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:
- 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.
- 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.
- Calculate the amount of employee and employer refunds to be made.
- 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).
- After the Month End has been run, the employee’s pension record should be set as closed, so that no more deductions are taken.