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Cash in small pension

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I receive a works pension of £1900 a month. I have now retired from a KCC part time job after 5 years. I receive a pension from them of £35 a month. Instead of that small amount I asked if I could receive the pension as a lump sum.
i was told I can’t as my income from my other pension is to high.
 I don’t really understand this.

Comments

  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,554 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edited 28 January at 10:02PM
    I receive a works pension of £1900 a month. I have now retired from a KCC part time job after 5 years. I receive a pension from them of £35 a month. Instead of that small amount I asked if I could receive the pension as a lump sum.
    i was told I can’t as my income from my other pension is to high.
     I don’t really understand this.
    What type of pension are you entitled to from KCC?

    Defined benefit (pension due in accordance with the scheme rules, like deferred salary) or is it a defined contribution scheme (a pot of money)?
  • Silvertabby
    Silvertabby Posts: 10,123 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    edited 28 January at 10:15PM
    KCC = Kent County Council?
    Is your £35 per month before or after tax?

    Is your older pension also LGPS, even if it's with another local authority?
  • Kevinp8880
    Kevinp8880 Posts: 11 Forumite
    Sixth Anniversary First Post
    Thanks for reply’s.
    i worked 2 days a week for a local primary school looking after the grounds.
    The pension is to£35 a month after tax.
    My main pension is from Scotia Gas.
    Started BG, when left school and stayed in the industry under various titles for nearly 40 years.
  • Silvertabby
    Silvertabby Posts: 10,123 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Then the notional value of your KCC pension is over £10k (20 X annual pension before tax).  

    This means it can't be taken as a one-off lump sum under de minimis (small pot) rules, as it exceeds the £10K limit.  Nor can it be taken as normal trivial commutation, as the total value of both of your pensions exceeds the £30K limit.

    There is no way round this, I'm afraid.
  • Kevinp8880
    Kevinp8880 Posts: 11 Forumite
    Sixth Anniversary First Post
    Yes I’ve now been told that. Just think it’s stupid having to pay me £35 a month, a lump sum would do away with all paperwork etc and get me off their books.. Thanks for the reply.
  • Both the £10k and £30k limits date from 2014 and they haven’t increased since.

    A different kind of fiscal drag I suppose.
  • Tommyjw
    Tommyjw Posts: 237 Forumite
    Ninth Anniversary 100 Posts Name Dropper Combo Breaker
    Always seemed like limits easy to increase, and give members with smaller pensions with more options, whilst also allowing DB schemes to reduce their liabilities which is in everyone's interest , wonder why it's been stuck at the same amount for so long 
  • Silvertabby
    Silvertabby Posts: 10,123 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Tommyjw said:
    Always seemed like limits easy to increase, and give members with smaller pensions with more options, whilst also allowing DB schemes to reduce their liabilities which is in everyone's interest , wonder why it's been stuck at the same amount for so long 
    So people will still have enough pension income to take them over the means test limit?

    That said, once we are out of the transitional period, most people will get the full single tier pension - which is over the means test limit by itself.
  • Altior
    Altior Posts: 1,014 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    Can the OP do a cash transfer if the cetv is under £30K ?
  • Silvertabby
    Silvertabby Posts: 10,123 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Altior said:
    Can the OP do a cash transfer if the cetv is under £30K ?

    Not now the pension is in payment. 

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