Small Pension Pots
Draft guidance has been made available explaining how the change in legislation allows individuals aged 60 or over with small personal pension pots of £2,000 or less to have two such pots paid as a lump sum in a lifetime.
The 2012 regulation change inserts a new regulation 11A into the Registered Pension Schemes (Authorised Payments) Regulations 2009.
The conditions that need to be met, for a small lump sum to be commuted under regulation 11A are that:
- the payment is made on or after 6 April 2012;
- the payment is made to a member who has reached the age of 60;
- the ‘small lump sum’ payment does not exceed £2,000;
- the payment extinguishes the member’s entitlement to benefits under the arrangement; and
- the member has not previously received more than one payment under Regulation 11A.
Click here for further guidance.http://www.hmrc.gov.uk/pensionschemes/small-pots-guidance.pdf