How trivial is trivial

Xbigman

I finally traced an old pension with a company in liquidation. It had a value of 5k in 1996 and I've now been offered the options of either transfering it or taking a lump sum under the trivial pensions rule. The computer (liquidator) has supplied no details but I am obviously curious, so how trivial is trivial?
Anybody know?
Regards





X

oceanblue_3

Xbigman wrote:

I finally traced an old pension with a company in liquidation. It had a value of 5k in 1996 and I've now been offered the options of either transfering it or taking a lump sum under the trivial pensions rule. The computer (liquidator) has supplied no details but I am obviously curious, so how trivial is trivial?
Anybody know?
RegardsX

Hello Xbigman

First of all, how old will you be at 6 April 2006?

Next, other than your State/Old Age Pension, do you have any other pension entitlement?

Robert_Sterling_3

The maximum amount that can be considered trivial is in the region of £15000.

This figure will probably increase in line with inflation.

Of the amount involved you get 25% of it free of tax
The other 75% will be taxed as earned income.



As a trivial pursuit try typing "trivial pension rules" into Google

It worked for me.

isasmurf

Robert_Sterling wrote:

The maximum amount that can be considered trivial is in the region of £15000.

That is the new definition of trivial, applicable from 6 April next year. Current trivial rules are different.

Xbigman

OK. It looks like the company handling my previous employers bankruptcy is talking cobblers. As I'm only 42 I'm not eligable for anything yet.
Regards




X

dunstonh

At age 42, you would have to wait until age 55 before being able to commence pension benefits or investigate triviality.

EdInvestor

Under the new rules I believe you can't take a trivial pension until age 60.

dunstonh

Wouldnt surprise me.