Part 5: Further provision relating to pension schemes Transfer rights Section 125: Exercise of right to cash equivalent
Section 125 places conditions on the right of a member to transfer their accrued pension rights to a different pension scheme and to protect members falling victims to pension scams. This right is set out in Chapter 1 of Part 4ZA and Chapter II of Part IVA of the Pension Schemes Act 1993 (sections 93-101P).
	Subsection (2) amends section 95 of the Act by inserting new subsections (6ZA), (6ZB) and (67C). New subsection (6ZA) provides a power to make regulations so that a member will only have a right to transfer if certain conditions prescribed in regulations are met. These conditions can be applied to transfers of accrued pension rights from personal pension schemes, unfunded public service schemes and other pension arrangements.
	New subsection (6ZB) provides a list of conditions that the regulations may prescribe including (but not limited to), under paragraph (a), a member’s employment or residency. Under paragraph (b), the regulations can make it a condition to provide the trustees or managers of the occupational pension schemes with information or evidence about the member’s employment or residence. Under paragraph (c), the regulations can prescribe the circumstances where it is a condition that the member obtains information or guidance from a prescribed person. Under paragraph (d), the regulations can make it a condition for the member to provide the trustees or managers with prescribed evidence that demonstrates they have obtained information or guidance from a prescribed person, or evidence that demonstrates they are exempt from these conditions.
	Evidence relating to the member’s employment may include (but may not be limited to) payslips, which will help establish a genuine employment link between the member and the employer of the scheme the member wants their pension benefits to be transferred into. New subsection (6ZC) enables the Secretary of State to make regulations requiring the trustees or managers of the occupational pension scheme to notify a member of the conditions which have been prescribed in regulations made under new section 95(6ZA).
	Subsections (3), (4) and (5) make provision in relation to situations where conditions under new subsection (6ZA) or section 95 or (5A) of section 101F have not been satisfied.
	Subsection (3) amends section 98 by inserting a reference to new section 99(2ZA) into subsection (2) so that the member loses the right to take a cash equivalent where the duty on the trustees is extinguished because a condition prescribed under new section 95(6ZA) is not met.
	Subsections (4) and (5) insert new subsections (2ZA) and (2ZB) respectively into section 99. Subsection (2ZA) exempts the trustees or managers of the occupational pension scheme from having to comply with the time period for facilitating a member’s request to transfer their pension benefits to another scheme if a condition prescribed under new subsection (6ZA) of section 95 is not met. Subsection (2ZB) exempts the trustees or managers of the occupational pension scheme from having to comply with the time period for facilitating a member’s request to transfer their pension benefits to another scheme (where the member was required by section 96(4) to give a transfer notice under section 101F(1) in addition to making a transfer application) because the conditions prescribed in regulations made under new subsection (5A) of section 101F have not been met.
	Section 101F (power to give transfer notice) sets when a trustee or manager of a qualifying scheme must facilitate a member’s request to transfer their pension credit benefit. Subsection (6) amends section 101F by inserting new subsections (5A), (5B) and (5C). New subsection (5A) provides a power to make regulations so that a member will only have the right to transfer their pension credit benefit if certain conditions prescribed in regulations are met. New subsection (5B) provides examples of the conditions which the regulations may prescribe. They include, but are not limited to, conditions about employment, place of residence and obtaining information or guidance in prescribed circumstances. New subsection (5C) enables the Secretary of State to make regulations requiring the trustees or managers to notify a member of the conditions which have been prescribed in regulations made under new section 101F(5A).
	Section 101J (time for compliance with transfer notice) deals with the time period within which trustees or managers must facilitate a member’s request to transfer their pension credit benefit. Subsections (7) and (8) amend section 101J by inserting new subsection (2AA) and (2AB) respectively. New subsection (2AA) exempts trustees or managers from having to comply with the time period for facilitating a member’s request to transfer their pension credit benefit if a condition prescribed under new subsection (5A) of section 101F is not met.
	Subsection (7) inserts new subsection (2AB) in section 101J to exempt the trustees or managers from having to comply with the time period for facilitating a member’s request to transfer their pension credit benefit if the conditions prescribed in regulations made under section 95(6ZA) have not been met, where the member was required by section 101G(4) to make an application under section 95(1) in addition to giving a transfer notice.