Safeguarding Individuals with Opt-Out Pension Schemes

The Pensions Regulator will be especially strong on enforcement to ensure that employees do not lose their rights under the pension reforms and auto-enrolment. There are very strict rules prohibiting employers influencing employees in any way to opt-out of a Pension Scheme. In particular, The Pensions Regulator will take action against those employers who offer any kind of incentive for an employee to opt-out.

The penalties are severe and can include imprisonment as well as heavy fines. A civil suit could also be taken by an employee for loss of retirement income.