RPSM09101550 - Technical Pages: Member benefits: A secured pension: Scheme pension: Stopping or reducing a scheme pension: Forfeiture of entitlement

Reducing a scheme pension due to forfeiture of entitlement

[Para 11(6), Sch 10, FA 2005][The Pension Schemes (Reduction in Pension Rates) Regulations 2006 – SI 2006/138]

Some scheme rules provide that in exceptional circumstances a member will lose all entitlement to benefits. This may be where the member attempts to assign those benefits, or defrauds their employer.

The above Regulations specify the narrow circumstances in which an entitlement to a scheme pension can be taken away (so that the pension stops) under a forfeiture clause and still be an authorised payment.

Glossary ( RPSM20000000)