PSI14.3.1 - Transfer Payments: Assignment of Policy to a New Employer - General

(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)

[PN10.33]

The simplest form of transfer is an assignment of an insurance policy from one scheme to another. This usually happens where the employee's benefits are secured by means of earmarked policies (viz under an individual arrangement (see PSI1.1.16) or an earmarked scheme (see PSI1.1.18)). It is often better in financial terms for the policy to be kept in existence rather than being surrendered for a cash transfer value. These transfers should be distinguished from "buy-out" policies issued in an employee's name on leaving service (see Part 13, Section 4). What we are dealing with here are transfers of policies in the name of the scheme trustees.