A transfer value CANNOT be paid from a Buy-Out Bond to a(n):

• A. Prsa
• B. Irish employer pension scheme
• C. New Buy-Out Bond to be taken out by the individual
• D. Another Buy-Out Bond held by the same individual

Answer: (A)

When a transfer value from a Buy-Out Bond is moved, it isn’t cash but a value used to secure benefits in another pension arrangement. The rules allow the value to be transferred to other buy-out arrangements or to an Irish employer pension scheme, or to a new Buy-Out Bond taken out by the individual. A PRSA, however, is a personal DC product and does not accept transfer values from a Buy-Out Bond, because it would change the nature of the benefit and its regulatory treatment. So the transfer value cannot be paid to a PRSA, while the other options are valid destinations for a Buy-Out Bond transfer.