Taking a tax-free lump sum when you retire
When you take your pension, you can choose to swap some of it for a tax-free lump sum. For every £1 of annual pension, you give up you will receive £12 of tax-free lump sum. You can take up to 25% of the capital value as a tax-free lump sum.
If you joined the LGPS before 1 April 2008 then you will receive a tax-free lump sum when you retire. You will also have the option to exchange part of your pension to increase your lump sum.
There is no provision in the LGPS to take a lump sum separately without taking the rest of your benefits.