Help Centre for Employers

Will an employee / member get all their money back if they opt out?

Yes, if they opt out within the opt out period.

When an employee opts out within the time frame given in the regulations (currently one month after receiving their joining letter), any contributions deducted will be returned to the employee. The employer is responsible for repaying any employee deductions made back to the employee via payroll. This repayment to the employee must be made as soon as possible.

If they opt out after the opt out period, they will be treated as though they left the scheme and will not be able to claim any contributions back. Some employees may be eligible for a short service refund, but only if they were enrolled to the scheme before 1 October 2015.

It should be noted that a short service refund only relates to the employee contributions and will be subject to tax. Contributions made by the employer or under a salary sacrifice agreement cannot be refunded.

To find out whether an employee is eligible fo

pension refund, auto enrolment refund

r a refund, see ‘Who is eligible for a short service refund?’

An employee can opt back in at any time. See How can an employee opt back in? for more details.

Related resources

What is an opt out period?
Who is eligible for a short service refund?
Who processes and pays opt out refunds to the individual and the employer?

NOW: Pensions has a good technical infrastructure combined with a pension product suitable for our team. We couldn’t be happier with NOW: Pensions. — Martin Woods, SALT.agency
Our broker recommended NOW: Pensions, as they believed it would be our best option. We have not been disappointed, the NOW: Pensions customer support teams are great and always available. — Bromborough Paint & Building Supplies Ltd
NOW: Pensions was attractive to us because the staff were very helpful and they sent over all the information required. This made the decision easy. — Metro Surveillance Group Ltd