(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)
Scheme rules should have a transfer-in rule which requires
the administrator to obtain from the transferring scheme or the
transferring insurer a certificate where this is required (see
PSI14.1.23 -24). The rules must also
require the administrator to comply with any restriction on lump
sum payments and on refunds of contributions on leaving service
notified by the transferring scheme or the transferring insurer.
The purpose of this latter requirement is to stop an employee, on
leaving the second employer, taking a refund of the whole transfer
payment and so receiving the first employer's contributions in lump
sum form. The risk of this happening is now small because of the
impact of preservation and the DWP requirement that service in both
schemes be aggregated for preservation purposes (see
PSI14.1.3). It is also a condition of
approval or continued approval that the receiving scheme complies
with any certificate given in relation to
PSI14.1.23 c (see
PSI14.2.2).
