What’s a trivial lump sum payment?

 

A trivial lump sum payment is where the pension provider is able to pay your entire pension pot (not exceeding £30,000) to you as a lump sum rather than as an annuity.  From 6 April 2015, trivial lump sums have no longer been available to members of defined contribution pension schemes (The People’s Pension is one of these), but still continues to be available to those in defined benefit schemes.

Was this article helpful?

Please score it so we can improve and offer you more

LikeDislike
Loading...
Members 1 person found this helpful