Employees can opt out of the pension scheme at any time, but depending on when it's received, Dayforce records the notification differently. Employees who opt out within one month of the pay date associated with their enrolment have their status recorded as Opt-Out, while employees who opt out over a month from the pay date have their status recorded as Cease Membership.
When opting out of a pension scheme, payroll applies a refund for the pension record only if the member status is Opt-Out based on the letter issued date, date opt-out/cease membership notification received, and pay date.
Employees must already have a pension record in Dayforce before you can add an opt-out notification record. If an employee doesn't have a pension record, you'll need to manually add one first (see Add UK Pension Records).
You can add opt-out or cease membership notification records for employees with the following worker category and member status combinations:
| Worker Category | Member Status |
|---|---|
| Eligible Jobholder | Auto-Enrol |
| Non-eligible Jobholder | Opt-In |
| Non-eligible Jobholder | Joiner |
| Entitled Worker | Joiner |
To add an opt-out or cease membership notification record for an employee:
- Go to People, open the employee profile, and click Payroll > Pension.
- Click Opt-Out/Cease Membership to open the Opt-Out/Cease Membership dialog box.
- Enter a date in the Date Opt-Out/Cease Membership Notification Received field. The current date is shown by default. The notification's date cannot be prior to the current pension record's date range or on a pay period start date.
- (Optional) Enter any notes in the Comments field.
- Click Opt-Out/Cease and Save.
The new record will have the same fields as the current pension record with the following differences:
- Notification: A value of Opt-Out or Cease Membership is added.
- Pay Period Start Date: The date is updated to the start date of the pay period within which the notification date falls.
- Pay Date: Dayforce populates the pay date of the pay period referenced in the Pay Period Start Date field. This occurs for both the opt-out record and in the enrolment record that was ended by the opt-out.