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Local Government Pension
Lesley_Dearnley
Posts: 3 Newbie
I'm 58 yrs old and have been in receipt of my late husband's Local Government pension for the past 11 years. As it's only £130 per month and I have an outstanding mortgage would it be possible for me to cash in the pension pot and pay off my mortgage?
How do I find out the value of the pension and is this possible with it being a Local Government pension and an inherited one?
Totally confused by all the information being thrown at me from different companies wanting me to cash in the pension, etc.
How do I find out the value of the pension and is this possible with it being a Local Government pension and an inherited one?
Totally confused by all the information being thrown at me from different companies wanting me to cash in the pension, etc.
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Comments
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I'm sorry, but the value of your pension is too high to be paid as a one-off lump sum under triviality rules.
The 'information being thrown at you' is from cold calling chancers. Just ignore them.0 -
You would get more responses if you posted in the pension section rather than the auto-enrolment section.How do I find out the value of the pension
There is no value. It is not that type of pension.and is this possible with it being a Local Government pension and an inherited one?
No.
The only companies wanting you to cash in a pension would be scams. You need to stop looking at those.Totally confused by all the information being thrown at me from different companies wanting me to cash in the pension, etc.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Further to dunstonh's reply, it is possible to take a spouse's LGPS pension as a one-off triviality payment - but not in OP's case as the notional value of her benefits is over the £30K triviality limit.
However, unlike pension fund members, spouse's benefits can't be transferred out to a private pension plan, even if OP had asked this question before she started to draw her pension.0 -
Thanks for the information though I don't understand this triviality payment you're talking about. Basically what you're saying is that the value of the pension is too high to allow me to take a lump sum payment if I'm understanding correctly?0
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Lesley_Dearnley wrote: »Thanks for the information though I don't understand this triviality payment you're talking about. Basically what you're saying is that the value of the pension is too high to allow me to take a lump sum payment if I'm understanding correctly?
Yes. When you started to draw your pension the triviality limit was £18K, and the notional value of your pension was 20 times your annual pension. Based on your current pension, the value would have been way over that.
Some - but not all - LGPS's are now offering trivial commutation of pensions already in payment based on the new higher limit of £30K - but your pension even exceeds this amount (£130 x 12 x 20 = £31,200).
I'm sorry, but there's no way round this. If you are being cold-called by 'people' offering to 'cash in' your pension, just tell them that you are already in receipt of a public sector widow's pension. They won't bother you again.0 -
Thanks for the explanation it's been really helpful and clarified my position.0
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Silvertabby wrote: »Yes. When you started to draw your pension the triviality limit was £18K, and the notional value of your pension was 20 times your annual pension. Based on your current pension, the value would have been way over that.
Some - but not all - LGPS's are now offering trivial commutation of pensions already in payment based on the new higher limit of £30K - but your pension even exceeds this amount (£130 x 12 x 20 = £31,200).
I'm sorry, but there's no way round this. If you are being cold-called by 'people' offering to 'cash in' your pension, just tell them that you are already in receipt of a public sector widow's pension. They won't bother you again.
Are you sure that it is 20 times? Certainly for some Local Government Pensions 16 times is the multiplier to use. Not sure if that would make any difference though.0 -
Are you sure that it is 20 times? Certainly for some Local Government Pensions 16 times is the multiplier to use. Not sure if that would make any difference though.
Valuing a pension in payment for triv comm purposes at
x20 the annual amount (+ any PCLS taken) is the statutory definition for all DB schemes. x16 is the Annual Allowance multiple - perhaps you were thinking of that...?0
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