If I'm eligible for a refund of contributions how are these worked out?
If you leave the LGPS before meeting the 2 years vesting period you can choose a refund of contributions.
A refund of contributions will include:
any pension contributions you have paid, and
any additional pension contributions or AVCs you have paid (other than AVCs paid for additional life cover), and
any contributions you paid which were included in a transfer payment which the LGPS received from another pension arrangement.
A refund of contributions will have a deduction for tax and also the cost, if any, of buying you back into the State Second Pension (S2P).
If a refund is not paid within 1 year of you leaving the Scheme then interest is payable. The rate of interest is 1% above base rate on a day to day basis from the date you left the scheme to the day the refund is paid (compounded with three monthly rests).
Your refund of contributions must be paid within 5 years of your leaving the Scheme (or age 75 if earlier). At that point a refund of contributions is automatically paid to you.
No refund can be made if you rejoin the Scheme in England or Wales within a month and a day of leaving, or rejoin before the refund has been paid, or continue to hold another job in which you are a member of the LGPS and which you held at the same time as the job you have left.
If you have not met the 2 years vesting period when you leave but joined before 1 April 2014 please see the section If you joined the LGPS before 1 April 2014 for further information.