A typical 2015 Scheme member will have a maximum commutation proportion based on their age last birthday as shown in Table 2 (Provisional maximum proportion of pension for those retiring on grounds other than ill health). In this table, we have combined the limits described under Limit 1 (25% of the cash value of the pension) and Limit 2(2) (25% of HMRC's assessment of the value of the member's crystallised benefit at retirement).

In Table 2, the HMRC limit of 35.7% applies for members up to and including age 64. Above age 64, the maximum commutation amount is related to the pensioner cash equivalent factors which decrease as the member's age increases.

The amount of the member's available LSA (Limit 2(1)) will vary according to each retiree, and as such there is no generic maximum amount that will apply in all cases for this limit. As Tables 1 and 2 make no allowance for the LSA limit, administrators should compare the provisional maximum commutation amount, calculated using Table 1 or 2 (as appropriate), to the amount of available LSA allowed under Limit 2(1) for that member.

In general, we would not expect a member to have sufficient GMP rights within the 2015 Scheme to be captured by Limit 3. As set out in Limit 3: GMP underpin, administrators should check whether the member's accrued GMP at retirement is greater than 75% of the post-commutation pension. If the member's accrued GMP does not exceed 75% of the post-commutation pension, the commutation amount can be paid. If the member's post-commutation pension exceeds 75% of the member's GMP, a bespoke calculation, not covered by this guidance, is required.

Please note that for members with benefits in a pre-2015 police pension scheme (1988 or 2006 scheme) or any other registered pension scheme, the maximum proportion may be lower than that calculated using Tables 1 and 2 (as appropriate) as the lump sum they receive from the pre-2015 scheme will impact on the member's available LSA. Where applicable, administrators should consult with HMRC guidance in order to determine the maximum 2015 Scheme lump sum that applies under this limit for members who have lump sum benefits crystallised in a pre-2015 scheme or any other registered pension scheme.

Please use the following steps in order to determine the maximum proportion for a 2015 Scheme member.

1. Determine an indicative maximum commutation lump sum according to the maximum proportions set out in Tables 1 and 2.
2. Assess the indicative maximum commutation lump sum against the available LSA. The 2015 Scheme lump sum is not allowed to breach this limit, so the maximum lump sum may have to be reduced from that determined in step one.
3. Compare the implied post-commutation pension against the member's accrued GMP at retirement. Where the accrued GMP is larger than 75% of the post commutation pension, a bespoke calculation, not covered by this guidance, is required.