The team at Best Pension Annuity have launched a new trivial pension service which, in line with all other services offered by the company, is focused on the needs of the customer and puts the customer fully in control of their pension funds and how they are used.
For those customers who just want to understand how trivial pensions work and the calculations they need to use to demonstrate that they qualify for trivial commutation, then the website is packed full of relevant information including a practical case study.
However for those customer who find all aspects of pensions confusing, let alone the complications of triviality, Best Pension Annuity have developed a value for money trivial commutation service, which either gives the customer what they want, or leaves them with nothing to pay. If for any reason the customer does not qualify and the process fails there is absolutely nothing to pay. To visit the site : click Here
Trivial pensions allow people with small pension funds to take all of it as a lump sum. Typically the first 25% of any previously unused pension fund is paid free of tax while the remaining 75% is liable to income tax at the customers marginal rate.
Bob Cook of Best Pension Annuity explained “Most people understand the basic concept of triviality, which is that if you are 60 or over and your pension fund is below the government limit, which is currently £18,000, then you can take all of your fund as a lump sum. However the reality is much more complicated than that.
“Firstly you will need to take into account all of the customer’s pension funds including those that may currently be in payment. If there is a pension in payment, then you will need to know when the pension first went into payment, and any lump sum that was taken at the time. You will then need to multiply the pension in payment by a factor depending on when it went into payment and then add it to the original lump sum taken. Finally you will need to add to that the value of any unused pension funds. If the sum of all of these variables is below the government limit at the time, then you’re in business. There are a few more howevers . . .
“Many people don’t realise that pensions in payment can also be exchanged for a single lump sum commutation, but even if your pension did qualify it may be the case that your pension provider doesn’t have a trivial pension option. Many people will be too phased or lack the confidence to tackle this themselves, even if they do, they may find it too time to consuming to be bothered to do it themselves. We have constructed a cheap efficient service that means we do all this work for the customer. If having done our calculations for the customer the answer is that they do not qualify for trivial commutation then there is absolutely nothing to pay us”.
The service offered by Best Pension Annuity to a customer looking to use the trivial commutation rules is comprehensive. They will gather all the required information from your pension providers, perform the triviality calculations, report their findings back to the customer, complete all necessary paperwork and forms and see that all of the money available goes direct to the customer. The fee for this service is £250, which the customer pays on completion. If the customer is prepared to pay the fee in advance, Best Pension Annuity further reduce it to just £200. In either case if the customer does not qualify for trivial commutation then no fee is payable and any fee paid in advance is refunded.