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Add New Pension Scheme (Main Pension)

Use

In this screen you can select the required pension scheme that falls under the Main Pension category. The pension scheme can be applied to the individual employee and deduction values entered as appropriate.

Once applied the pension deductions will automatically recur in each payrun. This means that whenever the pay is run for this employee, the pension deductions will be implemented subject to the conditions of the pension scheme as detailed in the setup i.e., deductions will be made if the employee's wage is sufficient to cover the contributions etc.

Path

Payrun > Payment Frequency (Weekly/Monthly/2 Weekly/4 Weekly/Quarterly/Annual/Bi-annual) > Deduction & Pension > Pension Deduction > Main Pension > Assign Scheme

Fields Available

Fields marked with an asterisk (*) are mandatory.

General Pension Details

• Scheme Name: From the drop down list select the appropriate pension scheme that applies to your chosen employee. (Note-if the scheme you require is not shown in the list, then you can create the pension scheme by going to the Pension Scheme option under the Employer / Setup menu heading)
• Scheme Joined Date: Enter here the date on which the employee joined this pension scheme. You can use the calendar button to enter the date. Pension contributions are deducted from employee's pay only if the Payrun date is on or after the scheme joined date.
• Scheme Left Date: If the employee has left the pension scheme, enter here the date on which the employee left this pension scheme. You can use the calendar button to enter the date.
• Employee Pension Ref.: Enter here an identifying pension reference if any.
• Other Ref.: If there is any other reference number relating to the scheme, enter it here.
• I wish to adopt Salary Sacrifice for this employee's pension: Select from the drop down 'YES' or 'NO' if you want to include salary sacrifice for the employee pension.

Employee Contribution

• Deduction Type: The default deduction type shown is the one entered when the scheme was defined in the Employer / Setup section. However, the value can be overridden for each individual employee as required. From the drop down list, select the appropriate deduction type for the employee's contribution. There are three possible types -
• Fixed Rate Contribution: In this type a fixed lump sum amount is deducted for the employee's pension contribution.
• Percentage of Basic Pay: In this type the employee's pension contribution is calculated as a percentage of his/her Basic Pay.
• Percentage of Gross Pay: In this type the employee's pension contribution is calculated as a percentage of his/her Gross Pay. Gross Pay includes all pensionable pay items.
• Deduction Value: The default value for the pension deduction is the one entered when the employer scheme was defined. However, the value can be overridden for each individual employee as required. Enter here the required fixed amount or the percentage rate for the employee contribution.

Employer / Contractor Contribution

• Deduction Type: The default deduction type shown is the one entered when the employer scheme was defined in the Employer /Setup section. However, the value can be overridden for each individual employee as required. From the drop down list, select the appropriate deduction type for the employer's contribution to the employee's pension. There are three possible types -
• Fixed Rate Contribution: In this type a fixed lump sum amount is deducted for the employer's pension contribution.
• Percentage of Basic Pay: In this type the employer's pension contribution is calculated as a percentage of the employee's Basic Pay.
• Percentage of Gross Pay: In this type the employer's pension contribution is calculated as a percentage of the employee's Gross Pay. Gross Pay includes all pensionable pay items.
• Deduction Value: The default value for the deduction is the one entered when the employer scheme was defined. However, the value can be overridden for each individual employee as required. Enter here the required fixed amount or the percentage rate for the employer contribution towards the employee's pension.

Employee Additional Voluntary Contribution (AVC) Pension

An employee with a company pension scheme may choose to make extra payments into their pension on top of their normal contributions. These are called the Additional Voluntary Contributions (AVCs). It should be noted that there are limits to the amount of AVCs an employee can make in a year.

• Deduction Type: From the drop down list, select the appropriate deduction type for the employee's contribution. There are three possible types -
• Fixed Rate Contribution: In this type a fixed lump sum amount is deducted as the employee's pension contribution.
• Percentage of Basic Pay: In this type the employee's pension deduction is calculated as a percentage of his/her Basic Pay.
• Percentage of Gross Pay: In this type the employee's pension deduction is calculated as a percentage of his/her Gross Pay. Gross Pay includes all pensionable pay items.
• Deduction Value: Enter here the fixed amount or the percentage rate for the employee's contribution towards his/her pension.
• Status: Set the status of the pension scheme by clicking on the respective option.
• Active: Select this check box if the pension is currently operational and pension deductions should be taken.
• On Hold: Select this check box if the pension is not currently operational and no deductions should be taken.

Associated Tasks

• Cancel: If you wish to exit this screen without saving the changes, click on this button. You will be taken back to the Deduction & Pension screen.
• Save: If you are sure about all the entries and wish to continue, click on this button. You will be taken back to the Deduction & Pension screen, where all the details can be viewed.

Related Topics

Edit Pension Scheme (Main Pension)

Click here to view the demo to add a new main pension scheme to your employee's deduction.