Auto-enrolment pension for part-time worker

Short answer

Yes. A part-time student who is a worker can be automatically enrolled in a workplace pension in the same way as any other worker, provided they meet the age and earnings conditions. Being a student, or working part-time, does not exclude you. And yes, if you were automatically enrolled you have a statutory right to opt out, and if you do so within the opt-out window you are treated as if you had never joined and any contributions you have made are refunded.

When you must be automatically enrolled

Automatic enrolment is governed by the Pensions Act 2008. The key factors are your age and how much you earn, not whether you are a student or work part-time.

To be an “eligible jobholder” who must be automatically enrolled, you generally need to be:

1. Aged at least 22 and under State Pension age, and
2. Earning more than the earnings trigger, which is £10,000 a year (roughly £833 a month or £192 a week) for 2024/25, and
3. Working, or ordinarily working, in the UK under a worker’s contract.

If you meet all three, your employer must enrol you automatically and start making contributions. Many part-time and student workers do not cross the £10,000 earnings trigger, so whether you fall into this category depends entirely on your actual pay.

If you earn less than the trigger

If you earn below the automatic enrolment trigger, you are not automatically enrolled but you may still have rights:

If you earn more than £6,240 a year (the lower earnings limit for 2024/25) but not more than £10,000, you are a “non-eligible jobholder” and have the right to opt in. If you opt in, your employer must contribute.

If you earn £6,240 or less, you are an “entitled worker” and have the right to ask to join a scheme, although the employer is not obliged to contribute.

If you are under 22 or over State Pension age but earn above the trigger, you are again a non-eligible jobholder with a right to opt in rather than a person who must be enrolled automatically.

These thresholds are assessed by reference to your actual earnings in each pay reference period, so if your hours or pay vary, your category can change from one pay period to the next.

Your right to opt out

If you have been automatically enrolled (or you opted in as a non-eligible jobholder and were then enrolled), you have a statutory right to opt out. The main points are:

The opt-out window is normally one month, starting from the later of the date active membership began or the date you received the enrolment information from your employer or the scheme.

To opt out you must give a valid opt-out notice. This has to come from the pension scheme provider, not from your employer, to protect you from being pressured. Your employer should tell you how to get it. You cannot validly opt out before you have actually been enrolled.

If you opt out within the window, you are treated as though you were never a member. Any contributions you have already made are refunded to you, usually through payroll, and the enrolment is unwound.

If you opt out after the one-month window closes, that is treated as stopping or ceasing active membership rather than opting out. In that case you generally do not get a refund of contributions already paid, and the money stays invested in your pension pot until you can access it under the scheme rules.

Contractual enrolment is different

There is one important distinction. If you were put into the scheme under your contract of employment (contractual enrolment) rather than under the automatic enrolment duty, the statutory one-month opt-out and refund process does not apply. Instead you would have to leave, or cease membership, in accordance with the scheme rules. Check your enrolment letter to see whether it refers to automatic enrolment and to a one-month opt-out period, which tells you which route applies to you.

Things to weigh before opting out

Opting out is your choice, but it is worth understanding what you give up. When you are enrolled, your employer contributes on top of your own contribution, and there is tax relief on your contribution, so opting out means losing free money from your employer and the tax advantage. Under the minimum totals, contributions are 8 per cent of qualifying earnings, made up of at least 3 per cent from the employer, with the rest from you plus tax relief.

Re-enrolment also applies. Even if you opt out, your employer must normally reassess and re-enrol eligible jobholders roughly every three years, so you may need to opt out again in future if you still meet the criteria and want to stay out.

Practical next steps

1. Check your enrolment letter to confirm whether you were enrolled under automatic enrolment or under your contract, and note the date the opt-out window opened.

2. Confirm your earnings category, because this tells you whether you were required to be enrolled or whether you were a non-eligible jobholder or entitled worker.

3. If you want to opt out and are still within the one-month window, ask your employer or the pension provider for the opt-out notice and return it as instructed, so you qualify for a full refund.

4. If you have missed the window, ask the scheme how to cease active membership and confirm whether any refund is possible under its rules.

5. If you believe your employer has failed to enrol you when it should have, has induced you to opt out, or has ignored an opt-in request, you can raise it with your employer in writing and, if unresolved, report the matter to The Pensions Regulator, which enforces the automatic enrolment duties.

Key missing facts

The precise answer for your situation depends on your age, your actual earnings in each pay period, whether you are genuinely a worker under a contract, whether you were enrolled automatically or contractually, and the date your enrolment information was provided. If you can confirm those points, the position on both enrolment and opting out can be pinned down more exactly.