Receiving Refunds

When an employer receives a valid opt-out notice, they must refund to the employee any contributions that have been deducted from the employee’s pay, less any tax due, by the refund date. The refund date can be within one month of receiving the valid opt-out notice. If the payroll arrangements closed before the employer received the notice then the last day of the second applicable pay reference period can be the refund date.

Jobholders who cease their active membership after the opt-out period has ended may also be entitled to receive a refund of contributions. This depends on the length of the employee’s pensionable service and the pension scheme’s rules.