Setting up a Pension Scheme

Pension Details

• Click ‘Add New’ at the bottom.
  
  
• Enter the pension name in the ‘Fund Name’ box
  (Example: ‘NEST Pension’, ‘NOW Pension’ or ‘Pension scheme’)
   
• Enter a ‘Scheme Reference’ if you have one
  (This will be provided by the pension provider usually)
  
   
•  Add in/select a ‘Pension Provider’
  (A Pension Provider is required if you want to produce AE reports and pension provider files/exports from QTAC. This is also known as a beneficiary)  

Pension Contributions

• Input the ‘Employee’ and ‘Employer’ percentage values. This defines how much of an employees pay will be sacrificed for the pension and how much of the employees pay the employer will invest into the pension.
  (The employee percentage will differ depending on if you’re using a ‘Relief at Source’ or ‘Net Pay Arrangement’ pension. Clarify this with your pension provider.)

Pension Type

• Select the ‘Pension Type’ – either Non Contracted Out or Contracted Out. If you have a Contracted Out pension you will need your SCON number (scheme contracted out number). Enter this number in the field provided.
  (This is only for occupational pensions and not for Auto Enrolment schemes.)

Auto Enrolment

• If the pension scheme is an Auto Enrolment scheme, tick ‘Auto Enrolment’
  (If the pension scheme isn’t an AE scheme but does meet the minimum requirements for an AE scheme then that’s fine, leave this un-ticked)
• If the pension scheme is a ‘Qualifying Scheme’ then tick this box. (If the pension scheme ‘qualifies’ under Auto Enrolment rules then you should tick this box) 
• If the pension scheme is self-certified then tick the ‘Self Certified’ box
  (This would be if you’re using a current pension scheme that isn’t already an Auto Enrolment scheme but meets the requirements for AE contributions. If you have this checked then you will likely need to check the qualifying earnings as well.)
• Under ‘Tax Relief Operation’ – you will need to select how any tax relief will be calculated, either ‘Relief at Source’ or ‘Net Pay Agreement’. (Confirm which tax relief option you are using with your Pension Provider; a brief description is provided within the software for what each of these is.)

Calculation Operation

• If you want this pension to be a salary sacrifice pension, select the ‘Salary Exchange’ option. If the employer is passing on a percentage of their NI savings on to the employee, then enter the percentage amount required.
• If you need to set a contribution limit, then tick the ‘Annual Contribution Limit Enabled’ box and enter in the limit required.
  (Some pension providers will limit the total amount of contributions that can annually be paid into a pension fund. QTAC will not allow any contributions to be calculated once past this limit)
• ‘Calculate Employee/Calculate Employer’
  Ticking these boxes means that contributions will only be calculated between the Lower Earnings Limit and the Upper Earnings Limit. In other words, contributions will only be taken from £486.00 to £3532.00 (monthly. These values may change in future years).
  (Some pensions may define pensionable pay as the earnings between the lower and upper qualifying earnings thresholds. If this is the case then check either one or both of the employee and employer checkboxes.)
• Click ‘Save’ once you have entered all the required details.This is all the information that you would need in this area of the software.
• Now you have set up the main pension fund you can move to ‘Company > Company Maintenance > Pension‘ There is a link to this area of the software at the bottom of this guide.
  
  Next – Company Settings

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