RPSM04101060 - Technical Pages: Taxation: Authorised member payments: Authorised lump sums

What lump sums are authorised lump sums?

Payments made in the member’s lifetime

The following lump sum payments are the only lump sums that are authorised member payments from a registered pension scheme that can be paid to a member in their lifetime

• a pension commencement lump sum,
• a stand-alone lump sum,
• a serious ill health lump sum,
• a short service refund lump sum,
• a refund of excess contributions lump sum,
• a trivial commutation lump sum,
• a winding up lump sum,
• a lifetime allowance excess lump sum, and
• an equivalent pension benefits commutation lump sum.

Further information on these lump sum payments can be found at RPSM09104000 onwards.

Payments made after the death of the member

The following lump sum payments are the only lump sums that are authorised member payments that can be paid following the member’s death

• a defined benefits lump sum death benefit,
• a pension protection lump sum death benefit,
• an uncrystallised funds lump sum death benefit,
• an annuity protection lump sum death benefit,
• an unsecured pension fund lump sum death benefit,
• a pension guarantee payment,
• a charity lump sum death benefit,
• a transfer lump sum death benefit,
• a trivial commutation lump sum death benefit,
• a winding up lump sum death benefit, and
• a life cover lump sum.

Further information on these lump sum payments can be found at RPSM10105000 onwards.

A scheme administration member payment (which is an authorised member payment) may also be paid as a lump sum.

Any other lump sum payment to or in respect of a member will be an unauthorised member payment and taxed accordingly.