RPSM09102130 - Technical Pages: Member benefits: An unsecured pension: Overview: Unauthorised payments
This guidance only covers members who became entitled to an unsecured pension before 6 April 2011. If the member became entitled to their pension on or after 6 April 2011 then see the guidance at RPSM09103500.
Where the unsecured pension limit is breached
| [s208 to 212][s239 to 241][s165(1), ‘Pension rule 5’][Para 9 and 10, Sch 28] |
Where the amount of unsecured pension payments in a pension year exceeds the maximum unsecured pension permitted for that period, the excess is an unauthorised member payment.
The member will become liable to a 40% unauthorised payments charge on that excess.
The unauthorised member payment may also give rise to
- a scheme sanction charge, and
- an unauthorised payments surcharge.
Further information on the taxation of unauthorised payments can be found at RPSM04104000.
| Glossary (RPSM20000000) |
