When can overpaid pension contributions be recovered from a pension scheme?

Once an employer or member has paid contributions into a scheme, they cannot generally get a refund, at least not without triggering the tax penalties associated with unauthorised payments. This is because such refunds will usually be treated as unauthorised payments. There are however a few exceptions:

1. •

   for member contributions:

   1. ◦

      where the scheme in question is an occupational pension scheme and the refund qualifies as a short service refund lump sum. For more information, see Practice Note: Refunds of member contributions—requirements for a short service refund lump sum

   2. ◦

      where the refund qualifies as a refund of excess contributions lump sum (whatever the type of registered pension scheme making the refund). For more information, see Practice Note: Refunds of member contributions—Refund of excess contribution lump sums

   3. ◦

      where the refund is made in exercise by the member of a right to a statutory cooling off period in respect of a registered pension scheme (ie where the member changes their mind about joining a pension scheme after paying