How can an employee opt-out of pension auto-enrolment?

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).

Earnings Age (inclusive)
  • 16 - 21
  • 22 - SPA**
  • SPA** - 74
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
  • Non-eligible jobholder
  • Eligible jobholder
  • Non-eligible jobholder

**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.