RPSM02100100 - Technical pages: Registering a pension scheme with HMRC: pension schemes which exist at 5 April 2006: Modifying the rules of existing pension schemes: Unauthorised payments on or after 6 April 2006

Modifying the rules of existing pension schemes: Unauthorised payments on or after 6 April 2006

An existing scheme that automatically becomes a registered pension scheme on 6 April 2006 (see RPSM02100020) could have a provision in its rules immediately before 6 April 2006 – an existing provision – that would mean that an unauthorised payment would be made on or after 6 April 2006.

One of the effects of the Registered Pension Schemes (Modification of the Rules of Existing Schemes) Regulations 2006 [SI 2006/364] is to give a discretionary power to the trustees or manager of that scheme that allows that person to decide whether or not to make a payment in accordance with that existing provision.

Where the discretionary power is exercised so as to allow the unauthorised payment to be made, the scheme sanction charge might not apply to some or all of the payment (see RPSM02100110).