It is advisable to take independent financial advice before deciding to opt out.
You might want to first consider to elect to pay less contributions by moving to the 50/50 section of the scheme.
If having considered the 50/50 option you still decide the LGPS is not for you, you can leave the LGPS at any time.
- You have the right to opt out of the scheme and to do so you will need to complete the opt out form.
- You cannot complete the opt out form until you have started your employment.
- If you opt out before completing 3 months membership you will be treated as never having been a member. Your employer will refund any contributions you have paid with your pay.
- If you opt out with 3 or more months membership but before completing 2 years, you can take a refund of your net contributions. Alternatively you can transfer your pension to another scheme.
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If you opt out after meeting the two year vesting period, you will have deferred benefits in the LGPS. You will generally have the same options as anyone who leaves their job before retirement. But there are two main differences. If you opt out:
- you cannot take your deferred pension until you have left your job, unless you reach age 75
- if you re-join the LGPS, you will not be able to join your two periods of Scheme membership together. You will have two separate sets of pension benefits in the LGPS.
To opt-out of the scheme complete the form and give it to your employer - notice to opt out form / interactive opt-out form
Auto-enrolment
The Government want people to belong to workplace pension schemes, so employers have to automatically enrol you back into the LGPS approximately every three years. If/when this happens you will be able to opt-out again.
More information is available on the Workplace pensions website.
Leaving the scheme when leaving your job
Depending on the length of time that you have been in the scheme various options are available:
- Refund of pension contributions
- Transferring your pension savings to another scheme
- Keeping you pension savings in the scheme
