From which source can a transfer value be paid into a Buy-Out Bond?

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

Answer: (B)

A transfer value is the amount representing a member’s accrued benefits from an employer pension scheme. When someone leaves the scheme and takes their benefits with them, that value can be paid into a Buy-Out Bond to secure future benefits under a personal arrangement. The key point is that the transfer value originates from the employer’s pension scheme itself, not from personal savings products. Personal vehicles like ARF, PRSA, or RAC are different types of retirement accounts or policies, but they are not the source of a transfer value coming from an occupational scheme. So the employer pension scheme is the source that can fund a Buy-Out Bond.