Associations for Pensions Automatic Enrolment

The pensions automatic enrolment component associations are optional. It depends on your organization's pension requirements and how earnings or groups of earnings must be assessed for pension eligibility and deduction.

If each employee has a single assignment, or if you need all assignments to be assessed as one group, you don't have to enter any assignment associations against the pension automatic enrolment component. If no associations are entered, the process assesses the employee based on their earnings for their payroll relationship. That is, for all assignments even if there is only one.

An employee might have multiple assignments and each assignment must be assessed individually, then you have to associate each assignment to a new pension automatic enrolment component. That is, a 1:1 relationship between assignments and pension automatic enrolment components. If the employee is assessed eligible, the process creates a new pension deduction component and associates to the same assignment that is linked to the pension automatic enrolment component. The process calculates the pension deduction based on the assessable earnings of the single assignment that is associated to it.

An employee might have multiple assignments, but the assignments might be grouped. In this case, you must associate the assignments that must be assessed together to the same pension automatic enrolment component. The process replicates the associations to the pension deduction component when the employee is assessed eligible and enrolled. This ensures that the assignment associations between the PAE component and the pension component remain in sync.

The pensions automatic enrolment process replicates the existing assignment associations when creating the pension deduction. For example, when the employee is enrolled. If you later add more assignment associations to either the pension automatic enrolment component or the pension component, you must also add them to the linked pension automatic enrolment component or pension component. The assignment associations to pension automatic enrolment component and pension component is linked to the qualifying scheme component and must be in sync.