Trivial Commutation

If you have a small pension you may prefer to receive it as a one off lump sum payment. The process of converting your small monthly pension into a lump sum is known as ‘trivial commutation’ and is only allowed under certain conditions, as explained below.

Conditions

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You must meet the following criteria in order for the Cornwall pension fund to investigate the possibility of a trivial commutation of your benefits:

  • you must be aged 55 or over (or over 65 if you are male with membership before April 1997)
  • you must take all of your benefits in the LGPS in England and Wales as a trivial lump sum

And, if you are receiving a trivial lump sum from more than one pension scheme i.e. LGPS and non-LGPS;

  • the sum value* of all of those payments must not exceed £30,000 and all the trivial lump sums must be taken within 12 months of the first lump sum payment

Or, if you are receiving a trivial lump sum from only the LGPS and you were an active member of the scheme on or after 1st April 2008;

  • the sum value* of your benefits in the LGPS must be less than £10,000.  This includes all benefits in the LGPS in England and Wales
  • you must not have transferred any funds out of the LGPS in the last three years, and
  • you must not be a 'controlling director' - or someone connected with a controlling director - of an employer that participates in the LGPS

*The sum value is the total capital value of all of your pension benefits and not the annual amount of the pension payable.

The rules governing whether you can take trivial commutation are quite complex. If you are unsure if you meet the criteria you should contact the Pensions Section.  We will also need the following form to be completed with any application for payment of your benefits on this basis:

Declaration of Pension Fund Value Form