Q&As

For purposes of the cash equivalent transfer values (CETV) legislation, at what point is a member ‘no longer accruing rights to benefits…’ under a personal pension scheme for the purposes of section 93(4) of the Pension Schemes Act 1993 (PSA 1993)? Taking into account PSA 1993, s 93(8), what does this mean in the context of a personal pension scheme which is willing to accept contributions on an ad hoc basis? If the scheme is willing to accept contributions from the member does this mean that the member has no right to a CETV? Are there any cases or PO determinations that have considered this issue?

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Produced in partnership with Elizabeth Ovey of Radcliffe Chambers
Published on LexisPSL on 05/04/2022

The following Pensions Q&A produced in partnership with Elizabeth Ovey of Radcliffe Chambers provides comprehensive and up to date legal information covering:

  • For purposes of the cash equivalent transfer values (CETV) legislation, at what point is a member ‘no longer accruing rights to benefits…’ under a personal pension scheme for the purposes of section 93(4) of the Pension Schemes Act 1993 (PSA 1993)? Taking into account PSA 1993, s 93(8), what does this mean in the context of a personal pension scheme which is willing to accept contributions on an ad hoc basis? If the scheme is willing to accept contributions from the member does this mean that the member has no right to a CETV? Are there any cases or PO determinations that have considered this issue?

For purposes of the cash equivalent transfer values (CETV) legislation, at what point is a member ‘no longer accruing rights to benefits…’ under a personal pension scheme for the purposes of section 93(4) of the Pension Schemes Act 1993 (PSA 1993)? Taking into account PSA 1993, s 93(8), what does this mean in the context of a personal pension scheme which is willing to accept contributions on an ad hoc basis? If the scheme is willing to accept contributions from the member does this mean that the member has no right to a CETV? Are there any cases or PO determinations that have considered this issue?

Under the original version of section 93(1) of the Pension Schemes Act 1993 (PSA 1993), the provisions allowed a member to take a transfer applied to any member of a personal pension scheme (other than a scheme comprised in an annuity contract entered into before 4 January 1988) who had accrued rights to benefit under the scheme. There was no condition that the member should have ceased to accrue rights to benefits. If the member was a member of an occupational pension scheme, however, it was a requirement that pensionable service be terminated at least one year before normal pension age.

PSA 1993, s 93 was rewritten by Schedule 4 to the Pension Schemes Act 2015 (PSA 2015) and now requires three

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