Lgps small pension help

helloh

I have a tiny deferred pension with lgps worth around £2500 and am trying to have the whole lot paid under the small pot rules but lgps say I can’t because I also have another deferred pension with them and am currently paying in to another. Is this right or am I right? Anyones help much appreciated…

Marcon

helloh said:

I have a tiny deferred pension with lgps worth around £2500 and am trying to have the whole lot paid under the small pot rules but lgps say I can’t because I also have another deferred pension with them and am currently paying in to another. Is this right or am I right? Anyones help much appreciated…

It's right I'm afraid. See the explanation here (or check your own LGPS website which is likely to have something similar): https://www.peninsulapensions.org.uk/members/local-government/retirement/taking-all-your-pension-as-a-one-off-lump-sum-trivial-commutation/

helloh

Thanks for the link, clearest explanation I have seen for trivial commutation but from everything I have read trivial communication isn’t the same as claiming a small pot pension, the value of my small pot is literally £2500……

DRS1

helloh said:

Thanks for the link, clearest explanation I have seen for trivial commutation but from everything I have read trivial communication isn’t the same as claiming a small pot pension, the value of my small pot is literally £2500……

 So what is the difference between trivial commutation and claiming a small pot pension?

Dazed_and_C0nfused

helloh said:

Thanks for the link, clearest explanation I have seen for trivial commutation but from everything I have read trivial communication isn’t the same as claiming a small pot pension, the value of my small pot is literally £2500……

Small pots normally relate to a defined contribution pension (a pot of money)

LGPS is a defined benefit pension (more like deferred salary) so different rules apply.

helloh

Ok thanks I’m still not convinced! 

QrizB

helloh said:

Ok thanks I’m still not convinced! 

When you claim your LGPS pensions they'll all add up. The £2500 will just be another little part of it.

Silvertabby

Your LGPS benefits are the total of all of your records.  There's no way round this, I'm afraid.

Marcon

Dazed_and_C0nfused said:

helloh said:

Thanks for the link, clearest explanation I have seen for trivial commutation but from everything I have read trivial communication isn’t the same as claiming a small pot pension, the value of my small pot is literally £2500……

Small pots normally relate to a defined contribution pension (a pot of money)

LGPS is a defined benefit pension (more like deferred salary) so different rules apply.

Small pots can be DC or DB. 

helloh said:

Ok thanks I’m still not convinced! 

Have a look at https://techzone.abrdn.com/public/pensions/Guide-triviality-small-pots