Deduct pension contribution

in Auto-enrolment
3 replies 6.4K views
I got this from an email I just received from my employer. I did opt out last time.
I know I need to opt-out again. But can they take money from my June pay automatically and make me claim it back? Is it Law they do this?

Due to 3 year auto-reenrolment we are required by law to deduct pension contribution from your June pay. But don’t worry you can obtain a repayment of these deductions if you wish to opt out of the pension scheme. If you wish to obtain repayment of this deduction in your pay for July,

Thanks for the advice

Replies

  • greenglidegreenglide Forumite
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    That is the way that auto-enrollment is supposed to work, the employer informs you that you will be auto-enrolled and in the unusual situation that you wish to opt out they give you the money back.

    But why on earth do you want to opt out and lose the employer contributions no matter how small?
  • Bottom line I just cant afford it. No pay rise for the last 6 years. It means the difference between eating or not

    Thanks for the reply
    All the best
  • Paul_HerringPaul_Herring Forumite
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    http://www.thepensionsregulator.gov.uk/docs/detailed-guidance-7.pdf
    Contributions must be deducted on the first occasion the jobholder
    is paid after this date. If they then choose to opt out, the employer
    must refund any contributions that have been deducted.

    Not sure why you can't pre-opt-out, but may have something to do with 'encouraging' more people to remain with the scheme.
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