Registered pension schemes are permitted by law to make certain payments to members, known as 鈥榓uthorised鈥� member payments.

Any payments to members other than those set out in the legislation are 鈥榰nauthorised鈥�.

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

1. 鈥�

   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. 鈥�

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

3. 鈥�

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

4. 鈥�

   short-service refund lump sums (a lump sum refunding a member鈥檚 contributions because the member has only a short period of service 鈥� that is, less than two years for defined benefit schemes and 30 days for money purchase schemes)

5. 鈥�

   refund of excess contributions lump sums (lump sums refunding a member of contributions which did