PSI13.4.3 - Withdrawal from Service: Deferred Benefits under Individual Policies (Buy-Out Policies) - Assignment of Scheme Policies to Employee

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

The Life Office chosen by the employee must be (a) a UK branch or agency of an insurance company to which Part II of the Insurance Companies Act 1982 applies, and which is authorised by or under section 3 or 4 of that Act to carry on long term insurance business as defined in the Act, or (b) an EC company which meets the requirements of section 659B ICTA 1988. Alternatively the deferred annuity may be purchased from certain Friendly Societies (see paragraph 52 of JOM 78).

We do not object to an early leaver's benefits being secured by the purchase of more than one policy, or from more than one Life Office (see PSI22 Section 4 ( PSI22.4.1)for the examination procedure for buy-out contracts). But where this happens we impose conditions, see PSI13.4.9(a).

Contact: | Date issued: | Next review: