If a member’s excess service wasn’t pensionable (because their employer wasn’t an accepted Local Government Pension Scheme employer), the member will be asked to make the choice of either immediately taking or deferring their contributions as compensation.

Members immediately taking their contributions as compensation with interest

Members can choose to take a compensation payment now. If they take a compensation payment now, their excess service will not count towards their pension benefits for the remedy period.

The compensation payment will have the relevant interest applied.

Deferring contributions as a compensation payment until the member makes a choice at retirement (Deferred Choice Underpin)*

Members can choose to defer the compensation payment until retirement. If they defer, their career average option will be presented to them with this service included.

Should a member choose to have their remedy period service calculated under the career average scheme at retirement, then the compensation payment will be included when calculating their career average benefits.

If a member chooses to have their remedy period service calculated under the final salary scheme at retirement, they’ll automatically be paid a compensation payment (including interest up to their retirement date).