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 worker | Overview 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.
