Scheme leavers before retirement
What happens to a member's benefits when they leave or opt out of the LGPS, will depend on how long they've been in the scheme.
Refund or deferred pension?
From 1 April 2014, members must have two year's qualifying membership in the scheme to be entitled to benefits.
If they've less than two years, they could have a refund of contributions if:
- They've not re-joined the LGPS within a month and a day of leaving their job, of which they are claiming the refund of contributions.
- They're not currently making contributions to the LGPS.
- They don't already have deferred benefit in the LGPS.
- They're not in receipt of a pension from the LGPS.
- They've not transferred pension rights from the LGPS to an overseas pension scheme.
If the member opts out of the scheme with under three months membership, and a refund is due, the refund of contributions can be made through your payroll. For leavers over three months, a leaver’s form must be completed.
All employers apart from Shropshire Council
Leavers and Opt Outs
- Opt outs with less than 3 months membership
Where a member opts out of the LGPS with less than three months' membership, the refund should be processed through payroll. The record should then be changed to an opt out via i-Connect. - Leavers with less than 3 months membership (not opt outs)
The record should be processed as a leaver via i-Connect. The fund will write to the member with their options. - Opt outs and leavers with 3 months membership or more
The record should be processed as a leaver via i-Connect. The fund will write to the member with their options. - Leaver forms
Leaver forms are only required in cases of retirement or death.
Shropshire Council
For Shropshire Council, a leaver form is required for all leavers, including opt outs, except where the member has opted out with less than three months' membership and is entitled to a refund of contributions. In these cases, the refund should be processed through payroll and no leaver form is required.
