Payments made in respect of a member for the purposes of the administration of the scheme may be scheme administration member payments and authorised payments. The payments may cover salaries and fees, but also the purchase price of investments of the scheme. It is the job of the scheme trustees or managers to deliver benefits, and investments are an important means of delivering those benefits.
The amount of the payments must be reasonable and determined at arm’s length. If the reasonable amount is exceeded, the excess will be taxed as an unauthorised payment.