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Jargon buster

  • Transfer value

    The actuarial value of i) a member's benefits paid to an alternative pension scheme on leaving the LGPS as an alternative to deferred benefits or a refund of contributions; or ii) a member's benefits paid by a previous employer into the LGPS upon joining the LGPS.
  • Trivial commutation lump sum

    Providing an individual's total pension benefits do not exceed 1% of the standard lifetime allowance their pension rights can be fully commuted into a single lump sum payment on or after age 60 and before age 75 (all benefits must be commuted within a 12 month period).  They will be taxed as having pension income in that tax year equal to the lump sum payable (after any tax-free cash has been taken).