NHS Pension Scheme - Trivial Commutation

tmonaghan

Hi,

I don't seem to understand what it means by Trivial commutation for small pensions.

"Where the capital value of the benefits built up within the NHS Pension Scheme and with any other pension providers is more than £6,000 but not more than £30,000, normal benefits will be paid unless the member asks for their pension benefits to be trivially commuted"

2015 Scheme: The capital value = Annual Pension x 20 of the actual benefit payable

My NHS Pension will be about £24000 a year so does it mean that I could potentially withdraw at once 20 x £24000?

Many thanks for clarifying that for me,

Trevor

swindiff

No, your pension of £24000 x 20 will have a "value" of £480,000. Much greater than the £30,00 quoted for Trivial commutation.

hyubh

tmonaghan wrote: »

My NHS Pension will be about £24000 a year so does it mean that I could potentially withdraw at once 20 x £24000?

The trivial commutation limits aren't with respect to a 30K DB pension p.a. (which wouldn't be very 'trivial'), but a total pension 'value' of 30K.

tmonaghan

So basically if I had an annual pension of £1500 I would be able to withdraw 20x that? I thought it was too good to be true lol

Thanks very much,

xylophone

https://www.pensionsadvisoryservice.org.uk/content/publications-files/uploads/Taking_small_pensions_Detailed_SPOT008_V1.5.pdf