Paragraph 8A Commutation Triviality

The Trustee may pay a person a lump sum instead of a trivial pension which has become payable to that person and any trivial pensions payable on the person’s death. The Trustee shall convert pension to lump sum on a basis certified as reasonable by the Actuary and approved by the Inland Revenue.

Subject always to the Contracting–out, Revaluation and Preservation Laws and to Revenue Approval, a pension may be treated as trivial only if all benefits payable to the person concerned under the Scheme and all other occupational pension schemes and free–standing AVC schemes approved under section 591 of the Taxes Act relating to the same employment are less in value than a pension of £260 a year or any greater amount consistent with those Laws and Revenue Approval.

A pension that includes GMP can only be treated as trivial in the circumstances permitted by the Contracting–out Laws.