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Pensions Module - Opt in and opt out requests

Created on  | Last modified on 

Summary

Employees who aren't automatically enrolled, have the right to opt in or join a pension scheme and those who are automatically enrolled, have the right to opt out and leave a pension scheme.

Description

One of your automatic enrolment duties is to accept and process opt in and join requests from non-eligible jobholders and entitled workers. You also need to accept and process opt out requests from jobholders and entitled workers.

An employee who becomes an active member of a pension scheme under automatic enrolment can only opt out during the opt out period. The opt out period is one month from the date that you send a job holders letter to the employee, or the date that active membership is achieved, whichever is the latest date.

Resolution

Process opt in or join requests

  1. Click Pay Employees then click Assess employees.
  2. Select the relevant employee then click Opt-in/join.
    If any of the employees you select aren't eligible to opt in, they don't appear in the list.
  3. For each employee you want to opt in or join, complete the window as follows:
    Request received

    Enter the date you received the opt-in notice.

    Scheme

    Click the required scheme.

    Attach

    If required, you can attach the opt-in notice for the employee.

    • Click the paperclip then browse to the employee's opt in file then click Open.

    These files are stored in \Documents\Employee\

  4. Click Opt-in then click OK.

You've successfully processed your employees opt in request!

Process opt out or leave requests

  1. Click Pay Employees then click Assess employees.
  2. Select the relevant employee then click Opt-out/leave.

    If any of the employees you select aren't eligible to opt out, they don't appear in the list.

  3. For each employee you want to opt out or leave, complete the window as follows:
    Extended?

    If the opt-out notice isn't completed correctly, the opt out period can be extended to six weeks to allow the employee to provide a correct form. For information about whether an opt-out notice is valid, please refer to The Pension Regular (TPR) website.

    To extend the opt out period from one month to six weeks, select this check box.

    Request received

    Enter the date you received the opt-out notice.

    Status

    Based on the Request received date, this displays either:

    • Opted Out - The opt-out notice is received within the opt out period and the employee is entitled to a refund.
    • Cessation - The opt-out notice is received after the opt out period. The jobholder can't opt out but can leave the scheme as the rules allow. If the pension scheme rules allow a refund in this case, it would come from the pension provider. You can't process the refund within the Pensions Module.

    To view when the opt out period started, hover your mouse over the magnifying glass.

    Attach

    If required, you can attach the opt-out notice for the employee.

    • Click the paperclip then browse to the employee's opt out file then click Open.

    These files are stored in \Documents\Employee\

    Refund?

    If the employee is entitled to a refund and you want to process this in Sage Instant Payroll, select this check box.

    This is only available if the employee's status is Opted Out.

    Provider

    If the employee is entitled to a refund, which will be processed by your pension provider, outside of your payroll, select this check box.

    This is only available if the employee's status is Opted Out and you've not selected the Refund? check box.

    Employee refund

    The amount the employee is due to receive as a refund appears here. It's the total value of contributions already paid.

    If required, you can reduce this refund. To do this, click the calculator button and enter the required value.

  4. Click Opt-out then click OK.

You've successfully processed your employees opt out request!