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    WFM UK: UI Refresh: Creating a Non Auto Enrollment Pension Scheme

    Overview

    New Pension schemes can be created through the Pension Module. If the company does not have access to the Pension Module, a new Pension Scheme can be created through the Payroll Module instead.
     

    Pension Schemes can be created to not Automatically Enroll employees. This article describes the process of creating a Non-Auto Enrolment Pension Scheme.

    For all Pensions-related articles, please see WFM UK - Pensions: Article Contents Page.

    Creating a Non-Auto Enrollment Pension Scheme
     

    • Go to Pension > Administration > Pension Scheme 

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    Fig.1 – Pension Scheme in Administration Drop-Down

     

    • Select Create New Pension Scheme

     

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    Fig.2 – Create New Pension Scheme


    Populate the fields in the ‘Pension Scheme Details’ page as required.

    Please Note: Descriptions of each field are found in the tables at the end of the document.
     

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    Fig.3 – Pension Scheme Details

     

    • To create this Pension Scheme as Non-Auto Enrolment, leave the Automatic Enrolment Scheme box unchecked 

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    Fig.4 – Automatic Enrolment Scheme, Payment Methods and Contributions Fields

     

    • Select the Primary Pay Basis for this Pension Scheme
    • Assign Additional Pay Basis schemes to this Pension by using the arrows in the centre to move the Pay Basis from the Available area to the Assigned area

     

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    Fig.5 – Assign Pay Basis


    Pension Scheme Configuration – Pension Scheme Details

     

    Field Description
    SCON Number This will be the number displayed on the certificate from the HMRC. This field only becomes available when Contracted Out is selected.
    Qualifying Pension Scheme Please indicate if the Pension Scheme meets the criteria to be a qualifying scheme. Employees who are members of a qualifying scheme should not be assessed under Auto-Enrollment.
    Pension Year Start Date This start date of the Pension Scheme will be determined by the company's Pension provider and will be in alignment with their Financial Year. 

    The year to date values on the Employee Payslips will accumulate from this date throughout the year.
    Subject to Group Criteria Not relevant for non-Automatic Enrollment Pension Schemes.
    Contracted Based Pension Scheme Only select this option if the scheme is a Contractual Enrollment Scheme. I.e., Employees are automatically entered into a Pension Scheme as documented by way of a clause within their Employment Contract.
    Pensionable Pay Type The calculation of Pensionable and Qualifying earnings are determined by the Employer and selected with a tick field within the Payment Types within the Payroll Module.

    Please Note: Selecting the Stakeholder Deduction option will not take this setting into account as calculation is based on net pay rather than gross.
    Pro-Rata Pension Contributions Not required at this time.
    Use 4-4-5 Payrun? Not required at this time.
    Accounting System Code (P&L) Enter a P&L code here to report separately for this scheme.
    Accounting System Code (Balance Sheet) Enter a Balance Sheet code here to report separately for this scheme.
    Automatic Enrollment Scheme Do not tick this field is this scheme is not being used as the company's auto-enrollment scheme.


    Pension Deduction Type
     

    • At least one of the following Pension deduction types must be selected below: 
       
    Field Description
    Stakeholder Contributions are calculated and deducted as a percentage of final net pay due after Tax and NI deductions have been applied.
    Net % Deduction Contributions are based on Total Gross Pensionable Pay. The employees' contribution rate is automatically reduced by the basic rate of Tax, and is deducted after Tax and NI deductions have been applied, providing Tax relief at source.

    The Pension provider will reclaim the Tax relief value directly from the HMRC to make up the difference in employee contributions.
    Net Pay Arrangement Contributions are based on Total Gross Pensionable Pay. The employees' contribution is applied before Tax is calculated, reducing the amount of Tax paid by the employee. 

    This is another way or receiving Tax relief at the source.
    Gross % Deduction Contributions are based on Total Gross Pensionable Pay. The employees' contribution is applied after Tax and NI deductions have been applied. No Tax relief using this method.



    Pension Provider Payment Information – For the Company's Information Only
     

    Field Description
    Salary Sacrifice Contributions are based on percentage of Salary sacrificed and deducted prior to Tax and NI calculations, reducing the amount of Tax and National Insurance payable.

    Indicate if the Pension Scheme is a Salary Sacrifice Scheme by selecting the Salary Sacrifice and Net Pay Arrangement flag.


    Pension Contributions

     

    Field Description
    External Payment Must be ticked. Fourth do not make payments to Pension Providers at this time.
    Payment Source Enter the Payment Source Reference if required.
    Payment Method Choose either Cheque, BACS or Direct Debit from the drop-down list. If BACS is chosen, the following fields will become available and must be completed.
    Company Name This is the Pension Provider's Name.
    Company Bank Account Name This is the Pension Provider's Bank Account Name.
    Company Bank Sort Code This is the Pension Provider's Bank Sort Code, must be 6 digits in length.
    Company Bank Account Number This is the Pension Provider's Bank Account Number, must be 8 digits in length.
    BACS Reference Number This is the Pension Provider's Reference Number which correlates with the company.

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