You can take some or all of your AVC fund as a tax-free cash lump sum* but you can only take it all as a lump sum if you take it at the same time as your main LGPS benefits and provided, when added to your LGPS lump sum, it does not exceed 25% of the overall value of your LGPS benefits (including your AVC fund).

*Provided the lump sum does not exceed £263,750 (2019/20 figure) or if you have previously taken payment of (crystallised) pension benefits, 25% of your remaining lifetime allowance.