Element Setup of Additional Pension Contributions

Create your additional contribution types for TPS using the secondary Additional Pension Contributions Pre-Statutory element classification to conform to the rules and regulations applicable to each of them.

It is recommended that you create elements for these scenarios (assuming the contribution type is used in your organisation):

• Past Added Years
• Additional Pension Contributions
• Teachers' Additional Voluntary Contributions
• AAB buyout
• Faster Accrual
• Family Benefits Contributions
• Former Higher Salary Contributions (TR22 election)
• Preston Part-time Buy-Back Contributions
• Not Applicable (use this for Current Added Years and Elected Further Employment).

Note: As shown above, the additional pension contributions are a flat amount or a percentage of pensionable pay, so do not use rates as the main pension scheme does.

There may be cases where you need to create multiple elements for one contribution type, for example:

• If an additional contribution deduction can be payable as a flat amount or a percentage, then create one element for each deduction rule.
• If the employer can share the costs of an additional contribution type (but does not always), then create one element that includes employer contributions and another that does not.
  Note: If the employee pays by a lump sum that is outside the payroll process, it is an agreement between the employee and pension scheme administrator and there are no reporting requirements.

Perform the following steps to create the element:

1. Using the Elements task, click Create to create a new element.
2. In the Create Element window, complete the required details.
3. If the contribution deduction can be a one-off lump sum or regular flat amount (or both), specify that it is a fixed amount deduction:
4. Pension elements are recurring; in the case of a one-off lump sum payment, you must end date the element entry at the end of the period in which the payment was taken.
5. Additional questions are available on the questionnaire to identify the type of additional pension contribution you are creating:
6. Select Teachers’ Pension Scheme CARE, Final Salary, or CARE and Final Salary, from the list of parent pension schemes.
7. Select the type of additional contribution.
8. Enter the pension provider.

Additional Pension Contribution Types: Summary of Objects Created

Object Type	Name
Element	<Base Name>
	<Base Name> Calculator
	<Base Name> Distributor
	<Base Name> Employee Contributions
	<Base Name> Employer Contributions
Additional Input Values	Parent Pension Scheme (Employee Contributions element)
	TPS Additional Pension Type (Employee Contributions element)
	Contribution Amount (Employee Contributions element)
	Contribution Percentage
	Beneficiaries
	Payee
	Reference Number
Rate Table Override	TPS Employee Pension Rates
Predefined Balances	AAB Buyout Contributions TPS (data item 41)
	Additional Pension Contributions TPS (date item 39)
	Additional Voluntary Contributions TPS (not used in MCR)
	Family Benefit Contributions TPS (data item 42)
	Faster Accrual Contributions TPS (data item 40)
	Former Higher Salary Contributions - TR22 Election TPS (data item 42)
	Past Added Years Contributions TPS (data item 42)
	Preston Part-Time Buy-Back Contributions TPS (data item 43)
Additional Balances	Additional balances are created for each additional pension type. See Note below.

Note:

• The Contribution Amount input value of the Employee Contributions element feeds the corresponding predefined balance.
• Additional Voluntary Contribution Types (TAVCs), administered separately to the Teachers’ Pension additional pension types, are not included in MCR. The Additional Voluntary Contributions TPS balance is provided to enable you to manage their remittance to Prudential Financial services.

Create Element Eligibility

You must define eligibility for the additional contribution type element. You can then add it to an employee’s Benefits and Pensions card.

Note: It is not necessary to define eligibility for the Employee Contributions (and Employer Contributions, if applicable) elements, as these are indirect elements.