pension whitepaper v1.1

White Paper on Workplace Pension September 2012

Disclaimer

The following is intended to outline our general product direction. It is intended for information purposes

only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code,

or functionality, and should not be relied upon in making purchasing decisions. The development, release,

and timing of any features or functionality described for Oracles products remains at the sole discretion of

Oracle.

Workplace Pension Automatic Enrolment

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Table of Contents

Executive Summary................................................................................................ 4

Introduction ........................................................................................................... 4

Process to Prepare for Automatic Enrollment ........................................................ 4

Identifying the staging date ...................................................................................................................... 4

Workforce Assessment ............................................................................................................................. 5

Worker .................................................................................................................................................. 5

Job holder.............................................................................................................................................. 5

Eligible Jobholder .................................................................................................................................. 5

Non-eligible Job Holder ......................................................................................................................... 5

Entitled Worker ..................................................................................................................................... 5

Categories of worker relative to age and earnings ............................................................................... 5

When to make the assessment ............................................................................................................. 6

Postponement........................................................................................................................................... 7

Deferral ..................................................................................................................................................... 8

Review Pension Arrangements ................................................................................................................. 8

Automatic enrolment Pension Scheme .................................................................................................... 8

Qualifying Pension Scheme ....................................................................................................................... 8

Automatic Enrolment Criteria ................................................................................................................... 8

Qualifying Criteria ..................................................................................................................................... 9

Minimum Requirement............................................................................................................................. 9

Qualifying Earning ..................................................................................................................................... 9

Defined Contribution (DC) occupational pension schemes ...................................................................... 9

Defined Benefit (DB) Pension Schemes .................................................................................................... 9

Certifications ........................................................................................................................................... 10

Automatic Enrollment ............................................................................................................................. 11

Opting in, Joining and Contractual Enrolment ........................................................................................ 11

Opting Out............................................................................................................................................... 12

Refunds ................................................................................................................................................... 12

Ceasing Active Membership ................................................................................................................... 13

Implementation of Automatic Enrollment in PeopleSoft ..................................... 13


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Define Pension Scheme GBR ................................................................................................................... 13

Define Qualifying Pension Scheme ......................................................................................................... 14

Pension Event Set Up .............................................................................................................................. 15

Process Flow Workforce Assessment and Automatic Enrollment ....................................................... 18

PeopleSoft Batch Process for Assessment and Auto Enrollment ........................................................... 19

Define Payee Data for Pension ............................................................................................................... 20

Payee Overrides ...................................................................................................................................... 20

Pension Scheme ...................................................................................................................................... 22

Pension Events ........................................................................................................................................ 22

Conclusion ........................................................................................................... 22

Expected Patch Availability .................................................................................. 23


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Executive Summary The Government has introduced a new law designed to help people save more for their retirement. From 2012,

the UK government is bringing in auto-enrolment, a semi-compulsory approach to retirement saving, which will

result in the automatic enrolment of all qualifying employees into a qualifying pension scheme.

The aim of the auto-enrolment strategy is to move the UK to a position where the vast majority of UK citizens are

saving to some extent for their own future pension provision. This should lead to a vast new market of consumers

who are more aware of financial products and the benefits they can bring.

However, the issues involved in bringing a completely new group to the market are not straightforward and the

ability to provide products and services to these consumers in a cost effective way ought to be at the forefront of

every life and pension providers strategy for the future.

Introduction Starting in October 2012 all employers with at least one worker in the UK will need to automatically enroll certain

members of their workforce into a pension scheme. The start date, called the staging date, varies according to the

number of employees in each PAYE scheme. By February 2014 all employers with 250 or more employees will

have to comply.

A workplace pension is a way of saving for your retirement arranged through your employer. Its sometimes

known as a company pension, occupational pension or works pension.

As an employer you will need to make a contribution as well as the employee; the minimum rates increase over

time to a combined figure of 8%. Employer will also need to ensure that they meet all of the new requirements to

comply with the law. Even if employer already offers pension arrangements for their workers, employer will still

have some new obligations to meet and will need to review the current arrangements. To manage this change,

close collaboration with your pension provider is key as timescales for opting employees in and out are tight and

must be processed efficiently.

The timing of when employers will automatically enroll workers depends on their size. The Pensions Regulator will

notify employers of the exact date. Very large employers are doing it first, starting in 2012

Process to Prepare for Automatic Enrollment

Identifying the staging date

The law on the new employer duties and safeguards will commence from July 2012. Each employer will be

allocated a date from when the new duties will apply to them, known as their staging date. The staging dates will

start from October 2012. This is the first step as an employer in getting ready for the new duties.

One of these duties will place new requirements on employers to automatically enroll certain workers into a

pension scheme.

An employer should work back from their staging date to understand when they should start to take the actions as

per guidance. It is each employers responsibility to identify their staging date and to work out when they must act

to be ready for the new duties.

The staging date is based on the number of people in the employers largest Pay As You Earn (PAYE) scheme.


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Staging will start in October 2012 and will be rolled out based on the largest to smallest PAYE schemes. The

Department for Work and Pensions (DWP) has announced that employers with fewer than 50 persons in their

PAYE scheme will not be brought into the employer duties until June 2015 at the earliest. This means that the

staging dates for many employers may change, although employers with 250 or more persons in their largest

PAYE scheme will be unaffected and will be staged between October 2012 and February 2014.

Workforce Assessment

The first step for an employer is to see if they employ anyone classified as a worker and they will need to

understand their contractual relationships. Once an employer has identified that they have a worker, the next step

is to ascertain what type of worker they have. It is only in respect of certain types of workers that an employer will

have duties. There are two main categories of worker a) Jobholders and b) Entitled workers. Jobholder is further

divided into Eligible and Non-Eligible.

Worker

An employee or someone who has a contract to perform work or services personally, that is not undertaking the

work as part of their own business.

Job holder

A worker who: a) is aged between 16 and 74 b) is working or ordinarily works in the UK under their contract c)

has qualifying earnings.

Eligible Jobholder

A jobholder who: a) is aged between 22 and state pension age b) has qualifying earnings above the earnings trigger

for automatic enrolment.

Non-eligible Job Holder

A jobholder who: a) is aged between 16 and 21 or state pension age and 74 b) has qualifying earnings above the

earnings trigger for automatic enrolment or a) is aged between 16 and 74 b) has qualifying earnings below the

earnings trigger for automatic enrolment.

Entitled Worker

A worker who: a) is aged between 16 and 74 b) is working or ordinarily works in the UK under their contract c)

does not have qualifying earnings.

Categories of worker relative to age and earnings

Earnings Age (inclusive)

16 21 22 SPA* SPA* - 74 Under lower earnings threshold (5,564)

Entitled worker

Between 5,564 and 8,105

Non-eligible jobholder

Over earnings trigger for automatic enrolment (8,105)

Non-eligible Jobholder

Eligible jobholder

Non-eligible Jobholder

*State Pension Age


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When to make the assessment

There are a number of dates on which an employer will have to assess a worker. These are:

The employers staging date, for a worker already in employment on that date

the first day of employment, for a worker who starts employment after the employers staging date

the date of the workers 22nd birthday, where this occurs after the employers staging date

the date of the workers 16th birthday, where this occurs after the employers staging date

the date they receive an opt-in or joining notice from a worker

the deferral date, if an employer has chosen to use the postponement provision for a worker

the day after the transitional period has ended, if an employer has chosen to use the transitional period for

defined benefit or hybrid

the first day of each pay reference period, where the first assessment identifies the worker to be a non-

eligible jobholder or entitled worker

For a non-eligible jobholder or entitled worker, an employer will need to continue to assess the worker in order to

identify a change to eligible jobholder status. For them a further assessment date is the first day of a pay reference

period.

The assessment is broken down into three parts;

Assessing the workers age Identify whether the workers meets different age brackets

Category of worker Description of worker

Entitled worker A worker who:

is aged between 16 and 74

is working or ordinarily works in the UK under their contract

does not have qualifying earnings

Eligible jobholder

A jobholder who:

is aged between 22 and state pension age

has qualifying earnings above the earnings trigger for automatic enrolment


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Non-eligible jobholder

A jobholder who:

is aged between 16 and 21 or state pension age and 74

has qualifying earnings above the earnings trigger for automatic enrolment

or

is aged between 16 and 74

has qualifying earnings below the earnings trigger for automatic enrolment

Identify where the work is based - Assessing whether the worker is working or ordinarily works in the UK under

their contract.

Assessing the workers earnings identify whether qualifying earnings are payable in the relevant pay reference

period and at what amount

Pay Reference Period Lower Level of Qualifying Earnings

Earning Trigger for Automatic Enrolment

1 week 107.00 156.00

Fortnight 214.00 312.00

4 weeks 428.00 624.00

1 month 464.00 676.00

1 quarter 1,391.00 2,027.00

4 monthly 1,855.00 2,702.00

Bi-annual 2,782.00 4,053.00

Annual 5,564.00 8,105.00

Postponement

Postponement is an additional flexibility for an employer that allows them to choose to postpone automatic

enrolment for a period of their choice of up to three months. Postponement is optional for an employer.

Postponement is described as postponement of automatic enrolment, and sometimes referred to as a waiting

period.

Employer must issue the worker or workers with a postponement notice to exercise the postponement.

Postponement is the postponement of the assessment of the worker and therefore a postponement of employer

duty may apply, depending on the category of worker. The assessment is postponed until a date of the employers

choosing known as the deferral date.

An employer can only choose to use postponement on certain dates. These are:

the employers staging date, in respect of any workers employed on their staging date


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the first day of employment, in respect of any worker starting employment after the employers staging

date

the date a worker employed by them meets the criteria to be an eligible jobholder after the employers

staging date

Deferral

Deferral date is the last day of the postponement period. This is key date for the employer as it is the date on

which they must assess the worker and it must be included in the postponement notice.

Deferral date is a date of the employers choosing up to three months after:

the day after the employers staging date, if they are choosing to use postponement on their staging date in

respect of any workers employed on their staging date

the day after the first day of employment, if they are choosing to use postponement on the first day of

employment in respect of any worker starting employment after the employers staging date

the day after the date the criteria to be an eligible jobholder are met, if they are choosing to use

postponement on the first day a worker employed by them meets the criteria to be an eligible jobholder

after the employers staging date

Postponement is in respect of a single worker. However, if an employer chooses to use postponement at their

staging date, they can choose to use it in respect of one worker, or groups of workers, or all their workers in

employment at the staging date.

Employers should note that months means calendar months. For example, if the employers staging date is 1

October, the latest possible deferral date they can choose is 1 January.

Review Pension Arrangements

Many employers will already have pension provision for their workers, and that will often match or exceed the

minimum requirements contained. Employer should be able to identify and understand whether they need an

automatic enrolment scheme, a qualifying scheme, or a combination of the two, to meet their duties. Employer

need to check that the minimum requirements are covered in their existing processes.

Automatic enrolment Pension Scheme

An automatic enrolment scheme must meet the automatic enrolment criteria, the qualifying criteria and the

minimum requirements. An employer must ensure that their pension scheme meets the criteria to be an automatic

enrolment scheme if they want to use it for automatic enrolment, or for enrolling any jobholders who have opted

in. An automatic enrolment scheme is a qualifying scheme with some additional features (the automatic enrolment

criteria) which means the employer can use it for automatic enrolment.

Qualifying Pension Scheme

A qualifying scheme must meet the qualifying criteria and the minimum requirements. A qualifying scheme is a

scheme that meets certain minimum requirements with some additional conditions (the qualifying criteria).

Automatic Enrolment Criteria

An automatic enrolment scheme must meet the qualifying criteria and in addition, it must not contain any

provisions that:


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prevent the employer from making the required arrangements to automatically enroll, opt in or re-enroll a

jobholder

require the jobholder to express a choice in relation to any matter, or to provide any information, in order

to remain an active member of the pension scheme

Qualifying Criteria

All automatic enrolment schemes must also meet the qualifying criteria. Any existing pension scheme that the

employer already provides before their staging date will also have to meet the qualifying criteria, if the employer

wants to continue to use it for those workers that are already active members. A pension scheme is considered

qualifying in relation to a jobholder, it must be an occupational or personal pension scheme, be tax registered, and

satisfy certain minimum requirements

Minimum Requirement

Minimum requirements differ according to the type of pension scheme either Defined Benefit or Contribution. An

employer needs to only consider the minimum requirements that are relevant to their pension scheme type.

Minimum requirements for DC pension schemes set a minimum contribution entitlement and for DB pension

schemes set a benchmark for a jobholders entitlement to benefits

Qualifying Earning

Qualifying earnings is a reference to earnings of between 5,564 and 42,475 and made up of any of the following

components of pay that are due to be paid to the worker Salary, Wages, Commission, Bonuses, Overtime, SSP,

SMP, OSPP, ASPP, SAP.

Defined Contribution (DC) occupational pension schemes

Contribution rate for DC pension schemes, personal pension schemes and some hybrid pension schemes is being

phased in. Proposed duration periods are as below

Transitional Period Duration

Employer Minimum Contribution

Total Minimum Contribution

1 Employers staging date to 30 September 2017

1% 2%

2 1 October 2017 to 30 September 2018

2% 5%

1 October 2018 onwards 3% 8%

Defined Benefit (DB) Pension Schemes

Minimum requirements for DB pension schemes are based on the benefits to which a Jobholder is entitled under

the pension scheme at retirement. DB pension schemes will satisfy the minimum requirement if the employer has

been issued with a contracting-out certificate by the National Insurance Services to the Pensions Industry (NISPI),

part of HMRC.


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If contracting-out certificate is cancelled by HMRC, or if the pension scheme is not contracted-out of State Second

Pension, it may still satisfy the minimum requirement, if it meets the test scheme standard in relation to the

jobholder.

Test scheme is a hypothetical scheme, which is used as a benchmark. A pension scheme will satisfy the test scheme

standard if it provides benefits that are broadly equivalent to or better than, the benefits the test scheme would

provide.

Key features of the test scheme include a) entitlement to a pension from age 65, gradually increasing to 68 and

continuing for life b) an annual pension of 1/120th of average qualifying earnings in the three tax years before the

end of pensionable service, multiplied by the number of years of pensionable service, up to a maximum of 40 years

c) revaluation of accrued benefits by a specified method d) the annual increase in the rate of pensions in payment.

Certifications

Existing DC pension schemes, whether occupational or personal pension schemes, will base the contributions on

the percentage rates of pensionable pay. The definition of pensionable pay in the scheme rules is likely to be

different to qualifying earnings. Pensionable pay may just include basic pay and not overtime or bonuses and may

require contributions to be deducted from the first pound earned, rather than from a band of earnings.

Employers with schemes of this type are able to self-certify that their scheme meets the minimum qualifying

criteria if the scheme (or agreements, in the case of a personal pension scheme) requires contributions in

accordance with Tier. Contribution rate for schemes using certification is also being phased in. The rate will

depend on which tier of certification is being used. The rates for all three tiers are set out below

Tier 1



Employee Minimum Contribution



2% 1% 3%


3% 3% 6%

1 October 2018 onwards 4% 5% 9%

Tier 2






1% 1% 2%


2% 3% 5%



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Tier 3






1% 1% 2%


2% 3% 5%


Automatic Enrollment Automatic enrolment is one of the key employer duties being introduced from 2012. Employers

must make arrangements so that their eligible jobholders become active members of an automatic

enrolment pension scheme from their automatic enrolment date.

An employer must automatically enroll any eligible jobholder working for them who is not already a

member of a qualifying pension scheme with that employer, either from the automatic enrolment

date, or from the end of the postponement period (in case if they choose to use postponement).

Employer must, on or after the automatic enrolment date, deduct any contributions payable by the

eligible jobholder from any qualifying earnings or pensionable pay due to the eligible jobholder in

each pay reference period.

Law also sets out the time limit for completing automatic enrolment. Before the end of what is

known as the joining window (the one-month period from the eligible jobholders automatic

enrolment date), the employer must:

give information to the pension scheme about the eligible jobholder

give enrolment information to the eligible jobholder

make arrangements to achieve active membership for the eligible jobholder, effective from their automatic enrolment date

A key feature of an automatic enrolment scheme is that the eligible jobholder must not be required to provide

information to either join or remain a member. It is the employers responsibility, working with the pension

scheme trustees, managers or pension scheme provider, to achieve active membership for the eligible jobholder

and also provide certain personal information about the eligible jobholder. Employer must complete this activity

before the end of the joining window.

Opting in, Joining and Contractual Enrolment

A jobholder can require the employer to arrange for them to become an active member of an automatic enrolment

scheme, with effect from the enrolment date by giving the employer an opt-in notice.

An entitled worker can require the employer to arrange for them to become an active member of a pension

scheme by giving the employer a joining notice.


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A non-eligible jobholder has the right to opt in by giving a notice to the employer; they can require the employer

to arrange active membership of an automatic enrolment scheme

An eligible jobholder who has been automatically enrolled but subsequently opted out or ceased membership also

has the right to opt back in to an automatic enrolment pension scheme.

An eligible jobholder, who was not automatically enrolled because they were a member of a qualifying scheme on

their automatic enrolment date, but subsequently ceased membership of that scheme, can also opt in to an

automatic enrolment scheme.

An entitled worker has the right to join a pension scheme by giving a notice to the employer; they can require the

employer to arrange active membership of a pension scheme. The scheme the employer chooses does not have to

be an automatic enrolment scheme or even a qualifying scheme.

A jobholder has the right to opt in to an automatic enrolment scheme, unless they are:

an active member of a qualifying scheme with that employer

an eligible jobholder for whom the employer has an automatic enrolment duty or

an eligible jobholder for whom the employer has a re-enrolment duty

If the notice is submitted within 12 months of a previous opt-in notice and the worker has subsequently stopped

membership of the automatic enrolment scheme into which they were enrolled, the employer is not required to

make the arrangements, although they can choose to if they wish.

Opting Out

Ongoing membership of the scheme is not compulsory for the jobholder. Where a jobholder has been

automatically enrolled, or enrolled as a result of an opt-in request, they can choose to opt out of a pension

scheme.

Opt out refers to the provision of a mechanism under the law which has the effect of undoing active

membership, as if the worker had never been a member of a scheme on that occasion. It can only happen within a

specific time period, known as the opt-out period.

Occupational pension schemes, the opt-out period starts from the later of the date the jobholder: becomes an

active member with effect from the automatic enrolment date or is provided with written enrolment information.

Personal pension schemes, the opt-out period starts from the later of when the jobholder is: sent the terms and

conditions of the agreement to become an active member or provided with written enrolment information

Eligible jobholders may choose to opt out after they have been automatically enrolled. Non-eligible jobholders

who have opted in may choose to opt out, after they have been enrolled.

Workers who have been enrolled under contractual enrolment and entitled workers who have asked to join a

scheme do not have the right to choose to opt out. If they want to leave the scheme, they must cease membership

in accordance with the scheme rules.

Refunds

Employer must refund any contributions that have been deducted on receipt of valid opt out notice. When an

employer receives a valid opt-out notice, they must refund to the jobholder any contributions that have been

deducted from pay (less any tax due) by the refund date, which is either: within one month of receiving the valid


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opt-out notice, or if the payroll arrangements closed before they received the notice, by the last day of the second

applicable pay reference period following the date on which the valid opt-out notice was received.

Jobholders who leave an occupational pension scheme after the opt-out period has ended (ie they cease active

membership), may also be entitled to a refund of contributions. This will depend on the length of their

pensionable service and the pension schemes own rules.

Ceasing Active Membership

A jobholders right to choose to opt out expires at the end of the opt-out period. However if they want to leave

the scheme after this, they can cease active membership as per the scheme rules. Entitled workers who have asked

to join the scheme do not have the right to choose to opt out; instead they can cease the active membership in

accordance with the scheme rules if they do not wish to remain in the scheme.

A worker, whom the employer has enrolled into a qualifying scheme under a contractual agreement rather than

under the employer duties, does not have a right to choose to opt out. If they decide that they do not wish to

remain in the scheme, they must cease active membership in accordance with the scheme rules.

Implementation of Automatic Enrollment in PeopleSoft Once the Automatic Enrollment patch is applied as per the patch release documentation, the following process is

to be followed to make use of the application for Auto Enrollment Process.

Define Pension Scheme GBR

A new setup page is used to define a pension scheme and corresponding contribution. The page can also be used

to make the pension scheme as Qualifying Pension Scheme. Contribution entered here will be used to update

payee data for Pension during Auto Enrollment process.

Setup HRMS > Product Related >Global Payroll and Absence Management> Pension >Define Pension Scheme

GBR


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Field Description

Pension Scheme Enter a pension scheme to identify either QPS or NQPS.

Description Enter the description of Pension Scheme.

Qualifying Pension Scheme. Mark the checkbox for Default Qualifying Pension Scheme.

Pension Type Following values can be selected:

a) AVC1 Percentage and Amount Value can be entered.

b) FIXA Amount value only can be entered

c) PCTB Percentage Value only can be entered.

Effective Date Date on which the pension scheme is effective

Effective Status Status of the Pension scheme

Employee Percentage % of Employee Contribution to Pension

Employer Percentage % of Employer Contribution to Pension

Employee Amount Amount of Employee Contribution to Pension

Employer Amount Amount of Employer Contribution to Pension

Define Qualifying Pension Scheme

This is a new page which can be used to tag a Qualifying Earning to a Pay Entity and define the defaults like

postponement and staging date. Qualifying Pension Scheme will be a prompt here. The valid values will be

Pension schemes having Qualifying Pension Scheme checked in Define Pension Scheme GBR page. Once a

qualifying Scheme has been tagged to a pay entity, system will consider the same as a default qualifying Pension

scheme for the particular pay entity.

Navigation: Setup HRMS > Product Related >Global Payroll and Absence Management> Pension >Define

Pension Scheme GBR


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Field Description

Pay Entity Employer to Select the Pay Entity to Map the Qualifying

Pension Scheme.

Staging Date Enter the staging date defined for the employer.

Effective Date This date will be used as base to find out the end date of

Worker/Job Holder deferment.

Qualifying Earning Accumulator Qualifying Earning Accumulator is used by Auto Enrollment

Batch Process to validate against Qualifying Earning

Thresholds.

Qualifying Pension Scheme To map the Qualifying Pension Scheme that is applicable for

the pay entity

Worker Deferment/ Job Holder Deferment Worker deferment is for the newly joined whereas the Job

Holder deferment is for current employees.

System will apply worker deferment (if available) for

employees for whom either no event has been triggered or

postponement has been triggered.

System will apply Job Holder deferment (if available) for

employees for whom no event for postponement has been

triggered.

Note: No of days entered either in Worker or Job Deferment shall be used for assessment process and will be

considered from effective date. For example, if Worker Deferent is entered as 90 Days with an effective date of

01st December 2012, then worker deferment will be considered till 28th February 2013.

Pension Event Set Up

This is a new setup page which will be used to maintain events and corresponding status for an applicant.

Whenever an auto enrollment process will be run, it will update the event and status corresponding to the process

run date in events table. The setup for those will be defined here. Setup data for the same is shown below:

Setup HRMS > Product Related >Global Payroll and Absence Management> Pension > Pension Event Setup

GBR.


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EVENTS STATUS Comments

Enrollment Auto Enrolled Set when an Employee is auto enrolled.

Conditions are as follows:

Age is 22 or older but less than State Pension Age

Earnings reach or exceed Automatic Enrollment Threshold.


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EVENTS STATUS Comments

Enrollment Voluntary Enrolled Set when Employee will be enrolled on check of an Opt-In flag in Pension Payee data. Conditions are as follows: Age is 16 or over but under 75 with earnings above the lower threshold for qualifying earnings but less than or equal to the automatic enrollment threshold (Or) Age is 16 or over but under 22 with earnings above the automatic enrollment threshold. (Or) . Age is State Pension Age or over but under 75 with earnings above the automatic enrollment threshold.

Enrollment Seized Enrolled Set when Employee will be enrolled on check of an Opt-In flag in

Pension Payee data.

Conditions are as follows:

Age is 16 or over but under 75 with earnings equal to and lesser

than lower threshold for qualifying earnings.

Note: No Employer Contribution is applicable.

Assessment Not Enrolled -Age

Not Eligible

Set when an Employee is rejected by the auto enrollment process on

the grounds of Age validations.

Assessment Not-Enrolled -

Earning Not

Eligible

Set when an Employee is rejected by the auto enrollment process on

the grounds of Earning validations.

Postponement Worker Deferment Set when an applicant is rejected due to Worker Deferment.

Postponement Jobholder

Deferment

Set when an applicant is rejected due to Job Holder Deferment.

Opt-Out Opted Out with

refund

Set when an Employee has opted out before the opt-out date defined

from the pension scheme and the applicant was enrolled under

Status\Reason as Enrolled\Auto Enrollment or Enrolled\ Voluntary

Enrollment.

Opt-Out Opted Out without

refund

Set when an Employee has opted out after the opt-out date defined

from the pension scheme and the applicant was enrolled under

Status\Reason as Enrolled\Auto Enrollment or Enrolled\ Voluntary

Enrollment.

Opt-Out Opted Out for

seized

membership

Set when an applicant has opted from the pension scheme and the

applicant was enrolled under Status\Reason as Enrolled\ Seized

Enrollment

For the values mentioned above, Process Used flag will be checked. The field will be available in display only

mode. The Auto Enrollment process will set only these events and status in the Payee data for Pension Pages.

However payroll administrator can add more events/status and use the same in Payee data for Pension Pages.


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Process Flow Workforce Assessment and Automatic Enrollment

Process Flow Workforce Assessment and Automatic Enrollment

Start

Auto

Enrollment

Process

Trigger

Run

Workforce

Assessment

Is

Applicant

Eligible Job

Holder

Select

Applicant

for Auto

Enrollment

Select

Applicant from

Voluntary or

Seized

Enrollment

Age >22

and < SPA

Earning >

Automatic

Enrollment

Threshold

Deferred

at Pay Entity

Level

Deferred

at Payee Level

Employee

Selected for

Auto

Enrollment

Employee

Not Selected

for Auto

Enrollment

If Final

Mode is

True

Updates

Pension

Payee

Data

Generate

Reports

End

Age b/w

16 and 22 or

SPA and 75 and

Earning above auto

threshold

Age b/w

16 and 75 and

Earning b/w

lower and auto

threshold

Deferred

at Pay Entity

Level

Deferred

at Payee Level

GPGB_PEN_EVENTS

GPGB_PEN_PAYEE,

GPGB_EE_PENSION

YES

NO

NO

YES

NO

NO

YES

NOYES

YES

YES

YES

NO

NO

NOYES YES

YES


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PeopleSoft Batch Process for Assessment and Auto Enrollment

Get the Run Control

Parameter

Get the Pay Entity and

Pension Scheme Details

Calendar Group ID Pay Entity Pay Group

Load the Temp Table with

details of affected

Employees of CRI


details of affected

Employees of PE


details of affected

Employees of Pay Group

DATA SET


details of Employee

specified

Update Temp Table with

Overrides. Ex Override

Pension Scheme and

corresponding contributions

ASSESSMENT

Final Run

ENROLL

REPORTING

Create XMLP Report

START

Update

GPGB_PEN_EVENTS,

GPGB_PEN_SCHEME,

GPGB_PEN_PAYEE

Process for CRI, Pay

Entity, Pay GroupIF CRI IF PE IF PG

For Specified

EMPLID

No No

Yes Yes Yes

Yes

NoYes

No

END


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This page is used for running the AE program which will automatically enroll the eligible employees in the

Default Qualifying Pension Scheme.

Global Payroll and Absence Management > Absence and Payroll Processing > Auto Pension Enrollment GBR

Define Payee Data for Pension

Pension Schemes and Pension Events Scrolls will be updated by the Auto Enrollment Process. Qualifying

Pension Scheme Details scroll will be used by admin to enroll a non-eligible workers/Job Holders using the

Opt-In functionality. Opt-Out start and End dates capture the period before which the applicant can opt-out.

For the Opt-out, admin has to select the Opt-out checkbox shown, Applicant will be opted out in the

subsequent auto enrollment process run. Admin can also define postponement at payee level using this page.

Payee Overrides

Field/Event Description/System Response

Effective Date In Case of Opt-In Override: Enter the start date of enrollment i.e. the first day

of the period from which employee is to be enrolled.

In Case of Opt-Out Override: Enter the date greater than the period start


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Field/Event Description/System Response

date and lesser than the period end date.

System will always consider the maximum effective dated entry.

Opt-Out Opt-Out should be checked, if the employee has to opt out. The Auto

Enrollment Batch Process will opt out the employee. The employee can be

enrolled again by checking the Opt-In flag. Also the Auto Enrollment Batch

Process will automatically reenroll the employee after one year of Opt-Out.

Opt Out will be invisible till the employee has been processed once by auto

enrollment process

Do Not Process Should be selected for employees who should not be accessed by Auto

Enrollment Batch Process

Opt In Mark if an employee has to opted in even after non eligibility.

Add a new Effective Date and check Opt-In again for Re-Enrollment in case

the previous enrollment has been cancelled (using the Opt Out check box) on

request of employee.

Also, if the employee is eligible after 3 years of opting out, the AE will

automatically re enroll the employee.

Override Pension

Scheme

The Pension Scheme should be selected, for the payee who needs to be

enrolled using the Opt-In functionality but not in the Qualifying Pension

Scheme.

Aggregate Earning Select Aggregate Earning if earnings of multiple jobs have to be added

before comparison with Threshold.

Percentage Contribution If an employee is having multiple employee records and the deduction has to

be shared by each employee records, the % contribution for each should be

defined here. By default the value will be 100.

Factor In case of employee having multiple records in different pay reference period,

factor has to be entered, such that when the most recent payroll earning is

multiplied by the factor, it gives the amount paid to the employee in the period

of default pay reference.

Postponement Reason Select the valid reason - Job Holder Deferment or Worker Deferment

Postpone Till Enter the date.


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Pension Scheme Field/Event Description/System Response

Start Date Start date of Pension Scheme.

End Date End Date of Pension Scheme.

Opt Out Start Date Start date of Opt out period.

Opt Out End Date End Date of Opt out period.

Employee Percentage/ Employer Percentage/

Employee Amount/ Employer Amount

Appropriate values will be updated from batch process.

Pension Events Field/Event Description/System Response

Event ID Process used events will be automatically updated by

batch process.

Process Run Date Process run date entered in the run control page for batch process.

Effective Process Date 1st day of the period from which the event will be

effective.

Pension Scheme Name of the Pension Scheme.

Status Process used status will be automatically updated by batch process.

Calendar Group Id Cal Run Id used by system for assessment. (Most recent Payroll)

Qualifying Earning Qualifying Earning value for the calendar mentioned above.

Pay Reference Start Date Start date of the period for in which the employee has been enrolled.

Pay Reference End Date End date of the period for in which the employee has

been enrolled.

Conclusion Automatic enrolment into a pension scheme has been shown to be one of the most effective ways of increasing

pension saving, by introducing a presumption to save. Investment in the key technologies for socializing the long-

term investment message will provide companies with a key differentiator in reaching this market. Without new

strategies based on the social networks that people use and the new technologies they use, providers will unable to

reach this market effectively. For employers the correct approach will be to consider adopting the legislation early

to avoid the rush, remove the risk of missing the regulatory deadlines, start communicating the impact to their

employees and deriving value from their additional spend on pension contributions.


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Expected Patch Availability These changes are delivered for releases 9.0 and 9.1 and are available for customers. The references to the

Bug/Resolution numbers is mentioned below

Release Bug # Resolution ID

9.0 14190586 889772

9.1 14201669 889773

Customers who have purchased extended support for releases 8.9 can contact support to get information about

availability of the update on these releases.

pension whitepaper v1.1

Documents

automatic enrolment

qualifying pension scheme

automatic enrollment

review pension arrangements

entitled worker

eligible job holder

qualifying criteria

categories of worker