Changes to your job
Leaving or changing jobs
If you have been a member for less than three months then you may be entitled to a refund of contributions. This will be paid through your payroll and will be less 20% tax and the cost of buying you back into the State Second Pension (S2P).
If you have been a member for more than three months when you leave, your payroll team will provide us with final leavers details. We will then finalise your pension record and write to you to confirm what benefits you have accrued in this period of membership.
You will then have two possible options:
- Transfer the value of your benefits to another scheme or arrangement (up to one year before your normal retirement date). You would need to contact your new pension provider to find out how to do this and likely acceptance.
- Leave your pension in the Scheme (deferred benefits).
You can only get a refund of contributions if you have been in the scheme for less than three months.
If you re-join the LGPS, you will be able to join the benefits you have accrued in any previous job with those you build up in your new job. The Changing jobs in the LGPS leaflet, details the things you need.
If you are on sick leave:
If you are on maternity, paternity or adoption leave:
If you take unpaid leave, past the 26 week ordinary period, you can choose to pay contributions so that the period will count in full towards your pension. If you do not pay contributions, this period of unpaid leave will not count towards your pension.
Added years or ARC contracts remain payable during maternity, paternity or adoption leave and will accrue in full.
You can opt out of the LGPS during a period of maternity/paternity/adoption leave, however you will not be given the option to pay back contributions. For more details on opting out please see opting out of the LGPS
If you take unpaid leave:
If you take industrial action:
You can find more information about leave of absence in LGPS look forward with confidence leaflet
What if I work part time?
If you work part time, we calculate your benefits in the same way as for full time workers, but:
- the total membership is scaled down to the percentage of whole time you work
- the final pay is scaled up to the whole time equivalent rate.
So if you work half time for 10 years, you will have five years' membership but we will use the whole time equivalent pay in the benefit calculation rather than the actual pay you receive.
Your contribution rate will be assessed on the whole time equivalent pay for your job, unless you are a term time worker*. Your employer will inform you what contribution rate band you are in.
*Term time workers for this purpose:
- must work for an educational establishment and
- term time working must be the employer's requirement ie the workplace shuts over the school holiday.
If you choose to work term time hours but your employer would let you work during school holidays, then you will be classed as a part time worker for the purposes of assigning your contribution rate band.
What if I reduce my hours?
You will build up service more slowly from the date you reduce your hours. There will be no impact on pension benefits you have already built up.
Reduction in pay
Your pension benefits are normally calculated using the pay you receive in your final 12 months of employment (or the better of the previous two years if higher). These figures are not adjusted for inflation.
However, if your pay was reduced or frozen after 1 April 2008 (other than a drop following a temporary increase), pension scheme regulations allow you to have your final pay calculated as the best average of any three consecutive years (ending 31 March) within the last 10 years of your service. These averages are adjusted for inflation.
The highest figure resulting from the two calculations above will be used to calculate your benefits.
You can ask for this option at the time of leaving or retirement. You should speak to your payroll team who provide us with your final pay information.
You can find more information about reduction in pay in reduction in pay factsheet.