Trivial Commutation over £30k?

TVAS

Why don't you simply complete and return the form and state you are interest only if you quality for Trivial Commutation and whilst writing query the difference in figures by letter and online. 

Whiterose23

TVAS said:

Why don't you simply complete and return the form and state you are interest only if you quality for Trivial Commutation and whilst writing query the difference in figures by letter and online. 

I'm not sure what I want to do about it yet ... I was hoping someone could explain to me but looks like I'll need to give them a call. There's also the issue that it is a DB pension and although small, it will be worth more in ten years and is payable for life. Just wanted to gain some understanding.

xylophone

There's also the issue that it is a DB pension and although small, it will be worth more in ten years and is payable for life.

At what rate is it revaluing in deferment?

 Looking at the  figures I simply do not see how this can  qualify as a trivial commutation.

Tommyjw

xylophone said:

There's also the issue that it is a DB pension and although small, it will be worth more in ten years and is payable for life.

At what rate is it revaluing in deferment?

 Looking at the  figures I simply do not see how this can  qualify as a trivial commutation.

Why not ? £906 pension = £18,120 triv com value, plus avc, less than 30k. 

xylophone

The OP states

Hi, the current CETV is £35,627 

And apart from that see my post of 12 April  with TC rules and this earlier post from the OP

https://forums.moneysavingexpert.com/discussion/comment/78069774#Comment_78069774

about another DB pension and a pension to which he currently contributes - very unlikely his total pensions are under £30,000.

Whiterose23

xylophone said:

There's also the issue that it is a DB pension and although small, it will be worth more in ten years and is payable for life.

At what rate is it revaluing in deferment?

 Looking at the  figures I simply do not see how this can  qualify as a trivial commutation.

I agree; I don’t know why they’ve sent the letter out.

I’m not sure the rate it’s revaluing, only that the ‘forecast’ at 65 is around £1200 a year. The CETV in December 2020 was £38k so its reduced since then.

Whiterose23

xylophone said:

The OP states

Hi, the current CETV is £35,627 

And apart from that see my post of 12 April  with TC rules and this earlier post from the OP

https://forums.moneysavingexpert.com/discussion/comment/78069774#Comment_78069774

about another DB pension and a pension to which he currently contributes - very unlikely his total pensions are under £30,000.

I have another deferred DB pension currently at £129k CETV and my works DC pension which is at £26k currently. I haven’t taken anything from them but does their existence affect this?

xylophone

I have another deferred DB pension currently at £129k CETV and my works DC pension which is at £26k currently. I haven’t taken anything from them but does their existence affect this?

See post of 12 April.

Tommyjw

xylophone said:

The OP states

Hi, the current CETV is £35,627 

And apart from that see my post of 12 April  with TC rules and this earlier post from the OP

https://forums.moneysavingexpert.com/discussion/comment/78069774#Comment_78069774

about another DB pension and a pension to which he currently contributes - very unlikely his total pensions are under £30,000.

Other pensions are irrelevant as to whether this Scheme has sent the information, we already know the benefits in this scheme are under the 30k rule so there would be no reason they wouldn't sent that information out. It's then up to the person to work out if they do qualify which like you said it seems like isn't the case.

Whiterose23

I have queried the amounts given on the letter and this is the response from Kingfisher:

"The HMRC value of your benefits is calculated using a complex formula, but the value has been calculated as £26,232.92 at the current time. If the value of your benefits held elsewhere is less than (£30,000 - £26,232.92)  = £3,767.08, then you will be eligible. This is a small amount to be eligible for, but all members up to the threshold of £30,000 have been contacted to check if they are eligible to take the lump sum."

This has now confused me further. The original letter states £33,470.79 (payable in September) + AVC £7,904.52 (payable in October). 

How do all these figures relate to each other? I have the higher amount on the website, the offer on the letter, and now this via email.

Also, please could someone help me understand what is meant by 'value of your benefits held elsewhere'? Does this mean if I have other pensions (which I do), that I won't qualify?

Thanks,