Your lump sum
The lump sum you receive from the scheme will be tax free. This chart shows roughly what you would be entitled to take.
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Lump sum benefits
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Final average pay
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10 years membership
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20 years membership
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30 years membership
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40 years membership
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£10,000
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£2,500
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£5,000
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£7,500
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£10,000
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£12,000
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£3,000
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£6,000
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£9,000
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£12,000
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£15,000
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£3,750
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£7,500
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£11,250
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£15,000
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£18,000
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£4,500
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£9,000
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£13,500
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£18,000
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£21,000
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£5,250
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£10,500
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£15,750
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£21,000
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£25,000
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£6,250
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£12,500
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£18,750
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£25,000
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£30,000
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£7,500
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£15,000
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£22,500
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£30,000
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£35,000
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£8,750
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£17,500
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£26,250
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£35,000
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£40,000
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£10,000
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£20,000
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£30,000
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£40,000
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£45,000
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£11,250
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£22,500
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£33,750
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£45,000
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£50,000
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£14,149
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£28,298
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£42,447
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£56,596
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£55,000
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£14,149
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£28,298
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£42,447
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£56,596
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£60,000
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£14,149
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£28,298
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£42,447
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£56,596
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£65,000
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£14,149
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£28,298
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£42,447
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£56,596
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£70,000
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£14,149
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£28,298
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£42,447
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£56,596
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£75,000
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£14,149
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£28,298
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£42,447
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£56,596
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Important notes:
- When you take your benefits you can choose to convert some or all of your lump sum into pension. Each £12 lump sum will buy £1 a year pension.
- Some members get more benefits because their section of the scheme has increased benefits because of a surplus.
- The highest pay your lump sum can be based on is 12 x the final average single person's basic State Pension , currently £56,596.80.
- The tax laws limit the amount of lump sum and pension you can receive without incurring tax charges.
- If you take your benefits before age 60 they are reduced.
- If you have a restructuring premium your benefits are worked out differently. For more information download
A guide for members - if your pay has been restructured (PM151)
An example of how a member’s lump sum is worked out.
- your final average pay is £25,000
- your first final average restructuring premium is £6,000 and your second is £3,000 and
- you have 30 years membership, 10 of which you have been getting your first restructuring premium and 5 of which you have been getting your second restructuring premium;
Your lump sum will be:
30 x £25,000 = £18,750
40
Plus, for your restructured membership:
10 x £6,000 = £1,500
40
And
5 x £3,000 = £375
40
As you have membership before 7 April 1991, the lump sum worked out for this period before 7 April 1991 is increased by 25%. If this was a 17 year period this would be worked out as:
17 x £25,000 x 25% = £2,656.25
40
Your total lump sum will be:
£18,750 + £1,500 + £375 + £2,656.25 = £23,281.25