Update on auto enrolment opt out process

10 December 2014

Recently members have been asking about the opt out process in respect of automatic enrolment. The main question asked is about whether the employer can issue the opt out notice, and we now have the answer.

To clarify (thank you Alex Rowson of QTAC Solutions), the employee must obtain the opt out notice from the pension provider, but can then give the notice to the employer for processing. The employer will then advise the pension provider by whatever process is agreed. The details are here

The key points of the process are:

· Staff who have been automatically enrolled or who have opted in have the right to opt out.

· The decision to opt out must be taken freely by the staff member.

· Staff cannot opt out until after they’ve been automatically enrolled.

· The opt-out period is one month from when active membership is created, or they receive the employer’s letter with the enrolment information, whichever is latest.

· Staff opt out by getting an opt-out notice from the pension scheme which they then complete and give to the employer.

· The employer must issue a full refund of any contributions the staff member has made within a month of receiving a valid notice.