When must an employer pay a return of non-pensionable contributions for an employee?

A local return of contributions must be made if:

• contributions were taken in error
• the member opted out by submitting an SD502 form within the opt out period

The opt out period is one month from the latest date the member was either:

• auto-enrolled
• provided with written auto-enrolment information

If the form has been incorrectly completed and returned to the member to correct, the opt-out period can be extended to 6 weeks.

Read more information on Auto Enrolment on our website.

If the member did not submit an SD502 form until after the end of the opt out period, they must apply for a refund from us by completing an RF12 form.

If an employee opts out before your next payroll is run, no contributions will be taken.

You must check with your payroll department if any contributions have been taken and a return is required.

Reclaiming the cost

If you've paid a local return of contributions to one of your employees, you can reclaim this cost by reducing the contributions paid on your next monthly submission to us.

Enter the details of the reduction using the ‘adjustments feature’ on Make Contribution Payments (MCP).

If you do not have access to MCP, enter the details on your RFT1 or GP1 form.