Overview
This article outlines the process for transferring 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 that the employee is attached to.
For all Pensions-related articles, please see WFM UK - Pensions: Article Contents Page.
Employee Pension Scheme Transfer
To transfer to another pension scheme, select the employee’s record in the Pension module.
- Go to: Pension module > Employees > Employee List > select Employee
- Then use the employee icon in the top-left and select Employee Pension Info > Pensions
Fig.1 - Employee Pension Info > Pensions
The current active pension scheme will display.
- To change the pension scheme, select Pension Scheme Transfer
Fig.2 – Employee Pension Info > Pension Scheme Transfer
The current pension scheme and worker group (if applicable) will be displayed.
- Select the new pension scheme from the Pension Scheme To drop-down - these will be the available schemes for the employee’s current pay basis
- Enter a Transfer Date - this date must be the start of the current pay reference period
- Select a new Worker Group if necessary
- When all details are entered, select Transfer
The system will then start a new pension record from the transfer date and stop the previous record on the date before. The employee's pension information will update onscreen accordingly.
Fig.4 – Updated Pensions Page
The original pension scheme will change to 'Not Active', showing that it has been stopped.
Please note: Be aware of pay reference periods when transferring employees from one pension scheme to another. If a change of pay basis has taken place, ensure there are no dates between the pension reference periods that require a deduction.
Example
Last pension reference period: 01/08/2022 – 31/08/2022
New pension reference period: 06/09/2022 – 05/10/2022
In this example, the deduction must be adjusted to ensure the pension is deducted over the dates between pension reference periods (01/09/2022 – 05/09/2022). A pro rata calculation to cover 5 days will need to be added to the payroll using the override function on the payroll summary.
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