Pension membership

Nearly every employee is eligible to be added to a company pension scheme, either through automatic enrolment regulations, a specific clause in their contract, or by the employee selecting from a list of available company pension schemes. To find out more, see Understanding pensions and automatic enrolment.

Adding an employee contribution

1. Open a payroll then click the employee’s name.

2. Click Add new contribution.

3. Select a suitable pension scheme from the list. Selecting a scheme will show its details, including the default employer / employee contributions (if set).

4. Select a contribution rate for both the employer and employee.

   • You must choose between a percentage contribution OR an amount contribution.

   • For percentage contributions, if you don't wish to use the default values, turn on Override default values and enter a new rate.

5. Enter the date when the membership starts, then click Save.

   • Contributions will be taken on the next pay date following the contribution’s start date. Contributions are NOT pro-rated, they are either taken for each payroll period (if it falls within the effective dates), or not.

Editing existing contributions

When editing an employee, click the Contributions tab to view a list of all pension contributions. The Active contributions toggle lets you hide any pension memberships that have passed their end date.  

To add a new contribution, see above.

If the employee is a non-eligible jobholder, isn't enrolled on any pension scheme, and has requested an opt-in, see Managing opt-in requests.

To edit any existing contribution, click the open icon under Actions.

Add new contribution rates

1. Select whether the new rate will apply from the current/next payroll period, or from a specific date.

2. Set new employer and employee contributions as either a percentage (%) or fixed amount (£).

3. Click Set new rate(s).

Warning! You must ensure that the dates the new rate will apply do not overlap with any existing contributions.

Edit contribution rates

This will affect the employee's current pension contribution.

1. As well as the contribution rates, you can also edit the start and/or end date - or remove the end date to keep the pension contribution indefinite.

2. Specify start/end date and employer/employee contribution as normal.

End contribution

Specify when the contribution will end. Ending a contribution in the past will display a warning about retroactively changing an employee’s contributions.

Delete

Warning: Deleting a contribution cannot be reversed and should only be done when it was added in error. If a contribution has already been made, a refund process will be initiated.

If the contribution already has an end date, you will only be able to edit or delete the contribution.

Managing opt-in requests

If the employee has the status of non-eligible jobholder (e.g. if their salary isn't high enough) AND they are not currently enrolled on any pension schemes, then the employer can choose to opt them in for automatic enrolment selection.

1. Click Process opt-in request.

2. On the next screen, the date of their latest opt-out is shown. If this is less than 12 months ago, you can either Discard or Continue. However, if it's more than 12 months ago, you must Continue.

3. Enter the date you received the opt-in request from the employee, then click Next.

4. Select which pension scheme the employee should be enrolled on, then click Next.

5. On the final screen, you are shown a summary of what will happen once you click Create Request.

Once you've created the request, a summary of the request will be displayed in the Opt in and join requests tab. Pension contributions will not start immediately - only at their next auto-enrolment assessment (if they are still a non-eligible jobholder).

Leaving or opting-out of a scheme

If you want to completely remove an employee from a pension scheme:

1. In the Contributions tab, select Leave / Opt Out beside the pension scheme.

2. If employee is to leave the scheme and stop all contributions, turn on the “I confirm…” toggle, enter a leaving date, then click Leave Scheme.

   OR

3. If the employee has been automatically enrolled into the scheme and wants to opt out:

   1. Click the Opt Out tab.

   2. Enter the date you received the notification to opt out the employee.

   3. Enter the date the employee should leave the scheme.

   4. Click Continue.

   5. Select in which payroll any refunds should be processed (current or next)

   6. Click Opt out.

If the employee wishes to end contributions but remain in the scheme, see Editing existing contributions above.

Setting and viewing notional pensionable pay

Notional pensionable pay is a fixed salary figure used to calculate pension contributions, instead of the employee's actual pay. This is useful where an employee's pensionable pay varies (e.g. if they work irregular hours or are receiving parental pay) and the pension scheme requires a stable basis for calculating contributions.

1. In the Contributions tab, select Set notional pensionable pay beside the relevant pension scheme.

2. Enter the Annual amount. The Period amount is calculated automatically.

3. Select Continue.

4. Select who the notional pay applies to: Employer only, Employee only, or Both.

5. Select Continue.

6. Enter the Start date. Optionally, enter an End date if the notional pay should apply for a limited period only.

7. Select Save and close. A Notional Pensionable Pay Active status will appear against the pension.

To edit, end, or delete a notional pay record

Select the open icon under Actions in the Notional pensionable pay tab. From here you can:

• Edit: modify the notional pay amount or dates.

• End: add an end date to stop the notional pay going forward.

• Delete: permanently removes the record and all associated data.

Warning! Changing notional pay, especially retroactively, can have an effect on employee pay.

Viewing auto-enrolment details

Click the Auto-enrolment details tab. In these three tabs, you can view:

• Information about each of the automatic enrolment assessments performed on the employee

• Information about automatic enrolment postponements

• Any opt-in and requests to join pension schemes

Automatic enrolment assessments and postponements are currently performed in Cintra iQ.

FAQs

Can I apply both a percentage and fixed contribution to an employee's pension?

No. For each pension scheme you assign to an employee, you must select a percentage OR a fixed contribution.

What happens if I leave a scheme where I still have an active contribution?

All contributions within that scheme will be stopped automatically.

I've made a mistake. Can I change a historical start date of a contribution?

Yes. Everything will be recalculated in the next payroll period.

What are the implications of editing a historical pension contribution for the previous / current tax year?

For the current year, calculations will be performed automatically and all adjustments will appear on the payslip.

For previous tax years, you will need to make manual adjustments to refund / charge the employee accordingly.