A member can decide to opt out of the LGPS, and dependent on length of time they have been in the scheme, different actions are required by the Fund.

Please see below for Opt-out guidance to determine the correct notification to submit to the Fund.

Detail Opt-out? Action
Opt out within three months or fewer (in first, second or third month)- Yes
  • Notify the Fund via the Opt-out flag on the monthly submission (columns BB-BF), ensuring that refunded contributions are recorded as a negative.
  • Refund member contributions through payroll
  • Member deemed never to have been in scheme
Opt-out after more than three months but fewer than two years Yes
  • Notify the Fund via an Exit interface, flagging the member as a leaver on column BK
  • Fund will refund member contributions

(where appropriate*)

Opt-out after two years or more Yes
  • Notify the Fund via an Exit interface, flagging the member as a leaver on column BK
  • Member’s benefits will become deferred

*If member has a previous deferred or pensioner LGPS record, or they have aggregated LGPS/transferred-in service that amounts to more than two years, they are not eligible for a refund.

Note – if you need to make any amendments to a previously submitted opt out, please complete the S5 form in the downloads section. Once completed, please send to DMT@wolverhampton.gov.uk

For information regarding member opt out’s, please refer to Opting out.