Retirement

A further option available to active members since the introduction of the LGPS (Amendment) Regulations 2006 from 6 April 2006, is to convert pension into lump sum at a standard conversion rate of £12 for every £1 of annual pension given up.

To calculate the maximum lump sum available the post-commutation figures have to be taken i.e. the pension and lump sum after the conversion from pension to lump sum has taken place. The maximum lump sum is also limited to 25% of the capital value of accrued rights in accordance with guidance issued by the Government Actuary.

By commuting benefits, the member does not reduce any subsequent spouse's, civil partner's or dependants benefits that may become payable.

Members can calculate the maximum lump sum available via their online account - 'my pension ONLINE' 

There is also a Lump Sum Calculator available on the Nations LGPS website.