trivial commutation of protected rights?

Chris_P_2

Can protected rights be taken via trival commutation before state retirement age?

Damask

Yes, so long as:

i) you're over 60
ii) all of your private pensions come to less than £18,000 fund value
iii) you've not done another commutation more than a year ago
iv) the scheme rules allow it

Chris_P_2

what if you have taken a very small pension via a tax free lump sum and small annuity 7 years ago?

Damask

Multiply the annual value of the annuity before tax by 25 to get back to a fund value.

For example, if you're receiving £50 per month before tax...

£50 x 12 = £600 per year
£600 x 25 = £15,000

£15,000 would be the deemed fund value... leaving you a maximum of £3000 in other pension funds before you're prevented from commuting.