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Topic: Pay and pensions

letter for non-eligible jobholders
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Letter for non-eligible jobholders

Letter for non-eligible jobholders

Some of your workers may be non-eligible jobholders either because of their age or their low level of earnings. They don’t have to be automatically enrolled into a qualifying workplace pension scheme but they do have the right to opt in and are then entitled to employer contributions. In this case, you need to write to them advising them of their right to opt in.

Non-eligible jobholders

This category of worker doesn’t have to be automatically enrolled into a qualifying workplace pension scheme but they can choose to be enrolled by opting in and so you still have to write to them advising them of their position. Our Letter for Non-Eligible Jobholders defines who a non-eligible jobholder is. If a non-eligible jobholder serves a valid opt-in notice on you, you must then put them into the pension scheme. Effectively, once they are opted in, you have the same duties towards them as you have in relation to your eligible jobholders.

Letter provisions

You can use our letter as it is or adapt it but some of the information in the letter is statutorily prescribed and must be given by law - this includes information on how the worker can opt in to the pension scheme and what this means for them and a statement about where they can find further information about pensions and saving for retirement. Our letter has been written on the assumption that the pension scheme will be a defined contribution scheme. If your scheme is a defined benefit scheme, you’ll need to make changes. It’s also been written on the basis that your workers have an annual salary and are paid monthly. If your workers are paid at a different interval, you’ll need to amend it. We’ve also given you the option of selecting future or past tense dependent on when the letter is issued.


Once you receive a valid opt-in notice, you have to enrol the non-eligible jobholder into the pension scheme and then pay employer contributions into their pension (they will also need to contribute by way of deductions from their pay). Their enrolment date will generally be the first day of the next pay reference period after you receive their opt-in notice. You’ll also need to provide them with information that they are being enrolled and what this means for them. This is similar to the enrolment information provided at the outset to your eligible jobholders.



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