The Apply UK Pension Auto Enrolment Rule is used to establish employee eligibility to be assigned to the appropriate UK pension auto-enrolment elections.
Before You Begin: You must create the elections, either earning or deduction definitions, not both, to associate with this rule before you create the payroll policy rule.
You must configure this rule to determine whether employees can cancel auto-enrolment and be refunded within a month after they were auto-enrolled. When configuring this rule, ensure that you exclude reimbursement earnings and allow an employee to configure their specific non-pensionable earnings for that scheme.
Important: This rule must be ordered first in its ruleset.
Apply UK Pension Auto Enrolment Rule Parameters
Pension Scheme
Select the pension scheme that is used for pension auto-enrolment. The drop-down list shows all of the plans configured in Benefits Setup > Plans and Options with the Country field set to United Kingdom and the Plan Type set to Retirement.
Employee Pension Earning
Select the employee pension earning definition in this drop-down list. If you select an earning (allowance), do not select any deductions.
Employer Pension Earning
Select the employer pension earning definition in this drop-down list. If you select an earning (allowance), do not select any deductions.
Employee Pension Deduction
Select the employee pension deduction definition in this drop-down list. If you select a deduction, do not select any earnings (allowance).
Employer Pension Deduction
Select the employer pension deduction definition in this drop-down list. If you select a deduction, do not select any earnings (allowance).
Pensionable earnings group
Select one or more earnings groups in this drop-down list. Any earning grouping for which the Is Pension Grouping checkbox is selected in the Earning Groupings tab of Payroll Setup > Groupings is available in the drop-down list.
Exclude pension earning from auto enrolment assessment
Select employee and employer earnings that you want the auto enrolment rule to ignore when running the assessment. For example, when an employee has an Additional Voluntary Contribution (AVC) pension.
Exclude pension deduction from auto enrolment assessment
Select employee and employer deductions that you want the auto enrolment rule to ignore when running the assessment. For example, when an employee has an Additional Voluntary Contribution (AVC) pension.
Employee Contribution/Employer Contribution
Enter a contribution percentage that will override the default pension scheme percentage for the employees assigned to the policy. You can enter a number with up to two decimal places. If an employee has a custom contribution amount that was manually set on their pension record, the application uses that amount instead of the amount in this parameter.
See UK Pension Assessment Process.
Calculate on Pensionable Pay
Select this checkbox to calculate deductions on full pensionable pay.
Refund employee pension contribution after opt-out
Select this checkbox to automatically provide a refund to employees who made contributions to a pension scheme and opted out within one month of joining.
Relief at Source
Select this checkbox to provide a tax relief option to reduce employee contribution for the basic tax rate at source. For more information about the Relief at Source method, see https://www.gov.uk/guidance/pension-administrators-reclaim-tax-relief-using-relief-at-source#taxpayers-who-are-above-the-basic-rate-of-income-tax