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STOP PRESS: This guidance note may be affected by the changes to the taxation of pensions made by FA 2024, Sch 9 from 6 April 2024 onwards. The commentary below covers the rules that apply prior to that date. Before continuing your research, see the Abolition of the lifetime allowance guidance note.

Registered pension schemes are permitted by law to make certain payments to members, known as ‘authorised’ member payments.

Any payments to members other than those set out in the legislation are ‘unauthorised’.

Subject to conditions, the following payments are likely to be authorised payments:

1. •

   all forms of pensions, including lump sum and income withdrawals permitted under the pensions freedom rules introduced from 6 April 2015 (see FA 2004, Sch 28)

2. •

   pension commencement lump sums (a lump sum which a member becomes entitled to when a pension comes into payment)

3. •

   serious ill-health lump sums (a lump sum paid by commuting the whole of a member’s pension because of serious ill-health)

4. •

   short-service refund lump sums (a lump sum refunding a member’s