In our November 2009 update, we reported that the Occupational and Personal Pension Schemes (Authorised Payments) Amendment Regulations 2009 (the Regulations) permitted occupational pension schemes to pay out pension pots valued at below £2,000 as lump sums to members, regardless of benefits held under other arrangements.

It has now come to light that, until a drafting mistake in the Regulations referring to the wrong section of the Finance Act 2004 is corrected, which may not be until April 2010, scheme members will be unable to take GMPs as lump sums under the new trivial commutation authorised payments regime.