Opt Out of a Qualifying Pension Scheme
An eligible jobholder can opt out of a qualifying pension scheme into which they were automatically enrolled. A non-eligible jobholder can opt out of a qualifying scheme for which they previously opted in.
Opting out must occur within the opt-out period. After that date, an employee must leave, rather than opt out, of a scheme.
Before you Start
Make sure that:
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The employee is currently enrolled in a qualifying scheme (either by automatic enrolment or by opting in).
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The opt-out period end date hasn't yet been reached.
Update the Pensions Automatic Enrolment Card for the Opt-Out Action
Opting out involves updating the employee's Pensions Automatic Enrolment calculation card as summarized here:
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Use the Calculation Cards task to open the employee's pensions calculation card for editing.
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Complete the fields in the component details section as shown here:
Field
Value
Reason for Leaving Qualifying Scheme
Opt out
Qualifying Scheme Leaving Date
Opt-out date
Effective Start Date Date should be the same as the qualifying scheme leaving date to avoid incorrect pension assessments in future processing. -
Save the calculation card.
Run the Pensions Automatic Enrolment Assessment Multiple Update process.
The process end dates the employee's Benefits and Pensions card and removes the qualifying scheme details from the pensions card. The employee's classification for pensions remains unchanged.
These are the assessor values that are updated:Field Action Leaving Scheme Processed Date The date of leaving the scheme Qualifying Scheme Component This is deleted.