Element Setup

As all new members join the main CARE scheme and existing members transferred to it after 01 April 2015, only a main scheme element is required.

To support those members who are in the CARE defined benefit scheme, and those who remain on the Final Salary Scheme, two main scheme pension elements will be required.

Note: The necessary balances are created to support any calculations that are dependent on final salary for members who had previous enrolment in the final salary scheme.

Perform the following steps to create an element for the main pension scheme:

1. Using the Elements task, click Create to create a new element.
2. In the Create Element window, complete the fields as shown here:

   PRIMARY CLASSIFICATION	SECONDARY CLASSIFICATION	CATEGORY
   Pre-Statutory Deductions	Pension Plan Pre-Statutory	Benefit

3. Select 'Percentage deduction' for employee and employer contribution rules and enter any rate.
   Note: The entered rates will be ignored as the values in the calculation value definitions are applied when calculating deductions.
4. No pension caps are predefined. You must define these, if applicable.
5. Ignore the question on Additional Contribution Rules.
6. Select 'Yes' to the question, Is this a Qualifying Pension Scheme?
7. When you select 'Yes' to the qualifying pension scheme question, an additional question is displayed about the employer type, where you select Education Authority.
8. Select the Pension category 'CARE' or 'Final Salary'.
9. You can then select the normal retirement age for the scheme, in this case, 'State Pension Age.'

After the questionnaire is submitted, various objects are generated.

Main Scheme: Summary of Objects Created

Object Type	Name
Element	<Base Name>
	<Base Name> Calculator
	<Base Name> Distributor
	<Base Name> Employee Contributions
	<Base Name> Employer Contributions
Rate Table Override	TPS Employee Pension Rates
	TPS Employer Pension Rate
Additional Input Values	Permanent Pensionable Pay (Employee and Employer Contributions elements)
	Employee Contributions (Employee Contributions element)
	Pensionable Pay (Employee Contributions element)
	Final Pensionable Pay (Employee Contributions element)
	Assumed Pensionable Pay (Employer Contributions elements)
	Tier (Employee Contributions element)
Additional Balances	Final Pensionable Pay
	Permanent Pensionable Pay
	Assumed Pensionable Pay
	Pensionable Earning
	Pensionable Overtime
Additional Value Definitions	<Base Name> Normal Retirement Age
	<Base Name> Employer Type for Pension
	<Base Name> Qualifying Pension Scheme Name
	<Base Name> Pension Scheme Category
	<Base Name> Final Pensionable Pay
	<Base Name> Permanent Pensionable Pay
	TPS Pensionable Annual Salary Minimum and Maximum
Formulas	<Base Name> Pension Calculator
	<Base Name> Pension Distributor

Once the element is created, a formula is generated with the rules specific to the scheme being created, including the calculation of employee and employer calculation rates based on predefined rate definitions and switching employer contributions to use assumed pensionable pay when assumed pay absences apply.

Other global objects may be created, including balances that are created for all pre-statutory deductions, such as eligible compensation, and also additional calculation value definitions that are not specific to Teachers Pension. Those are not listed here.

Create Element Eligibility

You must define eligibility for the main pension scheme element. This allows the Pensions Automatic Enrolment process to create the Qualifying Scheme Component and associated element entries when the employee is eligible to join the scheme. You cannot manually add a pension scheme to an employee’s Benefits and Pensions card without eligibility.

Note: It is not necessary to define eligibility for the Employee and Employer Contribution elements, as these are indirect elements.