Opting Out

You can leave the LGPS at any time but it’s worth thinking about what you’ll be giving up.

A secure pension – payable for life that increases annually with the cost of living
Tax free cash option – exchange part of your pension for a tax-free cash lump sum at retirement
Retire from age 55 – the option to retire from age 55, subject to a reduction for early payment
Serious ill-health cover – access your pension immediately if you have to retire due to a serious illness
Redundancy cover – payment of pensions benefits if you're made redundant or retire on business efficiency grounds at 55 or over (age 50 LGPS member before 5 April 2006)
Life cover – lump sum of three times your pensionable pay if you die while paying into the scheme
Cover for family if you die – including a pension for your husband, wife, civil partner or nominated cohabiting partner as well as children’s pensions.

Think carefully before making your choice.

It's also worth considering the 50/50 option instead of leaving the scheme completely.

If you’re worried about money, the free and impartial MoneyHelper service can help you explore other options. You may also want to speak to an Independent Financial Adviser before deciding.

The 50/50 Option

Instead of opting out completely, you can also choose to stay in the scheme and pay half your normal contributions, while building up half the pension for that period.

You can choose the 50/50 option at any time
It doesn’t affect your life cover or survivor benefits
You can use it for one, some, or all of your LGPS jobs
It’s designed as a short-term solution – you’ll be put back into the main section at your employer’s re-enrolment date (at least every 3 years), or if you’re off sick without pay. You can opt back in sooner if you wish
If you’re paying Additional Pension Contributions (APCs) to buy extra pension, these will stop when you move to 50/50 (unless covering a period of absence).

To choose the 50/50 option, simply fill in this form and give it to your employer. You can also find the form at the bottom of this page.

How to opt out

Step 1

You’ll need a copy of the opt-out form – you’ll find it at the bottom of this page.

Step 2

Complete the form and email it to your employer’s payroll team.

Step 3

Your membership will stop from the start of your next pay period, unless you ask your employer to cancel it sooner.

Important information about opting out:

If you joined the LGPS when you started your job or through automatic enrolment/re-enrolment, you must opt out within 3 months to be treated as if you were never a member and get a refund of your contributions in your next payslip
If you opt out after 3 months, you’ll be treated as a leaver and we’ll contact you about your options
We can only accept opt-out forms completed after your employment start date
By law, your employer may have to re-enrol you into the LGPS in the future, even if you’ve opted out before.

Join 50/50 Section Form
Opt Out Form

Opting Out

It's also worth considering the 50/50 option instead of leaving the scheme completely.

The 50/50 Option

How to opt out

Step 1

Step 2

Step 3

Important information about opting out:

Forms

Join 50/50 Section Form

Opt Out Form

FEEDBACK