The Lump Sum Allowance (LSA) sets a maximum amount of tax-free cash you can take out of your pension benefits. It covers all pension schemes you have – not just RMPP. The amount is currently £268,275. If you take more than this amount you’ll have to pay income tax on the extra.

The Lump Sum and Death Benefit Allowance (LSDBA) applies to lump sums covered by the LSA plus additional lump sums payable in circumstances such as death or serious ill health. The maximum amount is £1,073,100 across all pension schemes.

Tax rules can change from time to time and so these limits may change in the future.