Frequently Asked Questions

FAQs – Leaving the Scheme

What happens if my job is outsourced to a private contractor?

Your new employer would be obliged to offer an alternative pension scheme roughly equivalent to the LGPS, or petition to become an admitted body. If approved, the employer then enters into a contractual arrangement with the administering authority so that its employees can join the LGPS. You would then remain in the LGPS until you leave your new employer.

Can I continue to pay my Local Government Pension Scheme (LGPS) contributions after leaving employment?

Membership of the LGPS is only available to employees who remain in local government employment. If you leave your local government employment you will no longer be able to contribute to the scheme.

Am I able to receive a refund of contributions on one employment, yet retain my pension rights in another?

No. As of April 2006, choosing to take a refund of contributions will result in all rights to any other LGPS benefits you may have accrued (within England and Wales) being waived. This covers benefits held by any administering authority of the LGPS in England and Wales, not just your current authority.

Why has tax been deducted from my refund of contributions? If I don’t pay tax, does this still apply to my refund?

The tax deducted from your refund is a tax applied to the pension fund. It is not another form of income tax. We are obliged to retrieve this payment from all members whom we have paid a refund to.

What happens if I change employment but remain in the LGPS?

When changing employment within local government, your pension contributions do not necessarily follow. We are required to treat every individual employment as a pension in its own right, so you have to elect to combine the benefits again once you have started your new employment.