Leaving the Scheme

If you leave your employment whilst a member of the Local Government Pension Scheme (LGPS), or if you choose to opt out of the scheme before retirement, there are several options available to you.

If you have less than 2 years total membership, no previous LGPS pension rights and have not transferred previous pension rights into the scheme, you can:

• Receive a refund of your contributions, less any deductions for tax and the cost of re-instating you into the State Second Pension (S2P).
• Transfer your benefits into a new arrangement, such as your new Employer’s scheme, or a personal pension arrangement.
• Wait until you re-join the LGPS and elect to combine your benefits.

If you have more than 2 years total membership, or have transferred previous pension rights into the scheme, you can:

• Leave your benefits within the Fund until you are entitled to retire. This is known as a Deferred Benefit.
• Transfer your benefits into a new arrangement, such as your new Employer’s scheme, or a personal pension arrangement.

For more information on the options available to you as a member with a deferred benefit, please visit the Deferred section of this website.

If you wish to opt out of the LGPS, you will need to complete an Opting Out Declaration form and return it to your Employer.

• Refunding your Contributions

  If you wish to claim a refund of the contributions you have paid into the LGPS, you must:

  • Have less than 2 years membership, and
    No other LGPS pension rights, and
  • Have not transferred previous pension rights into the scheme.

  The amount refunded will normally be less than the total contributions you have paid, because tax will also be deducted at the rate of 20%.

  Please complete an Opting Out Declaration form and return it to your Employer if you wish to opt out of the LGPS and claim a refund of your pension contributions. By receiving a refund, you will no longer have any entitlement to benefits under the LGPS.

  Please Note

  The refund payment will NOT include the contributions paid by your Employer.