Trivial commutation refers to the option of paying a single lump sum to members or dependants in place of a small pension. Actuarial factors are needed to determine the lump sum payable.

The factors required are unisex factors.

The factors can also be used for equivalent pension benefit (EPB) cases.

The lump sum payable to a member in respect of trivial commutation should be determined as follows:

Trivial commutation lump sum = (P × F_P) + (Sp × F_Sp)

Where:

P = member's annual scheme pension

Sp = contingent spouse's annual pension

F_P = Factor for member's pension from Table x-601

F_Sp = Factor for contingent spouse's pension from Table x-601

Where members are entitled to a scheme lump sum in addition to scheme pension (rather than by commutation only), the lump sum would be paid in addition to the trivially commuted pension.

The lump sum payable to a dependant in respect of trivial commutation should be determined as follows:

Dependant's trivial commutation lump sum = W × F_W

Where:

W = widow(er)'s annual scheme pension

F_W = Factor for widow(er)'s pension from Table x-602