A nanny who has been automatically enrolled to your workplace pension scheme has the right to opt out. The decision to opt out must be freely taken by your nanny – i.e. you cannot ask, encourage or entice them to opt out.
When a job holder can opt out
Once a nanny has been enrolled into your workplace pension scheme they have one calendar month to opt out and get a full refund of contributions. The opt-out period starts from whichever is later:
- The date membership of the scheme became active
- The date they received a letter from their employer with the enrolment information
- If employees decide to leave the scheme outside of this period they will be ‘ceasing active membership’ and will not get a refund of contributions. Contributions will stay invested and only accessible was they reach the age of 55 or 57 when they can access their pension funds.
The opt-out notice
If your nanny wants to opt out they will have to get an opt-out notice from the pension scheme provider, or fill out an online form. This is to avoid any employer involvement in the decision to opt out.
Refunds
If your nanny opts out you will have to give them a refund of any contributions that have been paid into the pension scheme as long as they opt out within a calendar month.
What happens next?
If your nanny changes their mind then they may be able to opt back in but you’ll need to check with your pension provider if this is possible.
Opted out employees will normally be put back into the scheme at automatic re-enrolment which happens every three years, the first being on the 3rd anniversary of your duty date.
Further help and guidance: –
- The Pensions Regulator: Opting Out Guidance
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Last reviewed: 05/03/2026
