What if I change my mind?
What about going 50/50 instead?
If you are considering opting out because you feel that the contributions are too expensive, you may wish to consider joining the 50/50 scheme. The 50/50 scheme allows you to pay half your normal contributions in return for half your normal pension build up and, the following benefits remain at 100%:
- Ill-health benefits
- Death benefits
- Survivors’ benefits
You can choose to opt back in to the main scheme at any time. There is no limit on the number of times you can opt between the 50/50 scheme and main scheme. Further details of the 50/50 scheme can be found here.
If you no longer wish to contribute to the LGPS, you can opt out but will be automatically re-enrolled as and when required under your employers’ auto enrolment responsibilities, although you can then choose to opt out again.
You can opt out of the LGPS at any time but you must have already started that job to do so.
If you opt out you can, provided you are still eligible to join, opt back into the scheme at any time before age 75.
Points to consider before opting out
You might be thinking of opting out of the LGPS for a variety of reasons. Whatever the reason, opting out won’t save you as much in take home pay as you may think. In most cases, you will pay more tax if you opt out of the LGPS. If you are thinking of opting out you really need to consider that the LGPS is one of the best and most highly valued of occupational pension schemes. Being a member means you can enjoy a complete range of secure benefits including:
- Index linked pension payable for life
- Tax free lump sum option
- Death in service cover
- Survivors benefits for spouses, civil partners and co-habiting partner
- Children’s Benefits
- Ill Health Pension payable at any age
- Early retirement options
- Redundancy benefits paid early if over age 55
If you do wish to opt out please complete the following form I wish to opt out and return to your employer.