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Setting Up a Pension Scheme

Workplace pensions are a way of saving for retirement arranged by an employer. They are sometimes called 'company pension schemes' or 'occupational pension schemes'.

What is a pension scheme?​

  • A pension scheme is essentially a long-term savings plan designed to provide you with income during your retirement.
  • You (and often your employer) regularly contribute money into this plan throughout your working life.
  • The government encourages pension saving by offering tax relief on contributions. This means some of the money that would have gone to the government as tax instead goes into your pension pot.

Why set up a pension scheme?​

  • Legal Requirement: In the UK, it's not just a good idea, it's the law. Employers must automatically enroll eligible employees into a workplace pension scheme. This legislation aims to ensure more people save adequately for retirement.
  • Employee Benefit: Offering a workplace pension is a valuable employee benefit. It helps attract and retain staff, demonstrating that you care about their financial future.
  • Employer Contributions: As an employer, you're also required to contribute to your employees' pensions, further boosting their retirement savings.

The pensions regulator has set out the rules for automatic enrolment. Employers must automatically enrol employees who:

  • Are aged between 22 and state pension age
  • Earn more than £10,000 a year
  • Work in the UK
  • Are not already in a qualifying pension scheme
  • Do not have a contract of employment

How to set up a pension scheme?​

To set up a pension scheme in Workmax, follow these steps:

  1. Sign in to your "Workmax" account with an admin account.
  2. Go to the "Pensions" section.
  3. Click on the "Add Pension Scheme" button.
  4. Enter the details
    • Pension Provider
    • Pension Type, choose from the options:
      • "Net Pay Arrangement"
      • "Relief at Source"
      • "Salary Sacrifice"
    • Eligibility for Auto-Enrolment (Yes/No)
    • Default Pension Scheme (Yes/No)
  5. Click on the "Save & continue" button.
  6. Enter the provider details
    • Account Number
    • Staging Date
    • Payment Source (Nest)
    • Website (Optional)
    • Telephone Number (Optional)
    • Address (Optional)
    • Payroll and Pension Data Interface (PAPDIS) Details
      • Version, choose from the options:
        • "PAPDIS 1.0"
        • "PAPDIS 1.1"
      • Provider ID
      • Employer ID
    • Opt-Out Window
  7. Enter the administrator details
    • Full Name
    • Email Address (Optional)
    • Phone Number (Optional)
    • Address (Optional)
  8. Click on the "Save & continue" button.
  9. Review the details and click on the "Save" button.

Workmax will now set up the pension scheme for your company. Your employees will be automatically enrolled in the scheme, and you can start contributing to their retirement savings.