Set Up MyCSP Alpha Pension Enrollments

Create a Pension Plan After Tax Element

You must create a Pension Plan After Tax element for the Alpha scheme.

Use the Elements task to create your element and element eligibility. Click Create.

Enter the details as shown:

FIELD	VALUE
Primary Classification	Voluntary
Secondary Classification	Pension Plan After Tax
Category	Benefit

Complete the template questions with the same responses as given when creating the pre-statutory deduction, including responding to the question “Is this a Qualifying Pension Scheme?” as yes, selecting the pension category Alpha.
Review the information and submit.

The elements and balances created are the same as those created for the pre-statutory deduction element, although there may be an additional balance that is not required to calculate Alpha pension.

The equivalent calculation value definitions are also created for a voluntary deduction as for the pre-statutory deduction, however it is possible <Base name> Employer Type for Pension may be missing, so may need to be created manually.

FIELD	VALUE
Value Definition Group	Contribution Rules
Calculation Type	Text
Use existing value definition group	Select this option
Value Definition Group	Contribution Rules
Calculation Type	Text
Calculation Values: From Value	0
Calculation Values: To Value	99,999,999,999
Calculation Values: Text	CS

Transfer Elements

Ensure that the pre-statutory pension scheme component on the Benefits and Pensions calculation card is end-dated and add the new voluntary scheme component. This can be done using the preferred method of pension automatic enrolment process as a transfer, or manually. If you perform this manually, you must set your effective date on the Benefits and Pensions card to the start date of the new voluntary deductions component prior to adding that component. You must reuse the existing Pension Payroll ID on the new component.

Note: Proration of pension elements is not supported, therefore whether a period’s pension contributions attract tax relief or not will only be for complete periods.

Balance Feeds

See: Setting Up Additional Balance Feeds to create the balance feeds needed for the voluntary Alpha scheme.

We recommend that your balance feeds to the following elements are the same as the balance feeds for the equivalent prestatutory Alpha scheme balances:

<Element Name> Permanent Pensionable Pay
<Element Name> CSP Permanent Pensionable Pay
<Element Name> Assumed Pensionable Pay
<Element Name> Eligible Compensation

You can compare your pre-statutory and voluntary Alpha scheme balances using the HCM UK MyCSP Generic Setup Diagnostics report.

Pension Calculations

The pension calculation including eligible compensation, permanent pensionable pay tier calculation and assumed pensionable pay will be the same for a voluntary Alpha element as for a pre-statutory Alpha element, except there is no tax relief for voluntary deduction.

Note: The Civil Service specific calculations for EPA, EEPA, AVC are not currently supported for voluntary deductions.

MyCSP Pension Reporting

There is no difference between reporting a pre-statutory Alpha scheme details and voluntary Alpha scheme details in most files, including Pay History. However, care should be taken in Service History that an unwanted line hasn’t been created in the period of transfer, it is not expected to be there, but in the exceptional case where it is, it should be removed.

MyCSP Alpha Pension Enrolments for Employees Aged 75 and Over

When an Alpha member is 75 or over, they can continue to make pension contributions but they are no longer eligible for tax relief on those contributions. Follow the steps described here to set up their contributions to the Alpha scheme.

Identify Affected Employees

The UK Payroll Validation Archive Report (PVAR) raises the following message in the period before a member’s 75th birthday if they have any (not only MyCSP) pension scheme enrolment; “The employee is nearing the age of 75 and is enrolled in a pension scheme. Check their eligibility for the scheme.

If the scheme member is going to remain a member of the scheme, then they should be transferred from the default element for the pension scheme created as a pre-statutory deduction, pension plan pre-statutory, which attracts tax relief, to a pension element that doesn’t, pension plan after tax.