Taking a small pension as a cash lump sum (Trivial Commutation)

Making the decision to take all your pension as a one-off lump sum is called ‘trivial commutation’. The government has strict rules about who can trivially commute their pension and it is generally only available for individuals with small pension pots.

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 LGPS 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)

In order that we can assess your eligibility to receive a one-off payment in exchange for any future pension payments from the LGPS, you should complete a LGPS 12 - Details of Benefits from other Registered Pension Schemes form (PDF, 680.45KB). This is to be returned to us at: Avon Pension Fund, Bath & North East Somerset Council, Lewis House, Manvers Street, Bath, BA1 1JG

You must declare all pension entitlements (excluding state pensions and any dependant’s pension that you may be in receipt of) that you have, this includes:

• current membership of any pension arrangement
• a refund that has not been claimed
• a deferred benefit (a benefit that is not yet in payment)
• a pension or pensions in payment
• a pension credit (from a divorce sharing order)
• any trivial commutation payments that you have received since 6 April 2006

On receipt of your  LGPS 12 - Details of Benefits from other Registered Pension Schemes form (PDF, 680.45KB), we will assess your eligibility for a trivial commutation payment and contact you with the options available.