(1) Notwithstanding anything contained in this or any other enactment, a person may not effect a policy or contract of insurance of the kind formerly approved by the Revenue Commissioners for the purpose of receiving payments from retirement benefit schemes approved under Chapter 1 of Part 30 of the Taxes Consolidation Act, 1997, and any such policy or contract which is purported to be entered into after the commencement of section 3 of the Pensions (Amendment) Act, 2002, in respect of this section shall be void.
(2) The persons who are parties to a contract of the kind referred to in subsection (1) may, by mutual agreement and subject to and in accordance with regulations, terminate the contract and transfer the assets the subject of the contract into one or more than one PRSA.