PSI8.3.6 - Commutation for Triviality or
Serious Ill Health: Commutation of Pensions in Payment
(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
A pension already in payment may be commuted for triviality
if:
- following an increase in the triviality
limit the current annual rate of pension in payment is less than
the new limit, (the pension equivalent of any lump sum benefit paid
on retirement must however be taken into account), or
- at state pension age the guaranteed minimum
pension has been revalued in line with earnings and the total
pension then proves to be below the triviality limit.
