437. Discharge of liability where guaranteed minimum pensions secured by insurance policies or annuity contracts.

A transaction which comprises:

  1.  

    (1)     the taking out of a policy of insurance or a number of such policies1;

  2.  

    (2)     the entry into an annuity contract or a number of such contracts2;

  3.  

    (3)     the transfer of the benefit of such a policy or policies or such a contract or contracts3,

discharges the trustees or managers4 of an occupational pension scheme5 from their liability to provide for or in respect of any person guaranteed minimum pensions6:

  1.  

    (a)     if it is carried out not earlier than the time when that person's pensionable service7 terminates8; and

  2.  

    (b)     if and to the extent that