Part 1: Public Service Pension Schemes Chapter 2: Judicial Schemes Section 63: Scheme rules that prohibit unauthorised payments
Under section 164 of the Finance Act 2004, registered pension schemes may only make payments to members of the types listed in that section. Where "unauthorised" payments are made, a tax charge applies. As it is possible that some of the payments that schemes are required to make to a member under Chapter 2 of this Act could be considered to be unauthorised and in breach of scheme rules, section 63(2) provides a power for the Treasury to set out in directions payments which would normally be unauthorised but, for the purposes of this Act, schemes are permitted to make.
	Section 63(3) and (4) provide that a payment required in respect of a transfer from a PPA under section 41, which would otherwise be an unauthorised payment in breach of scheme rules, may also be made.