On retirement you will be given the opportunity to exchange some of your pension to receive a tax free lump sum.
You will be able to take up to a maximum of 25% of the capital value of your pension benefits as a tax free lump sum or, if lower, 25% of the lifetime allowance set by HM Revenue and Customs (HMRC) less an adjustment for the value of any other pension benefits you are already drawing.
For each £1.00 of annual pension exchanged you will receive £12.00 of lump sum.
You may not reduce your pension below your Guaranteed Minimum Pension (GMP). This is the minimum legal pension we must pay you, and a notification of this amount will be sent to you from HMRC prior to state pension age – it will be shown as a “Contracted Out Deduction” on details of your state pension.