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.
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