Removing Employee From Pension Scheme

The situation regularly arises where an employee has been on a pension scheme for a period of time, but has opted out, and it is necessary to refund their pension payments.

The following steps will be required:

  1. It will be necessary to leave the employee on the pension fund for the current period, as refunds can only be made with the pension fund open.
  2. The following changes could be made to the employee’s pension definition to ensure that if stage 5 is missed, then no deductions are taken in the future:

    a) Set Employer Percentage and Value to zero.
    b) Set Employee Percentage and Value to zero.
    c) Set Fixed to Yes.

  3. Calculate the amount of employee and employer refunds to be made.
  4. Use Pensions Override in HR Record Payroll Functions. Enter the required scheme from the drop-down list and the required refunds into the appropriate boxes (Note: with minus signs).
  5. After the Month End has been run, the employee’s pension record should be set as closed, so that no more deductions are taken.