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EPN333 - Payroll Interface changes following increase to Employee Contributions

Audience: This Notice will be of particular interest to:

  • HR Managers – with payroll responsibilities
  • Payroll Managers

Action:

  • Implement changes to record employee contributions

Timing: Immediate

The PenServer database holds employee contributions on the Payhist set, these are populated via interface from the employers’ payroll systems. There are three interface formats in which this data can be supplied Full (Blackbox), Standard and Spreadsheet.

The main documents supporting these interfaces have now been updated to include guidance for payrolls on how to interface the increased contributions payable from 1 April 2012, and are available following issue of this EPN on request.

DocumentFor use byInterface Type
Payroll Extract File Specification Payroll suppliers Full Interface
Standard Interface Developers Guide Payroll suppliers Standard Interface
Contained in this EPN Payroll suppliers Spreadsheet Interface

EPN314 advised employers how they should provide information using the current interfaces so as not to impact on existing calculations. EPN317 adjusted the specification and identified a requirement to hold the additional contributions for classic members for valuation purposes.

Full and Standard Interface

Classic standard (pre 1/4/12 rate) contributions are held in field WPSCNT of the PAYHISTset, and this will continue. The new additional employee contribution will be held in field SCHCNT in common with other sections.

With premium, classic plus and nuvos there is no change and scheme contributions will continue to be held in PAYHIST field SCHCNT. This will include both standard (pre 1/4/12 rate) and additional employee contributions which will be one composite amount.

In addition the nuvos contribution rate needs to be recorded, a new data set ‘Scheme Contribution Rate History’ has been introduced. Payrolls will need to include this on their interface file. It is necessary to capture the member’s contribution rate as the contributions may also be used as a crosscheck on earnings when allocating pension to the CARE account;

  • The Scheme Contribution Rate History should be recorded manually for all members in the period from 1 April 2012 to the inclusion of the new data set on the payroll
    interface file.
  • The contributions should be recorded on the next interface as an accumulated figure
    from 1 April 2012, and subsequent interfaces will provide the year to date figure.
  • It will be necessary for an interface to be made in any month where the rate of contributions for any nuvos member changes.

Spreadsheet Interface

For classic members the amount of standard contributions, 1.5% of salary or multiple thereof, should still be recorded in the WPS Contributions column of the Pay History sheet. Any additional salary-related amount of contributions payable from 1/4/12, which could be 0%, 0.6%, 1.2%, 1.6%, 2% or 2.4% of salary, should be recorded in the Scheme Conts column on the same sheet.

  • It will be necessary to record and hold the history of contribution rates and dates of change for nuvos members, which should then be provided once the revised spreadsheet has been issued.
  • No attempt should be made to record the rate of contributions being deducted, until a revised spreadsheet is supplied.
  • Once the revised spreadsheet is issued it will be necessary for an interface to be made in any month where the rate of contributions for any nuvos member included in the
    interface changes.

Other Issues

Employers need to stop the additional employee contribution for classic scheme members when they accrue 45 years reckonable service. Employers should liaise with their PSC to initiate a process to identify any such members. A new PenServer workflow has been issued which will identify and report classic members with 45 years reckonable service.
Payroll Interfaces EPN333

Auto Enrolment

With the introduction of auto enrolment employers will now be required to interface any members who opt out of the scheme, including any employees who opt out, prior to joining the scheme.

Reference

EPN314 & 317

Contacts

Enquiries regarding distribution or to receive in a different format Mycsp.basingstoke@dwp.gsi.gov.uk