Which entity must honor a Pension Adjustment Order's instruction to pay retirement benefits?

• A. The employer
• B. The scheme trustees
• C. The member
• D. The regulator

Answer: (B)

Pension Adjustment Orders are binding instructions that control how retirement benefits within a pension scheme are paid. The entity that actually handles and distributes the scheme’s assets—the scheme trustees—must implement the order and pay the benefits to the person specified. They hold the legal responsibility to disburse the funds in accordance with the instruction, since they oversee the fund and owe duties to all beneficiaries. The regulator oversees compliance but does not make or withdraw payments, the employer funds the scheme but does not decide how benefits are paid under a PAO, and the member would only receive the benefit if the PAO directs payment to them. So the trustees are the ones who must honor and implement the PAO’s instruction.