small monthly DB pension

striker44

Hello,

I am in receipt of a very small monthly pension from a past employer; wrote asking if I could have a transfer value to transfer to my Drawdown Scheme to take advantage of the new rules come April.

Reply - as your pension under this scheme is already in payment, you cannot transfer this to another arrangement. Is this correct? as I thought from all my reading that the scheme trustees under the new rules had to let me transfer.

Many thankd in anticpation of anyones help with this.

dasherman

The reply you received was correct. As the pension is already in payment it can't be transferred.

greenglide

But they can, at their discretion, pay a lump sum as a "Trivial Commutation" even though it is already in payment, can't they?

It does, of course, depend on what is meant by "a very small monthly pension". Recent posters have been applying this description to significant sums of money.

magpiecottage

There are rules coming on line to allow pensions in payment to be sold for a cash sum. However you are likely to need a financial adviser who is willing and able to do it.

Because it is a risky proposition and there is every possibility that if it goes wrong you will be able to take the adviser to the Financial Ombudsman Service who will then force the adviser to put you into the position you would have otherwise been in, it needs to be a particular adviser.

Such an adviser can put the letters I D I O T after their name.

sandsy

The previous post isn't quite right. It may be possible to effectively cash in an annuity in payment, not a DB pension in payment.

atush

greenglide wrote: »

But they can, at their discretion, pay a lump sum as a "Trivial Commutation" even though it is already in payment, can't they?

It does, of course, depend on what is meant by "a very small monthly pension". Recent posters have been applying this description to significant sums of money.

The Trustees 'could' choose to pay lump sum from a pension already in payment- if they choose and if their scheme rules allow..


But they dont have to.

striker44

Many thanks for your quick responses - the monthly sum is under £100; so looks like will have to keep receiving it.

greenglide

If you don't want your under £100 per month you could always give it to me.

Is this before or after tax?

I don't think "under £100" is really "a very small monthly pension" unless it is really, really under £100.

kidmugsy

Why not bung the £100 p.m. into a personal pension of some sort and build up a new pension that will have lots of flexibility when required?