If an employee decides to leave your pension scheme, they should first contact the pension provider and agree the opt out. The provider then either notifies you of the opt out or provides a document for the employee to complete and submit to you. Check this is a valid request before processing it. Read more > The steps you need to follow depend on whether your employee opts out or leaves the scheme. Click below to see the difference between these two requests. Opt out > Opting out is when your employee leaves the scheme within the opt out period, which is typically one month from the date they were enrolled. The employee is normally entitled to a refund of their contributions to date.
 TIP: To check the exact opt out dates for an employee, contact your pension provider. Leave request >A leave request is when the employee leaves your workplace pension scheme after the opt out period. The employee isn't normally entitled to a refund of their contributions.  NOTE: If you aren't certain which type of request you've received or whether a refund is due, contact your pension provider.
Process the requestClick the options below to see the steps to process either request. Leave request >To process this request, enter a 'left scheme date' to the employee's pension scheme in your software to stop further contributions from calculating. Keep a record of when you received the leave request and when you actioned it. - On your employee list, double-click the relevant employee.
- Click the Pensions tab, then click Manage Schemes.
- Click the employee's pension scheme, then click Edit.
- In the Left Scheme box, enter the date the employee left the scheme.
- To confirm the pension provider has been informed of the opt out, select the Provider notified check-box.
- Click OK, then click Save.
- Click Close.
Opt out request >To process this request, you need to start by recording the opt out information, then stop the scheme from calculating further contributions. After those steps, you can process any refund of the employee's contributions. Remember to keep a record of when you received the request and when you actioned it. Enter the opt out details and stop contributions- On your employee list, double-click the relevant employee.
- Click the Pensions tab, on the right-hand side select the Qualifying Scheme Opt Out box.
 - Enter the Opt Out Date.
TIP: Entering the opt out date doesn't stop the pension scheme from calculating contributions. - To stop further contributions from calculating click Manage Schemes.
- Click the employee's pension scheme.
- Click Edit, then in the Left Scheme box, enter the opt out date.
- To confirm the pension provider has been informed of the opt out, select Provider notified.
- Click OK, then click Close.
- Click Save then click Close.
Process the refundWe have a guide that runs through both creating a pay element for the refund, and processing the refund. Find out how >
Further guidanceFor further guidance on Opt outs, visit The Pension Regulators' website, or visit your pension providers' website.
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