When you draw your pension you will have the option of exchanging part of it for a Cash Lump Sum, which is currently paid free of tax.
You can exchange up to roughly 25% of the value of your pension for a cash lump sum. The actual amount will depend on the ‘factors’ set by the Trustees after consultation with the Scheme actuary.
These factors for exchanging pension for cash are determined by the Trustees and may be revised from time to time. Your annual pension will be reduced to reflect the amount of cash lump sum you elect to take.