New Starter Guide December 2017 | Page 10

If you opt out of the LGPS after meeting the 2 years vesting period you will have deferred benefits in the scheme and will generally have the same options as anyone leaving their job before retirement. If you opt-out, you can, provided you are otherwise eligible to join the scheme, opt back into the scheme at any time before age 75. If you opt out of the LGPS then: • on the date your employer is first required to comply with the automatic enrolment provisions under the Pensions Act 2008, your employer will automatically enrol you back into the LGPS if you are an Eligible Jobholder at that time in the job you’ve opted out from, or • if on the date your employer is first required to comply with the automatic enrolment provisions under the Pensions Act 2008 you are not an Eligible Jobholder at that time in the job you opted out from your employer will, if you subsequently become an Eligible Jobholder in that job, automatically enrol you back into the LGPS from the automatic enrolment date Your employer must notify you if this happens. You would then have the right to again opt out of the LGPS. If you stay opted out your employer will normally automatically enrol you back into the LGPS approximately every 3 years from the date they have to comply with the automatic enrolment provisions provided, at the date your employer has to enrol you back in, you are an Eligible Jobholder. However, in any of the above cases, your employer can choose not to automatically enrol you if: • you had opted out of the LGPS less than 12 months prior to the date you would have been automatically enrolled in the job, or • notice to terminate employment has been given before the end of the period of 6 weeks beginning with what would have been automatically enrolled in the job, or • your employer has reasonable grounds to believe that, on what would have been the date they would have automatically enrolled you, you hold Primary Protection, Enhanced Protection, Fixed Protection, Fixed Protection 2014, or Individual Protection 2014, Fixed Protection 2016 or Individual Protection 2016 (see the section on Tax Controls and Your LGPS Benefits), or • you hold office as a director of the company by which you are employed, • you are a member of a limited liability partnership (LLP), have earnings payable by the LLP but you are not treated for income tax purposes as being employed by the LLP. What do I pay? Your contribution rate depends on how much you are paid but it’s currently between 5.5% and 12.5% of your pensionable pay. If you elect for the 50/50 section of the scheme you would pay half the rates, as listed on the next page. The rate you pay depends on which pay band you fall into. When you join, and every April afterwards, your employer will decide your contribution rate. Also, if your pay changes throughout the year, your employer may decide to review your contribution rate. On the next page are the pay bands and the rates that apply from April 2016. 8 SouthYorkshirePensionsAuthority SouthYorkshirePensionsAuthority 9