Setup Salary Sacrifice AE Pension

Follow this guide to set up a Salary Sacrifice pension scheme. This operates by making a deduction from workers gross pay rather than net pay.

Pension provider portal

Check the requirements for your pension provider. You will normally need to setup a new scheme or worker group in your pension provider’s portal that specifies Salary Sacrifice (SS)

Scheme(s)

You will need to add an AE Pension scheme Pay Definition that specifies Salary Sacrifice. In general you would add new scheme appropriately named e.g. Pension SS scheme to operate alongside Pension scheme if you need a non SS scheme for certain workers. Ensure you select the Salary sacrifice option in the scheme along with other settings such as worker group.

Ensure you set the appropriate contribution percentage for the Company on the scheme. For example the company contribution might be 3%.

Report(s)

Each provider has different restrictions on how many schemes can be used in a single pension report file. e.g. some providers only allow a single scheme, others allow multiple schemes or multiple schemes if certain scheme details do not differ.

Ths will dictate the number of pension report definitions required. When you add each Report Definition, you can specify the schemes used, noting that blank means all schemes.

Workers AE Pay Items

Ensure the AE Pay Item on each workers references the SS scheme set above.

Ensure you set the appropriate deduction percentage on each worker. For example the worker deduction from gross might be 5%.

Note

With Salary sacrifice, both contributions will be added together and appear as a single company contribution in the pension report. However, they will continue to appear separately across the system in Live payslip and My documents.