You can choose to opt out of the Local Government Pension Scheme (LGPS) if you want to.  You should think carefully before deciding to opt out, because opting out may reduce your income in later life.

 

If you decide that you don't want to pay into the LGPS then you can opt out by downloading and completing our form for opting out of the LGPS. You should send your completed opt out form to your employer's Human Resources or payroll department.

 

If you are a new employee and you don't want to join the scheme then you should fill in the opt out form as soon as possible if you don't want pension contributions to be deducted from your pay.  

 

Before making the decision to opt out of the LGPS you may want to think about moving into the 50/50 section of the scheme instead. 

 

If you feel like you can't afford to pay pension contributions, the national website for LGPS members has information about where to find help with rising living costs.

 

If you do opt out, the options you then have will depend on how long you have been paying into the LGPS.

 

• If you opt out of the LGPS before completing 3 months' membership you will be treated as never having been a member and your employer will refund the contributions through your pay.
• If you opt out of the LGPS with 3 or more months' membership but have less than 2 years' membership, usually you can take a refund of your contributions or transfer your pension to another scheme. We will write to tell you how much your refund is and how much your cash transfer sum (CTS) is, so that you can decide what option to take.
• If you opt out and you have paid into the scheme for more than two years then the benefits you have built up in the scheme will be preserved, or 'frozen'.  These are known as deferred benefits and you can find out more in our Deferred Members section.  You should also read our section on things to consider when thinking about opting out.
• If you opt out of the scheme on or after 11 April 2015 and are not entitled to a refund of contributions and you later re-join the scheme (either by opting in or being put back into the scheme by your employer under auto enrolment rules or by joining the scheme in a new employment) you will not have the option to combine your pension accounts.

 

If you left the LGPS before 1 April 2014 different rules may apply.  Please contact us for more information. 

 

If you opt out of the scheme you can choose to opt back in at a later date - please go to our forms for members page to download our 'Joining the LGPS' form, which you will need to fill in if you want to rejoin the scheme.