Transfer Payments and Preserved Benefits

Part of New Clause 1 – in the House of Commons at 3:32 pm on 20th July 1987.

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(3) To comply with the provisions of this section, the amended rules of the scheme shall require the trustees in respect of any member withdrawing from pensionable service before the normal age of retirement under the rules of the scheme at the withdrawing members' option either—

  1. (a) to pay to an approved scheme a transfer payment in respect of the withdrawing members' entitlement of the sum that would be required by the withdrawing member's scheme for the purpose of admitting a new member of the same age, sex and pensionable remuneration as the withdrawing member in order to credit him with the same number of years pensionable service as the withdrawing member, (but subject to modification in accordance with (4) below), or
  2. (b) to award preserved benefits to the withdrawing member of the same actuarial value as that sum.