Authorised member contribution refunds in registered pension schemes

Published by a ��˾��ҹ�� Pensions expert

Practice notes

Authorised member contribution refunds in registered pension schemes

Published by a ��˾��ҹ�� Pensions expert

Practice notes

This Practice Note does not cover refunds of contributions paid on the death of a Member. For further information on these, see Practice Notes: Death benefits—final salary schemes and Death benefits—money purchase schemes.

In this Practice Note, a reference to 'trustees' is also a reference to the manager of a registered pension scheme.

In what circumstances can a refund of member contributions be made?

A scheme may permit refunds of member contributions in any number of circumstances. For instance, if a defined benefit (DB) member has less than three months' pensionable service, then under current legislation, that member has no right to have their pension benefits preserved within a DB occupational pension scheme. It is usual for the scheme to offer that member a refund of their member contributions in such circumstances. For further information see Requirements for a short service refund lump sum, below

Authorised member payments

Significantly, there are only two circumstances where a refund of member contributions will be an authorised member payment:

•
where it qualifies as a short service refund lump sum—for further information,

Jurisdiction(s):

United Kingdom

Key definition:

Fund definition

What does Fund mean?

Includes any estate or property held for the benefit of any person or class of person and any fund to which a trustee or representative'>personal representative is entitled in that capacity

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