Pensions Act, 1990

Entitlement to transfer payment.

34.—(1) This section shall apply to a member of a funded scheme who is entitled to a preserved benefit under this Part.

(2) A member of a scheme to whom this section applies shall be entitled to the transfer of an e (in this Part referred to as a “transfer payment”) in accordance with subsection (3) equal—

(a) in the case of a defined benefit scheme, to the actuarial value of the preserved benefit on the date on which the relevant application under subsection (3) is received by the trustees, and

(b) in the case of a defined contribution scheme, to the accumulated value on that date of the appropriate contributions under the scheme in respect of the member:

Provided that where benefits under such a scheme are secured under one or more policies of assurance, the accumulated value of the appropriate contributions shall be the proportion of the proceeds of every such policy applicable to those contributions.

(3) A member of a scheme who is entitled to a transfer payment under subsection (2) may exercise such right by making an application in writing to the trustees of the scheme providing them with such information as they may reasonably require and directing them to apply the transfer payment—

(a) in the making of a payment to another scheme, or

(b) in the making of one or more payments falling to be made under policies or contracts of assurance that are effected on behalf of the member with one or more undertakings (within the meaning of the Insurance Act, 1989 ) and that are approved of by the Revenue Commissioners under Chapter II of Part I of the Finance Act, 1972 .

(4) Where the trustees of a scheme receive an application under subsection (3), they shall apply the transfer payment concerned, within the period of 3 months following the date of the receipt of the application, in the manner directed by the application under subsection (3).

(5) Where—

(a) a person has exercised the entitlement conferred on him under subsection (2), and

(b) the trustees of the scheme from which the transfer payment is being made have complied with the provisions of subsection (4),

then, they shall be discharged from any obligation to provide benefits to which the transfer payment relates.

(6) Where a member of a scheme directs the application of a transfer payment in accordance with subsection (3) (a), the trustees of the scheme to which the transfer payment is being made shall accept such payment and shall provide benefits of an actuarial value that is equivalent to the amount of the transfer payment in such form as they may determine.

(7) A member of a scheme shall not be entitled to a transfer payment under this section if—

(a) payment of his preserved benefit has commenced, or

(b) he fails to exercise the entitlement within a period of 2 years (or such longer period as may be provided for by the scheme or determined by the trustees of the scheme) after the date of the termination of the relevant employment concerned.