Members: Active members

Opting out

Opting out

We believe it is very important members fully understand the value of benefits they would be giving up if they opt out of the pension scheme. Before we cover opting opt, have you considered the 50/50 option?

During your life there may be times when times are tough financially and you are looking for ways to save money.

The LGPS now offers you the flexibility to stay in the Scheme and continue to build up valuable pension benefits. You can elect to pay half your normal contributions and build up half your normal pension. This is known as the 50/50 section of the LGPS.

I am thinking of opting out, what will I lose if I do?

Secure benefits

The scheme provides you with a future income, independent of share prices and stock market fluctuations.

At a low cost to you

Tax relief on all your contributions.

Your employer pays in too

The scheme is provided by your employer who meets most of the cost of your benefits in the LGPS.

You can look forward to your retirement with the LGPS with:

Tax-free cash

You have the option when you draw your pension to exchange part of it for some tax-free cash.

Peace of mind

Your family enjoys financial security, with life cover and a pension for your spouse, civil partner or eligible cohabiting partner and eligible children in the event of your death in service. If you ever become seriously ill and you've been in the scheme for at least 2 years, you could receive immediate ill-health benefits.

Freedom to choose when to take your pension

You do not need to have reached your Normal Pension Age to take your pension. Once you've been in the scheme for 2 years, you can choose to retire and draw your pension at any time between ages 55 and 75.

If you choose to take your pension before your Normal Pension Age it will normally be reduced, because it's being paid earlier. If you take it later than your Normal Pension Age it's increased because it's being paid later.

Redundancy and Efficiency Retirement

If you are made redundant, or retired in the interests of business efficiency, at or after age 55 you will receive immediate payment of the main benefits you've built up (but there would be a reduction for early payment of any additional pension you have chosen to buy).

Flexible Retirement

If you reduce your hours or move to a less senior position, at or after age 55 you can, provided your employer agrees, draw some or all of the benefits you have already built up, helping you ease into retirement, although your benefits may be reduced for early payment.

Optants Out and Aggregation of Benefits

If you became entitled to a Preserved Benefit on or after 11th April 2015 after opting out of the Scheme then re-join the LGPS, you will not be able to aggregate (i.e. combine) the two periods of membership.

If you are still thinking of opting out and would like to discuss this with a member of staff, please contact us using the details at the bottom of this page.

Or to link to the 'Notification of Decision to Opt Out of the LGPS' from, use the URL for the forms page.

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