Opting out of your pension

Paying into a pension can feel like a thankless task when money’s tight and you're looking to boost your income. But before you opt out, it’s worth taking the time to understand your options.

10 good reasons to stay


Guaranteed pension, which is protected against inflation

Your public sector pension provides you with a guaranteed income when you retire. Plus, it’s payable for life, comes with a range of additional benefits and is fully protected against inflation.

Tax relief

The cost of being a pension scheme member is actually lower than you might think. Your contributions are taken from your pre-tax salary. So, the more money you pay in to your pension, the less money you pay in income tax.

Employer contributions

In addition to your own pension contributions, your employer makes additional contributions to help boost your pension benefits. These contributions are often more than double what you pay yourself.

Before you go… you might find these bite-sized videos useful

What is the 50 / 50 option?

More than a great pension…

When you’ve gotta go, you’ve gotta go…

If you’ve made up your mind and definitely want to leave, we won’t stand in your way. Just follow these three simple steps.

1. Complete the opt out form

You can download a paper version here or if you work for Lancashire County Council you complete the online version of the form.

2. Return the completed form to your employer

Paper forms should be returned to your Payroll or Human Resources Department.

3. Your employer will remove you from the scheme

After receiving your form, your employer will cancel your payroll deductions and notify us, so that we can process your benefits. 

What happens next?

Depending on how long you’ve been a member you can either cash in your contributions or defer your benefits until you retire.

Rules are rules

To comply with the 2008 Pensions Act, your employer has to re-enrol you into the scheme every three years. You will be notified when this happens and given the opportunity to opt out again, which you will need to do within 3 months to ensure a guaranteed refund.

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