the ways permitted under section 95 of that Act M1 .

(2) In any other case, M may require the scheme manager to apply the guaranteed cash equivalent transfer value payment only in one of the ways permitted under section 101AE of the 1993 Act M2 .

(3) The whole of the guaranteed cash equivalent transfer value payment must be applied, unless paragraph (4) applies.

(4) Benefits attributable to—

(a) M's accrued rights to a guaranteed minimum pension; or

(b) M's accrued rights attributable to service in a contracted-out employment (within the meaning of section 8 of the 1993 Act M3 ) on or after 6th April 1997,

may be excluded from the guaranteed cash equivalent payment if section 96(2) of the 1993 Act M4 applies (trustees or managers of certain receiving schemes or arrangements able and willing to accept a transfer payment only in respect of the members other rights).

(5) A transfer payment may be made only to—

(a) a pension scheme (other than a connected scheme) that is registered under Chapter 2 of Part 4 of the 2004 Act; or

(b) an arrangement that is a qualifying recognised overseas pension scheme for the purposes of that Part (see section 169(2) of that Act M5 ).

Marginal Citations

M1 Section 95 has been amended by section 173 of, and paragraph 3 of Schedule 6 to, the Pensions Act 1995 (c.26), sections 56 and 85 of, and paragraph 7 of Schedule 5 and Part 3(7) of Schedule 9 to, the Child Support, Pensions and Social Security Act 2000 (c.19) and article 121 S.I. 2001/3649.

M2 Section 101AE was inserted by section 264 of the Pensions Act 2004 (c.35).

M3 Section 8 has been amended by sections 151 and 177 of, and paragraph 23(a) and (b) of Schedule 5 and Part 3 of Schedule 7 to, the Pensions Act 1995, section 1(1) of, and paragraph 34(a) and (b) of Schedule 1 to, the Social Security Contributions (Transfer of Functions, etc) Act 1999 (c.2), section 15(3)(a) of, and paragraphs 1 and 3(1) to (4) of Schedule 4 to, the Pensions Act 2007 (c.22), section 4(1) of, and paragraphs 7 and 8(1) to (3) of Schedule 1 to, the National Insurance Contributions Act 2008 (c.16), section 11(4) of, and paragraphs 18 and 19 of Schedule 4 to, the Marriage (Same Sex Couples) Act 2013 (c.30) and article 2(1) of, and paragraph 1 of Schedule 1 to, S.I. 2005/2050, and is prospectively amended by section 15(3)(a) and section 27(2) of, and paragraphs 46 and 47 of Schedule 4 and Part 7 of Schedule 7 to the Pensions Act 2007 and section 24(1) of, and paragraphs 1, 2 and 7(1) to (5) of Schedule 13 to, the Pensions Act 2014 (c.19).

M4 Section 96(2) has been amended by section 151 of, and paragraph 63(a) of Schedule 5 to, the Pensions Act 1995, sections 18 and 88 of, and paragraph 3(2)(b) of Schedule 2 and Part 1 of Schedule 13 to, the Welfare Reform and Pensions Act 1999 (c.48), sections 15(3)(a) and 27(2) of, and paragraphs 1 and 29 of Schedule 4 and Part 6 of Schedule 7 to, the Pensions Act 2007 and article 5(1) and (14)(a)(ii) of S.I. 2011/1730, and is prospectively amended by section 24(1) of, and paragraphs 1 and 39 of Schedule 13 to, the Pensions Act 2014.

M5 Section 169(2) has been amended by section 53(2) and (3) of the Finance Act 2013 (c.29).