Practical Law UK Glossary 5-204-0426 (Approx. 4 pages)
Glossary
Pension commencement lump sum (PCLS)
A lump sum that may be paid to a member of a registered pension scheme when they start taking their benefits from the scheme. Generally, a pension commencement lump sum (PCLS) can comprise up to 25% of the capital value of the member's pension entitlement. It must be paid after the member has reached normal minimum pension age and within a window starting six months before and ending one year after the member has become entitled to a scheme pension, lifetime annuity or income withdrawal from the same scheme. A scheme may only pay a member a PCLS if all or part of the member's lifetime allowance is available.