This process covers amendments required where special circumstances require changes to the usual Pension Postponement and Assessment Process. An example of this might be an employee TUPEs from one PAYE company to another and has already been enrolled into a Pension scheme. This process will be followed to continue the Pension Contributions on the Payroll for the new PAYE Company.
This article describes the process of amending an employee’s Deferral Date and update Pension Records for employees.
For all Pensions related articles, please see WFM UK - Pensions: Article Contents Page.
Updating the Pension Record
This process covers updating the Pension Record to continue a Pension contribution without the New Starter Postponement.
- Go to Pension Module > Employees > Employee List
Fig.1 - Employee List in the Employees Drop-Down List
- Select the required Employee > Employee Pension Info > Pension Eligibility
Fig.2 - Pension Eligibility
The fields in the Employee Pension Dates are detailed in the table below.
Fig.3 - Employee Pension Dates
|Default AE Pension Scheme||The scheme which the system will enroll the employee into following assessment.|
|Assess Worker for Pension Scheme||This must always be ticked for employees regardless of whether they have opted out or previously ceased contributions.
This ensures that any employee not in a scheme will assessed every three years in line with the pension Regulators requirements.
|Enrolled in Error||This box can be used to remove an Automatic Enrollment Date if required.
To do so:
|Active Member of a Qualifying Pension||This box is automatically ticked when an employee is Automatically Enrolled and no date is held.
If an employee is a member of the Qualifying Pension Scheme before assessment, the box will be ticked. However, the Start Date of the Pension Scheme is held in the Date field.
|Postponement Period||This is ticked if a Postponement Period has been set.|
|End Date for Work Postponement||This shows the last date of the Pay Reference Period prior to Deferral Date.|
|Automatic Enrollment Date||This date populates when the system automatically enrolls the employee.|
|Deferral Date||This is the start date of the Pay Reference Period where the employees will be assessed. If using Tax Periods as Pay Reference Periods, this will always be the 6th of the month.|
Removing a Postponement Period
To remove a Postponement Period:
- Ensure there is a tick in the Postponement Period check box
- Change the End Date for Work Postponement to the day before the start date used to join the current Payroll. E.g. If the employee transferred to the new company from the start of a pay period, the end date for work postponement should be the 5th of the current month, as this is the day before the first date of the current pay reference period
Fig.4 - Removing Postponement Period
An information message will be displayed at the top of the screen and the ‘Deferral Date’ will change to reflect the start date of the current pay period.
- Remove the tick from the Postponement Period check box
- Return to the ‘Pension Eligibility’ screen and the new Deferral Date will be displayed
- Check the Active Member of Qualifying Pension box
- This will reveal a Date field, leave the date field blank.
- Update the Automatic Enrolment Date field to reflect the start date of the current pay reference period
Fig.5 - Employee Personal Data
Updating the Enrollment Criteria
The system must be updated to reflect the correct enrollment criteria. To update the enrollment criteria:
- Go to Pension Module > Employees > Employee List > select Employee > Employee Pension Info > Job Holder Status
Fig.6 - Job Holder Status in the Employee Pension Info Drop-Down
- Check the Eligible Job Holder Status box and add the start date of the Pension Reference period in the Eligible Job Holder Date field
Fig.7 - Job Holder Status
Reinstating the Pension Record
The Pension Record then needs to be reinstated to ensure that the contributions are taken going forward.
To add the Pension Record:
- Go to Pension Module > Employees > Employee List > select Employee > Employee Pension Info > Pensions
Fig.8 - Pensions in the Employee Pension Drop-Down
- Select Add New Pension Scheme
Fig.9 - Add New Pension Scheme
- Select the Pension Scheme required from the drop-down list
- Add the start date of the Pay Reference period in the Start Date for Automatic Enrollment field
- Set Enrollment Type to AE
- Update the percentage values for the Employee and Employer Contributions if the values are greater than the default settings
Fig.10 - Pension Contributions
Check the Payroll Module for the employee to ensure that the Pension Deductions are now visible on the Payroll summary screen.
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