My understanding is that there is an overall limit of €200k on each of the lump sums.
So if, in the example shown above, the member had €480k in their pension fund, their pension lump sum would be 25% of €480k = €120k and their SCSB would be €320k minus €120k = €200k as a tax free termination payment, giving an overall tax free total of €320k.
But if their pension fund was only (say) €400k, their maximum pension lump sum would be 25% of €400k = €100k and their SCSB would be €320k minus €100k = €220k, but the maximum tax free limit of €200k would apply to this termination payment, giving an overall tax free total of €300k.