12/07/2022

We understand that because of various reasons such as disruption to household income following the pandemic and rising energy bills, some of our members may be thinking about opting out of the scheme. Or you have previously opted out and been recently auto enrolled back into the scheme by your employer.

Before making your decision, please take some time to look at the guaranteed package of benefits, backed by law, that you would be giving up. These include:

  • A secure pension – payable for life, that increases with the cost of living.
  • Tax free cash – the option to give up part of your annual pension for a tax-free lump sum at retirement.
  • A flexible retirement date between 55-75 (with reductions or increases to my benefits).
  • Serious ill-health cover – immediate benefits based on an enhanced period of scheme membership if you have to retire due to a serious illness.
  • Redundancy cover – with early payment of pension benefits if I’m made redundant or retired on business efficiency grounds at age 55 or over.
  • Life cover – with a lump sum of three times your final pay.
  • Death benefits for my family – including a survivor’s pension for your spouse, civil partner or eligible cohabiting partner as well as children’s pensions.

The LGPS also offers you flexibility to pay more or less so, instead of opting out of the scheme altogether, you could think about joining the 50/50 section.

The 50/50 section allows you to pay half your contributions in return for half your normal pension build up but the value of any lump sum life assurance cover due (three times annual pensionable pay) stays the same regardless of which section of the scheme you pay into.

You can find more information about moving to the 50/50 section on our website or you can visit the LGPS member site which includes a cost and a benefits calculator. A 50/50 section form is available on the Forms and guides page of our website.  

If you would still like to opt out of the LGPS scheme then fill in the 'Opt Out form'  and please ensure you fill in the employer correctly.