Social Security Pensions Act 1975

52C(1)[F1A transaction to which this section applies discharges the trustees or managers of an occupational pension scheme from their liability to provide for or in respect of any person either [F2the requisite benefits][F3guaranteed minimum pensions] or short service benefit or any alternative to short service benefit—

(a)if it is carried out not earlier than the time when that person’s pensionable service terminates; and

(b)if and to the extent that it results in—

(i)[F4the requisite benefits][F5guaranteed minimum pensions]; or

(ii)short service benefit, or an alternative to short service benefit, for or in respect of that person being appropriately secured and

(c)in a case where the transaction takes place on or after 1st January 1986, if and to the extent that the requirements set out in any one of paragraphs (a), (b) and (c) of subsection (5) below are satisfied.

(2)This section applies to the following transactions—

(a)the taking out or the transfer of the benefit of a policy of insurance or a number of such policies;

(b)the entry into or the transfer of the benefit of an annuity contract or a number of such contracts.]

(4)In this section “appropriately secured” means secured by an appropriate policy of insurance or an appropriate annuity contract, or by more than one such policy or contract; and a policy of insurance or annuity contract is appropriate for the purposes of this section if—

[F6(a)the insurance company with which it is or was taken out or entered into—

(i)is, or was at the relevant time, carrying on ordinary long-term insurance business in the United Kingdom or any other member State; and

(ii)satisfies, or satisfied at the relevant time, prescribed requirements; and]

(b)it may not be assigned or surrendered except on conditions which satisfy such requirements as may be prescribed; and

(c)it contains, or is endorsed with, terms whose effect is that the amount secured by it may not be commuted except on conditions which satisfy such requirements as may be prescribed; and

(d)it satisfies such other requirements as may be prescribed.

(5)The requirements referred to in subsection [F7(1)] above are—

(a)that the arrangement for securing the amount by means of the policy or contract was made—

(i)at the written request of the earner or his widow; or

(ii)with his or her consent given in writing in a prescribed form;

(b)that—

(i)the case is one such as is mentioned in paragraph 13(5) of Schedule 1A to this Act; and

(ii)the policy or contract only secures guaranteed minimum pensions;

(c)that—

(i)the case is not one such as is mentioned in paragraph 13(5) of Schedule 1A to this Act; and

(ii)such conditions as may be prescribed are satisfied.

(6)In subsection (4)(a) above, “the relevant time” means the time when the policy of insurance was taken out or the annuity contract was entered into or, as the case may be, when the benefit of the policy or contract was transferred.

(7)In this section—