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CLAIMING A REFUND AFTER OPTING OUT OF THE SCHEME

To claim a refund of the money you have paid into the Local Government Pension Scheme (LGPS), you must:
 
  • have LESS THAN THREE MONTHS membership, AND
  • have not transferred any other pension rights into the LGPS, AND
  • not have any other LGPS membership in England & Wales
Only your contributions are refundable, those paid by your employer are NOT. Your refund payment will usually amount to less than your gross pension contributions. While you are a member of the LGPS, you are not a member of the State Second Pension (S2P). This means that you pay reduced National Insurance contributions at the contracted-out rate.
 
When you take a refund from the LGPS, you must be contracted back into S2P for the period of your local government employment. Your share of the cost of reinstatement must be deducted from your refund payment.
 
HM Revenue & Customs (HMRC) claim 20% of all refund payments: this is also deducted from your refund payment. Taking a refund means losing benefits: if you re-enter local government employment in the future, this period cannot count as LGPS membership.