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Edit Pension Schemes

Use

In this section you can modify and store comprehensive information relating to all the pension schemes your company may be using. Any of the pension schemes you enter here will be added to a list of pension schemes. You can then select the appropriate pension scheme from the list when entering individual employee's pension deductions.

Path

Employer / Setup >Pension Schemes Settings > Usual Pension Setup > Main Pension Schemes > View/Edit > Edit

OR

Employer / Setup > Chart of Setup > Pensions > Usual Pension Setup > Main Pension Schemes > View/Edit > Edit

OR

Bureau Main Page > Admin Payrun > Enter > Employer / Setup > Pension Schemes Settings > Usual Pension Setup > Main Pension Schemes > View/Edit > Edit

OR

Multi-Sites Payroll Starter > Head Office Details > Employer / Setup > Pension Schemes Settings > Usual Pension Setup > Main Pension Schemes > View/Edit > Edit

Fields Available

Fields marked with an asterisk (*) are mandatory.

Pension Scheme Details

• Scheme Ref: Enter here the Scheme reference.
• Scheme Name: Enter here the name of the pension scheme.
• Scheme Provider: From the drop down list select the pension provider for the selected pension scheme. If the required pension provider is not listed, go to Add New Pension Provider in the Pension Provider Section to add details of a new pension provider. If there are no provider details for the pension scheme, select the No Provider option.
• Scheme Type: From the drop down list select the scheme type.
• COSR: Is a Contracted-out Salary Related scheme which the employee will get based on his/her salary usually when the employee retires or leaves the scheme and the length of his pensionable service. This scheme will benefit widows and widowers.
• COMP: A Contracted-out Money Purchase scheme is one where employers must make a minimum payment which is equal to the employer total NIC rebate and that of your employee and has to be paid to the scheme trustees (Pension scheme Provider) within 14 days of the end of the income tax month it relates to.
• GPP: The Group Personal Pension (GPP) is a personal pension scheme, which is arranged by the employer / contractor through the pension provider. These personal pension schemes have tax, benefits and contribution rules, which are different from occupational pension schemes. Employers / Contractors may contribute if they wish. Employees can start taking their benefits any time between the ages of 50 and 75.
• PPP: Personal Pension Plans (PPP) are mainly individual contracts, but sometimes Group schemes are set up by companies who would not otherwise offer a pension scheme.
• SCON: SCON (Scheme Contracting-out Number) will be displayed here. You can edit the SCON number here.
• Calculate Minimum Amount: From the drop down list state whether the minimum amount payable by the employer / contractor and employee towards the pension scheme needs to be calculated or not Please note that this field is only applicable for COMP schemes.
• Allow Employee Minimum Amount Tax Relief: State whether the minimum amount is subject to tax relief, i.e. should the minimum amount be deducted from the employee's gross pay before calculating the tax or not. Please note that this field is only applicable for COMP schemes.
• Deduct Employee Minimum Pay & Employee Pension Amount: From the drop down list select Yes to deduct both the employee's minimum amount and employee's pension contribution amount (either on a fixed or percentage basis) from an employee's pay. If you select No, the greater of minimum amount and employee's pension contribution amount will be deducted from his pay. For example, if the minimum amount is 8.00 and the Pension contributions are 5.00 - The greater of 8.00 and 5.00 which is 8.00 will be deducted. Please note that this field is only applicable for COMP schemes.
• Deduct Employer Minimum Pay & Employer Pension Amount: From the drop down list select Yes to deduct both the employer's  minimum amount and employer's pension contribution amount (either on a fixed or percentage basis). If you select No, the greater of employer's minimum amount and employer's pension contribution amount will be deducted. For example, if the minimum amount is 6.00 and the Pension contributions are 3.00 - The greater of 6.00 and 3.00 which is 6.00 will be deducted. Please note that this field is only applicable for COMP schemes.
• Employer Pays employee's Minimum Amount: From the drop down list state whether the minimum amount of an employee has to be paid by the employer or not. If you select No then, the employee will pay the employee's minimum amount. Please note that this field is only applicable for COMP schemes.
• Occurrence: Select "Recurring" or "Non-Recurring" from the drop down list. Occurrence refers to the frequency setting for the pension i.e. how often the pension scheme will be applied to the employee's wages. If the occurrence is set as Recurring, the pension scheme will automatically be included in the employee's wages each and every time the employee's pay is calculated. If the occurrence is set as 'Non-Recurring', the pension scheme will not apply regularly to the employee's wages.

Employee Contribution

• 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 is deducted for an 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
• Allow Tax Relief: State whether the pension deduction is subject to tax relief i.e. should the pension amount be deducted from the employee's gross pay before tax is calculated or not.
• Reduce by Basic Rate Tax: State whether Basic Rate Tax should be deducted from the pension contribution or not. Basic Rate tax is usually calculated at 20%. For example if the calculated pension deduction is £16.23, after reducing it by the basic rate of tax (20% of £16.23), the revised deduction amount is only £12.98
• Add SSP Payment: From the drop down list, select Yes if SSP (Statutory Sick Pay) should be added to the pensionable pay before calculating the pension deduction. Select No otherwise.
• Add SMP Payment: From the drop down list, select Yes if SMP (Statutory Maternity Pay) is to be added to the pensionable pay before calculating the pension deduction. Select No otherwise.
• Add SAP Payment: From the drop down list, select Yes if SAP (Statutory Adoption Pay) is to be added to the pensionable pay before calculating the pension deduction. Select No otherwise.
• Add SPP Payment: From the drop down list, select Yes if SPP (Statutory Paternity Pay) is to be added to the pensionable pay before calculating the pension deduction. Select No otherwise.

Employer Contribution

• Deduction Type: From the drop down list, select the appropriate deduction type for the employer's contribution. There are three possible types -
• Fixed Rate Contribution: In this type of contribution a fixed lump sum amount is deducted for the employer pension contribution.
• Percentage of Basic Pay: In this type of contribution, the employer pension deduction is calculated as a percentage of Basic Pay.
• Percentage of Gross Pay: In this type of contribution, the employer pension deduction is calculated as a percentage of Gross Pay. Please note that Gross Pay includes all pensionable pay items.
• Deduction Value: Enter here the fixed amount or the percentage of the employee's salary contributed by you (employer / contractor) towards the pension scheme.
• Add SSP Payment: From the drop down list, select Yes if SSP (Statutory Sick Pay) is to be added to the pensionable pay when calculating the pension deduction. Select No otherwise.
• Add SMP Payment: From the drop down list, select Yes if SMP (Statutory Maternity Pay) is to be added to the pensionable pay when calculating the pension deduction. Select No otherwise.
• Add SAP Payment: From the drop down list, select Yes if SAP (Statutory Adoption Pay) is to be added to the pensionable pay when calculating the pension deduction. Select No otherwise.
• Add SPP Payment: From the drop down list, select Yes if SPP (Statutory Paternity Pay) is to be added to the pensionable pay when calculating the pension deduction. Select No otherwise.

Associated Tasks

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

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