Legislation describes the ‘permitted maximum’ as the lower of:

(a)the available portion of the member’s lump sum allowance;

and

(b)the applicable amount.

There are two significant qualifications:

no pension commencement lump sum can be an authorised payment in respect of a ‘disqualifying pension credit’ (i.e. the permitted maximum is nil). These represent funds allocated to a pension credit member on dissolution of marriage or civil partnership from which the corresponding pension debit member has already taken retirement benefits. In other words the pension credit was awarded in respect of funds that had already crystallised;

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