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Pension
Data
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Main Data
'Date pension started' used to be on the Members,
Member Details screen.
Pension review date - if reviews are carried
out each year, it indicates the day and month of each review. The year
indicates the date that the review year was last changed. If the pension
payments are reviewed less frequently then it indicates the year of the latest
review (as well as month and day). The review date is not the date that limits
are re-set.
Date Pension Ceased – a date is
entered if a pension ceases permanently (as opposed to being suspended)
Planned Pensions
This table shows the regular pension
payments that are being made and have been made in the past e.g. a pension of
£12,000 p.a. is being paid monthly in advance with effect from
The ‘Tax Type’ column has 2
options for a member – ‘Taxable’ is the normal option where
all payments are fully subject to PAYE. ‘UFPLS’ applies where part
of each payment is a tax free lump sum. For records with member status of
‘Beneficiary, Flexi – Tax Free’ there is a third option of
‘Tax Free’ which should only be used for such beneficiaries. If a
member receives a small pension that is within the personal allowance it should
still be recorded as Taxable, even if no tax is eventually deducted under PAYE.
Planned Adjustments
This table provides a record of exceptions
to the regular pattern. The amounts entered override the regular pattern. For
instance, the member may say he wants to draw £3,000 next month to
override the usual £1,000 per month. When this is entered, the 'Payroll
Schedule' will include a gross amount of £3,000 for that month and will
automatically revert to the regular £1,000 for the following month. The
table builds up a permanent record of such adjustments. The ‘Adjustment
date’ defines the month for the adjustment to be paid – there is no
need to consider whether the payroll will be paid early that month because of
weekends or bank holidays – Omni will use the adjustment amount for any
Pay Day in the same month as the adjustment date.
Benefit Payments
The Benefit Payments table shows the
amounts that have actually been paid – the records are imported from the
bank transactions.
If a member has more than 1 arrangement, extra columns will show the split of
each crystallised payment between the arrangements. The columns for ‘pre
2006 part’ and TiDs will not appear if they do not apply.
The split between the arrangements can be
entered manually (either here or on the ‘Import Trans’ screen or in
the Add Details screen in Bank Transactions) or by using the ‘F6’
button. The F6 button multiplies the value in the ‘Amount’ column
by the percentages stored on the Extra Arrangements tab and stores the results
in each column. When selecting the appropriate record from the Arrangements
grid, Omni uses the Pay Day for the transaction, or if that is not present, it
uses the transaction date.
Payments such as lump sums can be paid from
uncrystallised funds. However, the percentage splits between the arrangements
relate to crystallised funds. Rather than using F6, you need to calculate the
protected rights element to enforce proportionality.
‘Pay day’ is the date that the
pension is due for PAYE purposes. Sometimes pension payments leave
the scheme bank account before the due date (e.g. when a payroll bureau or a
centralised payroll account is used). In this situation, the pension payment
will be considered to be in transit between the date in the ‘Date’
column and the ‘Pay day’ but will still be an asset of the scheme.
This is included in the investment
valuation.
The Name and Address button allows you to
store the name and address of the person that a lump sum has been paid to.
Select the lump sum payment before clicking on the button.
The description has a drop down list of
possible options. The death and taxes page
gives more information.
The Excel button
exports details of all payments, including columns for Pre 2006 and TiDs if
they are present. You can select a date range, to select all pension payments
with a Pay Day in that period. If Pay Day is not present for a record, it is
included if the payment date is in the range. It will
list all imported payments first and then list all other pension payment bank
transactions (posted transactions that haven’t been imported, new
transactions and expected transactions).
Pension Limits
Pension reviews are different from pension
limit recalculations e.g. after April 2011, limits are generally recalculated
every 3 years, whereas the pension being paid may be reviewed every year. The
Limit date depends on the situation – choosing effective date.
The
Limit Type field distinguishes a recalculation of the limit which last for 3
years from intermediate recalcuations that do not affect the existing 3 year
cycle:
1.
If the limit relates to the first BCE,
then the Limit Type is ‘Full’
2.
If the limit is due to an extra BCE, the
3 year cycle is not changed and the Limit Type is ‘Extra BCE’
3.
If the limit is due to an annuity, the 3
year cycle is not changed and the Limit Type is ‘Annuity’
4.
If the limit is due to a pension sharing
order, the 3 year cycle is not changed and the Limit Type is ‘PS
Order’
5.
If the member requests that the limit is
recalculated at the next anniversary, the limit would restart the 3 year period
i.e. it is a ‘Full’ limit.
6.
If the limit has been recalculated after
3 years, then the Limit Type is ‘Full’
7.
If the limit was automatically increased
by 20% for the year starting after 25th March 2013, the Limit Type
is ‘20% Uplift’ – may be generated in Xlreports – see help file.
For a member over age 75, all limits are all
‘Full’ because the limit has to be recalculated each year.
The Event
Date field can be used to identify the limit record (as opposed to the date the
limit applies from). For instance,
1.
for an Extra BCE that takes place part of the way
through the year, the Limit Date shows the beginning of the pension year and
Event Date can show the date of the BCE.
2.
For an annuity, the Event Date is the date that the
annuity was bought (even though the limit date is the start of the next pension
year).
3.
For a full limit, the Event Date can be the nominated
date i.e. the effective date of the calculation.
The Scope button produces a report similar
to the Excel button on the Benefit Payments tab but the date range is
automatically set for the latest limit years. The year for each arrangement can
be different and a table is produced showing the date the latest pension limit
year started for each arrangement, the limit for this year, the total pension
paid so far this year, the number of months left and the scope for further
payments in this year.
Payroll
There are various fields that store
general data:
Payroll – whether the PAYE is
processed through Omni or an external method
Payment Method – BACS, cheque,
standing order
Paying Bank Account – select which
of the scheme’s accounts the pension payment is made from
Day Payment Leaves Account – if the
pension leaves the scheme bank account before Pay Day, the regular day of the
month can be entered here
Payroll reference – your reference
for pensioner, perhaps needed if you use an external payroll program e.g. Sage
Pension
Suspended - if it is ticked it indicates that the member has suspended pension
payments for an unspecified period (this overrides the other data on pension
payments)
Paid By – allows different
‘departments’ to be used for different members e.g. you may have a
group of pensioners paid from Cater Allen or Bank of Scotland and want to
provide bulk instructions to that bank
Ignore RTI? (for child under 16 not taxed) –
beneficiaries under 16 do not need to be reported via RTI where the amount does
not exceed the personal allowance. If you are sure that the total payments for
the tax year will not exceed this amount, you can tick this box and the
beneficiary will not be included in the RTI submission. When processing the
payroll, Omni will check the position and if the total payments so far in the
tax year reaches the personal allowance or the member reaches age 16, this box
will be unticked automatically.
Pay Day – if you are processing the
payroll individually (rather than all members as one group on one day) you can
store the individual Pay Day for each member. This is not necessarily the day
the funds leave the bank account but is the date that determines the tax month
and tax year for PAYE purposes.
Net Pay STO ref and Tax STO ref –
the bank’s reference for the different standing orders, used when giving
instructions to the bank e.g. to distinguish between the net pay and tax
standing orders or between different pensioners in the same SSAS. There is only
Tax STO ref for each scheme, it cannot be different for different members.
Month 12 Rebates – tick this if the
member is not paid monthly and you want to generate a tax rebate in tax month
12.
The Pension Payroll Processing
(Payroll Schedule) uses all of the above data to produce a list of all pensions
due in a month.
Cancellation
The Cancellation
tab stores details of cancellation rights issued when drawdown starts. The Issue
Notice button enables you to merge data into a template for the cancellation
notice.
Your master user needs to add 'Cancel Drawdown' to the ‘System, Deed and
Property Doc Lists’ screen and then select that option in System, Master
User Options, Merge Template Locations and browse to the template that you have
devised. The ‘Cancellation Notice Issued’ date is sent to the
letter, if it is present in Omni.
Extra Arrangements
The Extra Arrangements tab only appears if there are other arrangements for a member. It stores a history of
the allocation of the percentage allocation of each pension payment between the
arrangements that apply. An arrangement will need to be set up (i.e. the TiD
entered or the latest fund split include a pre 2006 element) before it will
appear. A new record should be added each time the percentages change (usually
at a new BCE or a pension limit recalculation or review of the payments). The
‘Balance’ column shows the percentage representing the
‘normal’ fund (i.e. not pre 2006, TiD nor protected rights). The
Balance is calculated automatically. Each column is mutually exclusive e.g. a TiD
can be protected rights and, if so, the ‘PR’ column should only
refer to any native protected rights .
These
percentages are used when F6 is pressed (details above) and the payroll is
processed.
Flexible
Drawdown
If a member has adopted Flexible Drawdown, the date adopted can be
stored. The limits previously used for capped drawdown can be hidden or displayed, as necessary.
If a member uses flexible drawdown to exhaust the whole of the
fund, the date can be stored in this screen but the member’s status
should also be updated (on the Members, Member Details screen) to ‘Fund
exhausted by flex drawdown’.
The data on the declaration can also be stored in the grid as it
is agreed by the administrator. When entering this date, Omni will check to see
whether a contribution has already been entered for the tax year but the user
needs to check as well.
The Country of Residence at the time of the first payment in each
tax year should be updated as necessary each tax year.
The Excel button sends the flexible drawdown information to a
spreadsheet, including the member’s NI number and address.
The Acceptance button enables you to merge data into a template so
that you can send a letter to the member confirming that flexible drawdown has
been accepted.
Your master user needs to add 'Flexible Drawdown Acceptance' to the
‘System, Deed and Property Doc Lists’ screen and then select that
option in System, Master User Options, Merge Template Locations and browse to
the template that you have devised. The ‘Date Flexible Drawdown
adopted’ is sent to the letter, if it is present in Omni.
See also Vesting Events