Opting out of the LGPS

Membership of the Local Government Pension Scheme (LGPS) is automatic in many cases, but a member may choose to cancel their membership if they do not wish to be in the scheme. This is called opting out. All members can opt out of the LGPS by filling in an opt out form.

It is important to remember that members must return their completed form to you, as their employer, and not the administrating authority.

Once the form has been returned, employers must ensure that they notify both payroll and the administrating authority as soon as possible.

If a member has under three months membership with the LGPS, they will be entitled to a refund of the contributions that they have already paid and this will need to be processed through the employer's payroll system. Employers will need to provide us, as the administrating authority, with a copy of the opt out form to allow us to update our records. You will then need to process this action as an opt out through i-Connect.

If a member has more than three months membership, employers will need to process this through i-Connect and provide a PEN007A leavers form for the member leaving the scheme. This is because the member will be entitled to either a refund or a deferred benefit from the fund, depending on their length of service.

You must not process a member as having left until you have their completed form. You should also be aware that a member can't opt out before they've started their employment.

If a member has more than one employment, they must fill in an opt out form for each employment they wish to opt out of.