Understanding Pension Schemes
This chapter provides an overview of pension schemes and discusses how to enter standard and stakeholders pension scheme data.
Understanding Pension Schemes
This section discusses:
Pension scheme templates.
Delivered pension scheme deductions.
Delivered accumulator for pensionable earnings.
Viewing delivered elements.
Pension Scheme TemplatesGlobal Payroll for the U.K provides you with a sample template that you can use as a starting point for processing two kinds of pension schemes: standard occupational pensions and stakeholders pensions. Because pension schemes are not a statutory requirement, you should tailor the provided template to your own requirements or create your own.
Pension schemes are created at the job level. That is, if an employee has multiple employment contracts, the employee can have different pension schemes for different contracts.
Within the two main pension types, the delivered template enables you to define these types of employee and employer contributions:
A fixed scheme, in which an employee and an employer pay a fixed amount per pay period.
A percentage scheme, in which both employee and employer pay a specified percentage of employee earnings per pay period.
An additional voluntary contribution scheme, in which the employee can contribute a fixed amount or percentage.
Delivered Pension Scheme DeductionsThis section lists the deductions that Global Payroll for the UK delivers for the standard and stakeholder pension schemes.
Standard Pension Scheme
This table lists the deductions for standard pension schemes:
|
Deduction |
Description |
|
PEN DD EE |
Deduction to process standard employee pension deduction. |
|
PEN DD ER |
Deduction to process the standard employer pension deduction. |
This table lists the deductions for stakeholder pensions:
|
Deduction |
Description |
|
STK DD EEAMT |
Deduction to process the stakeholder pension employee amount. |
|
STK DD ERAMT |
Deduction to process the stakeholder pension employer amount. |
|
STK DD EEPCT |
Deduction to process the stakeholder pension employee percent. |
|
STK DD ERPCT |
Deduction to process the stakeholder pension employer percent. |
Delivered Accumulator for Pensionable EarningsThe accumulator GBR AC PENBL SEG is delivered for storing total pensionable earnings. Pension contributions that are based on a percentage of earnings are calculated using this accumulator. You need to ensure that the relevant earning elements contribute to this accumulator.
Viewing Delivered ElementsThe PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for the United Kingdom. Instructions for running the query are provided in PeopleSoft Global Payroll 9.1 PeopleBook.
See Also
Understanding How to View Delivered Elements
Entering Standard and Stakeholders Pension Scheme Data
This section discusses how to:
Enter standard pension scheme data.
Enter stakeholder pension scheme data.
Enter P46 pensioner information.
P46 (Pen) EDI Message TypeBeginning April 6, 2009, it is mandatory for employers with 50 or more employees to send pension starter information to HMRC online. HMRC has asked software developers to use the term P46 (Pen), as its intention is to rebrand PENNOT as P46 (PEN).
To help you comply with this requirement, Global Payroll for the UK has delivered the P46 (Pen) EDI message type. You must generate this message for new pensioners when they start receiving pension payments. This EDI message is used by pension providers for all pensioners they pay, even if they did not previously work for the company (for example, widows or widowers of those that have died).
You also need to enroll eligible dependents and include them in the pension notification. Use the P46 Pensioner GBR page to manually enroll pensioners and dependants. Based on this information, the system generates the EDI file.
On the Process EDI GBR run control page, Global Payroll for the UK has added the P46 Pension Starter value to the EDI transaction field. The system creates messages in the standard message log as part of the Application Engine program and is available through the standard on-line process page.
See Also
Pages Used to Enter Employee Pension Scheme Data|
Page Name |
Definition Name |
Navigation |
Usage |
|
GPGB_EE_PENSION |
Global Payroll & Absence Mgmt, Payee Data, Pension Information, Assign Scheme GBR, Assign Scheme GBR |
Enter standard pension scheme data for an employee. |
|
|
GPGB_EE_STKHLD |
Global Payroll & Absence Mgmt, Payee Data, Pension Information, Stakeholders Pension GBR, Stakeholders Pension GBR |
Enter stakeholders pension scheme data for an employee. |
|
|
P46 Pensioner GBR |
GPGB_P46_PENSN_DTL |
Global Payroll & Absence Mgmt, Payee Data, Pension Information, P46 Pensioner GBR, P46 Pensioner GBR |
Enter P46 pensioner information for pensioners and eligible dependents. |
Entering Standard Pension Scheme Data
Access the Assign Scheme GBR page (Global Payroll & Absence Mgmt, Payee Data, Pension Information, Assign Scheme GBR, Assign Scheme GBR).
|
Scheme |
Select the type of pension scheme that you require: FIXA (fixed scheme A) PCTB (percentage scheme B). AVC1 (additional voluntary contributions) |
|
Employee Percentage |
This field is available for entry only if you select either the PCTB or AVC1 in the Scheme field. Enter the percentage of employee earnings that the employee pays into the pension scheme. |
|
Employer Percentage |
This field is available for entry only if you select the PCTB in the Scheme field. Enter the percentage of employee earnings that the employer pays into the pension scheme. |
|
Employee Amount |
This field is available for entry only if you select either the FIXA or AVC1 in the Scheme field. Enter the fixed amount of money that an employee pays into the pension scheme each pay period. |
|
Employer Amount |
Enter the amount of money that an employer pays into the pension scheme each pay period. This field is not available if you select AVC1 in the Scheme field. |
|
Start Date |
Select the start date when the pension scheme is processed. |
|
End Date |
Select the end date when the pension scheme is processed. |
Note. You can create multiple rows for the same employee as long as the scheme type is not the same. For example, you can create a pension scheme based on percentage contributions and then create a new row for an additional, voluntary contribution of a fixed amount.
Entering Stakeholders Pension Scheme Data
Access the Stakeholders Pension GBR page (Global Payroll & Absence Mgmt, Payee Data, Pension Information, Stakeholders Pension GBR, Stakeholders Pension GBR).
|
Scheme |
Select the type of pension scheme that you require. Valid values are: AMT (fixed amount scheme) PCT (percentage scheme). |
|
Employee Percentage |
This field is available for entry only if you enter PCT in the Scheme field. Enter the percentage of employee earnings that the employee pays into the pension scheme. |
|
Employer Percentage |
This field is available for entry only if you enter PCT in the Scheme field. Enter the percentage of employee earnings that the employer pays into the pension scheme. |
|
Employee Amount |
This field is available for entry only if you enter AMT in the Scheme field. Enter the fixed amount that an employee pays into the pension scheme each pay period. |
|
Employer Amount |
This field is available for entry only if you enter AMT in the Scheme field. Enter the amount that the employer pays into the pension scheme each pay period. |
|
Begin Date |
Select the start date when the pension scheme is processed. |
|
End Date |
Select the end date when the pension scheme is processed. The End Date is a mandatory field. |
Note. Create multiple rows for the same employee as long as the scheme type is not the same. For example, you can create a pension scheme based on percentage contributions and then create a new row for an additional, voluntary contribution of a fixed amount.
Enter P46 Pensioner InformationAccess the P46 Pensioner GBR page (Global Payroll & Absence Mgmt, Payee Data, Pension Information, P46 Pensioner GBR, P46 Pensioner GBR).
P46 Pensioner Details
|
Bereaved Spouse/Civil Partner |
No and Yes |
|
Dependent ID |
If you select Yes in the Bereaved Spouse/Civil Partner field, the system displays this field. Select the dependent that should receive pension benefits. |
|
Copy Tax Details and Tax Code |
If you select No in the Bereaved Spouse/Civil Partner field, the system displays this field. Select Yes to copy tax details. The system automatically fills in the Tax Code and Tax Basis fields. Select No if you do not want to copy tax details. In this case the system fills in the Tax Code field. |
|
Tax Basis |
If you select No in the Copy Tax Details field, select either Cumulative or Wk 1/Mnth1. |
Previous Employment Details
If the person you are enrolling worked for another employer, fill in these fields:
Tax District
PAYE ID
Leave Date
Tax Code
Tax Basis
Pay to Date
Tax to Date
Pay Period
Week or Month
Employers Name