So, you’ve done all you can to set up your automatic enrolment scheme and encouraged your staff to join. But some staff employees, for a variety of reasons may wish to opt out, and they have the right to do so.
Staff who have been automatically enrolled or who have opted in, have the option to opt out within one month from when their active membership is created or within one month of when they received your letter with the enrolment information, whichever is later.
When they opt out in this timeframe, they can get a full refund of any contributions. On the other hand, they can also withdraw from the scheme at any other time but they can only get a refund of their contributions if the pension scheme rules allow it.
It’s important that the decision to opt out is freely taken by your member of staff and you mustn’t encourage them to do so. To protect them and you, they will get their opt out notice from the pension scheme, not you.
But when you get one of these notices you will need to make sure that it is valid and then follow the opt out processes that are described in your scheme.
To learn about auto enrolment opt outs, please visit: autoenrolment.org/employee-opt-outs/