Opting Out | Cronfa Bensiwn Gwynedd

Tasks

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Consider the 50/50 section

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Opt out of the LGPS

Thinking of opting out?

Opting out of the LGPS is an important decision that could affect your future pension benefits.

! Before opting out, consider the LGPS 50/50 section.

! You will lose your employer's contributions.

! You may lose valuable protection for yourself and your family.

! You will not build up any new pension benefits while opted out.

If you wish to opt out of the LGPS, you must submit an opt-out form to your employer.

How do the options compare?

Feature	Main Section	50/50 Section	Opt Out
Member contributions	100%	50%	0%
Pension build-up	1/49	1/98	✗
Death in service lump sum	✓ Full	✓ Full	✗
Ill-health pension	✓	✓	✗
Employer contributions	✓	✓	✗
LGPS membership	✓	✓	✗

Important: If you opt out of the LGPS, your employer is normally required to automatically re-enrol you into the scheme every 3 years if you meet the automatic enrolment criteria. Your pension contributions will start again unless you choose to opt out once more.

What should I consider before opting out?

If you are experiencing temporary financial pressure, the LGPS 50/50 section may be a suitable alternative to opting out. It allows you to pay lower contributions while remaining a member of the scheme.