The auto enrolment assessment validates each employee's eligibility for auto-enrolment. This assessment checks whether the employee is already enrolled in a qualifying pension scheme. If the employee is enrolled, they are considered contractually enrolled and will not be auto-enrolled. Additionally, the assessment determines if they meet the auto enrolment criteria.
If an employee is contractually enrolled, the system checks their eligibility status and records a row in the Auto Enrolment History table with one of the following:
Event 6: Contractual Enrolment Eligible
Event 7: Contractual Enrolment Non-Eligible
If a contractually enrolled pension scheme is end-dated, the next validation and assessment will reassess the employee and auto-enroll them if they are eligible.
Employees can only opt out of a pension scheme if they have been auto-enrolled or opted in as a non-eligible job holder.
If an employee has been contractually enrolled or joined the scheme as an entitled worker, a pension end date must be entered. The subsequent validation and assessment will then reassess the employee and Auto Enrol them if they are eligible.
The only way to opt out an employee who is contractually enrolled is to end date their pension. Users may need to process an adjustment if they do not want deductions for the pension in the current period.
According to the Pension Regulator, “Workers who have been enrolled under contractual enrolment (e.g., under their contract of employment) and entitled workers who have asked to join a scheme do not have the right to choose to opt out. If they want to leave the scheme, they must cease membership following the scheme rules.”