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Pension plan opt out clause?

Question asked by Alison - Jan 28, 2014
Question

I run a small business and will soon need to comply with the auto enrolment requirement in the new pension plan rules. I've heard it's possible to opt out of auto enrolment. How does that work?

response from John Englund
- Jan 28, 2014

As an employer you cannot opt out of your responsibility to automatically enroll eligible employees into an automatic enrolment scheme. Opting out only refers to your employees’ right to opt out of ongoing pension scheme membership. They can opt out of active pension scheme membership during the predefined opt-out period by giving an “opt-out notice” to their employer. Eligible employees can opt out after they’ve been automatically enrolled. Entitled workers who have asked to join a scheme do not have the right to opt out. 

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