Trivial Commutation Lump Sum

meg00

I have a small pension from a Local Government Pension Scheme, which pays under £40 per month which I am looking to cash in. I have aleady taken advantage of the 25% tax free amount.

A requirement is they need to know "the total capital value from all PENSION ARRANGEMENTS. (other than the state pension), irrespective of whether or not the pension is in payment, must be less than £30.000,00 on the date you request the payment of a lump sum instead of a small pension".

I also have an Annuity through a private provider paid monthly.

I am correct in thinking this annuity has no capital value and therefore does not prevent me from commuting the LGS pension?.

I am aware that I will pay tax on the lump sum and that I will lose the Death Benefit.

Thanks in advance.

Meg.

Silvertabby

No, the annuity counts.  Its notional (for trivial commutation purposes) capital value is 20 X annual pension (pre tax).

FIREDreamer

Silvertabby said:

No, the annuity counts.  Its notional (for trivial commutation purposes) capital value is 20 X annual pension (pre tax).

Is the PCLS previously taken from a personal pension counted? Posdibly over £30k including that PCLS but under £30k if PCLS taken.

eg
DB pot for triviality = £25,000
DC in drawdown = £4,500 but would have been £6,000 before crystallisation

So can the DB be trivially commuted or not?