All UK employers have a legal responsibility to enrol eligible employees into their workplace pension scheme. When you add your eligible jobholders onto the Cushon Employer Portal they will receive a welcome email, with general information about the Scheme, including how to opt out.
Opting out (within the first month)
If the employee wants to opt-out they can call the Cushon automated telephone line on 020 3764 2016 where notice can be given over the phone using their unique 6 digit access code, confirmed to them within their welcome email.
When an employee opts out, you will receive an email to let you know. You will also see a record of any opt outs in the ‘Employee Requests’ section of the employer portal.
You should record the opt-out date in your payroll system, stop any future deductions and process any refunds to the employee in the next pay run.
Employees who opt out within one month of when they were added to Cushon are eligible to receive back any money they had already paid in. Cushon will refund any contributions already paid to the employer’s bank account, and as employer, you should then return any payments deducted from salary to the employee in your next pay run, subject to Income Tax and National Insurance in the normal manner.
Leaving the Scheme/Ceasing membership (after the first month)
Opting out specifically refers to leaving the scheme within the first month of enrolment, allowing the member to receive a refund of contributions.
If a member wishes to leave after the first month this is known as ‘ceasing membership’. To cease membership, members may phone the automated telephone line on 020 3764 2016 where notice can be given over the phone using their unique 6 digit access code, confirmed to them within their Welcome Email.
You will receive an email to let you know that the member has left the Scheme and that no refund is due as it was outside of the first month. You will also see a record in the ‘Employee Requests’ section of the Cushon Employer Portal.
When a member ceases membership, contributions stay invested, and members are not eligible for a refund. Ceasing membership stops future contributions but the existing pot remains invested.
Employers must ensure employees opt-out / cease membership freely. An employer must never persuade or coerce an employee to opt-out their workplace pension scheme.