A transfer value can be paid into a Buy-Out Bond from a(n):

• A. Arf
• B. Employer pension scheme
• C. Prsa
• D. Rac

Answer: (B)

The concept focuses on how benefits are moved when you leave an employer’s pension arrangement. A transfer value represents the value of your accrued rights in that employer scheme. A Buy-Out Bond is a life-insurance policy set up to hold those rights once you leave, with the insurer administering the benefits going forward. Therefore, the transfer value is paid into a Buy-Out Bond from the employer pension scheme, preserving your earned rights under a new policy.

ARF, PRSA, and RAC are personal retirement vehicles rather than sources of the transfer value for a buy-out. They can hold retirement savings, but the value transferred into a Buy-Out Bond comes from the employer pension scheme itself.