Budget: Occupational pension benefits available as lump sum

The rules will look at one scheme in isolation and allow members to receive benefits as a lump sum where the value falls below £2,000 while receiving an income from another, larger, pension pot. The Government will also allow other stranded pots as lump sum payments but has not outlined a figure. The current trivial commutation rules allow people who have small pension pots to take the whole lot as a cash lump sum, of which 25% remains tax-free. Members have had the chance to take benefits under the rules since April 2006 of the total value if all of an individual’s pension benefits am...