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Administrator Guide
Last Updated: 2024-03-08
Example: Set Up Retirement Savings Plans for Auto-Enrolment Schemes (UK)

Example: Set Up Retirement Savings Plans for Auto-Enrolment Schemes (UK)

This example illustrates how to set up retirement savings plans for auto-enrolment pension schemes.
Global Modern Services (GMS) regularly assesses and enrols workers in pension schemes according to the UK pensions auto-enrolment legislation.
As the payroll administrator, you need to work with the GMS benefits administrator to create retirement savings plans in accordance with the legislation.
  • Create:
    • A benefit provider named
      Standard Pension
      .
    • A benefit group named
      Active Employees in U.K.
    • 2 deductions or negative earnings named
      Pension Contribution - Employee
       and
      Pension Contribution - Employer
      , which are:
      • Based on the values in the
        GBR Pen AE: Earnings Thresholds [GBR]
         lookup table.
      • Eligible for employees enrolled in a pensions auto-enrolment benefit plan.
  • Security:
    Set Up: Benefits
     domain in the Benefits functional area.
  1. Create a benefit plan eligibility rule that limits benefit plans to workers who Workday assesses as eligible for pensions auto-enrolment in completed payroll results.
    1. Access the
      Create Benefit Eligibility Rule
       task.
    2. Select the
      Benefit Plan Eligibility Rule
       option.
    3. In the
      Description
       field, enter Auto Enrolment Eligibility.
    4. In the
      Rule Conditions
       grid, add a row with these settings:
      And/Or
      Source External Field or Condition Rule
      Relational Operator
      Comparison Type
      Comparison Value
      And
      GBR Pen AE: Assessment Result - Enrol Worker
      equal to
      Value specified in this filter
      1
      The benefit plan eligibility must match the eligibility of the related pension contributions (earnings or deductions), to select the same group of workers.
  2. Create a retirement savings plan for the pension auto-enrolment scheme.
    1. Access the
      Create Benefit Plan
       task.
    2. Complete these settings:
      Option
      Setting
      Effective Date
      Enter today's date.
      Benefit Provider
      Select
      Standard Pension
      .
      Benefit Plan Type
      Select
      Retirement Savings Plan
      .
    3. Click
      OK
      .
    4. Complete these settings:
      Option
      Setting
      Retirement Savings Coverage Type
      Select
      Pension
      .
      Benefit Plan Name
      Enter Auto Enrolment.
      Participating Benefit Groups
      Select
      Active Employees in U.K
      .
      Worker Plan Eligibility
      Select
      Auto Enrolment Eligibility
      .
      Frequency
      Select
      Monthly
      .
      Earnings and Deductions
      Select:
      • Pension Contribution - Employee
      • Pension Contribution - Employer
      Leave the
      Auto Enroll
       field empty.
    5. Define the contribution percentages or amounts in the
      Employee
       and
      Employer Contribution
       sections.
  3. Edit the benefit plan eligibility rule to enable workers who Workday automatically enrols in the benefit plan to opt out.
    1. Access the
      Edit Benefit Eligibility Rule
       task and select
      Auto Enrolment Eligibility
      .
    2. In the
      Rule Conditions
       grid, add a row with these settings:
      And/Or
      Source External Field or Condition Rule
      Relational Operator
      Comparison Type
      Comparison Value
      Or
      Benefit Plans - Currently Enrolled
      any in the selected list
      Value specified in this filter
      Pension - Standard Pension Auto Enrolment
  4. Add the benefit plan to the benefit plan year definition for the current year.
    1. Access the
      Edit Benefit Plan Year Definition
       task for the definition that covers the current year.
    2. On the
      Retirement Savings Plans
       tab, select
      Pension - Standard Pension Auto Enrolment
      .
The benefits administrator can now enrol any workers eligible for pensions auto-enrolment in an appropriate retirement savings plan.
  • Map the
    Pension Contribution - Employee
     and
    Pension Contribution - Employer Type
     deductions to the
    Pension - Standard Pension Auto Enrolment
     benefit plan.
  • Set up a passive event to automatically enrol workers who are eligible for pensions auto-enrolment.