A workplace pension is a savings plan that’s arranged by your employer to help you put money aside for later in life. Typically, employers will also contribute to the pension scheme for you. Employees also benefit as they will receive tax relief from the government.
Employees have the right to opt out of a workplace pension scheme after they have been enrolled. Employers must not encourage or force employees to opt out. Even if the employer is not successful, employers can expect to face a fine or even criminal proceedings.
The Pensions Regulator (TPR) confirms that it has received 114 allegations of employers trying to encourage employees to opt out of pension schemes.
Steve Webb, director of policy at Royal London, adds: “ While it was ‘worrying’ that some employees may have been pressured to opt out, 114 was a tiny amount compared to the total number of people who had been auto-enrolled and stayed in a pension scheme”.
A TPR spokesperson also commented saying that no evidence was found that there could be a “widespread” issue with employers coaxing employees to opt out of the scheme.
Membership of a workplace pension is an employment right that should not encouraged to give up by the employer. If you are not being given the pensions that are entitled to you or believe that your employer is committing an offence, contact The Pensions Regulator.