To comply with legislation, all eligible jobholders must be enrolled into a compliant pension scheme. This means that the employer is required to make the first deduction from the employee’s salary even if they intend to opt-out.
Once enrolled into the scheme the employee will then be issued with an “assessment notification”. This will confirm the category the employee fits under (see table below).
|Under lower earnings threshold (£5,824)||Entitled worker|
|Between £5,824 and £10,000||Non-eligible jobholder|
|Over earnings trigger for automatic enrolment £10,000||
**State Pension Age
If an employee is an “Eligible Jobholder” and has therefore been Automatically Enrolled, the letter will contain instructions on how to opt-out. The opt-out period is 30 days and is triggered when the “assessment notification” is issued.
If the employee opts-out then the contributions will be refunded and the process reversed.