A member’s entitlement under a scheme may give rise to benefits which are considered trivial. For administrative convenience, these benefits may be commuted and paid as a one-off lump sum payment.

To qualify as a trivial commutation lump sum, one of two sets of conditions (A or B below) must be satisfied .

Set A

it is paid in respect of a defined benefits arrangement. This is a new requirement introduced for commutation periods beginning on or after 6 April 2015 (regardless of the ‘nominated date’);

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