Taking a small pension as a cash lump sum

If you are 55 or over* and have relatively small pension benefits you may be able to exchange your regular pension payments for a one off cash lump sum. This is known as Trivial Commutation.

You may be eligible to take this lump sum if:

• you’re aged at least 55*, or you’re retiring at an earlier age because of ill-health; and the capital value of all your pension benefits (including any other pensions provisions you have and pensions already in payment, but ignoring any State Pension) when added together do not exceed the current HMRC levels (currently £30,000)

You may be able to take the whole of your pension as a small pot if:

• you’re aged at least 55*, or you are retiring at an earlier age because of ill-health; and
• the capital value of your pension benefits held within the Local Government Pension Scheme (LGPS) does not exceed £10,000.

*aged 55 or over (or in the case of a woman who has a Guaranteed Minimum Pension (GMP), is aged 60 or over, or in the case of a man who has a GMP, is aged 65 or over)

If you are interested in exploring this option then please complete the following form.

LGPS 12 - Details of Other Benefits Form

We will then assess your eligibility for a trivial commutation payment and contact you with further details.