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,
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Jurisdiction(s):
United Kingdom
Related legal acts:
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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