A transfer value cannot be paid from a Standard PRSA into which of the following?

A transfer value cannot be paid from a Standard PRSA into which of the following?

• A. Non-Standard PRSA
• B. DC Employer Pension Scheme
• C. Retirement Annuity Contract
• D. DB Employer Pension Scheme

Answer: (C)

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.

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.