The definitions of the pension schemes required for the employees in your organization are set up when your system is implemented. However, from time to time, you might need to create new definitions of pension schemes and maintain existing pension schemes.
There are two types of pension scheme: one is based on standard rates (percentages and/or amounts) and the other uses contribution bands (pay bands with associated employee contribution percentages).
To define a new pension scheme:
- Click Payroll > Module Setup > Pension Scheme. The Pension Scheme window is displayed.
- Click New to define a new pension scheme. The Pension Scheme window is displayed.
- In Pension Scheme, type a unique code (up to 10 characters) for the pension scheme.
- In Description, type a description for the pension scheme.
- Enter the other details for the pension scheme in the fields on the tabs on the Pension Scheme window. If you want to set up a scheme that uses standard rates, select Standard Rates in Rate Type. To set up a banded scheme, select Contribution Bands. Enter the percentages and values for the scheme on the Values tab, and, for a banded scheme, define the pay bands on the Values tab. For detailed information about what to enter in the fields on the tabs, refer to Pension Scheme and the help topics linked to it. (For specific information about how to define whether pensions contributions are subject to NI and/or tax, click here. For information about how to set pension contribution caps, click here.)
- Click Save to save the pension scheme definition.
To edit the details of a pension scheme:
- Click Payroll > Module Setup > Pension Scheme. The Pension Scheme window is displayed, which displays the pension schemes set up for your organization.
- Select the pension scheme whose details you want to update.
- Click Edit to maintain the details. The Pension Scheme window is displayed.
- Update the data in the fields. For information about what to enter in the fields, refer to Pension Scheme and the help topics linked to it.
- Click Save to save your changes.When you update the values for a pension scheme to which employees contribute, a message is displayed that asks you if you want to update all the employee pension records to reflect the changes. If you want to update all the employee pension records, click Yes. The system updates all the employee pension records, except for those records in which the Fixed field is set to Yes. Instead, if you want to apply the changes to a selected set of employee pension records, rather than all employees, you can click No and use the Pension Rate Changes wizard to select a query to identify the specific employees whose pension records you want to update.