A Retirement Annuity Contract can be transferred to which of the following?

A Retirement Annuity Contract can be transferred to which of the following?

• A. I only
• B. I and II only
• C. II and III only
• D. I, II and III

Answer: (A)

The key idea is that a Retirement Annuity Contract is a personal pension arrangement held in the individual’s name. The rights and benefits under the RAC are attached to that person, not to a third party. Because of that, the contract can be moved or switched to another RAC provider so the owner continues to hold it, but it cannot be transferred to someone else. In other words, the transferee must be the policyholder themselves; transfers to spouses, relatives, or unrelated third parties aren’t permitted under standard RAC rules. So the only permissible transferee described is the policyholder.

The key idea is that a Retirement Annuity Contract is a personal pension arrangement held in the individual’s name. The rights and benefits under the RAC are attached to that person, not to a third party. Because of that, the contract can be moved or switched to another RAC provider so the owner continues to hold it, but it cannot be transferred to someone else. In other words, the transferee must be the policyholder themselves; transfers to spouses, relatives, or unrelated third parties aren’t permitted under standard RAC rules. So the only permissible transferee described is the policyholder.