Use the value of your standard benefits to calculate the amounts in your maximum lump sum package
When you decide to take payment of your pension benefits you will have the option to exchange some of your annual pension for a tax free lump sum.
There is a maximum amount that can be taken as a tax free lump sum which is set by HM Revenue and Customs, which is 25 per cent of the capital value of your pension benefits or if lower, 25 per cent of your remaining lifetime allowance.
For every £1 of pension you exchange you then receive £12 as a tax free lump sum.
At GMPF, we will provide this option when you take your pension benefits and its at this stage you let us know your preferred option.
There are instances where this calculator would not be applicable, this could be because you have pension credit benefits in the fund, you opted out of the LGPS regulation changes in 2008 or you are impacted by the lifetime allowance.
If you have additional voluntary contributions (AVC) the calculator will not take these into account. You can take some or all of these as tax free cash, and we will let you know how much as you approach retirement.
If you know the value of your standard pension benefits, you can use this modeller to give you an idea of your maximum lump sum, under HMRC rules.