An employee who qualifies for Automatic Enrolment has to be enrolled into the company pension scheme, but the employee then has the right to Opt Out and cease to be part of the company pension at any time! The employer, however, must not do anything to encourage the employee to opt out, e.g.
provide an incentive for opting out.
provide an incentive for opting out.
What Will It Cost!
The level of contribution by the employer and employee will be phased in over the next 4 years. The required contribution levels are approximately as follows:
Date Employer (%) Employee (%) Total (%)
Oct 2012 to Sept 2017 1 1 2
Oct 2017 to Sept 2018 2 3 5
Oct 2018 onwards 3 5 8
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