PENSIONS - 24.08.2018

Inducements to opt out of auto-enrolment

Legal duty. In July 2018 The Pensions 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’s 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.

Spot checks. 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’ll stay on the right side of the law (see The next step ).

TPR’s guidance on opting out of auto-enrolment, visit http://tipsandadvice-personnel.co.uk/download (PS 20.15.08).

The Pensions Regulator (TPR) is reminding employers that it’s a criminal offence to induce, or attempt to induce, an employee to opt out of auto-enrolment. When an employee voluntarily requests an opt out, follow TPR’s opt-out guidance to stay on the right side of the law.

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