Section 101AE — Pensions Act 2004: Permitted ways of using cash transfer sum

Permitted ways of using cash transfer sum 101AE 1 This section applies in relation to a cash transfer sum to which a member of an occupational pension scheme acquires a right under section 101AB.

2 The ways in which the cash transfer sum may be used are—

a for acquiring transfer credits allowed under the rules of another occupational pension scheme—

i whose trustees or managers are able and willing to accept the cash transfer sum, and ii which satisfies prescribed requirements, b for acquiring rights allowed under the rules of a personal pension scheme—

i whose trustees or managers are able and willing to accept the cash transfer sum, and ii which satisfies prescribed requirements, c for purchasing one or more appropriate annuities, d in such circumstances as may be prescribed, for subscribing to other pension arrangements which satisfy prescribed requirements.

3 For the purposes of subsection (2), “ appropriate annuity ” means an annuity which satisfies prescribed requirements and is purchased from an insurer who—

a falls within section 19(4)(a),

b is chosen by the member, and c is willing to accept payment on account of the member from the trustees or managers of the scheme.