 CAUTION: Your pension provider sends information to your employees about opting out. The exact process depends on your provider and you should confirm this with them.
Opt out period - If you send a job holder's letter to the employee the opt-out period is one month from the date that you send the letter.
- If active membership of the pension scheme has started, it is one month from that date.
- You will use whichever is the latest date.
Refunding contributions - Jobholders who opt out of a scheme within the opt-out period get a refund of any contributions already made
- Entitled workers who join a scheme, and then choose to leave, only get a refund if the pension scheme rules allow. Payroll doesn’t generate a refund for these workers. Instead, the refund comes to them from the pension provider
Process an opt out in Payroll - Process the pay run as normal until the Edit Pay stage.
- Select on the relevant employee.
- Select Manage Enrolment.
- Select Opt Out/Leave, then enter the following information:
| Request received | Enter the date you received the opt out request from your employee. | | Did the employee opt-out using a Nest paper form? | If the employee has an official nest form, there will be a reference on it. Choose Yes. If the employee hasn't used an official Nest form, or your notification has no Nest reference, choose No. | | Opt-out reference* | This field is compulsory if you choose Yes above. | | Extension period used? | If there is a problem wit the opt-out notice form, you can extend the opt out period. The extension can be up to six weeks to allow the employee to provide a correct form.
To extend the opt-out period, select this check box. | | Refund contributions of £xx.xx | This is only available where a refund applies and the opt-out is valid. If you’re unsure, check with your pension provider.
If the employee is subject to a refund and you want to pay the refund to the employee via Payroll, select this option. You will see i included in pay run. | | Refund paid directly by provider | This is only available where a refund applies and the opt out is valid.
If the employee qualifies for a refund and your pension provider pays it, choose this option. If you're uncertain, verify with your pension provider | - Select Opt out.
You may enter an opt-out date that is earlier than already completed pay runs. In this case, you may see a correction showing on your next available pay run For more information, view our article Understanding payroll corrections. [BCB:299:UKI - Personal content block - Dane:ECB] [BCB:304:UKI - Search override - Payroll UK:ECB] [BCB:276:UKI - hide back button:ECB] |