Opting Out

Employers will write to all employees who are being automatically enrolled.  This letter will explain how to opt out of the pension. In general employees will need to submit a form, but some pension schemes will allow for opting out online or by phone.

Employers will provide the information, such as contact details, as required to opt out. However, employers are not permitted to handle the process on behalf of employees – for example, by giving employees an opt-out form. This is to prevent employers from encouraging their workers to opt out.

If employees opt out within 6 weeks of joining (being automatically enrolled), employers will refund any associated pension contributions already deducted from the employees pay.

Delayed opt-out (i.e. after the initial 6 week opt-out period), the money will usually stay in the pension scheme until the employee retires.

3 year cycle to enrol

Employers are required to automatically enrol employees into their pension scheme again every three years, including those who previously opted out, assuming the employee remains eligible for automatic enrolment at that time.

Employers must not encourage Opt out

Employers cannot opt out of their automatic enrolment duties. While employees have the right to opt out of your workplace pension, employers cannot; 

• force or encourage employees to opt out

or

• treat employees unfavourably for not opting out.

The same principle applies during the recruitment process. Prospective new employers cannot suggest that a interviewee would be more likely to be hired if they would opt out of the company pension scheme.