Question 1

Opting out - what is it?

Accepted Answer

Workers who are enrolled into the scheme have the right to opt out of the pension scheme within one calendar month. It starts from the later of: 
·         The date active membership was achieved
·         The date they received a letter from you as their employer with the enrolment information
Workers must be enrolled as an active member before they can opt out, details of how to opt out will be provided in their joining letter.

Question 2

What happens if someone opts out?

Accepted Answer

Once a worker selects to opt out, as an employer you must stop deducting contributions and refund any contributions already taken via payroll.

Question 3

Can I ask them if they want to opt out?

Accepted Answer

No. The Pensions Regulator can view this as an inducement. As an employer you cannot encourage or force workers to opt out. Doing so may result in a penalty from the regulator. Using a provider such as Onepension can help keep you as the employer independent.

Question 4

What happens if a worker wants to opt out after their one month opt out period?

Accepted Answer

If a worker does not opt out within their one-month window, they can still choose to stop contributing, however anything paid into the pension will remain invested until such a time they are able to access their pension.

Question 5

What is opting in?

Accepted Answer

Workers can choose to opt in to your qualifying pension scheme if they are not currently an active member. Workers will benefit from the obligatory employer contributions.
An entitled worker can use their joining rights to become an active member, however the employer is not obliged to pay any contributions.

Question 6

Can they re-join?

Accepted Answer

Yes, workers can re-join and choose to opt in. 
In addition, and by law, an employer will be required to re-enrol workers every every 3 years.

Question 7

When can opt-in or joining requests be refused?

Accepted Answer

As an employer, you can choose to not process a workers request if; the worker has given or received notice to terminate their employment OR a worker opted-in or joined within the past 12 months and subsequently the worker ceased membership of the scheme.

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