Opting Out

Once enrolled in the scheme, you have the right to opt out. To do this, you must request an opt out form from the Pension Section by phoning 01286 679982, e-mailing pensions@gwynedd.llyw.cymru or downloading a form from the Attachments section below.

You should return the form immediately to your employer.

The employer will then arrange to cease deductions.

If you have been in the shceme for less than 2 years, and you have no other benefits with any other Local Government Pension Scheme, your contributions will be refunded (less the relevant tax deductions).

If you have been in the scheme for more than 2 years, or you have other benefits with any other Local Government Pension Scheme, your contributions will remain in the Gwynedd Pension Fund, where your pension will be deferred until you retire, or tranfer your benefits out of the fund.

Opting Out Frequently Asked Questions

What benefits will I lose by opting out of the Local Government Pension Scheme (LGPS)?

By opting out of the LGPS you are losing out on all these valuable benefits:

  • A guaranteed pension, which increases annually, payable for life, and is based on your pay.
  • A tax free lump sum when you retire.
  • Lump-sum death grant of three times your pay if you die, paid to the people you have nominated.
  • Pension for your husband, wife, civil partner or your eligible cohabiting partner.
  • Pension if you become too ill to work.
  • Early retirement if you're age 55 or over and made redundant.
  • Tax relief on your contributions.
  • Options to help you get more benefits by paying extra.
  • Contributions from your employer.

What do I need to do to opt out?

In order to opt out please complete the form in the attachments section below and return it to your employer. Pension contributions will stop from the next available payroll. If you have less than two years membership you will receive a refund of your contributions minus tax and National Insurance relief. If you have two years or more membership then your benefits will be frozen in the pension scheme until retirement age.

Have you considered the 50/50 section rather than opting out?

The 50/50 option could be an alternative option to opting out. Under the 50/50 section you have the option to pay half your normal contributions to build up half your normal pension during this time. You would however still get full life assurance cover, full ill health cover and full survivor benefits in the event of your death.

For more information and a 50/50 Election Form please click here.

Can I re-join the LGPS at a later date?

Yes, you can re-join the LGPS at any time in the future provided that you are under age 75 and remain working for an employer which offers membership of the LGPS. Please contact Gwynedd Pension Fund or your employer for a starters form. Please note you will not be able to aggregate any deferred benefits you had accrued if you decide to re-join the LGPS at a later date.

Will I be re-enrolled back into the Pension Scheme?

To encourage more people to save for their retirement, UK legislation requires all employers to enrol their workers into a pension at work if they are not already in one. The aim is to help more people have another income, on top of the State Pension, when they retire. If you opt out then your employer will normally automatically enroll you back into the LGPS approximately every 3 years from the date they have to comply with the automatic re-enrolment provisions.

Can my employer ask me or force me to opt out of the scheme?

No, your employer CANNOT ask you or force you to opt out of the scheme. However, if this is the case, you can inform the Pensions Regulator by visiting the website: www.thepensionsregulator.gov.uk


Opt Out Form