Trivial Commutation Under £30,000
Trivial commutation is an option available to some members of pension schemes. It enables people above a certain minimum age and who have relatively small pensions to exchange their regular pension payments for a one-off cash lump sum. The option is available to people aged 55 and over.
Once the one-off cash lump sum has been paid you cannot change your mind. After you receive the one-off cash lump sum you will receive no future pension payments from your pension scheme and, in the event of your death, your dependants and family will also not receive any future payments from your pension scheme.
How Does Trivial Commutation Work For Pensions Worth Between £10,000 and £30,000?
If you have a pension worth between £10,000 and £30,000 you may be able to exchange it for a cash lump sum as long as you meet a few eligibility criteria. One of the main criteria relates to the value of any other pension benefits you receive.
You can only exchange your pension for a cash lump sum if the total value of all of your pensions is less than £30,000.