Trivial commutation Payout

hillendale

I have a small company pension from a previous uk employer. Although the pension will be a very small pension I can take it at 50yrs of age (2 months away) 
unfortunately they have informed I cannot take it as a trivial commutation as a one off payout because it is a little over the HMRC set limit of £30k 
I would be interested to know if there is any other options to enable me to receive the lump at 50yrs old either by transferring it to another provider etc .
I am also a dual citizen 
UK and Canada 

xylophone

a little over the HMRC set limit of £30k 

I'd say that £20,000  over is not "a little"?
https://forums.moneysavingexpert.com/discussion/comment/75299364#Comment_75299364

garmeg

hillendale said:

I have a small company pension from a previous uk employer. Although the pension will be a very small pension I can take it at 50yrs of age (2 months away) 
unfortunately they have informed I cannot take it as a trivial commutation as a one off payout because it is a little over the HMRC set limit of £30k 
I would be interested to know if there is any other options to enable me to receive the lump at 50yrs old either by transferring it to another provider etc .
I am also a dual citizen 
UK and Canada 

xylophone said:e

a little over the HMRC set limit of £30k 

I'd say that £20,000  over is not "a little"?
https://forums.moneysavingexpert.com/discussion/comment/75299364#Comment_75299364

Maybe OP is thinking about the £30,000 DB trivial commutation benefit limit and not the £10,000 DC small pot limit?

Dazed_and_C0nfused

Yes but with a CETV of nearly £50k a couple of years ago they aren't likely to be near either.

garmeg

Dazed_and_C0nfused said:

Yes but with a CETV of nearly £50k a couple of years ago they aren't likely to be near either.

True, I did not refer to the earlier thread.

hillendale

The pension provider informed me the  ‘capital value’ of my pension is £35k (over the £30k limit set by HMRC) the total ‘transfer’ value of my pension is calculated totally different and this what is valued around £50k. 

xylophone

The pension provider informed me the  ‘capital value’ of my pension is £35k (over the £30k limit set by HMRC) the total ‘transfer’ value of my pension is calculated totally different and this what is valued around £50k. 

You cannot use Trivial Commutation. 

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

Re DB pension transfers

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

You are now resident in Canada? This may complicate finding a new provider?

Marcon

hillendale said:

I have a small company pension from a previous uk employer. Although the pension will be a very small pension I can take it at 50yrs of age (2 months away) 
unfortunately they have informed I cannot take it as a trivial commutation as a one off payout because it is a little over the HMRC set limit of £30k 
I would be interested to know if there is any other options to enable me to receive the lump at 50yrs old either by transferring it to another provider etc .
I am also a dual citizen 
UK and Canada 

Being a dual citizen (assuming you are resident in the UK) doesn't help, I'm afraid. You could take the usual tax free lump sum (the provider will tell you how much is the maximum cash you could take at 50) and the pension would come into payment at the same time.

Be aware that if an individual transfers (other than as part of a 'block transfer' which means transferring at the same time as at least one other individual), they will lose their protected pension age and will not be able to access their pension until at least age 55.

xylophone

Be aware that if an individual transfers (other than as part of a 'block transfer' which means transferring at the same time as at least one other individual), they will lose their protected pension age and will not be able to access their pension until at least age 55.

OP says in  https://forums.moneysavingexpert.com/discussion/comment/75408546/#Comment_75408546

My old uk pension scheme has offered me a transfer payment of approx £50k , but this would have to be transferred to a private pension which as I understand would incur costs and couldn’t be accessed then until I am 55 yrs old. The alternative is to leave it with current provider and take a very small annual pension @ 50yrs or 55yrs around £1000/£1200 per year combined will a small lump sum of around £5k.I now live in Canada so I am trying trying to find what if any other options would be available to me now I no longer contribute to the old uk company pension and as I only originally contributed to the scheme for about 4 yrs.