Regulations provide for the transfer of sums / assets by registered pension schemes and insurance companies, where those sums / assets represent pensions in payment.
Where a dependant’s annuity is reduced or stopped due to a transfer of sums / assets and a new dependant's annuity is not payable in relation to the transferred amounts, the value of the transfer is classed as an unauthorised payment made by the original (rather than receiving) registered pension scheme. The same is true in relation to a dependant's short-term annuity.
The Registered Pension Schemes (Transfer of Sums and Assets) Regulations 2006/499
Annuity contracts purchased before 6 April 2006
An annuity contract purchased before 6 April 2006 and in payment at that date is not a registered pension scheme. As such, any pension death benefit provided by the contract will reflect the dependency rules in force up to 5 April 2006.