IntroductionThe following document outlines the process to transfer an employee from one pension scheme to another.
This process will need to be followed if an employee is already in another pension scheme and an alternative is required, for example, if an employee moves from one pay basis/frequency to another. Each pay basis has a separate default pension scheme with the appropriate pension thresholds and must match the pay basis the employee is attached to.
Employee Pension Scheme TransferTo transfer the pension scheme, select the employee’s record in the payroll or pension module. To do this, navigate to: Pension Module > Employees > Employee List > Select Employee > Employee Pension Info > Pensions.
Fig 1 – Pensions Page
- This page shows the current active pension screen.
- In order to change the pension scheme, click the ‘Pension Scheme Transfer’ link.
Fig 2 – Transfer Pension Scheme Page
- The system will display the current pension scheme and worker group if applicable.
- Select the new pension scheme from the drop down list of available schemes for the employee’s current pay basis.
- Select a new worker group from the drop down list if applicable.
- Select a transfer date. This date must be the start of the current pay reference period.
- Once completed, click the ‘Transfer’ button.
Fig 3 – Updated Pensions Page
- The original pension scheme will change to show ‘Not Active’, showing the original scheme has been stopped.
E.g. Last pension reference period: 01/05/2014 – 31/05/2014; new pension reference period: 06/06/2014 – 05/07/2014. In this example, the deduction must be adjusted to ensure pension is deducted over the dates between pension reference periods (01/06/2014 – 05/06/2014). A pro rata calculation to cover 5 days will need to be added to the payroll using the override function on the payroll summary.