RPSM09104970 - Technical Pages: Member benefits: Lump sums: Trivial commutation lump sum: Conditions for payment

If the lump sum was paid on or after 6 April 2011 you should first read RPSM09105085.

Conditions that must be met in order for a trivial commutation lump sum to be paid

The five conditions that a lump sum payment must meet to be a trivial commutation lump sum are as follows

• the member has not been paid a trivial commutation lump sum previously (from any registered pension scheme), except any earlier payment within the commutation period (although any trivial commutation that occurred before 6 April 2006 do not count here),
• on the nominated date, the value of the member’s pension rights do not exceed the commutation limit of 1% of the standard lifetime allowance for that tax year,
• the lump sum is paid when the member has available lifetime allowance (this must of course be the case, given previously crystallised events count towards the commutation limit),
• the lump sum extinguishes the member’s entitlement to benefits under the registered pension scheme making the payment, and
• the lump sum is paid when the member has reached the age of 60 but has not reached the age of 75.