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

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

2

Workplace Pension Automatic Enrolment

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

Workplace Pension Automatic Enrolment

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.

Workplace Pension Automatic Enrolment

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
Under lower earnings
threshold (5,564)
Between 5,564 and
8,105
Over earnings trigger for
automatic enrolment
(8,105)

16 21

Age (inclusive)
22 SPA*

SPA* - 74

Entitled worker
Non-eligible jobholder
Non-eligible
Jobholder

Eligible
jobholder

Non-eligible
Jobholder

*State Pension Age

Workplace Pension Automatic Enrolment

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 noneligible 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:

Eligible jobholder

is aged between 16 and 74

is working or ordinarily works in the UK under their contract

does not have qualifying earnings

A jobholder who:

is aged between 22 and state pension age

has qualifying earnings above the earnings trigger for automatic enrolment

Workplace Pension Automatic Enrolment

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

Workplace Pension Automatic Enrolment

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:

Workplace Pension Automatic Enrolment

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

Employers staging date to 30 September 2017

1 October 2017 to 30 September 2018

1 October 2018 onwards

Employer
Minimum
Contribution
1%

Total Minimum
Contribution
2%

2%

5%

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.

Workplace Pension Automatic Enrolment

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
Transitional
Period

Duration

Employers staging date to 30

September 2017

1 October 2017 to 30 September

2018

1 October 2018 onwards

Tier 2
Transitional
Period

Duration

Employers staging date to 30

September 2017

1 October 2017 to 30 September

2018

1 October 2018 onwards

Employer
Minimum
Contribution
2%

Employee
Minimum
Contribution
1%

Total Minimum
Contribution
3%

3%

3%

6%

4%

5%

9%

Employer
Minimum
Contribution
1%

Employee
Minimum
Contribution
1%

Total Minimum
Contribution
2%

2%

3%

5%

3%

5%

8%

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Workplace Pension Automatic Enrolment

Tier 3
Transitional
Period

Duration

Employers staging date to 30

September 2017

1 October 2017 to 30 September

2018

Employer
Minimum
Contribution
1%

1 October 2018 onwards

Employee
Minimum
Contribution
1%

Total Minimum
Contribution
2%

2%

3%

5%

3%

4%

7%

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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Workplace Pension Automatic Enrolment

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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Workplace Pension Automatic Enrolment

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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Workplace Pension Automatic Enrolment

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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Workplace Pension Automatic Enrolment

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.

15

Workplace Pension Automatic Enrolment

EVENTS
Enrollment

STATUS
Auto Enrolled

Comments
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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Workplace Pension Automatic Enrolment

EVENTS
Enrollment

STATUS
Voluntary Enrolled

Comments
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.

Assessment

Not Enrolled -Age

Not Eligible
Not-Enrolled Earning Not
Eligible
Worker Deferment

Assessment

Postponement
Postponement
Opt-Out

Jobholder
Deferment
Opted Out with
refund

Opt-Out

Opted Out without

refund

Opt-Out

Opted Out for

seized
membership

Note: No Employer Contribution is applicable.

Set when an Employee is rejected by the auto enrollment process on
the grounds of Age validations.
Set when an Employee is rejected by the auto enrollment process on
the grounds of Earning validations.
Set when an applicant is rejected due to Worker Deferment.
Set when an applicant is rejected due to Job Holder Deferment.
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.
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.
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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Workplace Pension Automatic Enrolment

Process Flow Workforce Assessment and Automatic Enrollment

Process Flow Workforce Assessment and Automatic Enrollment
NO

Start

Auto
Enrollment
Process
Trigger

Run
Workforce
Assessment

Is
Applicant
Eligible Job
Holder

Select
Applicant from
Voluntary or
Seized
Enrollment

YES
Select
Applicant
for Auto
Enrollment

Age b/w
16 and 75 and
Earning b/w
lower and auto
threshold

Age >22
and < SPA

NO
YES
If Final
Mode is
True
YES
Updates
Pension
Payee
Data

Age b/w
16 and 22 or
SPA and 75 and
Earning above auto
threshold

Earning >
Automatic
Enrollment
Threshold

NO
YES

GPGB_PEN_EVENTS
GPGB_PEN_PAYEE,
GPGB_EE_PENSION

YES

NO
Employee
Not Selected
for Auto
Enrollment

Deferred
at Pay Entity
Level
Generate
Reports

Deferred
at Pay Entity
Level

YES

YES
NO

YES

NO

YES

Deferred
at Payee Level
End

YES

NO

Employee
Selected for
Auto
Enrollment

Deferred
at Payee Level

NO

18

Workplace Pension Automatic Enrolment

PeopleSoft Batch Process for Assessment and Auto Enrollment

START

Get the Run Control

Parameter

Get the Pay Entity and

Pension Scheme Details

Process for CRI, Pay

Entity, Pay Group

IF CRI

No

IF PE

No

IF PG

Yes

Yes

Yes

Calendar Group ID

Pay Entity

Pay Group

Final Run
No
For Specified
EMPLID
Yes

Yes

Load the Temp Table with

details of Employee
specified

No
Load the Temp Table with
details of affected
Employees of CRI

Load the Temp Table with

details of affected
Employees of PE

Load the Temp Table with

details of affected
Employees of Pay Group

ENROLL

DATA SET
Update
GPGB_PEN_EVENTS,
GPGB_PEN_SCHEME,
GPGB_PEN_PAYEE

REPORTING

Update Temp Table with

Overrides. Ex Override
Pension Scheme and
corresponding contributions
Create XMLP Report

ASSESSMENT
END

19

Workplace Pension Automatic Enrolment

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

20

Workplace Pension Automatic Enrolment

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.

21

Workplace Pension Automatic Enrolment

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.
st
1 day of the period from which the event will be
effective.

Effective Process Date

Pension Scheme

Name of the Pension Scheme.

Status

Process used status will be automatically updated by

batch process.
Cal Run Id used by system for assessment. (Most
recent Payroll)
Qualifying Earning value for the calendar mentioned
above.

Calendar Group Id
Qualifying Earning
Pay Reference Start Date
Pay Reference End Date

Start date of the period for in which the employee has

been enrolled.
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 longterm 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.

22

Workplace Pension Automatic Enrolment

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.

23