pension and the triviality rules

littleowl

Thanks everyone for the links.

EdInvestor - I receive both Teachers' pension and state pension. Whatever makes you think that would bring my income to over £17,500? - it is a great deal lower than that! Or am I mistaken and you are not talking about annual income but the 'pension pot'?

If the latter then it seems I multiply the actual pension received by 25 to achieve the figure?

jem16

littleowl wrote: »

Thanks everyone for the links.

EdInvestor - I receive both Teachers' pension and state pension. Whatever makes you think that would bring my income to over £17,500? - it is a great deal lower than that! Or am I mistaken and you are not talking about annual income but the 'pension pot'?

If the latter then it seems I multiply the actual pension received by 25 to achieve the figure?

It's the pension pot Ed is talking about. State pension doesn't come into it.

As before anyone with a Teacher's pension is very unlikely to qualify for triviality unless it's an extremely small pension.

littleowl

Thank you for that clarification.

sandraroffey

sending my letter and all the bumpf to the financial ombudsman today. wish me luck.

littleowl

Hope you achieve success!

dunstonh

sandraroffey wrote: »

sending my letter and all the bumpf to the financial ombudsman today. wish me luck.

You cannot complain to the FOS without first complaining to the Pru. The FOS will not investigate your complaint and will just forward it on to the Pru.

Out of interest, what is your complaint? I can see nothing in your posts on this thread to suggest Prudential have done anything wrong or have failed to comply with pension legislation.

sandraroffey

the letter that the pru sent to me said that thelegislation allowed for it to be taken even if the pension had been started, BUT it was at their discretion. and that they, along with most other providers, where all saying no to whoever applied. i have complained to them and they told me that i could go to the ombudsman.

dunstonh

I see. However, my understanding of the rules is that it is at the discretion of the provider if they offer this or not. The FOS cannot overule the pension provider if that is the case.

A copy and paste of the confirmation on this follows:
The right to commute trivial pensions for cash won't come as standard with all UK pensions after A-Day even though we're supposedly getting just one pension tax regime in the interests of simplification. People in pension schemes will only be able to commute trivial pensions using the new provisions if their pension scheme trustees change the scheme rules to allow them to do so. Trustees aren't obliged to do this but if they don’t and use the old triviality rules, whilst the payment can still be made it must conform in all other respects with the new rules to avoid any potential tax penalties. Schemes which don’t have a triviality rule and don’t want to introduce one from A-Day will simply not be allowed to pay out on grounds of triviality.

EdInvestor

sandraroffey wrote: »

the letter that the pru sent to me said that thelegislation allowed for it to be taken even if the pension had been started, BUT it was at their discretion. and that they, along with most other providers, where all saying no to whoever applied.

Not so.We have a thread on this forum from someone with a Norwich Union annuity in payment who was approached by NU asking if she would like to to take the remainder of the money under the new triviality rules.

sandraroffey

thanks for that last post, you have given me hope. however, i do get the feeling that prudential are going to dig their heels in.xx