The lump sum payable in respect of commutation of a trivial pension (in addition to any automatic lump sum not yet paid) should be determined as follows:
Lump sum payable = (P x FxM) + (S x FxSp)
where:
P = member's pension amount
S = pension payable on the death of the member to their surviving dependant
FxM = member's pension factor for a member aged x (Table 1102)
FxSp = spouse's pension factor for a member aged x (Table 1102)
The 'member's pension amount' is the annual rate of pension that would be put into payment if trivial commutation were not to proceed, except for members below age 55. For members below age 55 at the date of commutation, the 'member's pension amount' should include any pension increases accrued up to the date of commutation that would otherwise be withheld until the member had reached 55 years of age.
The factors should be selected from Table 1102 (consolidated spreadsheet table number 501) according to the member's age at their nearest birthday as at the commutation date.
The lump sum payable in respect of commutation of a trivial surviving dependant's pension should be determined as follows:
Lump sum payable = W x FxW
where:
W = surviving dependant's pension amount
FxW = surviving dependant's pension factor for a dependant aged x (Table 1112)
The 'surviving dependant's pension amount' is the annual rate of pension that would be put into payment if trivial commutation were not to proceed.
The factor should be selected from Table 1112 (consolidated spreadsheet table number 502) according to the dependant's age at their nearest birthday as at the commutation date.
In both cases the member's or dependant's age and pension amount used to calculate the trivially commuted lump sum should be determined as at the date at which the trivial commutation is deemed to occur.
