Converting small pension to lump sum

There are circumstances where the fire and rescue authority may allow all of a small pension to be commuted (converted) to a lump sum. This is known as “commutation of trivial pensions”

This is dependent on the pension payable to the member of the FPS, or to an eligible dependant, being less than limits set by HM Revenue and Customs, subject to certain other requirements of the tax rules being satisfied (e.g. the age of the pensioner).

The assessment of the lump sum would be based on factors provided by the Scheme Actuary.

Alternatively, the authority may decide to pay a small pension at less frequent intervals than the intervals at which they normally pay pensions.