Private pension transfer

Dazed_and_C0nfused

spurdog1 said:

Xylophone, I am endebted for your "staying with me" and persistence in giving a full and detailed answer

It is a DB pension, of which I was a member for two years (shows how worthless they are in this instance.
I was offered a 25% drawdown based on the fact it was over £10,000.00 at March. But I was not permitted a full drawdown as it was over 10K.
Come October the payment was 25% of 9690.00 (yes, the funds have dropped, and dropped below the £10K, so technically I should have been offered ALL at that point. Sadly the smaller payment didn't alert me until  a month ago. However my understanding is that i have a year to appeal. A year from when, though?

Pretty sure you've misunderstood something somewhere.

There are no funds with a DB pension.  There is a nominal value but that is very rarely relevant.

Has trivial commutation ever been mentioned?

Silvertabby

Dazed_and_C0nfused said:

spurdog1 said:

Xylophone, I am endebted for your "staying with me" and persistence in giving a full and detailed answer

It is a DB pension, of which I was a member for two years (shows how worthless they are in this instance.
I was offered a 25% drawdown based on the fact it was over £10,000.00 at March. But I was not permitted a full drawdown as it was over 10K.
Come October the payment was 25% of 9690.00 (yes, the funds have dropped, and dropped below the £10K, so technically I should have been offered ALL at that point. Sadly the smaller payment didn't alert me until  a month ago. However my understanding is that i have a year to appeal. A year from when, though?

Pretty sure you've misunderstood something somewhere.

There are no funds with a DB pension.  There is a nominal value but that is very rarely relevant.

Has trivial commutation ever been mentioned?

This sounds like a public sector de minimas trivial commutation.  The initial notional value (20 X annual pension plus 1X any automatic lump sum) determines if the fund member qualifies or not.  In this case, not, as the notional value was over £10K.

Then OP opted for maximum commutation, at the poor public sector rate of 1:12.  This means permanently giving up some of the annual pension in return for tax free cash, and so reduces the overall notional value (20 X reduced pension plus 1 X commuted tax free cash) which is why OP only received 25% of £9690.  

If I'm right, then there's nothing to appeal I'm afraid.

xylophone

Thank you Silvertabby.

I had a look at the LGPS "de minimis' rules and calculations here.

https://www.lgpslibrary.org/assets/gas/uk/TCv1.7c.pdf

As his benefit was valued at over £10,000 so that he did not qualify under the rules, presumably what he has is a scheme pension with maximum PCLS?

Presumably the OP had a DC pension pot in addition to the deferred DB pension

I did last year have a financial advisor to convert my funds to a pension, 

so could not use the £30,000 rule?

https://www.trivialcommutation.co.uk/under30k/

Silvertabby

xylophone said:

Thank you Silvertabby.

I had a look at the LGPS "de minimis' rules and calculations here.

https://www.lgpslibrary.org/assets/gas/uk/TCv1.7c.pdf

As his benefit was valued at over £10,000 so that he did not qualify under the rules, presumably what he has is a scheme pension with maximum PCLS?

Presumably the OP had a DC pension pot in addition to the deferred DB pension

I did last year have a financial advisor to convert my funds to a pension, 

so could not use the £30,000 rule?

https://www.trivialcommutation.co.uk/under30k/

Yes.  If all of the PCLS had been realised by commutation, then the original notional value is likely to have been nearer £11K than £10K.