This section sets out the method and instructions for calculating the trivial commutation lump sum.

Various restrictions on trivial pension commutation are imposed by the pension taxation regime and contracting out legislation. The scheme administrator should ensure that the payment of a lump sum in lieu of a small pension is compliant with these as well as with the Judicial Pension Scheme Regulations.

The lump sum capital value payable should be determined in accordance with the following formula:

Capitalised lump sum payable = (Member's pension x FacA1) + (Adult Dependant's pension x FacA2)

where:

FacA1 = factor applied to Member's pension

FacA2 = factor applied to Adult Dependant's pension payable on the member's death

The factors to use can be found in Table A. These factors are age specific and unisex.

The inclusion of an amount relating to a dependant's pension applies whether or not the member has a spouse, civil partner or nominated cohabiting partner at the time the commutation occurs.

This lump sum capitalises the value of the pension payable to the member and any contingent pension payable to dependants on the death of the member. No further benefits should be payable to the member, or their spouse on the member's death following the payment of this lump sum.

MOJ may commute the pension which is payable on a member's death to any surviving spouse, civil partner or nominated cohabiting partner or to (or in respect of) an eligible child or children by paying a trivial commutation lump sum death benefit.

Table B sets out age specific factors for the surviving spouse, civil partner or nominated cohabiting partner. These factors are multiplied by the dependant's total pension to give the lump sum capital value payable.

This formula only allows for the dependant's pension: any lump sum death benefits should be paid separately.

The lump sum capital value payable should be determined in accordance with the following formula:

Capitalised lump sum payable = Dependant's Pension * FacB

Where FacB is a factor taken from Table B.

The children's factors in Table C are for children eligible for a pension under the Regulations, except where the child is eligible but in the opinion of the scheme manager the child is unable to engage in gainful employment because of physical or mental impairment. In such cases a bespoke calculation, not covered by this guidance, is required.

The lump sum capital value payable should be determined in accordance with the following formula:

Capitalised lump sum payable = Children's Pension x FacC

Where FacC is a factor taken from Table C. These factors are age specific and unisex.