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Leaving or left the LGPS

Your pension options when leaving or opting out

If you leave your job before retirement or opt out of the scheme, your options will depend on the length of your LGPS membership, including any retained membership in other LGPS funds.

If you leave after two years of membership

 You can retain your benefits in Gloucestershire Pension Fund, referred to as Deferred Benefits.

 You may also explore transferring your benefits to another registered pension scheme.

If you leave with less than two years of membership

 You will typically be eligible for a refund of your contributions, minus a tax deduction.

 Alternatively, you may transfer your benefits to a new pension arrangement, provided you have been a member of the LGPS for at least three months.

If you re-join the LGPS

Should you re-join the LGPS, either with Gloucestershire Pension Fund or another fund, your records will automatically be combined in line with LGPS regulations.

Refund of contributions

If you do not re-join the LGPS or transfer your benefits to another pension scheme within five years, or by reaching age 75 (whichever comes first), a refund of your contributions will be issued automatically.

Leaving the LGPS with Less Than Two Years of Membership

If you leave the LGPS with under two years of membership, including membership held in other LGPS Funds, you may choose to receive a refund.

 

Opting Out or Leaving Between 3 Months and 2 Years

  • You could be eligible for a refund of your contributions, less deductions for tax and National Insurance.

  • Alternatively, you may transfer your pension to another pension scheme.

  • If you later re-join the LGPS, your previous account will automatically merge with your new, active account.

 

Leaving Your Job With Less Than 3 Months of Membership

  • Your contributions will be refunded, less deductions for tax and National Insurance.

  • If you are contributing to the LGPS in another role, your pension from the job you’ve left will be combined with your ongoing pension account.

 

Opting Out With Less Than 3 Months of Membership

  • Your employer will refund your contributions through your pay, after deducting tax and National Insurance.

Leaving the LGPS with Less Than Two Years of Membership

If you leave the LGPS with under two years of membership, including membership held in other LGPS Funds, you may choose to receive a refund.

 

Opting Out or Leaving Between 3 Months and 2 Years

  • You could be eligible for a refund of your contributions, less deductions for tax and National Insurance.

  • Alternatively, you may transfer your pension to another pension scheme.

  • If you later re-join the LGPS, your previous account will automatically merge with your new, active account.

 

Leaving Your Job With Less Than 3 Months of Membership

  • Your contributions will be refunded, less deductions for tax and National Insurance.

  • If you are contributing to the LGPS in another role, your pension from the job you’ve left will be combined with your ongoing pension account.

 

Opting Out With Less Than 3 Months of Membership

  • Your employer will refund your contributions through your pay, after deducting tax and National Insurance.

What to consider

For many people, their pension will be the most valuable savings that they have.

We have prepared the following information to help you understand the benefits that you may be giving up in the LGPS and the risks of transferring to another pension scheme.

 

Key benefits of the LGPS

  • Guaranteed annual pension that is payable for life
  • Increases in line with inflation each year
  • Not linked to stocks and shares
  • Death benefits, including a partner's pension, child's pension and lump sum death grant.

 

Information about the safeguarded benefits in the LGPS

The transfer value from a Defined Benefit scheme such as the LGPS is called a 'Cash Equivalent Transfer Value' (CETV) and it should represent the value of the safeguarded benefits you would be giving up.

Your pension rights in the LGPS are known as 'safeguarded benefits' because they're guaranteed.

If you wish to transfer out your pension, you should contact your intended new scheme and they will then make contact with us.

 

Transferring your pension safely

If you’re considering transferring your LGPS benefits to another pension arrangement, it’s important that you do so safely and are fully informed before doing so.

Read our guide

What to consider

For many people, their pension will be the most valuable savings that they have.

We have prepared the following information to help you understand the benefits that you may be giving up in the LGPS and the risks of transferring to another pension scheme.

 

Key benefits of the LGPS

  • Guaranteed annual pension that is payable for life
  • Increases in line with inflation each year
  • Not linked to stocks and shares
  • Death benefits, including a partner's pension, child's pension and lump sum death grant.

 

Information about the safeguarded benefits in the LGPS

The transfer value from a Defined Benefit scheme such as the LGPS is called a 'Cash Equivalent Transfer Value' (CETV) and it should represent the value of the safeguarded benefits you would be giving up.

Your pension rights in the LGPS are known as 'safeguarded benefits' because they're guaranteed.

If you wish to transfer out your pension, you should contact your intended new scheme and they will then make contact with us.

 

Transferring your pension safely

If you’re considering transferring your LGPS benefits to another pension arrangement, it’s important that you do so safely and are fully informed before doing so.

Read our guide

Your deferred benefit consists of an annual pension, that is payable for life, with an option on retirement to exchange part of your pension for a one off tax-free lump sum.

If you joined the LGPS prior to 2008, you would have also accrued an automatic tax-free lump sum. You can take up to 25% of the capital value of your pension tax free.

Your pension benefits also includes life cover and financial protection for your family.  Go to the death section for further details.

 

Manage your deferred pension online

To find out your current pension value, calculate a pension projection for future retirement dates, or update your contact details then log on to your Engage online account.

 

The value of your deferred pension will be held with us until you decide to

  • transfer the value to another pension scheme; or

  • when you elect to retire

 

Transfer out requests

You can only request a transfer out if you have met 2 years' membership at the LGPS. You need to contact the receiving Scheme to initiate the transfer, should you wish to explore this option.

 

Retirement requests

If you would like to take your pension benefits at Gloucestershire Pension Fund please contact us.

You can obtain an approximate idea of your pension's current value by logging onto Engage.

Your deferred benefit consists of an annual pension, that is payable for life, with an option on retirement to exchange part of your pension for a one off tax-free lump sum.

If you joined the LGPS prior to 2008, you would have also accrued an automatic tax-free lump sum. You can take up to 25% of the capital value of your pension tax free.

Your pension benefits also includes life cover and financial protection for your family.  Go to the death section for further details.

 

Manage your deferred pension online

To find out your current pension value, calculate a pension projection for future retirement dates, or update your contact details then log on to your Engage online account.

 

The value of your deferred pension will be held with us until you decide to

  • transfer the value to another pension scheme; or

  • when you elect to retire

 

Transfer out requests

You can only request a transfer out if you have met 2 years' membership at the LGPS. You need to contact the receiving Scheme to initiate the transfer, should you wish to explore this option.

 

Retirement requests

If you would like to take your pension benefits at Gloucestershire Pension Fund please contact us.

You can obtain an approximate idea of your pension's current value by logging onto Engage.

If you decide you wish to leave the Scheme, you need to complete an opt out form and send this to your employer so that they can stop contribution deductions. They will then inform the Pension Fund.

If you have attained less than 3 months in membership in the Scheme, and have not brought a transfer value in, your employee contributions will be refunded to you via your pay. Note: You do receive tax relief on any contributions you pay and therefore if you opt out then amount you pay in tax will increase (assuming you exceed the personal allowance for tax purposes). 

You can find more information on how opting out works on the introduction to the form.

If you decide you wish to leave the Scheme, you need to complete an opt out form and send this to your employer so that they can stop contribution deductions. They will then inform the Pension Fund.

If you have attained less than 3 months in membership in the Scheme, and have not brought a transfer value in, your employee contributions will be refunded to you via your pay. Note: You do receive tax relief on any contributions you pay and therefore if you opt out then amount you pay in tax will increase (assuming you exceed the personal allowance for tax purposes). 

You can find more information on how opting out works on the introduction to the form.