Want to increase your lump sum?
Although there is no automatic lump sum for pensionable membership accrued after 1 April 2008, you can give up part of your annual pension in exchange for a tax free lump sum (at retirement). However, it is not possible to reduce your annual pension below your guaranteed minimum pension.
You will receive £12 of lump sum for every £1 of annual pension you give up. You can take up to 25% of the capital value of your pension benefits as a lump sum, or if lower 25% of the lifetime allowance.
Example
A member reaches retirement with 10 years pensionable membership in the Cornwall Pension Fund (CPF).
Annual pension: £3,000
If they decide to give up £500 pension for a cash lump sum
The reduced annual pension would be: £2,500
The tax free lump sum would be: £6,000 (£500 x 12)
Lump Calculator
You can use the lump sum calculator on the LGPS member website to provide you with an estimate of how much lump sum you can take, up to the maximum, and how this affects your yearly pension. Please note, the calculator does not take into account in-house AVCs.