The Registered Pension Schemes (Authorised Payments) Regulations 2009

Commencement lump sums paid after death

19.—(1) A payment of a lump sum under the pension scheme to or in respect of a member who has died if—

(a) the payment is in respect of a defined benefits arrangement;

(b) the scheme administrator had not established the member’s entitlement to the payment until after the member’s death;

(c) the scheme administrator could not reasonably have been expected to make the payment before the member died;

(d) the payment would have been a pension commencement lump sum if it had been made immediately before the member’s death and the member had been entitled to it;

(e) it is made no later than the end of the period of one year beginning with the earlier of—

(i) the day on which the scheme administrator first knew of the member’s death, and

(ii) the day on which the scheme administrator could first reasonably be expected to have known of it; and

(f) the member was neither—

(i) a controlling director of a sponsoring employer of this or any related scheme, nor

(ii) a person connected to such a person.

(2) The making of the payment shall be treated as a benefit crystallisation event for the purposes of the lifetime allowance charge, namely benefit crystallisation event 9.

(3) The amount crystallised for the purposes of benefit crystallisation event 9 is the amount of the payment.