WORCESTERSHIRE COUNTY COUNCIL PENSION FUND
LOCAL GOVERNMENT PENSION SCHEME (LGPS)
OPT OUT FORM (Please complete all sections in BLOCK CAPITALS)
Surname / TitleForenames
NI Number / Date of Birth
Address
Post Code / Employer
Opt Out on all posts /
Specific posts only
Payroll / Post Numbers:
The 50/50 Option
Before you opt out, have you considered the 50/50 option? This allows you to elect to leave the main section of the scheme and become a member of the 50/50 section. You will only pay half of your current pension contributions and build up half of the pension benefits but will retain the full life cover.
Please note: This is only intended as a short term option until your financial situation improves
BEFORE SIGNING THIS DECLARATION PLEASE READ THE NOTES ON REVERSE OF THIS FORM
Declaration:
I have read the information and understand that the choices I make now are important in planning for my retirement. I confirm that I wish to opt out of the pension saving in the post(s) I have indicated on this form.
I understand that if I opt out I will lose the right to pension contributions from my employer.
I understand that if I opt out I may have a lower income when I retire.
I understand that I am giving up my right to future benefits under the Scheme, these include:
· An index-linked pension, based on my pensionable pay.
· An ill-health pension if I become permanently incapable of working.
· Early retirement benefits if I am made redundant /retired in the interests of efficiency of the service (applicable for members over age 55 only with a minimum of 2 years' service).
· Widow(er)'s / Civil Partner's / Cohabiting Partner's / Children's Pensions.
· A lump sum death in service grant of three times my final years actual pay.
Signed / Date
** PLEASE RETURN THIS FORM TO YOUR PAYROLL DEPARTMENT **
Opting Out of the L.G.P.S - What you need to understand
· Your employer cannot ask you or force you to opt out. If this happens you can tell the Pensions Regulator: www.thepensionsregulator.gov.uk
· If you change your mind you may be able to opt back in by writing to your employer.
· If you stay opted out your employer will normally opt you back in after 3 years.
· If you change your job and the contract is for more than 3 months your new employer will normally put you back into the LGPS straight away.
· If you have another job your other employer might also put you into pension saving, now or in the future. This opt out form only opts you out of the LGPS with the employer and the employee number you name above. A separate notice must be filled out and given to any other employer you work for if you wish to opt out of that pension saving as well.
· Please be aware that changes to workplace pensions, under the Pensions Act 2008 (as amended) require all employers to assess their workforce and where employees meet certain criteria they are required, by law, to automatically enrol you into a qualifying pension scheme.
· Savings in Tax and National Insurance:
If you pay tax and national insurance, you currently get quite hefty savings in both of these as long as you are paying into the Scheme. For example, if you payslip shows a £100 pension contribution, this reduces your tax bill each month by £20 (assuming that you pay tax at the basic rate), and your national insurance goes down by the same. If you opt out of this scheme (and do nothing else in its place) your tax and national insurance will go up. Therefore, you will not save as much as you think by opting out.
· Valuable Life Cover:
Hopefully, you will never need to claim on it, but as a member you have valuable life cover at no extra charge. Literally, from the second you join, you have lump sum life cover of three years' pay. For example, if you earn £20,000 a year before deductions, we would pay out £60,000 if you died, to whoever you have nominated for us to pay.
· Employer Contribution:
By being in the pension scheme, you are effectively getting free money from your employer every time you are paid. Of course, it's not money that you can get your hands on now, but there's no denying the fact that employers pay towards the cost of the benefits in schemes like the LGPS.
Your employer's contribution rate changes over time, but typically for every pound you pay in, they're paying double. By opting out, you are, in effect, voluntarily giving up part of your pay package.
FOR COMPLETION BY EMPLOYER (Please tick one box in each section)Opted Out within 3 months and any contributions
refunded, where appropriate.
or
Opted Out after 3 months - Leaver Form attached
This member was brought into the LGPS under:
LGPS Rules
or
Auto Enrolment Rules
Completed By (Employer):
Name: / Signature: / Date: