- Calculation of Benefits
- Pensions Increase
- Pension Transfers
- Payment of Deferred Benefits
- Benefit Reductions
- Pension Conversion
- Early Retirement
- Annual Allowance
- Death of a Deferred Pensioner
- Pension Sharing on Divorce or Dissolution of Civil Partnership
- Annual Benefit Statements
- Pensions Literature
- Pensions Forms
- Useful Links
- Contact Us
When you retire you have the option to convert some of your annual pension into lump sum. For every £1 annual pension you give up, you gain £12 lump sum.
However, there are certain HMRC rules which limit the amount you can convert. You are allowed to take 25% of the value of your pension pot as tax free cash.
To calculate the value of your pension pot, you can use the following formula:
(20 x basic annual LGPS pension) + basic LGPS lump sum (if you have one) + in-house AVC (if you have one)
Pension pot value x 25% = Tax free lump sum limit
The Clwyd Pension Fund will calculate your limits for you at retirement and supply you with your conversion options.