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The automatic enrolment earnings trigger determines who is eligible to be automatically enrolled into a workplace pension by their employer in terms of how much they earn.
Automatic enrolment is when an employee who meets certain requirements is made a member of a workplace pension scheme without needing to ask to be part of it. In the past, it was up to workers to decide whether they wanted to join their employers pension scheme.
Auto-enrolment is designed to ensure that more workers have easy access to a workplace pension scheme, enabling them to save towards their retirement and enjoy an income over and above their state pension.
The opt-out period Once staff have been enrolled into the pension scheme, they have one calendar month during which they can opt out and get a full refund of any contributions. This is known as the opt-out period. It starts from whichever date is the later of: the date active membership was achieved.
How staff opt in or join. As part of an employers automatic enrolment duties, theyll have written to the staff who werent eligible for automatic enrolment telling them about their right to opt into, or join, a pension scheme. Staff can decide to opt in or join at any point. They do this by writing to their employer.
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Failure to enrol eligible staff is against your clients legal duties these staff must be put into a scheme, even if they dont intend to stay in it. Your clients staff can opt-out of an automatic enrolment scheme, and receive a full refund of their contributions, but only for a limited time.
We dont invest any contributions received within the first six weeks of these enrolments to allow time for opting out. For other enrolment types, youll receive a full refund for any non-invested money but if the money has been invested, your refund will be subject to charges and market adjustment.
You need to ask the pension provider for an opt out form so you can opt out of auto enrolment. Your employer must give you the contact details for the pension provider if you ask for them. You need to complete and sign the pension scheme opt out form, and return it to your employer (or the address given on the form).