Opt out of a pension scheme

Eligible and non-eligible employees can opt out of a workplace pension within the 'opt out' window, if they're actively in a pension scheme. If an employee chooses to opt out of your workplace pension, they'll no longer receive pension contributions.

If your employee wants to opt out of your pension scheme they must contact your pension provider directly rather than you, their employer, and should complete an opt-opt notice to send back to the provider or follow the provider's online portal process.

If they don’t have an electronic connection, the pension provider will contact them by letter or email and they will then let you know they have opted out, with their opt out date.

  1. In the Payroll menu, select Employees.
  2. Click the employee you want to opt out.
  3. Click the Pension tab.
  4. Click the Opt Out button.
  5. Select an Opt Out Date and Opt Out Reason.
  6. Click Save.
  7. Check if the employee is eligible for a refund.

    Set up a pension contribution refund

If you have set up your payroll to file pension contributions electronically, the opt out information will be uploaded automatically into Xero in the next pay run following the employee's opt out date.

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