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Taking your pension - triviality
If the value of your funds from all your registered pension arrangements is less than £18,000 you may be eligible to take your benefits as a lump sum on
the grounds of triviality. You are eligible to commute your pension
arrangements if you can say yes to all of these conditions:
- You are aged 60 or over.
- You are including all of your registered pension arrangements for the purpose of calculating whether they fall within the rules and can be commuted. Please understand
that when we say all, we mean for example registered pension arrangements
with any insurance company, deferred company pensions, any existing
company pension (this is not an exhaustive list).
- You are applying for commutation of your registered pension arrangements within a
single 12-month period. (It is important that you realise you do
not have to commute all of your benefits from all of your registered
pension schemes. However, benefits that are part of the same registered
pension scheme must be taken at the same time except that pensions or annuities in payment from the same scheme can continue to be paid.)
- The value of your funds from all your registered pension arrangements is not
worth more than £18,000 at the
Nominated Date. (This DOES include all benefits which have been contracted-out
with a pension provider. This does NOT include any benefits under
the Basic State Pension OR the State Second Pension (S2P), formerly
called the State Earnings Related Pension Scheme (SERPS) which will
be paid by the state, or any pensions you are receiving because you are a dependant of someone else.)
Please note: Before we can pay any benefits out on grounds of triviality, you must complete Windsor Life's Form E (an application to take trivial benefits) and provide us with appropriate evidence to confirm the information you disclose. If we do not receive this, we cannot make any payment. To obtain a copy of Form E please contact us on 0800 073 1777.
Here are some examples to help you complete Form E:
 Example 1 - a Windsor Life personal pension policyholder with no other
personal pensions and no former employer pension membership. (10Kb)
Example
2 - a Windsor Life personal pension policyholder who has pension
benefits from a previous employer. (10Kb)
Example
3 - a Windsor Life personal pension policyholder with pension
benefits from previous employers and a pension income from another
pension provider. (18Kb)
If the total value of your pension benefits is less than £18,000 and you have taken your pension benefits on the grounds of triviality
there is a tax charge. To help you understand your P45 and how the HMRC deduct
tax from a payment made under the triviality rules, please click here. (358Kb)
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