Opting out of the LGPS

Being a member of the LGPS is optional and you can choose not to pay in. However, a decision to opt out of the LGPS should be considered carefully as it could have important implications for your income later in life.

If you opt out of the LGPS, you would be giving up benefits such as:

• a secure pension that keeps up with the cost of living
• redundancy cover if you are over age 55 (rising to 57 in 2028, subject to protections)
• after 2 year’s membership, ill health cover if you're unable to work
• a lump sum payable when you die to anyone you choose to nominate and is the equivalent of 3 times your pensionable pay

You should also consider that:

• you may not receive a refund of the contributions you have paid
• you won’t be benefiting from tax relief on your contributions, therefore if you opt out, you will usually be paying more tax from your salary.
• if you have more than one post, you don’t have to opt out of them all

There are other important things you need to be aware of before you decide to opt out, including what happens to the contributions you have already paid and the implications if you choose to re-join the Scheme again.

These are set out in the guidance notes attached to the opt out form.

Please ensure you take the time to read these through carefully as you will be asked to sign to say you have read and understood them.

To opt out of the Scheme:

1. Read the guidance notes attached to the application form.
2. Complete the application form and sign it to confirm that you have read the guidance notes.
3. Submit the form to your employer.

Your employer will action your request from the next available pay period. If you have any queries about when this will be, you should contact them.

Once your employer has processed your form, they will provide us with a copy. We will then finalise your record.

For more information about what will happen with any contributions you have already paid, see our webpage on leaving your LGPS employment before you retire.

You will be automatically bought back into the LGPS if you remain eligible:

• approximately every three years on your employer’s set re-enrolment date.
• if you start a new employment under the LGPS

If you wish to opt out again after being moved back into the LGPS, you will need to complete another opt out form.

You do not need to wait to be automatically bought back into the scheme. You can choose to re-join at any time before age 75.

For more information, see how to join or re-join the Local Government Pension Scheme (LGPS)

We recommend that you get independent financial advice before you make any decision which could impact on your LGPS pension.

For more information, see how to get help with decisions about your pension