Sense check my LGPS tax-free calculations

Dave_5150

Can any resident LGPS experts cast an eye over these tax-free lump sum calculations please?

I am using round figures in this example of £20k annual pension, £32k lump sum and £100k of AVC contributions.

My understanding is the maximum tax-free lump sum is 25% of the total of:

• 20x annual pension + lump sum + AVC’s.

In this example that gives a total of £532,000 with a maximum tax-free lump sum of £133,000. Meaning the entire £132,000 lump sum and AVC amounts are tax-free at retirement.

My real figures are similarly close to the limits. So I would appreciate assurance or correction around my understanding of how this is calculated. 

AlanP_2

Looks correct to me.

Silvertabby

Some LGPSs are using a different, more complicated, calculation.  But there seems to be very little difference in the end result.

Don't fret too much about going over the limit - the residual amount can easily be converted to additional LGPS benefits