You can leave the LGPS at any time once you are a member by giving your employer notice in writing. You might, however, want to take independent financial advice before making the final decision to opt-out. And don’t forget you can, as an alternative, opt for 50/50 which allows you to remain in the scheme, building up valuable pension rights, but pay half your normal contributions for half your normal pension.
If you opt-out before completing 3 months membership you will be treated as never having been a member and your employer will refund to you, through your pay, any contributions you have paid during that time.
If you opt-out with 3 or more months’ membership but less than 2 years your benefits
will become deferred. You can still take a refund of your contributions (less
any statutory deductions) or transfer out your pension to another scheme.
If you opt-out after 2 years you will have deferred benefits in the scheme which can, if you want, be transferred out to another scheme.
If you opt-out you can opt back into the scheme at any time before the age
of 75, provided you are still eligible to join the scheme. However, if you opt-out with the right to a deferred benefit you may not be able to join up your
benefits should you re-join the LGPS at a later date.
If you opt-out of the LGPS and your employer is required to comply with the automatic enrolment provisions under the Pensions Act 2008, your employer may automatically enrol you into the LGPS at certain times. Your employer must notify you if this happens. You would then have the right to opt-out of the LGPS.
