Shropshire County Pension fund

Taking care of your Local Government Pension in Shropshire

Scheme Leavers Other Than Retirement

These pages are for employer use only. Member information can be found on the home page.

If a member leaves their employment or opts out of the LGPS, what happens to their pensions benefits depends on how long they have been a member in the scheme.

Refund or deferred pension?

If a member, with service of pre and post 1 April 2014, subsequently leaves with between 3 months and 2 years’ membership in total, they can choose between:

  • A refund of contributions
  • A deferred pension

From 1 April 2014 members are required to have 2 years qualifying membership in the scheme to be entitled to benefits. If they have less than 2 years they could be entitled to a refund of contributions providing:

  • They have not subsequently re-joined the Local Government Pension Scheme (LGPS) in England or Wales within a month and a day of ceasing their employment in respect of which they are claiming the refund of contributions
  • They are not currently making contributions to the Local Government Pension Scheme in England or Wales
  • They do not already hold a deferred benefit in the LGPS in England or Wales
  • They are not in receipt of a pension from the LGPS in England or Wales
  • They have not previously transferred pension rights from the LGPS in England or Wales to an overseas pension scheme

If the employee opts out of the scheme with under 3 months membership and a refund is requested (providing the employee does not meet any of the above criteria) then the refund of contributions can be made via the employers’ payroll bureau. For leavers over 3 months, a leaver’s form must be completed and the options relevant to the employee will be presented by the Pensions Team.

Whenever an employee leaves the LGPS after 3 months, please complete the leavers form PEN007.

More information

PEN007