Last updated on OCTOBER 26, 2016
Applies to:PeopleSoft Enterprise HCM Global Payroll UK - Version 9.2 and later
Information in this document applies to any platform.
There are two types of Pension in the UK.
1. Occupational Pension Scheme (OPS) where the contributions are deducted at the full amount from the employee and the deduction is treated as a Pre-Taxdeduction
2. Group Personal Pension (GPP) a.k.a. "Contract Based". This is deducted from Net pay and tax is "added" by the pension provider, so only 80% is sent from the employees contribution. Higher rate tax payers then need to claim back the difference on their personal tax returns.
It would appear that the PeopleSoft Auto Enrollment config only covers one of the two types of statutory pension scheme at present. They are using the second type of pension scheme and as such require that the pension contributions be deducted as a net contribution. Meaning that if someone opts to pay 5% they would enter 4% as a deduction.
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