Auto pension

[leftthenright]

I gave my details and tax information to my employer last Monday when I started work. Will opting out of pension this week take into effect before the end of the month/ receive pay? Or will it take some time?

 

[Mr D]

I gave my details and tax information to my employer last Monday when I started work. Will opting out of pension this week take into effect before the end of the month/ receive pay? Or will it take some time?

Depends on the employer.
And how long it takes to process what may well be lots of people about to lose another 2% of their pay deciding to opt out.

 

[Newchodge]

It will take some time if your employer is not to commit a criminal offence.

For once, when the scheme was set up. it was realised that some employers may simply claim that their employees wish to opt out, wthout going to the trouble of actually asking them. So the employer is required to auto-enrol anyone who is eligible and start taking contributions on the first paydate thereafter.

The pension provider will contact the employee with details about the pension and how to opt out. If the employee chooses to opt out they must follow the pension provider's instructions. If the opt out process is commenced within the time limit (I think, 1 month) any contributions paid will be returned. If the opt out takes place after that date the contributions will be held until the employee can access them through retirement (currently aged 55 minimum).

Your employer would commit another criminal offence if they were to inititate discussion of opt out with you or, if you initiate the discussion, if they were to do anything to encourage you to opt out.