Home Employers Setting up with Nest How to set up a workplace pension When workers opt out

Coming Soon

You’ll soon have access to the Nest employer portal with a new look and feel. Our employer portal will have a refreshed look and layout, but functionality will stay the same. Some buttons may be in different places, but the steps you follow won’t change so just keep using the portal as normal. It's the first of several steps we're taking to improve how you interact with Nest, with new functionality coming in the next few months so keep an eye out for further communications

How to report an issue

Our team has tested it thoroughly, but if something doesn’t work as you expect, let us know straight away so we can fix it quickly. You can get in touch by webchat or support@nestpensions.org.uk or call us on 0300 020 0393, from 8am to 8pm, Monday to Sunday – and one of our team will be happy to help.

When workers opt out

As part of your auto enrolment duties you need to handle any requests from your workers to opt out of Nest. We’re here to explain more about opting out and some of the tasks you’ll need to complete.

What opting out means

This is when a worker decides to leave Nest within their opt-out period. Once a worker has opted out, we’ll close their Nest account and no further contributions need to be paid.

What’s the opt-out period?

Workers have one calendar month to opt out – this period starts three working days from the date they’re enrolled. Workers can’t opt out before they’re enrolled.

We send a welcome letter to workers that explains exactly when their opt-out period starts and ends.

Does the worker get a refund?

Yes, the worker’s entitled to a refund of any contributions they’ve paid. You need to arrange this through payroll within a month of the worker opting out. If you’ve already paid the contributions to us, we’ll refund them to you.

What about my contribution?

If you pay any contributions to us for a worker that opts out, we’ll refund them to you.

Which workers can opt out?

All your eligible jobholders that you’ve automatically enrolled can opt out. Any non-eligible jobholders who opted in to Nest can opt out too. Visit our help centre for more information about who can opt out.

What happens when the opt-out period ends?

Workers won’t be able to opt out. They can stop their contributions if they want to, but they won’t get a refund. All the money in their Nest pension pot, including the employer contributions you’ve made, will remain invested until they can access their pot at retirement.

How do workers opt out?

They need to get in touch with us. Workers can opt out using our website, through their online Nest account, by telephone or by posting an opt-out form. Once a worker has opted out, we’ll let you know. Find out more in our help centre.

Only workers can choose to opt out

The Pensions Regulator (TPR) could take action against employers that try to encourage their workers to do it.

What action do you need to take?

When a worker opts out, there are a few tasks you need to complete. On top of refunding the worker’s contribution to them, you also have to:

stop deducting any more contributions from the next pay period
hold a record of the opt out – you’re legally required to keep this for four years
keep track of your workers who’ve opted out. Every three years you need to re-enrol certain workers who’ve left Nest

Our help centre has more information about what you should do when a worker opts out.