Exchanging part of your pension for a tax-free lump sum
You can take a tax-free lump sum by giving up some of your annual pension.
You can take up to 25% of the capital value of your LGPS benefits as a lump sum, provided the lump sum does not exceed £263,750 (2019/2020 figure) or you have inpreviously taken payment of pension (crystallised) pension benefits, 25% of your remaining lifetime allowance.
For every £1 of annual pension that you give up you will receive a £12 lump sum. In the same way, giving up £100 of your annual pension would give you £1,200 lump sum, and so on.