How to opt in to a workplace pension

February 28, 2017

Only nannies who earn more than £10,000 a year and are over 22 years of age will be automatically enrolled into a workplace pension scheme.

If you aren’t eligible, your employer will send you a letter setting out your rights to opt in, or join, a pension scheme.

Whether you ‘opt in’ or ‘join’ a scheme will depend on your earnings and whether you are entitled or non-eligible.

  • Opting in by a non-eligible job holder
    Non-eligible jobholders (anyone earning over £5,824 and up to £10,000) can ask to opt into a scheme. If this is you and you decide to opt in, your employer will need to make contributions.
  • Opting in (joining) by an entitled worker
    Entitled workers (earning less than £5,824) can ask to join a scheme. If you fall into this category and ask to join your employer won’t have to pay contributions.

How to opt in

The letter you receive from your employer will tell you how to opt in. You usually have to write to your employer. Or, if your employer has a scheme set up already, you may be able to get an opt-in notice from the pension provider. Again, your letter will tell you what to do.

If you ask to join a scheme and your employer hasn’t got one in place one will need to be set up.

What happens when your employer gets an opt-in notice?

Your employer will need to assess you and find out if you qualify as a non-eligible jobholder or an entitled worker. You should be enrolled into the scheme. The length of time this takes will depend on how much you earn and when you asked to join the scheme.