C1C2C3C4C5C6C7C8C9Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)
C7

Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C9

Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

Chapter 3Payments by registered pension schemes

Introductory

I1160Payments by registered pension schemes

1

The only payments which a registered pension scheme is authorised to make to or in respect of a F2person who is or has been a member of the pension scheme are those specified in section 164.

2

In this Part “unauthorised member payment” means—

a

a payment by a registered pension scheme to or in respect of a F3person who is or has been a member of the pension scheme which is not authorised by section 164, and

b

anything which is to be treated as an unauthorised payment to or in respect of a F4person who is or has been a member of the pension scheme under F5this Part.

3

The only payments which a registered pension scheme that is an occupational pension scheme is authorised to make to or in respect of a F6person who is or has been a sponsoring employer are those specified in section 175.

4

In this Part “unauthorised employer payment” means—

a

a payment by a registered pension scheme that is an occupational pension scheme, to or in respect of a F7person who is or has been a sponsoring employer, which is not authorised by section 175, and

b

anything which is to be treated as an unauthorised payment to a F8person who is or has been a sponsoring employer under section 181.

F104A

If an unauthorised member payment or unauthorised employer payment made to or in respect of a person would have been greater but for a reduction made in respect of the whole, or any proportion, of the amount which the scheme administrator considers may be the amount of the liability to the scheme sanction charge in respect of it, it is to be regarded for the purposes of this Part as increased by the amount of the reduction.

4B

But if the amount, or that proportion of the amount, of that liability is in fact less than the amount of the reduction, a subsequent payment of an amount not exceeding the difference between that amount and the amount of the reduction made—

a

to or in respect of the same person, and

b

before the end of the period of two years beginning with the date on which the unauthorised member payment or unauthorised employer payment was made,

is not to be regarded for the purposes of this Part as an unauthorised member payment or unauthorised employer payment.

5

In this Part “unauthorised payment” means—

a

an unauthorised member payment, or

b

an unauthorised employer payment.

6

As well as section 157 (de-registration), the following provisions—

a

section 208 (unauthorised payments charge),

b

section 209 (unauthorised payments surcharge),

c

section 239 (scheme sanction charge), and

d

section 242 (de-registration charge),

specify consequences of making unauthorised payments.

7

Sections 182 to 185 contain provision about amounts that a registered pension scheme is not authorised to borrow.

F17A

Sections 185A to 185I contain provision about the receipt of income and gains from taxable property.

8

As well as section 157, sections 239 and 242 specify consequences of unauthorised borrowing F9and the receipt of income and gains from taxable property.

9

Schedule 36 contains (in Parts 3 and 4) transitional provision about unauthorised payments.