You can exchange some of your annual pension to provide a lump sum.
You can exchange as much or as little as you like provided that you do not exceed the permitted limit. This can be up to 25% of the capital value of your pension. You would receive £12 as a lump sum for each £1 of pension that you give up. For example, if you were entitled to a pension of £16,000 and gave up £2,000, you would receive an annual pension of £14,000 and a lump sum of £24,000.
Kent Police will ask you at the time of your retirement to indicate if you wish to commute part of your pension for a lump sum.
Jim's annual pension is £3,000
Jim decides to give up £750 pension for a cash lump sum, then:-
His reduced annual pension is: £3,000 less £750 = £2,250
He will get a tax free lump sum of: £750 x 12 = £9,000