s.34Transfer
34
Section 34Part 6 — Benefits

Transfer

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A member of a pension plan who, on or after 1st June, 1998, terminates employment with a specific employer and who is entitled to a deferred benefit —
may request the administrator to pay an amount equal to the commuted value of the deferred benefit or the balance in the member's defined contribution account —
to another registered pension plan, if the administrator of the other pension plan agrees to accept the payment;
into a prescribed pension entitlement savings arrangement; or
for the purchase for the member of a life annuity that will not commence before the earliest date on which the member would have been entitled to receive payment of pension benefits under the pension plan;
may elect to remain in the pension plan; or
may elect to transfer that deferred benefit to a plan administered under the Public Service Pensions Act (2023 Revision) if the administrator of the Public Service Pensions Board agrees to accept the payment.
The pension entitlement under subsection (1) is subject to the prescribed limitations in respect of the transfer of funds from pension funds.
Notwithstanding subsection (1), where —
a member's employment is terminated;
the member ceases to reside in the Islands; and
no contributions have been made to a pension plan by or on behalf of the member for a period of two years or more,
the member may request the administrator to pay an amount equal to the commuted value of the deferred benefit or the balance in the member's defined contribution account to a pension plan, pension entitlement savings arrangement or life annuity that is outside of the Islands.
The requirements under subsection (3) are not applicable to transfers between registered pension plans.
For the purposes of subsection (3), a person is considered to have ceased to be resident in the Islands if that person has been absent from the Islands for a period of two years or more, and, in calculating a period of absence, no account shall be taken of a period of residence in the Islands for an aggregate period of less than three months.
Subject to subsections (1) and (3), an administrator may, on making a payment or transfer under section 42, 53 or this section, make a deduction from that payment or transfer, subject to a prescribed maximum fee, exclusive of any transfer fees charged by the pension plan's bankers, in respect of actual and ascertainable administrative expenses incurred in making the payment or transfer that is —
provided for in the pension plan to be made in respect of all transfers and withdrawals; and
approved by the Director,
and the Director shall not approve a provision in a pension plan that purports to enable different levels of deduction to be made in respect of different classes of members.
A former member may exercise that member's pension entitlement under subsections (1) and (3) by delivering to the administrator within the prescribed period of time a direction in a form supplied by the Director.
Subject to compliance with the requirements of this section and the Regulations, the administrator shall comply with the direction referred to in subsection (7) not later than forty-five days after the date of delivery of the direction.
An administrator who contravenes subsection (8) commits an offence and is liable on summary conviction to a fine of twenty thousand dollars or to imprisonment for a term of two years, or to both; and if the offence is a continuing one to a fine of one thousand dollars for every day or part of a day during which the offence has continued.
The administrator shall not make a payment under —
subsection (l)(a)(ii), unless the pension entitlement savings arrangement is in accordance with the prescribed requirements; and
subsection (l)(a)(iii), unless the contract to purchase the deferred life annuity is in accordance with the prescribed requirements.
Where a payment does not meet the limitations prescribed in relation to the transfer of funds from pension funds, the administrator shall not make the payment without the approval of the Director.
The Director may, by Order, approve a payment under subsection (11) subject to the terms and conditions contained in the Order that the Director thinks fit in the circumstances.
Where —
a payment that does not meet the conditions prescribed in relation to the transfer of the funds from pension funds is made without the approval of the Director; or
there is a failure to comply with a term or condition of the approval given under subsection (12),
the Director may, by Order, require any person to whom payment has been made to repay an amount equal to the amount paid together with interest on the amount.
This section does not apply in respect of benefits under a pension plan accrued on or before a prescribed date where those benefits are guaranteed by an approved provider and the guarantee was given by the approved provider on or before that date.
Subject to section 76, an Order for payment under subsection (12) may be enforced in the same manner as a judgment of the Grand Court for the payment of money.
An administrator is discharged from all responsibilities and liabilities in respect of a payment made in good faith under this section and in compliance with this Act.

Cross References

Referenced By