RPSM13103050 - Technical Pages: International: Overseas membership of a registered pension scheme: Administration

Administration

If a scheme is to be a registered pension scheme under section 153 the scheme administrator has to make a declaration that members will not be entitled to unauthorised payments under the scheme. But the declaration only needs to be in respect of payments to or for members who are or have been relevant UK individuals whilst being active members of the scheme. The registered pension scheme information reporting requirements also apply only in respect of such members.

Registered pension schemes with non-resident members will need to keep separate records for members who have benefited from UK tax relief on their contributions to the scheme or have been UK resident whilst in active membership. They will need:

• to make sure that all the scheme rules comply with the authorised pension and lump sum payment requirements (see RPSM09100000), or
• to have separate rules for such UK members so as to ensure that the rules as they apply to those members meet those pension and lump sum provisions.

They may need also to notionally ring-fence scheme assets relating to such UK members for the application of the unauthorised borrowing rules (see RPSM07104050). In practice, this is mainly relevant to money purchase schemes as borrowing is attributable to a member’s arrangement under such a scheme. This is not usually relevant to defined benefits schemes as their borrowing is at scheme level rather than in respect of particular members.

All of the assets of a registered pension scheme containing members who have never been relevant UK individuals whilst being active members of the scheme can be invested on the same basis as the assets of other registered pension schemes. Sections 186 and 187 apply to the scheme’s investment and gains (see RPSM07101040) regardless of any notional ring-fencing.