Transfer payments are those payments that are made without any corresponding production of goods or services. They are usually made by the government to individuals or other levels of government. Let's examine each of the options:

(1) Pension: Pensions are a form of transfer payment, as they involve the distribution of funds from the government to retired individuals, not in exchange for any current services.

(2) Income tax: Income tax is a compulsory contribution levied by the government on individuals and businesses to finance various public expenditures. It is not classified as a transfer payment.

(3) Fine: Fines are penalties imposed for the violation of laws or regulations. They are not transfer payments.

(4) Net Interest: Net interest refers to the interest paid or received on loans, bonds, or other financial assets net of any interest received. It is not a transfer payment.

Based on the analysis, the correct option is (1) Pension.