Employer duties

Employers will have different duties depending on the types of worker they employ.

The tables below summarise the employer duties for each type of worker.

Category of workerOverview of employer duties
Eligible jobholder
  • Provide certain information to the pension scheme and eligible jobholder.
  • Automatically enrol them into an auto enrolment scheme.
  • Deduct contributions from their salary and make contributions on their behalf.
  • Process any opt-out notices and refund any contributions paid.
  • Roughly every three years re-enrol those who have previously opted out, stopped making contributions or ceased membership more than 12 months before each re-enrolment date.
  • Keep records of the auto enrolment and opting out processes and provide them to TPR if requested.
  • If the eligible jobholder is already in a qualifying pension scheme, the employer must provide certain information within two months.
Non-eligible jobholder
  • Provide certain information to the non-eligible jobholder, including their right to opt in to an auto enrolment scheme.
  • Arrange pension scheme membership.
  • Deduct contributions from their salary and make contributions on their behalf.
  • Process any opt-out notices and refund any contributions paid.
  • Continue to assess the non-eligible jobholder in case they change category depending on age and earnings.
  • Keep records of the enrolment, opting in and opting out processes and provide them to TPR if requested.
  • If the non-eligible jobholder is already in a qualifying pension scheme, the employer must provide certain information within two months
Entitled worker
  • Provide certain information about their right to join a pension scheme.
  • Arrange pension scheme membership. The scheme doesn't have to be an auto enrolment scheme.
  • Deduct contributions from their salary and pay these into the scheme. Employers are not required to make contributions although they can choose to do so.
  • Continue to assess the entitled worker in case they change category depending on age and earnings.
  • Keep records of the joining process and provide them to TPR if requested.
  • If the entitled worker is already in a pension scheme run by the employer, the employer doesn't have to provide them with any information.

Opting out

Workers who are enrolled into an auto enrolment scheme have the right to opt-out. They have one month from their auto enrolment date or enrolment date to opt-out.

They must contact the pension provider for the opt-out notice and send the completed notice to the employer.

Once the employer receives a valid opt-out notice, they must:

  • notify the pension provider of the opt-out
  • stop deducting contributions from the worker's salary, and
  • refund any contributions that have already been taken.

If a worker decides to leave the scheme after the opt-out period, they normally won't receive a refund of contributions. Instead, they'll have the option to leave their retirement savings invested or transfer them elsewhere.

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.