Opting Out of the LGPS
Membership of the Local Government Pension Scheme (LGPS) is automatic in many cases, but it is not compulsory that you remain in the scheme. As a member you can cancel your membership; this is referred to as opting out. If you are a new employee opting out of the LGPS, you cannot opt out before the date when you start in your employment. Requests to opt out can only be accepted through completion of an Opt Out Form or use of the online opt out system. Opt Out Forms should be returned to your employer, not the Pension Fund.
If you are thinking of cancelling your membership you should consider that the LGPS is one of the best occupational schemes in England and Wales and by being a member you will receive a range of secure benefits.
Before you Opt Out – have you considered the 50/50 Section?
You may wish to consider the 50/50 section, this option allows you to reduce your contributions to pay half your normal amount in the scheme in return for half the normal pension benefits building up. This means that you still build up valuable benefits in the LGPS.
Notification to Opt Out
If after reading benefits of joining the LGPS you do decide that you no longer wish to be a member of the LGPS and want to cancel your membership, you must complete an Opt Out Form. Your application to opt out of the LGPS can only proceed when this form has been received by your employer who will cease taking pension contributions. After your employer has adjusted their payroll, they will then instruct the Pensions Team that you have opted out.
An Opt Out Form can be found at the bottom of this page, if you are not able to print out the form yourself, contact the Pensions Team on 01743 252130, or follow the link at the bottom of this page to complete an online form. By clicking on the online form option you will be redirected to the Shropshire Council website and asked to register your details before you can proceed to the form.
To find out what happens to your benefits after opting out of the scheme see the section on leaving the scheme before retirement.
Opting back into the Scheme
If you opt out, or have previously opted out of the LGPS on or after 11 April 2015, and are entitled to a deferred benefit as a result of opting out of the scheme in that employment (other than a concurrent employment) and choose to later rejoin the LGPS, you do not have the right to aggregate the two periods of membership.
If you have opted out of the LGPS your employer will be required to re-enrol you into the scheme every 3 years on a set re-enrolment date if you are classed as an eligible jobholder. This is also the case if you are an eligible jobholder who has joined the 50/50 section. Upon being re-enroled into the scheme, you can opt out again or make an election to re-join the 50/50 scheme.