Pages: [1]

Plankton

  • Posts: 2441
Opting out of pension
« on: January 16, 2019, 08:32:19 pm »
I've had a look and can only find posts from 2010 so...
How do you go about opting out of auto enrolment if you don't have a pension scheme in place?

The cost from what I see is around £500 some say + vat and another says it's currently exempt of vat, but for a sole trader looking to employ £500 is a big outlay for something that might not be used ie the employee doesn't want to join or chucks the job after a month and so on.
Now I know they can opt out but this is where I'm stumped as for them to opt out they have to sign an opt out form supplied by the pension company.

Anyone know how to go about this.
Logged

Plankton

  • Posts: 2441
Re: Opting out of pension
« Reply #1 on: January 16, 2019, 08:47:14 pm »
This is what I can find on the Peoples pension website;

"If my employees don’t want to be enrolled I assume that I don’t need to have a scheme. Is this correct?"
"No. If employees are assessed as eligible, they’ll have to be enrolled.

They do have the option to leave the scheme at any time. If they opt out within 30 days they’ll be entitled to a refund."
Logged

Don Kee

  • Posts: 4853
Re: Opting out of pension
« Reply #2 on: January 16, 2019, 09:18:06 pm »
You have to register for pensions as an employer.
The employee then gets the relevant details sent to them, they then have to respond themselves to opt out. If they dont respond then they are auto enrolled.

Not sure what your “£500+vat” figure is but your contribution as an employer is 2%, the employees is 3%.
You can choose to contribute more if you so choose.

(The rates go up from April, employers contribution will be 3% I think )
Logged

Plankton

  • Posts: 2441
Re: Opting out of pension
« Reply #3 on: January 16, 2019, 10:18:18 pm »
That's the management fee or set up fee whichever way the pension company words it. Aviva is £42 pm (management fee) and 0.75% on the total contribution. People's pension is £500+vat (set up fee) + a % of the contributions.

So say your £30 pm for the employee then your another £42 pm for the service.
Logged

Don Kee

  • Posts: 4853
Re: Opting out of pension
« Reply #4 on: January 17, 2019, 07:50:35 am »
Take a look at NEST
Logged

Plankton

  • Posts: 2441
Re: Opting out of pension
« Reply #5 on: January 17, 2019, 11:30:23 am »
Thank you senior Donkee ;)

NEST Corporation (the Trustee) has set the charge on contributions at 1.8 per cent. The charge on contributions will cover the initial set-up costs of NEST.

So at a glance potentially saves the employer around 500 bucks.
Logged
Pages: [1]