Once an employee has been automatically enrolled in a pension scheme, they are entitled to opt out of the scheme during the opt-out period. For guidance on opting out from The Pension Regulator please click here.
Once you receive notification of the opt-out you can process a pension opt out by following these steps:
- Open the employee's details page and select 'Pension Settings'.
- Scroll to the bottom of the page and click on the 'Opt out of this pension scheme' button.
- Enter the Opt out reference that the employee has been sent. If the employee has made contributions to the pension and would like to claim a refund then select yes.
- Once you press 'Set', you will see a screen as below with the Opt out reference number you have entered and the Opt out date. You have the option to edit any of these details by clicking on the highlighted 'edit'.
- Once you are happy with the information you have entered, you can press 'save' to save all of the information.
If a refund is due you will receive an email/letter from the pension provider confirming the amounts due to you.
To process the refund you will need to run a payrun with an adjustment:
- In the payrun click on the employee's name who the refund refers to.
- Click the 'Actions' button.
- Select 'Adjust HMRC Values'.
- Select the type of refund payment you require.
- Fill in the amount and add a note if you want to.
- Press 'Save'.
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