Cap. 450 Art. 40Distributions by a defined benefit retirement scheme. Cap. 403.

(1) Subject to the following provisions, and to any regulations or directives as made for the purpose of this article, a defined benefit retirement scheme shall make a distribution to beneficiaries in the amounts and at the times specified in the applicable scheme document.

(2) To the extent as may be consistent with the applicable scheme, a defined benefit retirement scheme may also satisfy its liability to a beneficiary under such scheme if -

(a) it takes out an annuity contract or a policy of insurance or a number of such contracts or policies, with an insurance company carrying on long-term insurance business and authorized for this purpose in accordance with the Insurance Business Act (or, in the case of a beneficiary resident outside Malta, with a bona fide insurance company carrying on long-term insurance business outside Malta); and

(b) it transfers the benefit of such a policy or policies or

(a) it may not be assigned or surrendered except on conditions which satisfy such requirements as may be prescribed;

(b) the amount secured by the policy may not be commuted except on conditions which satisfy the requirements of such scheme; and

(c) it satisfies such other requirements as may be prescribed by any regulations or directives for the purpose of this article.