RPSM04102025 - Technical Pages: Taxation: Authorised employer payments: Authorised surplus payments: Surplus solely in respect of the death of a member

Surplus solely in respect of the death of a member

[s177] [The Registered Pension Schemes (Authorised Surplus Payments) Regulations 2006 - SI 2006/574] 

There is a qualification where a registered pension scheme, that is an occupational pension scheme, makes a surplus payment to a sponsoring employer solely in respect of the death of a member.

As well as the payment (solely in respect of the death of a member) having to meet the 'general conditions' for an authorised surplus payment, the payment will be an authorised surplus payment only if certain other conditions are also met.

Where the deceased member’s fund in the scheme was not an alternatively secured pension fund, the other condition is that the member must not have been connected with the sponsoring employer at the date of his or her death.

Where the deceased member’s fund in the scheme was an alternatively secured pension fund, the other conditions are that

• the member must not have been connected with the sponsoring employer at the date of his or her death (see RPSM04102026), and
• the scheme administrator has been unable to identify any dependants of the deceased member.

The 'general conditions' that must also be met for a payment made solely in respect of the death of a member to be an authorised surplus payment are those set out in