RPSM10300020 - Scheme Administrator Pages: Death benefits: Authorised and unauthorised member payments

What are authorised and unauthorised member payments made following the death of the member?

Section 164 Finance Act 2004 lists the payments that a registered pension scheme is authorised to make to or in respect of its members. These payments are called authorised member payments.

Payments made on the death of a member from a registered pension scheme fall within the authorised member payment definition (as they are made ‘in respect of’ that individual’s membership of the scheme). The different types of authorised member payments that may be made on the death of a member under a particular scheme are defined through a number of pension death benefit rules and a lump sum death benefit rules set out in the Finance Act 2004.

Any payment made following the member’s death that does not meet one of the definitions of authorised member payments is an unauthorised member payment. RPSM10100120 deals with such payments in more detail.

RPSM10100030 and RPSM10100040 give more information on what can constitute a payment.

More information on payments and unauthorised payments can be found at RPSM04104000