The payroll cycle

Step 5: Check if anyone joined or opted out of the pension scheme

The opt-out process is started by the employee who must contact the pension provider to inform them of their intention to opt-out. The pension provider then issues an opt-out notice to the employee, who must them complete the form and give it to their employer.
A worker or employee can not opt out in advance.

If you do not have any op out or leavers, you can skip this step.

Opting Out - Key Points

Information provided by The Pensions Regulator.

  • Staff who have been automatically enrolled or who have opted in have the right to opt out.

  • The decision to opt out must be taken freely by the staff member.

  • Staff cannot opt out until after they’ve been automatically enrolled.

  • The opt-out period is one month from when active membership is created, or they receive their letter with the enrolment information, whichever is latest.

  • Staff opt out by getting an opt-out notice from the pension scheme which they then complete and give to their employer.

  • The employer must issue a full refund of any contributions the staff member has made into a pension scheme within a month of receiving a valid notice.

Who Can Opt-out?
The following workers have the right to opt-out of a pension if they are within the Opt-out Period:
- An Eligible jobholder who was automatically enrolled.
- An Eligible jobholder who opted in.
- A Non-eligible jobholder who opted in.

Entitled Workers do not have the right to opt-out of a pension scheme; if they no longer wish to contribute they must cease contributions in line with the scheme rules.

If an employee chooses to opt in:

  1. Open IRIS Earnie and select the required company.

  2. If a valid opt out notice has been received go to the Pensions Menu.

  3. Select Company Pensions Dashboard.

  4. Select the required employee.

  5. Select Opt-Out.

  6. Enter the Opt-in Date,

  7. Choose the Pension Fund.

    Entitled workers can Join the pension scheme. You can not refuse a request to opt in or join a pension scheme.

  8. The Employee Contribution and Employer Contribution defaults to the rates set up for the Pension Fund. Amend if necessary

  9. Select Opt in or Join.