Covid-19 – consider your options before opting out of the scheme
We understand that because of the uncertainty around employment and disruption to household income due to Covid-19 some of our members will be thinking about opting out of the scheme.
We want to remind you that by opting out of the LGPS you’re giving up a guaranteed package of benefits backed by law, including:
- A secure pension – payable for life, that increases with the cost of living
- Tax free cash – the option to give up some of your annual pension for a tax-free lump sum at retirement
- A flexible retirement date at any age between 55-75 (with reductions or increases to my benefits)
- Serious ill-health cover – immediate benefits based on an increased period of scheme membership if you must retire due to a serious illness
- Redundancy cover – with early payment of pension benefits if you’re made redundant or retired on business efficiency grounds at 55 or over
- Life cover – with a lump sum of three times of your final pay if you die while working
- Death benefits for your family – including a survivor’s pension for your spouse, civil partner or eligible cohabiting partner as well as children’s pensions
Did you know that the LGPS offers you flexibility to pay more or less?
Instead of opting out of the scheme, you could think about joining the 50/50 section. This allows you to pay half your contributions in return for half your normal pension build up. 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.