Triviality rules help please?

jenko

Hi all - I hope someone can help me here with a few queries for my Mum...

She recently got a letter from Mercers regarding an old company scheme she was a member of. It looks as though it was a DB scheme as there is no mention of current or transfer value, just the benefits and it is an early leaver quote, even though she has not been at this company for many years.

She had totally forgotten about it. She thinks she was paying in around £5 a month as her contribution.

The letter tells her she has 4 options, which are pensions payable from now with and without TFC and pensions payable from State Pension Age with and without TFC.

Her State Pension Date is 06/11/2015. She is 56 years old.

This is her only pension and it is below the Trivialty Minimum which is £16,500. Her maximum pension would be £512.40pa so that is just over £10k for the calculation of 20:1

I have looked up the triviality rules and they seem to say that you can only apply this rule between 60 and 75. Is this correct and is there any way around this?

Also, she was diagnosed with Cancer in 2006 which was cleared and subsequently returned, but has been cured again this year following more radiotherapy.

Any advice you can give would be very gratefully received. Please let me know if you need any more info.

Thanks

dunstonh

Is this correct and is there any way around this?

It is correct and there is no way round it.

jenko

How about if you took the TFC and then didnt draw benefits.

Could you then take the rest at age 60?

Thanks

EdInvestor

jenko wrote: »

How about if you took the TFC and then didnt draw benefits.Could you then take the rest at age 60?

Thanks

Nope.If she wants to do triviality she will have to wait till 60.

jenko

Actually you can take TFC and no income then take the rest when you get to 60