Pension Rate Changes

Use this wizard to update the pension contribution details in employees’ pension records with changes made to the selected pension scheme.

You should use this wizard after you change a banded pension scheme definition and you need to update the employee records with the changed values. Typically, once every year, after you update the pay bands in the banded pension scheme definition, you should run this wizard to perform the fixed update. When you run the wizard, the system uses the crieria you specify on the pages in the wizard. The system refers to the selected pension scheme definition, the selected HR query to identify the employees’ pension records, and either the current salary or the previous pensionable pay. For each employee identified by the query, the system determines the pay band into which each employee falls, and the percentage for that band defined in the pension scheme definition. Each employee’s pension record is updated, and the system uses the contribution percentage for the employees throughout the year, until the next update. The wizard does not update an employee’s pension record whose Fixed field is set to Yes.

You can use this wizard to update employee pension records for a standard rates scheme. However, there should be no need to use this wizard because you can apply changes you make to the pension scheme to employee pension records when you update the pension scheme.

You must complete a maximum of three pages of information before you can run the wizard. The number of pages displayed by the wizard depends on the type of pension scheme you select on the first page. If you select a pension scheme where the rate type is Standard Rates, two pages are displayed. If you select a Contribution Bands type of pension scheme, three pages are displayed.

On page 1, select the pension scheme for which changes have been made. The drop-down list displays all the pension schemes set up for your organization. This wizard is primarily for banded schemes where the band method is Fixed Update. You should not select a banded pension scheme with a band method of Each Calculation, because employee percentage contributions are calculated each pay period.

On page 2, if you do not want to update all employees who are part of the selected pension scheme, select a query that defines only those you want to update. Select a query from the list of available queries.

On page 3 (only if you select a banded pension scheme on page 1), select either Salary or Previous Pensionable Pay from the drop-down list.

Click Run. A message is displayed that asks you if you want to continue. Click Yes to proceed. All records of the pension scheme definition attached to each HR record are updated to reflect the new criteria (except for those employee’s pension records whose Fixed field is set to Yes).

If you customized any employee pension records (so the employee’s contributions or settings are diiferent to the pension scheme) and do not set the Fixed field to Yes before you run this wizard, you have to update the employee pension records with the particular values and settings.