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Pension Schemes

This screen is used to create and maintain details about pension schemes to which employees and the entity may make payments.

Please note, Liberty Accounts recommend you take appropriate professional advice to fully understand the nature of the pension scheme and the obligations with respect to National Insurance Charges.


Active

If this checkbox is unchecked the pension scheme will be considered inactive. Deactivate a pension scheme if you do not want it to appear in pay dropdown lists. This is a mandatory field.

Pension Scheme

Enter a unique descriptive name for the pension scheme. This is a mandatory field.

Pension Scheme Type

Select the scheme type from the dropdown list. This is a mandatory field.

  • COMP - Contracted-out money purchase
  • COSR - Contracted-out salary related
  • Stakeholder - Stake holder pension
  • PPP - Personal Pension Plan
  • Other - Other type of scheme

    • Please take appropriate advice to fully understand the nature of the scheme.

    Scheme Contracted Out Number (SCON)

    This number will be on the certificate received from the Inland Revenue Audit and Pension Scheme Service (APSS) approving the right to work out and pay NICs at the contracted out rate for those employees covered by the certificate. The number is always prefixed by an "S" and then made up of 7 numbers and a final letter i.e. S9999999Y

    Approved Personal Pension Plan

    Click this box if the scheme is an approved personal pension plan.

    Pre-Tax Deduction

    Click this box if the scheme qualifies for full tax relief. The default is checked i.e. that the scheme will enjoy full tax relief.

    Employee Pension Contribution

    Choose how pension contributions by the employee will be calculated. Select either Percentage or Fixed Amount. The percentage will be applied to the sum of those pay elements indicated to be included in the Pensionable Gross.

    Employee Contribution Rate/Amount

    Enter either the percentage amount as 6.50 or an amount as 75.00.

    Employer Pension Contribution

    Choose how pension contributions by the employer (if any) will be calculated. Select either Percentage or Fixed Amount. The percentage will be applied to the sum of those pay elements indicated to be included in the Pensionable Gross.

    Employer Contribution Rate/Amount

    Enter either the percentage amount as 6.50 or an amount as 75.00.

    Pension Expense Account

    Select from the dropdown box the relevant expense account to which any employers pension contribution will charged.

    Pension Liability Account

    Select from the dropdown box the relevant liability account to which the employees and employers (if any) pension contribution will be accumulated until paid to the pension provider.