PTM133600 - Unauthorised payments: deemed or specific situations that are unauthorised payments: limit on increase in benefits where a member and sponsoring employer are connected

Glossary PTM000001

Limit on pension input amount

Section 172D Finance Act 2004

A registered pension scheme that is an occupational pension scheme is treated as making an unauthorised member payment where at any time during a pension input period in respect of:

  • cash balance arrangement
  • defined benefits arrangement

  • a hybrid arrangement that includes the provision of cash balance benefits or defined benefits

  • the member and a sponsoring employer are connected or the member is connected with a person who is connected to a sponsoring employer, and
  • the pension input amount in respect of the pension input period for the arrangement in question exceeds the 바카라 사이트˜notional unconnected person input amount바카라 사이트™ in respect of the pension input period for the arrangement in question.

For this purpose, the pension input amount for the member is calculated in accordance with guidance from PTM053000

The 바카라 사이트˜notional unconnected person input amount바카라 사이트™ for this purpose is the amount the pension input amount would have been for the pension input period in question if, the member was not connected with a sponsoring employer or a person connected with a sponsoring employer, at any time during that input period.

The amount of the deemed unauthorised payment is the amount equal to the difference between the pension input amount for the member and the 바카라 사이트˜notional unconnected person input amount바카라 사이트™.

The unauthorised member payment is treated as being made to the member whose pension input amount exceeds the 바카라 사이트˜notional unconnected person input amount바카라 사이트™ (or that member바카라 사이트™s personal representatives).

For a definition of 바카라 사이트˜connected person바카라 사이트™ see PTM027000

For a definition of 바카라 사이트˜sponsoring employer바카라 사이트™ see PTM022000