13 March 2008
The government has announced changes which will allow people to
take very small benefits from occupational pension schemes (i.e.
company pension schemes) as a lump sum.
In his first budget, chancellor Alistair Darling said the new
rules would look at one scheme in isolation and allow benefits to
be paid as a lump sum where the value of those benefits is below
£2,000 - allowing people to take very small benefits in one
occupational pension scheme as a lump sum under the triviality
rules while receiving an income from another, larger, pension
pot.
The new rules will not apply to private pensions, such as a
personal pension scheme.
