Refunds of Contributions
Can I have a refund of contributions?
If you joined the LGPS on or after 1 April 2014, usually you will be able to claim a refund of contributions if you leave the Local Government Pension Scheme and have not met the 2 years' "vesting period". The vesting period is the length of time you must be a contributing member of the LGPS before you become entitled to benefits.
You will not be able to have a refund of contributions if you have paid into the LGPS for more than 2 years.
In certain circumstances you may meet the 2 years' vesting period before you have completed 2 years of LGPS membership, and this may mean that you are not able to have a refund of contributions. The national LGPS members' website has more information on the vesting period.
Please check with Bedfordshire Pension Fund to see if you are eligible for a refund of contributions.
If I am eligible for a refund, how will my contributions be refunded?
A refund of contributions through your pay: If you opt out of the LGPS before completing 3 months' membership you will be treated as never having been a member of the scheme and your employer will refund your contributions through your pay. A refund of contributions through your pay often appears as a negative figure in the 'deductions' section of your payslip. Bedfordshire Pension Fund does not have access to your payroll records therefore you will need to contact your payroll department if you want to check if you have had a refund of your contributions through your pay.
A refund of contributions from Bedfordshire Pension Fund: If you joined the LGPS on or after 1 April 2014 and you opt out of the LGPS with more than 3 months' membership but with less than 2 years' membership you will usually still be able to claim a refund of contributions but the refund will be processed by Bedfordshire Pension Fund. In order to make the refund of contributions Bedfordshire Pension Fund will need to receive all relevant information from your employer's payroll department so that the refund can be calculated correctly.
Once all relevant information has been received from your employer, Bedfordshire Pension Fund will issue a refund application form which you will need to complete and return in order for the refund to be paid into your bank account.
If your refund is processed through Bedfordshire Pension Fund there will be a deduction for tax and the cost, if any, of buying you back into the State Second Pension scheme (S2P) in relation to any membership before 6 April 2016.
How long will it take to receive the refund of contributions?
If you have opted out before completing 3 months' membership and are being refunded through your pay, your refund will either be made through your pay in the month in which you opt out or in the following month's pay, depending on the date that your opt out form was received.
If you joined the LGPS on or after 1 April 2014 and have more than 3 months' membership but less than 2 years' membership and your refund is being processed by Bedfordshire Pension Fund, regulations state that a refund can't be made if you re-join the scheme within a month and a day of leaving, therefore it is necessary for the Fund to wait for a month and a day to pass before a refund can be paid.
However, please note that due to the current high volume of requests for refunds there may be a delay in refund application forms being issued. If you have not heard from us within 2 months of your date of leaving the scheme please contact us.
If Bedfordshire Pension Fund does not receive all relevant information from your employer's payroll department then this can lead to delays in payment of refunds.