diff --git a/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityProcessor.swift b/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityProcessor.swift
index c9f28b78f..a5a827ca1 100644
--- a/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityProcessor.swift
+++ b/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityProcessor.swift
@@ -103,11 +103,7 @@ final class AccountSecurityProcessor: StateProcessor<
     private func appeared() async {
         do {
             if let policy = try await services.policyService.fetchTimeoutPolicyValues() {
-                // If the policy returns no timeout action, we present the user all timeout actions.
-                // If the policy returns a timeout action, it's the only one we show the user.
-                if policy.action != nil {
-                    state.policyTimeoutAction = policy.action
-                }
+                state.isTimeoutActionPolicyEnabled = policy.action != nil
 
                 state.policyTimeoutValue = policy.value
                 state.isTimeoutPolicyEnabled = true
diff --git a/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityProcessorTests.swift b/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityProcessorTests.swift
index 2c94a284d..0b914a8ae 100644
--- a/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityProcessorTests.swift
+++ b/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityProcessorTests.swift
@@ -83,10 +83,10 @@ class AccountSecurityProcessorTests: BitwardenTestCase { // swiftlint:disable:th
 
         await subject.perform(.appeared)
 
-        XCTAssertEqual(subject.state.isTimeoutPolicyEnabled, true)
-        XCTAssertEqual(subject.state.policyTimeoutAction, .logout)
+        XCTAssertTrue(subject.state.isTimeoutPolicyEnabled)
+        XCTAssertTrue(subject.state.isTimeoutActionPolicyEnabled)
+        XCTAssertTrue(subject.state.isSessionTimeoutActionDisabled)
         XCTAssertEqual(subject.state.policyTimeoutValue, 60)
-        XCTAssertEqual(subject.state.availableTimeoutActions, [.logout])
         XCTAssertEqual(subject.state.policyTimeoutHours, 1)
         XCTAssertEqual(subject.state.policyTimeoutMinutes, 0)
         XCTAssertEqual(
@@ -110,9 +110,10 @@ class AccountSecurityProcessorTests: BitwardenTestCase { // swiftlint:disable:th
 
         await subject.perform(.appeared)
 
-        XCTAssertEqual(subject.state.isTimeoutPolicyEnabled, true)
+        XCTAssertFalse(subject.state.isTimeoutActionPolicyEnabled)
+        XCTAssertTrue(subject.state.isTimeoutPolicyEnabled)
+        XCTAssertFalse(subject.state.isSessionTimeoutActionDisabled)
         XCTAssertEqual(subject.state.policyTimeoutValue, 61)
-        XCTAssertEqual(subject.state.availableTimeoutActions, [.lock, .logout])
         XCTAssertEqual(subject.state.policyTimeoutHours, 1)
         XCTAssertEqual(subject.state.policyTimeoutMinutes, 1)
         XCTAssertEqual(
diff --git a/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityState.swift b/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityState.swift
index 1a93e7432..e93626c5c 100644
--- a/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityState.swift
+++ b/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityState.swift
@@ -177,22 +177,15 @@ struct AccountSecurityState: Equatable {
     /// Whether the user has a master password.
     var hasMasterPassword = true
 
-    /// Whether the maximum timeout value policy is in effect.
-    var isTimeoutPolicyEnabled: Bool = false
+    /// Whether the timeout policy specifies a timeout action.
+    var isTimeoutActionPolicyEnabled = false
+
+    /// Whether the timeout policy is in effect.
+    var isTimeoutPolicyEnabled = false
 
     /// Whether the unlock with pin code toggle is on.
     var isUnlockWithPINCodeOn: Bool = false
 
-    /// The maximum vault timeout policy action.
-    ///
-    /// When set, this is the only action option available to users.
-    var policyTimeoutAction: SessionTimeoutAction? = .lock {
-        didSet {
-            availableTimeoutActions = SessionTimeoutAction.allCases
-                .filter { $0 == policyTimeoutAction }
-        }
-    }
-
     /// The policy's maximum vault timeout value.
     ///
     /// When set, all timeout values greater than this are no longer shown.
@@ -245,9 +238,9 @@ struct AccountSecurityState: Equatable {
         hasUnlockMethod
     }
 
-    /// Whether the session timeout row/picker should be disabled.
-    var isSessionTimeoutDisabled: Bool {
-        !hasUnlockMethod
+    /// Whether the session timeout action row/picker should be disabled.
+    var isSessionTimeoutActionDisabled: Bool {
+        !hasUnlockMethod || isTimeoutActionPolicyEnabled
     }
 
     /// Whether or not the custom session timeout field is shown.
diff --git a/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityView.swift b/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityView.swift
index fd4297d0e..ab60e4262 100644
--- a/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityView.swift
+++ b/BitwardenShared/UI/Platform/Settings/Settings/AccountSecurity/AccountSecurityView.swift
@@ -168,7 +168,7 @@ struct AccountSecurityView: View {
                         send: AccountSecurityAction.sessionTimeoutActionChanged
                     )
                 )
-                .disabled(store.state.isSessionTimeoutDisabled)
+                .disabled(store.state.isSessionTimeoutActionDisabled)
             }
             .clipShape(RoundedRectangle(cornerRadius: 10))
         }