WFM UK: UI Refresh: Creating a Pension Scheme

Overview

This article provides instructions on how to set up a Pension Scheme within the Pension module, in Fourth's Workforce Management solution.

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

Setting up a Pension Scheme

• Use the side menu and go to Pension > Administration > Pension Scheme
• Select Create New Pension Scheme from the top-right corner

Fig.1 - Pension module > Administration > Pension Scheme

The 'Pension Scheme Details' page will open. It is divided into several different sections.

Section 1: Pension Scheme Details

The first section should be completed using information about the Pension Scheme. The relevant Pension Provider should be able to provide all of the information required here.

Mandatory fields are marked by coloured text (blue in Fig.2).

The 'question mark 'help icons -  - provide more information about each field.

Important Information:

• All Qualifying Pension Schemes must be set up as so, by ticking the box
• Select what calculation (Stakeholder, Net % Deduction, etc) applies to the scheme. This will set the calculation for all employees enrolled on this scheme in the future
• For Pensionable Pay Type, the option is either Pensionable or Qualifying earnings

Once selected, the scheme will know which type of earnings to use in the pension calculation. Payment types can be set to be Pensionable or Qualifying (or both) in the Payroll module.

Fig.2 - Pension Scheme Details
 

• Ticking Automatic Enrolment Scheme will reveal further boxes and fields that apply to postponement - see Fig.3
• Ticking Postponement Period and EJ Postponement Period boxes will reveal yet further boxes and fields - also see Fig.3 
• Complete the postponement sections, as per the Pension Scheme rules

Fig.3 - Automatic Enrolment Scheme settings 

This section is used to configure, for reporting purposes only, how payments are made to the Pension Provider. 

• By ticking the External Payment box, a new field - Payment Method - will appear
• Select either Cheque, BACS, or Direct Debit from the Payment Method drop-down 

Fig.4 - Payment Methods

This section should reflect the default contributions that will be applied to all employees enrolled on the scheme. Qualifying bands can also be input for each contribution type. The qualifying bands are set by the Department for Work and Pensions (DWP) each year.

For any Contributions (Employer or Employee): 

• Select a Contribution Type
• Enter a Contribution Amount
• If wished, populate the Use Band For Contributions fields, as per the DWP's current figures. Enter the minimum and maximum bands that apply to the payroll frequency of the pay basis that will be linked to this Pension Scheme

Fig.5 - Contributions section

• Select the Primary Pay Basis that will be linked to this Pension Scheme, and then Save
• Additional Pay Basis can be added by selecting any available ones and using the arrow buttons to set as 'Assigned' - again, Save once complete

Fig.6 - Assigning Pay Bases 

All employees attached to this Primary Pay Basis during creation will automatically be assigned to this Pension Scheme and will default to all of the rules configured on this page. 

• All Pension Schemes can be viewed by going to Payroll > Administration> Pension Scheme

Fig.7 - Pension Schemes displaying in the Payroll module

If there are some employees that have different rules to the default ones set up within the Pension Scheme, a ‘Worker Group’ can be set up. Worker Groups can only be defined to groups of people categorised by either Job Tile, Location, Contract or New Starter Status.

See also - WFM - Creating a Worker Group