The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010

Opting Out E+W+S

9.—(1) A jobholder who has become an active member of an occupational pension scheme or a personal pension scheme in accordance with arrangements under section 3(2) of the Act, may opt out by giving their employer a valid opt out notice obtained and given in accordance with this regulation.

(2) Where the jobholder has become an active member of an occupational pension scheme, the jobholder must give their employer a valid opt out notice within a period of one month beginning with the later of—

(a) the date on which the jobholder became an active member of the scheme in accordance with regulation 6(1)(a), or

(b) the date on which the jobholder was given the enrolment information.

(3) Where the jobholder has become an active member of a personal pension scheme, the jobholder must give their employer a valid opt out notice within a period of one month beginning with the date on which the agreement was deemed to exist under regulation 6(2).

(4) Subject to paragraph (5), the jobholder may only obtain an opt out notice from the scheme in which the jobholder is an active member.

(5) Where the jobholder is an active member of a scheme which is an occupational pension scheme and that scheme has, in its trust instrument, expressly delegated its administrative functions to the employer, the jobholder may obtain an opt out notice from that employer.

(6) An opt out notice is valid if—

[F1 (a) it includes the wording set out in Schedule 1;]

[F1 (aa) it includes statements from the jobholder to the effect that the jobholder wishes to opt out of pension saving and understands that, in so doing, the jobholder will lose the right to pension contributions from the employer and may have a lower income upon retirement;]

(b) it includes the jobholder's name;

(c) it includes the jobholder's national insurance number or date of birth;

(d) it is signed by the jobholder or, where the notice is in an electronic format, it must include a statement confirming that the jobholder personally submitted the notice; and

(e) it is dated.

(7) Where the employer is given an opt out notice which is not valid—

(a) the employer must inform the jobholder of the reason for the invalidity, and

(b) paragraphs (2) and (3) are modified so that for the reference to “one month” there is substituted “ ;6 weeks ”.

[F2 (8) Where an employer has accepted as valid an opt out notice prior to the coming into force of the 2013 Regulations, the notice is deemed to be valid on the coming into force of the 2013 Regulations.

(9) In this regulation “the 2013 Regulations” means the Automatic Enrolment (Miscellaneous Amendments) Regulations 2013.]

Textual Amendments

F1 Reg. 9(6)(a)(aa) substituted for reg. 9(6)(a) (1.11.2013) by The Automatic Enrolment (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/2556), regs. 1(1), 5(6)(a)

F2 Reg. 9(8)(9) inserted (1.11.2013) by The Automatic Enrolment (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/2556), regs. 1(1), 5(6)(b)