Inducement to opt-out of auto enrolment

Legal duty in July 2018, the pension regulator (TPR) announced a 68% increase in complaints which relate to employers attempting to have their employees opt out of pensions auto – enrolment.

In light of this, TPR is reinforcing the fact that it is a criminal offence for an employer to induce, or attempt to induce, an employee who is eligible to be auto-enrolled into a workplace pension to opt out. It won’t matter whether or not the opt-out inducement is ultimately successful.

Advice

If you receive a request from an employee who wishes to voluntarily opt out of auto enrolment (which is possible) it must be properly actioned to comply with the legal requirements. If you follow TPR’s guidance on opting out of auto -enrolment to the letter, you will stay on the right side of the law.