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  • FIRST POST
    • Lesley Dearnley
    • By Lesley Dearnley 11th Jan 18, 5:13 PM
    • 3Posts
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    Lesley Dearnley
    Local Government Pension
    • #1
    • 11th Jan 18, 5:13 PM
    Local Government Pension 11th Jan 18 at 5:13 PM
    I'm 58 yrs old and have been in receipt of my late husband's Local Government pension for the past 11 years. As it's only £130 per month and I have an outstanding mortgage would it be possible for me to cash in the pension pot and pay off my mortgage?
    How do I find out the value of the pension and is this possible with it being a Local Government pension and an inherited one?
    Totally confused by all the information being thrown at me from different companies wanting me to cash in the pension, etc.
Page 1
    • Silvertabby
    • By Silvertabby 11th Jan 18, 6:17 PM
    • 2,121 Posts
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    Silvertabby
    • #2
    • 11th Jan 18, 6:17 PM
    • #2
    • 11th Jan 18, 6:17 PM
    I'm sorry, but the value of your pension is too high to be paid as a one-off lump sum under triviality rules.

    The 'information being thrown at you' is from cold calling chancers. Just ignore them.
    Last edited by Silvertabby; 11-01-2018 at 6:44 PM.
    • dunstonh
    • By dunstonh 12th Jan 18, 10:13 AM
    • 90,375 Posts
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    dunstonh
    • #3
    • 12th Jan 18, 10:13 AM
    • #3
    • 12th Jan 18, 10:13 AM
    You would get more responses if you posted in the pension section rather than the auto-enrolment section.

    How do I find out the value of the pension
    There is no value. It is not that type of pension.

    and is this possible with it being a Local Government pension and an inherited one?
    No.
    Totally confused by all the information being thrown at me from different companies wanting me to cash in the pension, etc.
    The only companies wanting you to cash in a pension would be scams. You need to stop looking at those.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Silvertabby
    • By Silvertabby 12th Jan 18, 12:44 PM
    • 2,121 Posts
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    Silvertabby
    • #4
    • 12th Jan 18, 12:44 PM
    • #4
    • 12th Jan 18, 12:44 PM
    Further to dunstonh's reply, it is possible to take a spouse's LGPS pension as a one-off triviality payment - but not in OP's case as the notional value of her benefits is over the £30K triviality limit.

    However, unlike pension fund members, spouse's benefits can't be transferred out to a private pension plan, even if OP had asked this question before she started to draw her pension.
    Last edited by Silvertabby; 12-01-2018 at 1:21 PM.
    • Lesley Dearnley
    • By Lesley Dearnley 13th Jan 18, 3:21 PM
    • 3 Posts
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    Lesley Dearnley
    • #5
    • 13th Jan 18, 3:21 PM
    • #5
    • 13th Jan 18, 3:21 PM
    Thanks for the information though I don't understand this triviality payment you're talking about. Basically what you're saying is that the value of the pension is too high to allow me to take a lump sum payment if I'm understanding correctly?
    • Silvertabby
    • By Silvertabby 13th Jan 18, 6:20 PM
    • 2,121 Posts
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    Silvertabby
    • #6
    • 13th Jan 18, 6:20 PM
    • #6
    • 13th Jan 18, 6:20 PM
    Thanks for the information though I don't understand this triviality payment you're talking about. Basically what you're saying is that the value of the pension is too high to allow me to take a lump sum payment if I'm understanding correctly?
    Originally posted by Lesley Dearnley
    Yes. When you started to draw your pension the triviality limit was £18K, and the notional value of your pension was 20 times your annual pension. Based on your current pension, the value would have been way over that.

    Some - but not all - LGPS's are now offering trivial commutation of pensions already in payment based on the new higher limit of £30K - but your pension even exceeds this amount (£130 x 12 x 20 = £31,200).

    I'm sorry, but there's no way round this. If you are being cold-called by 'people' offering to 'cash in' your pension, just tell them that you are already in receipt of a public sector widow's pension. They won't bother you again.
    Last edited by Silvertabby; 13-01-2018 at 6:30 PM.
    • Lesley Dearnley
    • By Lesley Dearnley 17th Jan 18, 12:09 AM
    • 3 Posts
    • 2 Thanks
    Lesley Dearnley
    • #7
    • 17th Jan 18, 12:09 AM
    • #7
    • 17th Jan 18, 12:09 AM
    Thanks for the explanation it's been really helpful and clarified my position.
    • headpin
    • By headpin 19th Jan 18, 8:47 PM
    • 664 Posts
    • 349 Thanks
    headpin
    • #8
    • 19th Jan 18, 8:47 PM
    • #8
    • 19th Jan 18, 8:47 PM
    Yes. When you started to draw your pension the triviality limit was £18K, and the notional value of your pension was 20 times your annual pension. Based on your current pension, the value would have been way over that.

    Some - but not all - LGPS's are now offering trivial commutation of pensions already in payment based on the new higher limit of £30K - but your pension even exceeds this amount (£130 x 12 x 20 = £31,200).

    I'm sorry, but there's no way round this. If you are being cold-called by 'people' offering to 'cash in' your pension, just tell them that you are already in receipt of a public sector widow's pension. They won't bother you again.
    Originally posted by Silvertabby
    Are you sure that it is 20 times? Certainly for some Local Government Pensions 16 times is the multiplier to use. Not sure if that would make any difference though.
    • hyubh
    • By hyubh 19th Jan 18, 10:43 PM
    • 2,009 Posts
    • 1,517 Thanks
    hyubh
    • #9
    • 19th Jan 18, 10:43 PM
    • #9
    • 19th Jan 18, 10:43 PM
    Are you sure that it is 20 times? Certainly for some Local Government Pensions 16 times is the multiplier to use. Not sure if that would make any difference though.
    Originally posted by headpin
    Valuing a pension in payment for triv comm purposes at
    x20 the annual amount (+ any PCLS taken) is the statutory definition for all DB schemes. x16 is the Annual Allowance multiple - perhaps you were thinking of that...?
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