Taking a cash lump sum

Taking a cash lump sum

When you retire you will have the option to exchange part of your pension for a tax-free cash lump sum – up to a maximum amount set by HM Revenue & Customs (HMRC). 

This lump sum is known as a “Pension Commencement Lump Sum (PCLS)”. 

The terms for exchanging pension income for a cash lump sum may be reviewed and altered by the Trustee from time to time.

It may be possible for you to exchange further pension for a lump sum, but this would be subject to tax.

Any pension quotations you receive from the Plan administrators, Trafalgar House, will show the maximum cash sum you could receive.

In certain circumstances you may be able to exchange your entire pension for a single cash payment. For example, if the value of the benefits you have built up in the Plan is below a limit set by HMRC. If this is an option that may be available to you, details will be included in any retirement quotation you receive.