Qualified Financial Adviser (QFA) Pensions Exam 2 Practice Test

Transfer values from a Standard PRSA follow rules that restrict where the funds can go. They must move into another approved pension arrangement that can accept a transfer and preserve the pension rights and tax treatment. A Retirement Annuity Contract is not an eligible recipient for these transfer values because it’s an individual insurance contract, not a registered pension arrangement, and it doesn’t carry the same pension rights and tax safeguards. That’s why the transfer value cannot be paid into a Retirement Annuity Contract. The other destinations listed are types of arrangements that can accept PRSA transfer values under the rules.