Opt-out
If you wish to cancel your membership you're free to opt out from your next pay period.
Although membership of the Scheme is automatic in many cases, it isn't compulsory, even if you join under automatic-enrolment. You can cancel your membership at any time.
You should be aware that in certain circumstances your employer may be obliged by law to re-enrol you into the LGPS at a later date, even though you have previously opted not to be in the Scheme.
Important
Apart from the main retirement benefits, you will lose out on extras, such as ill health cover if you opt-out. You may wish to get independent financial advice before opting-out. You can find details on independent financial advice on the 'Useful links' page.
Think about a temporary reduction to your contributions
If you are thinking of opting out because of the cost, you can stay in the Fund but pay less.
There is an option called 50/50 that allows you to pay half of the contribution but only build up half the pension. If you have more than one job you can make this choice in one, all or some of them.
Your survivor's benefits are unaffected.
Your employer will need you to make your choice in writing.
This is only meant to be a short term solution and you will have to again pay the full contribution rate when your employer has to re-enrol you every three years. If you are away from work without pay due to sickness you will have to pay the full rate when your pay recommences.
How do I opt out?
If you want to opt-out, you can do so at any time. You will need to complete the opt-out form (see 'Resources' section) and return this immediately to your employer so that they can carry out the necessary actions to remove you from the Scheme and, where applicable, arrange for the pension contributions you have paid into the Scheme to be refunded to you. You can ask your employer to cancel your membership any time after your request. Otherwise, they will just cancel it from the start of the next pay period. Please note, however, that any opt out form that has been completed before you commence your employment cannot be accepted and you will have to make a further election on or after the date your employment commences if you do wish to opt out.
Important
If you have joined the LGPS on the commencement of your employment or as a result of being automatically-enrolled or re-enrolled then you must confirm your wishes to your employer no later than three months from joining the Scheme in order that your contributions can be returned and you can be treated as never having been a member.
Opting out of the LGPS is a big decision as you will be giving up a guaranteed income for when you retire as well as other benefits such as valuable life cover while you are working. If you choose to opt-out, you will also be giving up extra savings that we and the Government provide to help you save. If you are thinking of opting out, we recommend that you speak to an Independent Financial Adviser (IFA) before making a decision. You can find details on independent financial advice on the 'Useful links' page.
Related documents
Form
Notice to Opt Out of Pension Saving (SR97 Issue 6 Nov 2021) - Interactive
Notice to Opt Out of Pension Saving (SR97 Issue 6 Nov 2021) - Interactive
FORM
Option to switch between sections of the Scheme (SR106 Issue 3 Nov 2021) - Interactive
Option to switch between sections of the Scheme (SR106 Issue 3 Nov 2021) - Interactive