RPSM09100130 - Technical Pages: Member benefits: Overview: Payments: An unauthorised member payment

An unauthorised member payment

Any payment made to (or in respect of) the member that does not fall within the list of authorised member payments is an unauthorised member payment.

An unauthorised member payment may also be deemed to have been made by the legislation in certain circumstances. These circumstances include circumstances where

• value shifting of assets occur (see RPSM07106010),
• benefits or rights under a registered pension scheme are assigned, surrendered or re-allocated (except within specifically defined circumstances) (see RPSM09100170 and RPSM09100172),
• an asset held for the purposes of a registered pension scheme is used to provide a benefit other than a payment to a member, or to a member of the member’s family or household (again, except within certain narrowly defined circumstances) (see RPSM07102210),
• a payment is made to a connected party of the member,
• in certain circumstances, unallocated employer contributions are allocated to a member beyond a certain level (see RPSM09100174), or
• if a member's benefits under an occupational pension scheme increase by more than a specified amount (see RPSM09100175).

More detailed information on payments can be found at RPSM09100160 and RPSM04104060.

An unauthorised member payment may also arise following the death of a member where the pension rights of another scheme member are increased and that increase is directly attributable to that member’s death (see RPSM09100173).

The taxation of an unauthorised member payment is explained in broad terms in RPSM09100180 and RPSM09100190.