If a member of a contracted-out scheme has died and is due arrears of payments to equalise for the effect of their unequal GMP what are the specific provisions of the Finance Act 2004 (or regulations made under it) by which the payment of such arrears would be considered an authorised payment? and; to whom such arrears can be paid as an authorised payment? Can such arrears be paid to someone other than the original member’s personal representatives?

While Part 4 of the Finance Act 2004 states the broad rules under which authorised payments can and cannot be made by registered pension schemes, the Registered Pension Schemes (Authorised Payments) Regulations 2009, SI 2009/1171 provide for some exceptions to these rules. See the Registered Pension Schemes (Authorised Payments) Regulations 2009, SI 2009/1171, regs 3 and 4.

In its GMP Newsletter (dated July 2020), HMRC confirms that, in circumstances where benefits need to be adjusted for GMP equalisation, the adjustments may be paid as an authorised lump sum following the death of a member using the provisions in the Registered Pension Schemes (Authorised