Sage 50cloud Payroll

How to process opt out Pension requests

An employee who becomes an active member of a pension scheme under automatic enrolment can only opt out during the opt out period.

The opt out period is one month from either:

  • The date that you send a job holders letter to the employee, or
  • The date that active membership is achieved, whichever is the latest date.

To process the opt out:

  1. Click the Payroll navigation bar then click Pension Assessment.
  2. Select the employees you want to opt out using the check boxes on the left.
  3. Click the employee(s) then click Opt-out/leave.
  4. Complete the following information.
  • Extension period used?  If the opt out request isn’t correct, you can extend the opt out period for up to six weeks to allow the employee time to complete the form correctly.  To do this, select this check box.
  • Refund first month’s contribution of – Only available if the employee has opted out within one month of being enrolled. Only the employee refund will show when processing the opt out.  The total value of the employee and employer refund shows in the main assessment screen and the payslip shows the correct split amount.
  • Refund paid directly by provider – Only available if the employee has opted out within one month of being enrolled. If  the employee’s entitled to a refund which will be processed outside of Sage 50cloud Payroll by the pension provider, select this check box.
  • Attach – To attach the opt out notice, click the paperclip then browse to the opt out file and then click
  • Refund outside of Opt out period – If your pension provider has agreed to refund the employee when they have opted out, outside the one-month window, you will need to process this refund manually through enter payments.
  1. Click Opt-out then click OK.

Depending on the request received data, the Status column in the Pension Assessment shows Opted Out or Cessation

You have now processed the request.  Every three years you must re-enrol certain eligible employees who have opted-out or no longer contribute to a pension.

If you would like help with processing Pension opt-outs or need any other help or advice with your payroll please contact us


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