How to Create a New Pension Scheme within a Pension Provider

An employer will arrange with a pension provider a qualifying pension scheme for pension automatic enrolment as a minimum statutory obligation. The employer could have different schemes with a pension provider that could be applied to different payees.

To create a new pension scheme, follow the procedure below

1.	Navigate to Payroll > Maintenance > Pension > Providers
2.	If the pension provider already exists, locate the provider to which the scheme will be attached. If the pension provider does not exist, please refer to How to Create a New Pension Provider to create the provider.
3.	Click the view / edit button against the required Provider. The Pension Provider maintenance page opens.
4.	Click Add Pension Scheme +.
5.	In the Name field, enter the scheme name. This scheme name will appear on Payslips for the employer pension contributions where a payee has multiple schemes.
6.	In the Scheme Code, enter a code reference for the scheme.
7.	In the Description field, further information can optionally be added.
8.	Click Save. A successful confirmation message will be displayed. Once saved, a pension scheme validity will be made available to enter the scheme rules.
9.	Click Add Validity+ under the Pension Scheme Validity List. A pop up window will be displayed to enter the scheme rules.
10.	Enter validity start date of the scheme.
11.	If the scheme is qualifying, check the Is Qualifying checkbox. If this is not checked, this will not be available to select a scheme in the Pay Company > Default Settings > Pension Schemes field. If a scheme is not qualifying, it cannot be used as part of the pension automatic enrolment process. The scheme can then only be added manually to a payee in the Payee screen.
12.	If the pension scheme should reduce the pensionable pay by the qualifying earnings (this is the minimum scheme deduction requirements for a qualifying pension scheme), check the Apply Qualifying Earnings to Pensionable Pay check box.
13.	In Pension Deduction field, select the deduction to be linked to the pension scheme. Only deduction types of Pension will be available to select. If the scheme is an employer only contribution, a deduction header with a 0 default rate will need to be applied. It is advisable that each pension scheme has its own pension deduction header and not re-apply the same deduction against multiple pension schemes.
14.	If a scheme offers an Additional Voluntary Contribution (AVC), apply the AVC deduction header to the scheme in the AVC Deduction field. The AVC will not automatically be applied to a payee when the payee is auto enrolled. This is used for reporting purposes to identify that an AVC is linked to a particular pension scheme.
15.	In the Reference Number, if you have a further reference number for reporting purposes, it can be recorded here.
16.	In the Employer Contribution Rate Rule, select the employer contribution rule that you have set up in the Contribution Rate Rule screen. This defines the employer contribution. If the scheme does not have an employer contribution, this can be left blank.
17.	If the scheme offers an additional employer contribution, the contribution rule can be applied. If you want different employer AVC contributions for different payees, separate schemes will need to be set up.
18.	Click Save in the pop up window. The window will close and a successful save confirmation message will be displayed.

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How to Create a New Pension Scheme within a Pension Provider

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