RPSM14101080 - Technical Pages: Transfers: Recognised transfers from registered pension schemes: Transfer to a deferred annuity contract or buyout policy

Transfer to a deferred annuity contract or buyout policy

A transfer from a registered pension scheme to a deferred annuity contract is a recognised transfer. This is because the deferred annuity contract is automatically treated as a registered pension scheme under the legislation, from the day on which the contract or policy is made. So the transfer is being made between registered pension schemes.

See RPSM14101010 for more about transfers between registered pension schemes.

For an explanation of what a deferred annuity contract is, see RPSM02104000.

Where an assignment is made to a member of an existing deferred annuity contract, the legal effect is that a new contract is created. If the new contract is in the form of a deferred annuity contract, it will automatically be treated as a registered pension scheme. So a transfer is being made between registered pension schemes.