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For members of the Local Government Pension Scheme in England and Wales

Your lump sum choice

When you take your pension benefits, you can choose to swap part of your pension for lump sum. For every £1 of annual pension you give up you will get a lump sum of £12.

If you were a member of the LGPS before 1 April 2008, you will have built up a lump sum. See the section on How your pension is worked out for more information. In most cases, you will still be able to give up part of your pension to increase your lump sum.

When you take your pension, your pension fund administrator will ask you if you want to swap any of your pension for lump sum. They will generally let you know:

You can choose to swap any amount of pension for lump sum, up to the maximum limit. If you elect to swap pension for lump sum, your pension will be reduced. Any survivor pension paid to your partner or eligible children will not be affected.

You must tell your pension fund administrator that you wish to swap pension for lump sum before your LGPS benefits are paid. You may wish to seek financial advice before making your decision. It is important that you Contact your pension fund in advance of taking your pension so they can let you know your options.

Once you have chosen what lump sum and pension to take, you cannot change your decision. You cannot elect to swap pension for lump sum once your pension is being paid to you.

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