Understanding Pension Schemes

This topic discusses:

  • Pension scheme templates.

  • Delivered pension scheme deductions.

  • Viewing delivered elements.

Global Payroll for the U.K provides you with a sample template that you can use as a starting point for processing two kinds of pension schemes: standard occupational pensions and stakeholders pensions. Because pension schemes are not a statutory requirement, you should tailor the provided template to your own requirements or create your own.

Pension schemes are created at the job level. That is, if an employee has multiple employment contracts, the employee can have different pension schemes for different contracts.

Within the two main pension types, the delivered template enables you to define these types of employee and employer contributions:

  • A fixed scheme, in which an employee and an employer pay a fixed amount per pay period.

  • A percentage scheme, in which both employee and employer pay a specified percentage of employee earnings per pay period.

  • An additional voluntary contribution scheme, in which the employee can contribute a fixed amount or percentage.

This topic lists the deductions that Global Payroll for the UK delivers for the standard and stakeholder pension schemes.

Standard Pension Scheme

This table lists the deductions for standard pension schemes:

Deduction

Description

PEN DD EE

Deduction to process standard employee pension deduction.

PEN DD ER

Deduction to process the standard employer pension deduction.

Stakeholder Pension Scheme

This table lists the deductions for stakeholder pensions:

Deduction

Description

STK DD EEAMT

Deduction to process the stakeholder pension employee amount.

STK DD ERAMT

Deduction to process the stakeholder pension employer amount.

STK DD EEPCT

Deduction to process the stakeholder pension employee percent.

STK DD ERPCT

Deduction to process the stakeholder pension employer percent.

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for the United Kingdom. Instructions for running the query are provided in the PeopleSoft Global Payroll product documentation.