Once an employee has been automatically enrolled into a pension scheme, they may decide that they do not wish to continue paying into it.
This article outlines when and how an employee leaves a pension scheme and what must be updated on the module by the employer.
For all Pensions related articles, please see WFM UK - Pensions: Article Contents Page.
Leaving a Scheme
- An employee can request to leave a pension scheme at any time
- The employee must contact the Pension Provider to leave a scheme
- If the employee notifies the Pensions Provider within 30 days of receiving the starter pack, the employee can opt out. Pension contributions that have already been taken can be refunded to the employee via the Payroll Summary screen
- After 30 days the employee can only cease membership. The employee must contact the pension provider who will notify the employer. Pension contributions that have already been taken should not be refunded
Actions for the Employer
The employer must check the length of time the employee has been enrolled to ensure the correct method is used.
The Pension module should be updated as soon as notification is received.
An employee may not wish to pay into a pension scheme or already be a member of a qualifying pension scheme and will therefore opt out.
To do so:
- Go to Pension Module Home > Employees > employee list > select employee > employee pension info > Opt In/Opt Out Information
- Enter the date the Opt-Out Notice was received by the Pension provider and the Opt-Out Reference No
The system will auto populate the 'Refund Due Date', 'Opt-Out Period Start Date' and 'Opt-out Period End Date'.
If the Opt-Out notice received date is after the Opt out period end date. The employee can only cease membership
- If the employee is a member of another qualifying scheme, this should be entered into the employee's eligibility record
Once a Contribution Cease date has been received from the Pension Provider, it should be updated in the employee’s record.
- Go to Pension Module Home > Employees > employee list > select employee > employee pension info > Pension Scheme
- Enter the Contribution Stop date
- Choose the Reason for Stopping Contributions
Three Year Re-Enrolment
Once the opt out /cease membership notice has been processed, the employee will not be re-assessed until the three year AE anniversary.
All employees, including those who have opted out or ceased membership will be re-assessed.