HRX Uk HR Setup r12

Oracle Fusion HCM (United Kingdom):
Pensions Automatic Enrolment Implementation and Functional

Considerations
ORACLE WHITE PAPER | AUGUEST 2017
Disclaimer
The following is intended to outline our general product direction. It is intended for information
purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any
material, code, or functionality, and should not be relied upon in making purchasing decisions. The
development, release, and timing of any features or functionality described for Oracle’s products
remains at the sole discretion of Oracle.
ORACLE FUSION HCM UK: PENSIONS AUTOMATIC ENROLMENT

Table of Contents
Disclaimer 1
Introduction 4
Pensions Automatic Enrolment Setup 5
Qualifying Pension Scheme Element Setup 5
Selecting the Level for Pension Element 6
Defining Eligibility for Pensions Automatic Enrolment Elements 6
Identifying Assessable and Pensionable Earnings 6
Defining Organization-Level Default Values 6
Default Postponement Rules and Formulas 7
Other Default Values 8
Specifying Formulas at Organization Level 9
Capture Pension Notification Letter Information 9
Manage Calculation Cards 10
Pensions Automatic Enrolment Calculation Card Creation 14
Pensions Automatic Enrolment Calculation Card Default Values 14
Pensions Automatic Enrolment Card Default Associations 14
Automatically Created Element Entries 15
Pensions Automatic Enrolment Process 15
When to Run this Process 16
Pensions Automatic Enrolment - Flow 18
Payroll Assessment Run 21
Earnings Assessment for Pensions Automatic Enrolment 21

Assessable Earnings 21
Classification for Automatic Enrolment 21
Qualifying Earnings Thresholds 21
First-Time Assessment Outcomes 22
Assessment Formulas 22
Pensions Automatic Enrolment – Pension Assessor Updates 22
Pension Assessor Updates Process Execution 23
Run Result Values Mapping 24
Assessment Update Actions 27
Employee Enrolled into a Qualifying Pension Scheme – Automatic or Manual
Enrolment 27
Employee Opt-In for a Qualifying Pension Scheme 27
Employee Leaving a Qualifying Pension Scheme 27
Employee Opt-Out from Qualifying Pension Scheme 27
Employee Pension Postponement - DBSCHEME/ELIGIBLEJH/WORKER 27
Postponements for Pensions Automatic Enrolment 28
Postponement Types 28
Overriding Default Postponement Values 28
How Postponements Are Processed 28
Manually Enrolling an Employee into a Qualifying Pension Scheme 30
Creating a Benefits and Pensions Calculation Card 30
Updating the Pensions Automatic Enrolment Card (Employee Not Previously
Enrolled) 30

Creating a Pensions Automatic Enrolment Component for an Additional Qualifying
Pension Scheme (Employee Currently Enrolled) 31
Opting In to a Qualifying Pension Scheme 31
Updating the Pensions Automatic Enrolment Card for the Opt-In Action 31
Opting Out of a Qualifying Pension Scheme 32
Updating the Pensions Automatic Enrolment Card for the Opt-Out Action 32
Leaving a Qualifying Pension Scheme 32
Overriding the Default Qualifying Scheme for an Employee 33
Pensions Automatic Enrolment Audit Reports 34
Employee Notification Letters 35
Employee Notification Letters Delivery Preference 36
Pensions Automatic Enrolment Report – Data Archived 36
Pensions Automatic Enrolment Archive Process 37
Recommended Configuration for Salary Sacrifice for Pension Contributions 41
Setting up Regular and Irregular Earnings 41
Setting Up Salary Sacrifice element 41
Configuring the Pension Element 41
Additional Considerations 42
Recommendations for Data Migration 43
Employee Classifications 43
If an employee has opted-out or left the scheme in the past, then you do not need to
capture the active enrolment and therefore you do not need to capture the Benefits
and Pensions card. 43

Guidance on Third-Party Payments setup 43
Glossary 45

Introduction
Oracle Fusion HCM for United Kingdom is preconfigured to enable you to manage your employee’s automatic
enrolment into qualifying pension schemes, including assessing the employee for eligibility, managing them to
opt-in and opt-out, enforcing statutory rules, and providing reports and employee facing letters.
This document covers the following aspects of Pensions Automatic Enrolment:

» Setup
» Pension deduction setup - Creating cards and elements that represent the qualifying pension schemes
that the employees will enrol into.
» Pension assessor setup - Creating a card and element that controls and manages the assessment
process for a set of employees.
» Pension assessor defaults - Creating defaults for the assessor, at both the payroll statutory unit (PSU)
and optionally the tax reporting unit (TRU) levels, to simplify the administration process.
» Periodic Processing
» Pension assessor processing flow, that is, the preconfigured flow and its functionality.
» Reports and letters
» Data that you can use when writing your own reports and letters
» Additional Configuration
» Customizing your reports
o Using data to write your own reports
o Selecting the destination options of your employee facing reports
o Understanding how to write your own reports
» Salary Sacrifice
o Understand how to configure salary sacrifice pension schemes, and use them with the automatic
enrolment features

Oracle Fusion HRMS (United Kingdom): Pensions Automatic Enrolment Implementation
Pensions Automatic Enrolment Setup

The Pensions Automatic Enrolment Assessment process classifies workers to determine their eligibility for automatic
enrolment in a qualifying pension scheme, and automatically enrols eligible workers. To facilitate assessment and enrolment,
you must set up elements for the qualifying schemes and define organization-level default values to be used.
Key setup tasks include:
» Setting up elements for qualifying pension schemes

» Defining eligibility for Qualifying Pension Scheme and Pensions Automatic Enrolment elements
» Defining organization-level default values used by the assessment process
» Identifying pensionable earnings
» Providing person information required by the process
Qualifying Pension Scheme Element Setup

You must create an element for each Qualifying Pension Scheme into which you plan to enrol workers. Follow these basic
guidelines when creating the elements:
» Use the Manage Elements task in the Payroll Calculation work area.
» On the Create Element window, complete the fields as show here:
Field Value
Primary Classification Pre-Statutory Deductions

or
Voluntary Deductions
Secondary Pension Plan Pre-Statutory

Classification or
Pension Plan after Tax
Category Benefit
Note: When entering the deduction percentage for either the employee or the employer contribution, you must enter the
values as decimals; for example, enter 0.05 for 5% deduction percentage.
» On the Manage Elements page, select Yes to the question, Is this a Qualifying Pension Scheme?
» After saving the element, define eligibility. This allows the Pensions Automatic Enrolment process to create a Qualifying
Pension Scheme component and associated element entries when it enrols employees in the Qualifying Pension Scheme.
Note: It is not necessary to define eligibility for the Employee and Employer Contribution elements, as these are indirect
elements.
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Selecting the Level for Pension Element

The level you select (payroll relationship, Term, or Assignment) in the template decides which level the pension component
can be associated with.
For example, at payroll relationship, the deducted pension amount is distributed among all assignments. At the assignment
level, if you associate the pension components with Assignment 1 and Assignment 2, the pension amount is distributed only
between two assignments, even though this employee may have more assignments. Essentially the level determines how to
distribute the calculated pension deduction amount amongst the assignments. The deducted pension results are always at
assignment level.
Defining Eligibility for Pensions Automatic Enrolment Elements

Pensions Automatic Enrolment element is predefined. You must define eligibility for this element. This allows the new hire
process to create a Pensions Automatic Enrolment calculation card, Pensions Automatic Enrolment component details, and
associated element entries for all new workers.
Identifying Assessable and Pensionable Earnings

By default, all new elements you create for both Regular and Irregular Earnings classifications have the following
subclassifications:
» Pensions Automatic Enrolment Assessable - These earnings are taken into account when assessing eligibility for automatic
enrolment.
» Subject to Pension – Also called pensionable earnings, these earnings are used to calculate the pension contribution
amount. Pensionable earnings may exclude certain earnings that are considered assessable, such as overtime or bonuses.
When you create new earnings elements, verify that these subclassification rules apply to the specific type of earnings. As the
employer, you must ensure that earnings elements are correctly classified.
Note: The concept of qualifying earnings is used in the calculation of the pension contributions under certain
schemes. The Qualifying Earnings Lower Threshold and the Qualifying Earnings Automatic Enrolment Trigger are
defined in legislation and used to assign employee classifications for Pensions Automatic Enrolment.
Defining Organization-Level Default Values

You must set default values at the PSU-level and, optionally, at the TRU-level. If defined, TRU values override PSU values.
1. Navigate to Setup and Maintenance work area and select an Implementation Project.
2. Search for the tasks Manage Legal Entity Calculation Cards (to set PSU-level values) and Manage Legal Reporting
Unit Calculation Cards (to set TRU-level values).
3. Define the scope and select Go to Task:
4. To define Pensions automatic enrolment information at the PSU-level, click Create:
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5. Enter the effective date.

6. Select the Pensions Automatic Enrolment in Calculation Card.
7. Select Continue.
8. Expand the Calculation Component Details section and enter the Pensions Automatic Enrolment Information values:
Default Postponement Rules and Formulas

You can define default Worker and Eligible Jobholder Postponement rules and formulas at the PSU-level and TRU-level.
TRU-level values, if defined, override PSU-level values.
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Use the Manage Legal Entity Calculation Cards or Manage Legal Reporting Unit Calculation Cards task to define default
values on the Pensions Automatic Enrolment calculation card at the appropriate level. Complete the following fields on
Pensions Automatic Enrolment card:
» Worker Postponement Rule and Eligible Jobholder Postponement Rule. Options include:
» Last pay reference period start date within deferment
» Next pay reference period start date
» None
Note: User-specified formula – If you choose this, you must select a previously-defined fast formula to serve as your rule.
Use the Manage Fast Formulas task in the Payroll Calculation work area to create a custom formula. When creating a
postponement formula, note the following:
» The formula must return the end date of the postponement

» The return value must be named DEFERMENT_DATE
» Worker Postponement Formula and Eligible Jobholder Postponement Formula. If you are using a custom formula, specify
it here.
» End of DB or Hybrid Transition Period. Enter the end date for the transitional period.
Other Default Values

The following fields in the Pensions Automatic Enrolment calculation card have default values as follows:
» Employer’s Staging Date

» Automatic Re-enrolment Date: This date is validated to ensure that it is within the allowed timeframe of the original staging
date or previous re-enrolment date. The date entered must be within a 6 month period of the 3 months prior to the
anniversary date (where the anniversary date for the first time will be the Staging date and subsequently the previous re-
enrolment date)
» End of Defined Benefit or Hybrid Transitional Period
» Qualifying Pension Scheme Name and Formula: You can select an existing Qualifying Pension Scheme name or select the
name of a previously-defined fast formula that returns the ID of the Qualifying Pension Scheme to use.
Note: If on first attempt to select the Qualifying Pension Scheme Name, the list of values does not render any values, try
exiting the screen and re-entering it. If you define a custom formula to derive the Qualifying Pension Scheme, the return
value of the formula must be named QPS_ID and must return the PAY_ELEMENT_TYPES_F.ELEMENT_TYPE_ID of a
previously defined Qualifying Pension Scheme element. Use the Manage Fast Formulas task to create the custom formula.
» Process Automatic Enrolment which enables or disables the Pensions Automatic Enrolment functionality.
Note: You can override the staging date, postponement rules, and the qualifying pension scheme name on the worker’s
Pensions Automatic Enrolment calculation card.
» Disable automatic card creation: By default, upon the completion of the new hire process, the payroll application will create
a Pensions Automatic Enrolment card for the employee. Optionally, if a TRU was specified during the new hire process, the
Pensions Automatic Enrolment card is linked to that TRU. You can disable this here.
» Disable pension letters: This is a PSU-only attribute. Select this if you do not want letters to be generated for the PSU.
» Enrolment if Qualifying Pension Scheme Member Left Within 12 Months. If the criteria for Eligible Job Holder are met, the
process logic will check this field first. If set to Exclude, then the person will not be enrolled or re-enrolled. The default will
be NULL, meaning the employee will be enrolled or re-enrolled if found eligible.
» Automatic Enrolment If Tax Protection Applied. If the criteria for Eligible Job Holder are met, the process logic will check
this field first. If set to Exclude, then the person will not be enrolled or re-enrolled. The default is NULL which means the
employee will be enrolled or re-enrolled if found eligible.
» Automatic Enrolment if Notice given. If the criteria for Eligible Job Holder are met, the process logic will check this field first.
If set to Exclude, then the person will not be enrolled or re-enrolled. The default will be NULL which means the employee
will be enrolled or re-enrolled if found eligible.
» Enrolment If Winding-Up Lump Sum Received. If the criteria for Eligible Job Holder are met, the process logic will check this
field first. If set to Exclude, then the person will not be enrolled or re-enrolled. The default will be NULL which means the
employee will be enrolled or re-enrolled if found eligible.
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Specifying Formulas at Organization Level

You can create fast formulas, according to the specifications below, to determine default values for:
» Worker Postponement
Formula Name : <%PENSIONS AUTOMATIC ENROLMENT POSTPONEMENT%>
Formula Type : Calculation Utility
Description : <User specified formula to determine the postponement end date for a Worker postponement.>
Formula Result : DEFERMENT_DATE (DATE)
Calling Formula: GB_PAE_POSTPONE
» Eligible Jobholder Postponement

Formula Name : <%PENSIONS AUTOMATIC ENROLMENT POSTPONEMENT%>
Description : <User specified formula to determine the postponement end date for an Eligible Jobholder postponement.>
Formula Result : DEFERMENT_DATE (DATE)
Calling Formula: GB_PAE_POSTPONE Qualifying Pension Schemes
» Qualifying Pension Scheme Formula

Formula Name : <%PENSION SCHEME FOR AUTOMATIC ENROLMENT%>
Description : <User specified formula to determine the qualifying pension scheme.>
Formula Result : QPS_ID (NUMBER)
Calling Formula: GB_PAE_ENROL
Capture Pension Notification Letter Information

1. Navigate to the Setup and Maintenance work area and select an Implementation Project.
2. Search for the tasks Manage Legal Entity Calculation Cards (to set PSU-level values) and Manage Legal Reporting
Unit Calculation Cards (to set TRU-level values).
3. Define the scope and select Go to Task.
4. To define Pensions automatic enrolment information at the PSU-level, click Create.
5. Provide an effective date:
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6. Select Name as Pensions Automatic Enrolment Additional Scheme Information.

7. Click Continue.
8. Expand the Pension Notification Letter Information calculation component details section and provide the values:
Note: The values you enter here and save are passed to and merged with your employee letters, for communication with your
employees. The Payee for Pension contributions are defaulted to the employee’s calculation card for payment processing.
9. Select Save and Close.
To assess and automatically enrol or re-enrol a worker in a Qualifying Pension Scheme, the process requires the following
employee information:
» Date of birth - retrieved from person record
» Earnings amounts - retrieved from payroll earnings element entries for the payroll reference period
» Pensions Automatic Enrolment calculation card - created by the new hire process, or manually
Verify that the values captured on the Pensions Automatic Enrolment card are correct for each employee. If a Pensions
Automatic Enrolment component is associated with multiple assignments for different payrolls, you must specify the payroll to
use when assessing earnings. Do so in the Payroll for Pay Reference Period field on the Pensions Automatic Enrolment card
(Manage Calculation Cards task).
Manage Calculation Cards

1. Navigate to the Payroll Calculations work area.
2. Select the Manage Calculation Cards task.
3. Search for and select the employee:
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4. Select the Pensions Automatic Enrolment card:
5. Select the Pensions Automatic Enrolment calculation component details:
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Field Value
Read-only field. Indicates that once this

Re-enrolment record has been assessed for the first
assessment only time, it will be reassessed again on
reassessment (usually 3 years). This
makes the assessment process more
efficient.
Select Yes to indicate if a refund is due.

Opt-Out Refund Due Select No to indicate that refund is made.
This is not automated and must be done
manually.
This date, if set, overrides any staging date

Overriding Staging that was previously set at the organization
Date level.
6. Select the Pensions Automatic Enrolment Additional information:
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Field Value
Overriding Automatic Re-enrolment date Enables employee-level overriding of the re-enrolment assessment date from
the PSU or TRU default values.
Winding-Up Lump Sum Payment Date Enables the enrolment process to determine if a person should be excluded
from enrolment or not. The organization-level setup at the Legal Entity and TRU
determine if a person with the Winding up Lump Sum Payment Date on the
payroll relationship card will be included or not. If not included, the enrolment
process will not consider them if the assessment date is after the winding up
lump sum payment date.
Tax Protection Applied Enables the process to determine if a person should be excluded from
enrolment or not.
The organization-level setup at the Legal Entity and TRU determine if a person
with the Tax Protection setting on the payroll relationship card will be either
included or excluded.
Notice Given Date Read-only field populated from termination information page during the
assessment process.
Notice Withdrawn Date Date on which the employee withdrew the termination request. Used as the
overriding assessment date for enrolment.
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Pensions Automatic Enrolment Calculation Card Creation

If your Payroll Product Usage is either Payroll or Payroll Interface, the New Hire process automatically creates a Statutory
Deductions calculation card and a Pensions Automatic Enrolment calculation card for each new employee. For each type of
card, it is important to understand the following:
» Default values for calculation components and component details
» Default association and association details
» Automatically created element entries
Note: Automatic calculation card creation occurs only when you create an employee, not a pending worker or nonworker.
Converting a pending worker to an employee creates a calculation card at that time.
Use the Manage Calculation Cards task in the Payroll Calculation work area to modify the automatically created calculation
cards as needed.
Pensions Automatic Enrolment Calculation Card Default Values

The automatically created Pensions Automatic Enrolment card contains two components:
» The Pensions Automatic Enrolment component, which is the main component for Pensions Automatic Enrolment
processing.
» The Pensions Automatic Enrolment Additional Information component, which supports re-enrolment and further statutory
updates.
» The Pensions Automatic Enrolment component has one field containing a predefined default value:
Field Default Value
Employee Classification for Pensions Enables employee-level overriding of the re-enrolment assessment date from
the PSU or TRU default values.
Pensions Automatic Enrolment Card Default Associations

If you specify a tax reporting unit (TRU) in the Payroll Details section on the Hire an Employee, Employment Information page,
the new hire process creates an association between the Pensions Automatic Enrolment component on the Pensions
Automatic Enrolment card and the specified TRU.
Note: The new hire process does not create association details linking specific terms or assignments to the
Pensions Automatic Enrolment component. By default, all earnings for all terms or assignments for the payroll
relationship are considered during the Pensions Automatic Enrolment assessment.
You can create association details manually later. You can also create additional Pensions Automatic Enrolment components
on the card, and associate specific earnings groups to your Pensions Automatic Enrolment components, as needed.
Note: If you add Pensions Automatic Enrolment components to an existing Pensions Automatic Enrolment card, you
must associate the component with a tax reporting unit. You must also create association details for both the new
and the original Pensions Automatic Enrolment components, linking each with the appropriate terms or
assignments.
If you do not specify a TRU during the new hire process, note the following:
» If your organization has only one TRU, you don’t need to create a TRU association on the Pensions Automatic Enrolment
card manually; the Pensions Automatic Enrolment assessment process obtains the necessary default values from the PSU-
level Pensions Automatic Enrolment card or, if it exists, the TRU-level card.
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» If your organization has multiple TRUs, you must associate a TRU to the Pensions Automatic Enrolment component
manually.
Automatically Created Element Entries

The new hire process creates the following element entries automatically for the following elements, provided that you have
defined element eligibility and the employee meets the eligibility criteria:
» Tax and NI element

» Pensions Automatic Enrolment element
Note: If you do not have element eligibility defined for this element, the hire process will raise the following message: “The
employment level entered is not eligible for the element Pensions Automatic Enrolment on …”
Pensions Automatic Enrolment Process

Use the Submit a Payroll Flow task in the Payroll Checklists work area to run the Pensions Automatic Enrolment process.
Note: This payroll flow also performs automatic re-enrolment where the employee is eligible for re-enrolment
processing.
Oracle Fusion HCM only supports the statutory period for the Pay Reference Period, and not the earning period
definition.
The Pensions Automatic Enrolment process enables you to:

» Classify workers to determine eligibility for automatic enrolment and re-enrolment in a qualifying pension scheme
» Run a payroll to process earnings and assess them for eligibility
» Perform the appropriate enrolment action based on the employee’s classification and the values defined on their Pensions
Automatic Enrolment card
» Produce an audit report for both enrolments and re-enrolments, including a section for those employees not automatically
enrolled
» Roll back the assessment payroll run
Note: The assessment process can be run many times in a payroll period. When the audit reports show the movements you
expect, you can complete the process by running the process Generate Pensions Automatic Enrolment Reports from Submit
a Process or Report task. This will produce the employee reports or letters, according to your delivery preferences.
The process first checks to see if the automatic re-enrolment date is applicable to each employee in the population, taking into
account the overriding re-enrolment dates, and if so runs the re-enrolment process. Otherwise, the normal assessment
process is run for each eligible employee.
When you run the Pensions Automatic Enrolment process, you must run it with an element group that does not include the
pension deduction elements. This is because if you are running the process several times in the same period, and for
instance, an employee changes from being previously first assessed in this period as an eligible jobholder (so was given the
Pension component) but is now assessed as an entitled worker (now the pension component should be removed), the update
process will not remove the pension component, as it been processed in the assessment run. It is invalid to remove a card,
card component, and element where it has been run, you will see this error message in the log file:
ERROR: QPS deduction component processed in the current assessment, the EJH to
NEJH action cannot be processed.
Run the process by excluding the pension deduction component using element set
or object group.
To expedite the process, you may wish to exclude other elements that do not affect assessable earnings from the assessment
run.
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The following table summarizes the enrolment actions taken by the assessment process:
Action Action Trigger Action Description
Automatic enrolment or re- » Creates a Benefits and Pensions calculation

enrolment Employee is classified as an eligible jobholder (no card and Qualifying Pension Scheme
postponement and no opt-out) component
» Updates the employee’s Pensions Automatic
Enrolment card
» Generates payroll run results for the assessed
values and pension contribution amounts
(these are rolled back later in the process)
Manual enrolment » Updates the employee’s Pensions Automatic

Qualifying Scheme Joining Method is Manually Enrolment card (A Benefits and Pensions card,
Enrolled with Qualifying Pension Scheme component,
must have been previously created)
Opting in » Creates a Benefits and Pensions calculation

Qualifying Scheme Joining Method is Opt-in
card and Qualifying Pension Scheme
component (if it does not already exist)
Enrolment card
Opting out » Updates the employee’s Pensions Automatic

Qualifying Scheme Leaving Reason is Opt- out Enrolment card
» If the employee is currently enrolled, sets the
end date on their Benefits and Pensions
calculation card to stop contributions
Leaving a scheme » Updates the employee’s Pensions Automatic

Qualifying Scheme Leaving Reason is Left Scheme Enrolment card
» Sets the end date on their Benefits and
Pensions calculation card to stop contributions
Postponing enrolment Determines if one of the following postponement

Automatic or manual postponement types applies:
» Worker postponement
» Eligible jobholder postponement
» DB/hybrid scheme postponement
Enrolment card
When to Run this Process

» Payroll managers and administrators should run this process at the beginning of each pay period, which allows time to send
employee notification letters and process opt-out actions before any pension contribution is deducted. This practice helps
reduce the number of pension refunds you’ll need to process in subsequent payrolls.
» You can also run the process periodically throughout the payroll period as earnings accumulate. You can run the process
multiple times during a pay period. Identifying potential issues early in the cycle gives you time to resolve them before the
cycle end date.
» You may choose to run the process one final time just before the actual payroll run. This practice allows you to obtain the
most accurate and up-to-date estimates for automatic enrolment pensionable earnings and qualifying earnings. In the
actual payroll run, the pension deduction elements created (or updated) by the assessment are processed.
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Following figure illustrates an example of a monthly payroll cycle:
M M M
Month 1 Month 2
Following figure illustrates an example of a weekly payroll cycle:
W1 W1 W1 W1 W1 W1 W1 W1 W1 W1 W1 W1
Week 1 Week 2 Week 3 Week 4
Month
Following is a more complex scenario where the assessment period is monthly, but with both a weekly and a monthly payroll
that must be aggregated:
W1 W1 W1 W1 W1 W1
M M M
Month
Finally, the following scenario illustrates an example where the assessment period is weekly, but includes both a weekly and a
monthly payroll that must be aggregated:
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M M M M M M M M M
W1 W1 W1 W1 W1 W1 W1 W1 W1 W1 W1 W1
Month
Prerequisites
Ensure the following:

» There is a Pensions Automatic Enrolment card for every employee that is processed. A Pensions Automatic Enrolment card
with the required Pensions Automatic Enrolment components is created automatically during the new hire process, if
configured to do so.
» For manual enrolments, the employee also has a Benefits and Pensions calculation card containing a Qualifying Pension
Scheme component.
Pensions Automatic Enrolment - Flow

The Pensions Automatic Enrolment process should be run by all UK Payroll customers who have already passed their staging
date, to enable pension earning assessments to take place. The flow contains four tasks which will assess all employees on
the given payroll for the payroll period selected; make updates to their Pension Assessor component; complete any
membership changes to Qualifying Pension Schemes; produce audit reports based on the changes which have occurred and
finally will roll back the payroll run from the first task to complete the assessment.
Process Execution
1. Select the Submit a Payroll Flow task in the Regulatory and Tax Reporting or Checklist work areas
2. Select the LDG for which the process is to be run and flow pattern with name Pensions Automatic Enrolment
Assessment Process:
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3. Enter the parameters to run the process:
» Payroll Flow: Identifier for the process that is being run. You have to enter a unique value each time the process is
executed
» Payroll: Payroll definition for which the payroll is to be run
» Payroll Statutory Unit: PSU within the LDG
» Payroll Period: Payroll period for payroll selected
» Consolidation Group: Consolidation group
» Payroll Relationship Group: Payroll relationship based on the object groups
» Element Group: Element group
» Process Configuration Group: List of available Process Configuration Groups
» Correspondence Date: Date in which the letters will be stamped as created
4. Click Next.
5. Click Next.
6. Click Next.
7. Submit the process.
8. Click OK and View Checklist:
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Payroll Assessment Run

Use the Payroll Assessment Run task to run a payroll run for the selected payroll and payroll period from the flow submission.
This calculates assessable earnings used for enrolment and re-enrolment assessment.
Earnings Assessment for Pensions Automatic Enrolment

To determine eligibility for automatic enrolment and re-enrolment, the Pensions Automatic Enrolment Assessment Process
estimates the Pensions Automatic Enrolment Assessable Earnings (Assessable Earnings) to be paid in the pay reference
period (PRP) and compares it to the earnings thresholds defined by HM Revenue and Customs (HMRC).
Assessable Earnings
For each employment being assessed, the process identifies all element entries attached to the assignment (or multiple
assignments if earnings are aggregated) for the given PRP that match the following criteria:
» A primary classification of Regular Earnings or Supplemental Earnings

» A subclassification of Pensions Automatic Enrolment Assessable Earnings Regular or Pensions Automatic Enrolment
Assessable Earnings Irregular
Note: If earnings from multiple assignments with different payrolls are being aggregated, the process uses the PRP of the
payroll defined in the Payroll for Pay Reference Period field on the employee’s Pensions Automatic Enrolment calculation
card.
The process then calculates the net sum of the pay values for each element entry to derive the estimated assessable
earnings for the pay reference period.
Classification for Automatic Enrolment

The following figure illustrates how earnings are assessed to determine worker classification for automatic enrolment:
The process compares assessable earnings against the Qualifying Earnings Automatic Enrolment Trigger. Employees aged
22 to State Pension Age (SPA) whose earnings exceed the threshold are classified as eligible jobholders and automatically
enrolled into a qualifying pension scheme.
Qualifying Earnings Thresholds

After calculating the assessable earnings, the process derives the qualifying earnings by calculating the portion of the
assessable amount that is between the lower and upper thresholds relevant for the pay frequency. For example, given the
following:
» Automatic enrolment pensionable earnings: 4,000.00

» Qualifying earnings lower threshold (monthly pay frequency): 464.00
» Qualifying earnings upper threshold (monthly pay frequency): 3322.00
The qualifying earnings are 2858.00 (3322 less 464).
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Note: Threshold values are stored in the calculation value definitions. HMRC periodically updates the thresholds.
They may not change every year, and they may change on a date other than 6th April. Oracle provides updated
calculation value definitions as the Department of Work and Pensions (DWP) makes the new thresholds available.
First-Time Assessment Outcomes

When an employee is assessed for the first time, the following employee classifications (for pensions) may be returned,
including postponement or automatic enrolment, depending on the classification:
» Eligible Jobholder
» Eligible Jobholder postponement
» Automatic enrolment
» Non-Eligible Jobholder
» Entitled Worker
» Age Exempt
Assessment Formulas
The table below describes the formulas that control the assessment logic and are executed in the Payroll Assessment Run.
FORMULA DESCRIPTION
GB_PAE_MAIN Driving formula for assessment and automatic enrolment and re-
enrolment
GB_PAE_ASSESS Performs the age and earnings calculations used in the assessment
of the employee's eligibility for automatic enrolment into a qualified
pension scheme. The formula also performs the assessment and
sets the employee classification accordingly.
GB_PAE_ENROL Checks and processes any enrolment actions.
GB_PAE_POSTPONE Calculates and sets any jobholder or worker postponements.
GB_PAE_LETTERS Determines and sets the employee notification letter type.
Pensions Automatic Enrolment – Pension Assessor Updates

The Pension Assessor Updates task uses payroll run results from the Payroll Assessment Run task to update the
employee’s Pension Assessment component and carry out membership changes to Qualifying Pension Scheme as described
below:
1. The Pensions Automatic Enrolment process task, using the assessor formula, performs all the calculations. It stores
the final results on payroll run results table for each processed Pensions Automatic Enrolment component.
2. The Pension Assessor Updates process processes those run results and amends the Pensions Automatic
Enrolment component details and insert or remove the Pension Deduction component based on the run result
values.
3. After processing each Pensions Automatic Enrolment Assessor Component based on the run result values, the
Pension Assessor Updates Process marks them as Processed by updating the employee’s Pensions Automatic
Enrolment Assessor flex component with the Flow Instance ID & run result value of assessment date, as last
assessment date run result value.
Note: This process would update the Pensions Automatic Enrolment component with the Last
Assessment Date as the Date Effective Update date with the DE_PROPAGATE_FORWARD_DIRECTION
option. This means, that all future date effective records are also updated with the updated value.
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4. Finally the processed Pensions Automatic Enrolment assessor component information is displayed on Pension
archive reports. The following UI illustrates the result of a component update:
Pension Assessor Updates Process Execution

1. Click on the Go to Task icon for Pension Assessor Updates:
2. Click Process NNNNNN (Process 218842) link to access the logs with errors & warnings details during the Pension
Assessor Updates:
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Note: If any of the tasks fail before the final task of Payroll Assessment Roll Back has completed, then a manual
rollback of the Payroll Assessment Run must be completed, as this may have generated run results which will
impact any future payroll runs regardless of whether they are for a pension assessment run or not.
Run Result Values Mapping

The assessment process generates run results, which are used to generate the reports. These run results are later rolled
back. The data generated in these temporary run results is listed here.
INPUT_VALUE_NAME INPUT_VALUE_BASE_NAME
Employee Classification EMP_CLASS
Eligible Jobholder Date EJ_DATE
Active Postponement Type POSTP_TYPE
Active Postponement Rule POSTP_RULE
Active Postponement End Date POSTP_END_DATE
Active Qualifying Scheme ACT_QPS_ID
Qualifying Scheme Joining Method QPS_JOIN_METHOD
Qualifying Scheme Joining Date QPS_JOIN_DATE
Reason for Leaving Scheme LEAVE_REAS
Qualifying Scheme Leaving Date LEAVE_DATE
Opt-Out Period End Date OPTOUT_END_DATE **
Joining Scheme Processed Date JOIN_PROC_DATE
Leaving Scheme Processed Date LEAVE_PROC_DATE
Class Change Processed Date CLS_CHNG_PROC_DATE
Postponement Processed Date POSTP_PROC_DATE
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» Opt-Out Refund Due OPTOUT_REFUND_DUE
Last Assessment Date LST_ASSMNT_DATE
Process Assessment ID PROC_ASSMNT_ID
Qualifying Scheme ID QPS_ID
Assessable Earnings ASSBLE_EARNINGS
Automatic Re-Enrolment Date REENROL_DATE
Qualifying Scheme Start Date QPS_START_DATE
Effective Update Date EFF_UPD_DATE
Last Assessment Period LST_ASSMNT_PERIOD
Type Of Letter Generated LETTER_TYPE
Date Letter Generated LETTER_DATE *
Re-enrolment Assessment Only RE_ENROL_ONLY
Reason for exclusion REAS_FOR_EXCL
Letter Status LETTER_STATUS
Subsequent Communication Required COMMS_REQ
Letter History LETTER_HIST
Notice Given Date NOTICE_DATE
» * Date Letter Generated: This value is picked up from flow parameter Correspondence Date. Also Letter date wouldn’t
be stamped on the Pensions Automatic Enrolment component if the corresponding PSU’s Disable pension letters flag
is set to yes.
» ** Opt-Out Period End Date: This value would be picked from the run result value OPTOUT_END_DATE and
whenever this value is not blank/empty then the update process would replace the value with Letter Date (Flow
parameter Letter Date value) + 1 Month.
» Reason for Exclusion: This value is derived from the run result value REAS_FOR_EXCL and shows why a
person was excluded from enrolment or re-enrolment. One of the following values may apply:
Code Meaning
ORA_HRX_GB_LEFTQPSLESS12MTH Left Qualifying Pension Scheme less than 12 months ago
ORA_HRX_GB_LEFTQPSMORE12MTH Left Qualifying Pension Scheme 12 or more months ago
ORA_HRX_GB_LET_GENERATED Generated
ORA_HRX_GB_LET_NOTYETGEN Not yet generated
ORA_HRX_GB_NOTICE6WKPRD Notice given date is within 6 weeks of assessment date
ORA_HRX_GB_TAXPROTECTED Tax Protection applied
ORA_HRX_GB_WULSRECEIPT Received Winding Up Lump Sum Payment
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» Letter Status: This value would be picked from the run result value LETTER_STATUS which can have one of the
following values:
Code Meaning
ORA_HRX_GB_LET_GENERATED Generated.
This status is given after the Generate Pensions Automatic
Enrolment Reports process is completed.
ORA_HRX_GB_LET_NOTYETGEN Not yet generated

This status is given before the Generate Pensions
Automatic Enrolment Report process is completed.
ORA_HRX_GB_LET_DISABLED Letter generation disabled
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Assessment Update Actions
Employee Enrolled into a Qualifying Pension Scheme – Automatic or Manual Enrolment

If the employee is found to be eligible for a particular pension scheme based on run result values, the Pension Assessor
Updates Process updates the Pensions Automatic Enrolment component details in the Pensions Automatic Enrolment
calculation card. If required, it creates a new Pension calculation component and updates the Pension calculation component
details on the Pensions Automatic Enrolment segment Active Qualifying Scheme Name.
Assume that that the run results values of Employee Classification for Pensions are:
» Eligible jobholder
» Active Qualifying Scheme Name = Pension Scheme for Fresher
» Qualifying Scheme Joining Date is not blank
» Active Postponement Type is blank
The application creates a new Pension calculation component referring the Scheme Name for that employee and updates the
Pension calculation component details on the Pensions Automatic Enrolment flex segment Active Qualifying Scheme Name.
While creating the Pension calculation component or Qualifying Pension Scheme card component for that person, the
element entry values are populated through entity level post insertion routine, coded on CIR entities and in the next payroll run
the Pension Deduction element will be processed for that employee.
Note: If the Pension calculation component already exists for that person (Pensions Automatic Enrolment
component) it will not create a new PDC but it will stamp the existing PDC details onto the Pensions Automatic
Enrolment flex component Qualifying Scheme Component.
Employee Opt-In for a Qualifying Pension Scheme

If the employee is found to be Opted-In (i.e. through manually updating the Pensions Automatic Enrolment component info) on
a particular pension scheme based on run result values then the Pension Assessor Updates Process will create a new
Pension Deduction Component (PDC) referring the Qualifying Pension Scheme Name for that employee and assign the
corresponding DIR_CARD_COMP_ID into the read only & hidden Pensions Automatic Enrolment flex segment Qualifying
Scheme Component.
While creating the PDC/ Qualifying Pension Scheme card component for that person it will internally populate the element
entry values through entity level post insertion routine coded on CIR/DIR entities and in the next payroll run the Pension
Deduction element will be processed for that employee.
Note: If the PDC component already exists for that person (Pensions Automatic Enrolment component) it will not
create a new PDC but it will stamp the existing PDC details onto the Pensions Automatic Enrolment flex segment
Qualifying Scheme Component.
Employee Leaving a Qualifying Pension Scheme

If the employee is found to be left from the enrolled Qualifying Pension Scheme based on the run result values, that is, if an
employee has left the Qualifying Pension Scheme and entered the Qualifying Scheme Leaving Date on the Pensions
Automatic Enrolment component, then this process will end date the PDC card entries as on specified Qualifying Scheme
Leaving Date.
Employee Opt-Out from Qualifying Pension Scheme

If the employee is found to be Opted Out from the enrolled Qualifying Pension Scheme based on the run result values, i.e. if
an employee has Opt-Out from the enrolled Qualifying Pension Scheme and entered Qualifying Scheme Leaving Date on the
Pensions Automatic Enrolment component, the process will delete/zap the PDC card entries for that person and remove the
Qualifying Pension Scheme Id details from the Pensions Automatic Enrolment component.
Employee Pension Postponement (DBSCHEME/ELIGIBLEJH/WORKER)
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If the employee is found to be having default postponement period based on the run result values, that is, if an employee is
having default postponement period on the Pensions Automatic Enrolment or on their corresponding TRU/PSU component
based on the Auto Enrolment formula run result values the Auto Update process would update Pensions Automatic Enrolment
component with the postponement end date and other details.
Postponements for Pensions Automatic Enrolment

Employers can opt to use a postponement period of up to 3 months before assessing a worker for automatic enrolment. Once
you set up your postponement rules, the Pensions Automatic Enrolment Assessment process automatically determines if a
postponement applies to each employee being assessed. It is useful to understand the types of postponements available and
the rules for each.
Postponement Types
You can define the following postponement types:
» Worker Postponement – Applicable following the employer’s staging date or at the start of employment. For example, to
avoid enrolling temporary or short-term workers, you might define a worker postponement to end two months after the
employment start date. By the time the postponement ends, the short-term worker will no longer be employed.
» Eligible Jobholder Postponement – Applicable when a worker first becomes an eligible jobholder, to avoid partial period
payments. For example, to avoid proration of contributions, you might postpone enrolment to the start of the next pay
reference period after a jobholder becomes eligible. Thus, if an employee becomes eligible on their 22st birthday, their
enrolment occurs at the start of the first period following their 22nd birthday.
» DB Scheme Postponement – Postponement of automatic enrolment duties available to employers who operate an existing
defined benefit (DB) or hybrid pension scheme. This postponement applies to existing employees who had the option to
join a DB scheme and may now be eligible for Pensions Automatic Enrolment. To allow a phased approach to increased
pension costs for DB schemes, you can defer automatic enrolment for such employees for a period of time.
Overriding Default Postponement Values

You can override the organization-level default values at the payroll relationship level using the Manage Calculation Cards
task. Complete the following fields on the employee’s Pensions Automatic Enrolment card:
» Overriding Worker Postponement Rule

» Overriding Eligible Jobholder Postponement Rule
You can also enter values for the following fields to explicitly enforce a postponement:
» Active Postponement Type

» Active Postponement Rule
» Active Postponement End Date
If you provide values for these fields, the assessment process validates the postponement end date entered to ensure that it
does not exceed the later of:
» The staging date plus 3 calendar months
» The employment start date plus 3 calendar months for Entitled Worker Postponements
» The eligibility date plus 3 calendar months Eligible Postponements
For DB scheme postponements, you can enter a postponement end date up to 30-SEP-2017.
Note: For a DB Scheme Postponement, you must manually set the Active Postponement Type, Active
Postponement Rule, and Active Postponement End Date values before running the Pensions Automatic Enrolment
process, as the system does not automatically apply DB scheme postponements.
How Postponements Are Processed

» The assessment process checks to see if a postponement is currently in effect.
If so, it stops the assessment process. If not, the process continues.
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» The process uses the applicable postponement rules and formulas to determine if a worker or eligible jobholder
postponement applies at this time.
If so, the application updates the Active Postponement Type, Active Postponement Rule, and Active Postponement
End Date fields on the worker’s calculation card accordingly, and the assessment process stops. If not, it continues
with the assessment.
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Manually Enrolling an Employee into a Qualifying Pension Scheme

You can manually enrol an employee in a qualifying pension scheme if that employee does not qualify for automatic
enrolment, such as exempt or entitled workers. You can also use manual enrolment if an employee is already enrolled in a
Qualifying Pension Scheme for one or more eligible terms or assignments and wants to enrol in another Qualifying Pension
Scheme for another employment for the same payroll relationship. Some employers use manual enrolment if they
contractually enrol all employees in a pension scheme on their first day of employment.
Manual enrolment involves the following tasks:

» Creating a Benefits and Pensions calculation card
» Updating the Pensions Automatic Enrolment calculation card
Prerequisites
You must ensure that:
» An element exists for the Qualifying Pension Scheme in which you’re enrolling the employee and eligibility has been
defined for the element.
» The employee has a Pensions Automatic Enrolment card. This card is created automatically during the new hire process, if
Creating a Benefits and Pensions Calculation Card

» Select the Manage Calculation Cards task in the Payroll Calculation work area.
» Search for and select the payroll relationship for the employee you want to enrol.
» On the Manage Person Details page, click Create to add a new card.
» In the Create Calculation Card window, select Benefits and Pensions and click Continue.
» Click Add Row in the Calculation Components section.
» In the Calculation Component field, select the scheme into which you want to enrol the employee. The name of the
component matches the name of the pension scheme element previously created.
» Save the card.
Updating the Pensions Automatic Enrolment Card (Employee Not Previously Enrolled)
If you are manually enrolling an employee who is not already enrolled in a Qualifying Pension Scheme, follow the steps below.
Otherwise, skip to the next section.
» Open the employee’s Pensions Automatic Enrolment card for editing (also using the Manage Calculation Cards task).
Note: The Pensions Automatic Enrolment card is created automatically when an employee is hired.
» In the Component Details section, select Edit>Update.

» Complete the following fields:
Field Value
Qualifying Scheme Joining Method Select Manually enrolled
Qualifying Scheme Joining Date Enter the enrolment date.
Active Qualifying Scheme Name Select the name of the Qualifying Pension Scheme for
manual enrolment.
Qualifying Scheme Component Select the name of the Qualifying Pension Scheme you
previously added to the employee's Benefits and Pensions
calculation card.
» Save the calculation card.

» Run the Pensions Automatic Enrolment Assessment process before running your full payroll cycle to verify successful
enrolment and generate notification letters.
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Creating a Pensions Automatic Enrolment Component for an Additional Qualifying Pension Scheme (Employee
Currently Enrolled)
If you are manually enrolling an employee who is currently enrolled in another Qualifying Pension Scheme, follow the steps
below.
» Open the employee’s Pensions Automatic Enrolment card for editing (Manage Calculation Cards task).
» Create an additional Pensions Automatic Enrolment component on the card.
» Complete the following fields in the Calculation Component Details section:
Field Value
Employee Classification for Select the employee’s current classification.

Pensions
If the employee is an eligible jobholder, you must enter the Eligible Jobholder Date,
which is the date the employee was assessed as an eligible jobholder by the
Pensions Automatic Enrolment Assessment process. (The process automatically set
this date on the employee’s original Pensions Automatic Enrolment component.)
Qualifying Scheme Joining Method Select Manually enrolled.
Qualifying Scheme Joining Date Enter the enrolment date.
Qualifying Scheme Component Select the Qualifying Pension Scheme you previously added to the employee’s
Benefits and Pensions calculation card.
» Create an association to the appropriate TRU.

» Create association details to link each Pensions Automatic Enrolment component (the new one and the original one) with
the appropriate terms or assignments.
Note: By default, the original Pensions Automatic Enrolment component has no association details; earnings for all terms
or assignments for the payroll relationship are considered during the initial Pensions Automatic Enrolment assessment. If
you add a Pensions Automatic Enrolment component, you must define association details for both components.

Opting In to a Qualifying Pension Scheme

A non-eligible jobholder can opt in to a qualifying pension scheme at any time. An eligible jobholder can opt in to a Qualifying
Pension Scheme after previously opting out or leaving the scheme.
Prerequisites
Make sure that:
» An element exists for the Qualifying Pension Scheme the employee is opting into, and eligibility has been defined for the
element.
» The employee has a Pensions Automatic Enrolment card. This card is created automatically during the new hire process.
» The employee was previously assessed and assigned a classification of either eligible jobholder or non-eligible jobholder.
Updating the Pensions Automatic Enrolment Card for the Opt-In Action
» Open the employee’s Pensions Automatic Enrolment card for editing (Manage Calculation Cards task).
» In the Component Details section, select Edit >Update.
Field Value
Active Qualifying Scheme Name Select the name of the scheme you are enrolling the employee in.
Qualifying Scheme Joining Method Select Opt in.
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Qualifying Scheme Joining Date Enter the opt-in enrolment date.

Opting Out of a Qualifying Pension Scheme

An eligible jobholder can opt out of a qualifying pension scheme into which they were automatically enrolled. A non-eligible
jobholder can opt out of a Qualifying Pension Scheme for which they previously opted in. Opting out must occur within the opt-
out period. After that date, an employee must leave, rather than opt out, of a scheme.
Note: An employee who was manually enrolled in a Qualifying Pension Scheme must leave, rather than opt out, of the
Qualifying Pension Scheme.
Prerequisites
Make sure that:
» The employee is currently enrolled in a Qualifying Pension Scheme (either by automatic enrolment or by opting in).
» The opt-out period end date has not yet been reached.
Updating the Pensions Automatic Enrolment Card for the Opt-Out Action
» Open the employee’s Pensions Automatic Enrolments calculation card (Manage Calculation Cards task).
» In the Component Details section, select Edit and Update.
Field Value
Reason for Leaving Qualifying Select Opt out.

Scheme
Qualifying Scheme Leaving Date Enter the opt-out date.

» Run the Pensions Automatic Enrolment Assessment process.
The process end dates the employee’s Benefits and Pensions card and removes the qualifying scheme details from the
Pensions Automatic Enrolment card. The employee’s classifications for pensions remain unchanged.
Leaving a Qualifying Pension Scheme

An employee can leave a qualifying pension scheme in which they are currently enrolled.
Note: Leaving a scheme is different from opting out. Use this procedure only for employees who were manually
enrolled in a Qualifying Pension Scheme or who are leaving a scheme after the opt-out period ends. If an employee
was automatically enrolled or has opted in to a Qualifying Pension Scheme and wants to opt out before the opt-out
period end date, use the Opt-Out action.
Prerequisites
» The employee is currently enrolled in a Qualifying Pension Scheme.

» If the joining method was automatic enrolment or opt-in, the opt-out period has ended.
Updating the Pensions Automatic Enrolment Card

» Open the employee’s Pensions Automatic Enrolments calculation card (Manage Calculation Cards task).
» In the Component Details section, select Edit>Update.
Field Value
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Reason for Leaving Qualifying Select Left scheme.

Scheme
Qualifying Scheme Leaving Date Enter the leaving date.

The process end-dates the employee’s Benefits and Pensions card so that no more deductions are taken. The employee’s
classifications for pensions remain unchanged.
Overriding the Default Qualifying Scheme for an Employee

You can override the default qualifying pension scheme before an employee is automatically enrolled. When the Automatic
Pensions Enrolment Assessment process runs, it will automatically enrol the employee in the overriding scheme if the
employee is assessed as an eligible jobholder.
Note: Once an employee has been enrolled in a QUALIFYING PENSION SCHEME, you must first end their
enrolment in the current scheme, either by opting out or by leaving the QUALIFYING PENSION SCHEME. Then you
can manually enrol them in a different QUALIFYING PENSION SCHEME.
Prerequisites
Ensure that:
» An element exists for the overriding Qualifying Pension Scheme and eligibility has been defined.
» The employee has a Pensions Automatic Enrolment card. This card is created automatically during the new hire process, if
Updating the Pensions Automatic Enrolment Calculation Card
Use the Manage Calculation Cards task to open the Pensions Automatic Enrolment calculation card for the employee.
» In the Component Details section, expand the Pensions Automatic Enrolment section.
» In the Overriding Qualifying Scheme Name field, select the Qualifying Pension Scheme for this enrolment.
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Pensions Automatic Enrolment Audit Reports

The Run Pensions Automatic Enrolment Report task generates the employer audit reports that allows you to see what
event changes have occurred during the latest assessment.
1. Click on the Go to Task icon for Run Pensions Automatic Enrolment Report:
2. The View Results will show Employer Audit reports which have been generated.
There following two reports are generated:
» The Enrolment Report

» The Re-Enrolment Report
The Enrolment report is divided into the following nine sections along with the employee’s name and additional details to
display the latest status for that employee:
» Automatically Enrolled – Displays employees who became Eligible Jobholders during the current assessment with no
postponement activated.
» Manually Enrolled – Displays employees who belong to a scheme which wasn’t done through the Pensions Automatic
Enrolment process.
» Opt-in – Displays employees who have decided to opt into a QUALIFYING PENSION SCHEME.
» Opt-out – Displays employees who have decided to opt out of a Qualifying Pension Scheme.
» Left Scheme – Displays employees who leave a scheme and their date of leaving.
» Worker Postponement – Displays employees who got worker postponement within current assessment, the postponement
rule in place, and the end date for the postponement.
» Eligible Jobholder Postponement – Displays the postponement rule and end date for the employees who started Eligible
Jobholder Postponement within the current assessment period.
» DB or Hybrid Scheme Postponement – Displays the postponement rule and end date for the employees who started a
DB/Hybrid Scheme Postponement within the current assessment period.
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» Employees not Automatically Enrolled – Displays employee who has had a classification change but not fallen within any of
the other sections. It shows the employee’s classification along with their assessable earnings and notification letter.
The Re-enrolment report is divided into the following two sections along with the employee’s name and additional details to
display the latest status for that employee:
» Automatically Re-Enrolled – Employees who are assessed and automatically re-enrolled into a Qualifying Pension Scheme
in the period
» Not Automatically Re-Enrolled - Employees who are not eligible for re-enrolment for this period, with an associate reason.
Employee Notification Letters

When the audit reports are showing the expected values for the employee population, the notification letters can be generated
for the employees.
1. To do this, run the Generate Pensions Automatic Enrolment Reports process from the Submit a Process or Report
flow.
» Payroll Flow: Identifier for the process that is being run. You have to enter a unique value each time the process is
executed
» Original Pensions Automatic Enrolment Flow Name: Enter the name of the last flow run for the Assessment
process, for which you wish to generate the notification letters
2. Submit the process.
3. Click View Results on the Run Pensions Automatic Enrolment Letters process to see the three sets of notification
letters.
Note: If you have set the delver preference Online, the letter content is not visible within these files, but visible in the
employee Document Records.
You can customize these letters as per your requirements. The Pensions Automatic Enrolment process makes the decision
on whether an employee must be sent a letter and the type of notification letter based on the assessment outcome.
All employee letters are delivered as templates. The templates supported are the newer versions of the templates, as advised
by the Pensions Regulator. Use the Business Intelligence Publisher (BIP) customization functionality to adapt the letters for
your requirements.
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The employee letter templates are delivered in two sets:

» Paper - /Shared Folders/Human Capital Management/Payroll/Regulatory and Tax Reporting/UK/Pensions Automatic
Enrolment Employee Letters.xdo
» Online - /Shared Folders/Human Capital Management/Payroll/Regulatory and Tax Reporting/UK/Pensions AE Employee
Letters Online.xdo
Note: You must use the BIP customization feature to alter the templates. Any changes not done within the custom folder of
the BIP Catalog will result in templates being overwritten during the next patching window. BI Author privilege is required to
customize the report templates so that they are saved in the Custom folder.
Employee Notification Letters Delivery Preference

Oracle Fusion HCM for UK delivers a document type ORA_HRX_GB_PAE_LETTERS to support delivery preferences for
pension letter templates. By default, the delivery preference is Paper; however you can change this to Online to enable
employees to view their notification letters using Self Service.
Pensions Automatic Enrolment Report – Data Archived

To develop your own reports or employee communications, use the following procedure to find data that is archived as a part
of this process.
Run Pensions Automatic Enrolment Report task to archive pension assessment data and generate the Employer Audit
report along with the employee notification letters. You can also view any paper versions of the reports.
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Pensions Automatic Enrolment Archive Process

When you run this task, the application archives all the data required to support both the employer audit report and employee
notification letters, with sufficient detail to ensure customization. The archive used is UK Pensions Automatic Enrolment
Archive Process which is an HR archive based extract.
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Each record archives a set of data elements which are listed below and are available for use in any custom reports that you
may want to create.
UK Pensions Automatic Enrolment Payroll Record - GB_PAE_PAYROLL_RECORD
 payroll Name – Name of payroll being run
 payrollPeriodName – Payroll Period used for assessment
 regularProcessDate – Process date
 statutoryPeriodStartDate – Statutory start date of the period
 statutoryPeriodEndDate - Statutory end date of the period
 payrollPeriodType – Payroll Period Type (such as monthly or weekly)
UK Pensions Automatic Enrolment Employee Record - GB_PAE_EMPLOYEE_DETAILS
 title – Title of employee
 firstName – First name of employee
 middleName – Middle name of employee
 lastName – Last name of employee
 listName – List name of employee
 gender – Gender of employee
 dateOfBirth – Date of Birth of employee
 employeeAddressLine1 – Employee’s primary address line 1
 employeeTownOrCity – Employee’s primary town or city of residence
 employeeCounty – Employee’s primary county of residence
 employeePostcode – Employee’s primary postcode
 employeeCountry – Employee’s primary country of residence
UK Pensions Automatic Enrolment Employee Scheme - GB_PAE_EMPLOYEE_SCHEME_DETAILS
 penProviderName – Pension Provider’s name
 schemeContactName – Name of the contact for this particular pension scheme
 schemeContactDtls – Contact details for this pension scheme
 nameOfSignatory – Name used to sign-off letters
 empInstructions – Additional instructions to be placed on letters for
employees
 ejhAge – Legislative age an employee is classes as an Eligible Jobholder
 maxERContr – Maximum monetary amount that the employer will contribute
 employerContr – Employer contribution amount
 employeeContr – Employee contribution amount
 basicRateTax – Legislative basic rate tax value
 lowerThresholdPeriod – Legislative lower earnings threshold for the
payroll period type being run
 triggerThresholdPeriod – Legislative trigger earnings threshold for the
 upperThresholdPeriod – Legislative upper earnings threshold for the
 lowerThresholdAnnual – Legislative annual lower earnings threshold
 triggerThresholdAnnual – Legislative annual trigger earnings threshold
 upperThresholdAnnual – Legislative annual upper earnings threshold
 payrollPeriodType – Payroll Period Type (such as monthly or weekly)
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 correspondenceDate – Date that will be stamped on notification letters

 deliveryPreference – Delivery preference resolved to the employee level
 lowerThresholdWeek - Legislative weekly lower earnings threshold
 triggerThresholdWeek – Legislative weekly trigger earnings threshold
 upperThresholdWeek – Legislative weekly upper earnings threshold
UK Pensions Automatic Enrolment Assessor Component Record - GB_PAE_ASSESSOR_DETAILS

 empClassification – Employee’s current classification (Entitled Worker,
Eligible Jobholder etc)
 ejhDate – Date that employee became an Eligible Jobholder
 ovrdWorkerPostRule – Overriding Worker Postponement Rule
 ovrdEJHPostRule – Overriding Eligible Jobholder Postponement Rule
 ovrdQPSId – Name of overriding default Qualifying Pension Scheme
 actPostType – Name of active postponement type currently in place
 actPostRule – Name of active postponement rule currently in place
 actPostEndDate – Date in which the currently active postponement is due to
finish based on the rule
 actQPSName – Name of Qualifying Pension Scheme the employee is enrolled
into
 qpsJoinMethod – The method in which the employee joined the Qualifying
Pension Scheme
 qpsJoinDate – Date that the employee was enrolled onto the Qualifying
Pension Scheme
 reasonForLeavingQPS –way in which the employee has left a scheme (Opt-out,
left etc)
 qpsLeavingDate – Date on which employee opted out of Qualifying Pension
Scheme
 optOutPeriodEndDate – End date of an active Opt Out Period
 joiningSchemeProcessedDate – Date on which application processed the
employee joining a Qualifying Pension Scheme
 leavingSchemeProcessedDate – Date on which application processed the
employee leaving a Qualifying Pension Scheme
 classChangeProcessedDate – Date on which employee’s classification change
was processed
 activePostProcessedDate – Date on which active postponement for employee
was processed
 optOutRefundDue – Flag to indicate if a refund is due post opt out
 payrollPayRefPeriod – Payroll reference period
 ovrdStagingDate – Value of an Overriding Staging Date for employee
 assessableEarningsPRP – Value of assessable earnings calculated for PRP
 processAssessmentId – Unique ID of a complete assessment run with latest
updates
 qualifyingSchemeId – Qualifying Pension Scheme ID for which the employee
belongs
 ovrdQPSName – Name of the overriding Qualifying Pension Scheme
 actvQPSName –
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 prelId – Payroll Relationship ID of employee

 referenceCode
 lastAssessmentDate – Date on which last assessment was done on employee
 pensionProviderName – Name of Pension Provider
 effectiveUpdateDate – Effective date of the last update
 letterTypeGenerated – Type of notification letter sent to the employee
 letterTypeDate – Date the last notification letter was sent to employee
 subsequentCommsReq – Flag for any further communication required to be
sent to employee
 personId – Person ID
 letterHistory – History of letters generated for this person
 letterStatus – Status of the last generated letter for this person
 reEnrolFlag – Indicates that the employee does not need assessing unless
within the re-enrolment window
 reasonForExclusion – Reason this person was not re-enrolled
40
Recommended Configuration for Salary Sacrifice for Pension Contributions

The following sample solution outlines how you can implement salary sacrifice for employees who may want to use it
partially, fully, or abstain from it. Configure this by using the auto enrolment features.
Setting up Regular and Irregular Earnings

Configure the Standard Earnings element that feeds all the balances including Pensionable Earnings.
Setting up Salary Sacrifice element

Create the Salary Sacrifice element using the earnings element templates and ensure that contains an input value of the
Employee Reduction Percentage. It must have a priority such that it runs after all the other earnings elements.
The priority of the salary sacrifice earnings element should be such that it runs after all other earnings elements. The priority of
the element is seen in the Manage Elements screen.
The Salary Sacrifice element must be an earnings element to conform to legislation.
The Pay Value must be negative. The following is a suggested calculation:

Pay_Value = round (<Element_Name>Pensionable Earnings_ASG_RUN * Employee Reduction
Percentage / 100, 2) * -1
Apart from the usual balances, it must also feed the following balances:
» Pensionable Earnings
» Taxable Pay
» NIable Pay
» Own primary balance, which is referenced by the corresponding pension deduction fast formula – in this example,
Earning Sacrifice for Pension1.
Configuring the Pension Element

The pension element already contains values for the Employee and Employer contribution Percentages. However, if you have
employees with more than one pension scheme, and one pension scheme is subject to salary sacrifice but not the other, then
ensure that you reduce the salary by the reduction percentage applied to the pensionable earnings subject to salary sacrifice,
and not all the pensionable earnings applicable to both pension schemes.
The Pension element feeds all the usual balances for the classification.
The Salary Sacrifice contribution is not recorded as an Employee Contribution, but as an Employer Contribution. The fast
formula needs adjusting:
You can edit the fast formula to reference the Earnings Sacrifice for Pension1 _PTD or _RUN balance. If this does not equal
zero, implying this employee has contractually agreed to a salary sacrifice reduction, then the employee contribution is
reduced by the salary sacrifice already made as follows:
Employee_Contribution =
GREATEST(0, (ROUND(employee_pensionable_earnings *
(employee_pension_Contribution_percentage / 100),2))
- (-1 * Earnings Sacrifice For Pension1_RUN))
Note: This approach implies that the employee % includes the Salary Sacrifice %. This also allows the employee to
make an additional pension contribution, over and above the above the salary Sacrifice contribution. If there is such
an additional employee contribution, it is posted to the usual balances. This represents an additional employee
contribution on top of the Salary Sacrifice contribution.
The Employee_Contribution should feed either Pre-Tax Pension Contributions (if the pension is a Pre-tax contribution) or Post
Tax Pension Contributions if it’s a voluntary contribution, so that the Full Payment Submission (FPS) is correct. The
Employee_Contribution must negatively feed Taxable Pay, but not NIable Pay.
The Employer contribution consists of two components:
41
- The usual calculation of the Employer Contribution.
- The value of the balance Earnings Sacrifice For Pension _RUN * -1 (to convert it to a positive additional employer
contribution).
o This value (made of two components) is posted to the usual balances
Additionally, you may require a separate balance of just the salary sacrifice pension contribution. This could be an additional
balance, fed by an additional input value created using the element template manually. You can then reference this by reports
for pension deduction and reconciliation purposes, for example, balance Employer Sacrifice Contribution.
Additional Considerations
The recommended solution makes the following assumptions:
» The salary sacrifice element entry is available only if the employee has agreed to undertake salary sacrifice. Note, this
element entry would need to be created manually; there is no automated mechanism to create the entry.
» If the salary sacrifice element entry is present, the employee is enrolled on a pension scheme and that deduction will be
taken this period. There is a risk, however small, that with auto-enrol and opt-out, that the person will be removed from the
pension, but the salary sacrifice will still be taken. You can address this by:
» Amending the Salary Sacrifice formula, to check the enrolment status of the employee. If there is a possibility that the
person may be contributing to more than one pension scheme, a named pension scheme could be used. An additional
input value can hold this.
» Having a further element for all employees regardless of their enrolment status, that runs after pension deductions are
complete to check that the balance value ‘Earnings Sacrifice For Pension _RUN’ = Employer Sacrifice
Contribution_RUN. Raise an error if they do not a balance.
» Additionally, instead of just a Percentage for salary sacrifice reduction, you may prefer to have the option of a further
input value to hold an absolute amount of deduction to be taken each period. You must maintain this value in case if
earnings changes or payroll frequency changes.
42
Recommendations for Data Migration

Consider the following recommendations while performing data migration from a legacy system to Fusion Pensions Automatic
Enrolment processing.
Employee Classifications
While migrating employees who are already on a Qualifying Pension Scheme, you must:
1. Load the Pension Deduction Card and Component.
2. Load the Assessor as a Manual Enrolment. This will refer to the previously loaded Pension component as the Active
Qualifying Scheme.
For example, use the following settings when you migrate:
 Active Qualifying Scheme Name set to your Qualifying Pension Scheme Name
 Qualifying Scheme Joining Method set to Manually Enrolled
 Qualifying Scheme Joining Date set to date of enrolment
 Qualifying Scheme Component set to the Benefits and Pensions card component for QPS
 Overriding Worker Postponement Rule set to None
 Overriding Eligible Jobholder Postponement Rule set to None
3. Enter the Eligible Job Holder classification for the employee’s correct Pensions Automatic Enrolment assessor card.
4. Specify the Eligible Job Holder Date, Qualifying Pension Scheme name, the Joining Date, and the Enrolment
Method.
Note: The Qualifying Pension Scheme must already be created and configured before this step.
When loading data during an initial loading of data, the calculation card start date must be on or before the earliest date you
record in that record. For instance, if you are recording an opt-in date of 1-Jan-2012, the Benefits and Pensions card, and the
pensions automatic enrolment assessor should also start on or before 1-Jan-2012.
If an employee has opted-out or left the scheme in the past, you don’t need to capture the active enrolment and the
information on the Benefits and Pensions card.
Guidance on Third-Party Payments setup

While configuring the Pension Deduction elements, it is necessary to consider the third-party Organization Payment Method
balance feeds.
43
The created element must feed the third-party Payment balance. Add the Employee and Employer Contribution feeds (and
optionally any additional contributions) to the Third-Party Payment balance in the Manage Balances page:
If your organization is going to pay the third-party using payroll, the third-party organization must be configured correctly, with
an associated third-party payment method. The third-party must be of type Pension Provider and have an address.
The third-party must be referenced in the Pension Deduction CIR Component, Enterable Calculation Values on Calculation
Cards. For the Payee field, the amount values must hold the Third-Party ID:
44
Glossary
opt out
To decline membership in a qualifying pension scheme in which you were automatically enrolled
pensions automatic enrolment
Mandated enrolment of eligible workers in a qualifying pension scheme, based on the rules defined in the Pensions Act 2008
and associated regulations. Also the name of the calculation card used in the pensions automatic enrolment assessment
process.
pay reference period (PRP)
Period of time over which earnings are assessed for pensions automatic enrolment
defined benefit (DB)
Type of pension scheme that promises to pay out a certain sum each year once you reach retirement age. Used in the UK
Type of pension scheme that promises to pay out either a defined benefit (DB) or a benefit that is larger than the DB amount
qualifying pension scheme
Pension scheme that meets the qualifying criteria for pensions automatic enrolment, as defined in the Pensions Act 2008 and
associated regulations
staging date
Date on which a business must begin providing pensions automatic enrolment, which varies by employer
postponement rules
Values that define how and when an employer can postpone their duty to automatically enrol workers in a qualifying pension
scheme
eligible jobholder
Worker who satisfies all qualifications for automatic enrolment in a qualifying pension scheme. The employer must enrol the
worker and must contribute, unless the employee opts out
non-eligible jobholder
A worker who does not qualify for automatic enrolment in a qualifying pension scheme, but may opt in. The employer must
contribute if the employee opts in
entitled worker
A worker who does not qualify for automatic enrolment in a qualifying pension scheme, but is entitled to join a pension
scheme. The employer has no obligation to contribute
non-entitled worker
A worker who is not eligible for pensions automatic enrolment and not entitled to join a pension scheme
DB and hybrid scheme postponement
Postponement of automatic enrolment duties available to employers who operate an existing defined benefit or hybrid pension
scheme
worker postponement
Postponement of pensions automatic enrolment duties for up to three months from the employer’s staging date or the start of
employment
45
eligible jobholder postponement
Postponement of pensions automatic enrolment duties for up to three months from the date a worker first becomes an eligible
jobholder, typically to avoid partial period payments
46
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White Paper Title: Oracle Fusion HCM (UK): Pensions Automatic Enrolment Implementation and Functional Considerations
August 2017
Author: Smita Bakrania
Contributing Authors: Henry Winsor
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Oracle Fusion HCM (United Kingdom):

Pensions Automatic Enrolment Implementation and Functional

ORACLE FUSION HCM UK: PENSIONS AUTOMATIC ENROLMENT

Pensions Automatic Enrolment Setup 5

Qualifying Pension Scheme Element Setup 5

Selecting the Level for Pension Element 6

Defining Eligibility for Pensions Automatic Enrolment Elements 6

Identifying Assessable and Pensionable Earnings 6

Defining Organization-Level Default Values 6

Default Postponement Rules and Formulas 7

Other Default Values 8

Specifying Formulas at Organization Level 9

Capture Pension Notification Letter Information 9

Manage Calculation Cards 10

Pensions Automatic Enrolment Calculation Card Creation 14

Pensions Automatic Enrolment Calculation Card Default Values 14

Pensions Automatic Enrolment Card Default Associations 14

Automatically Created Element Entries 15

Pensions Automatic Enrolment Process 15

When to Run this Process 16

Pensions Automatic Enrolment - Flow 18

Payroll Assessment Run 21

Earnings Assessment for Pensions Automatic Enrolment 21

ORACLE FUSION HCM UK: PENSIONS AUTOMATIC ENROLMENT

Classification for Automatic Enrolment 21

Qualifying Earnings Thresholds 21

First-Time Assessment Outcomes 22

Pensions Automatic Enrolment – Pension Assessor Updates 22

Pension Assessor Updates Process Execution 23

Run Result Values Mapping 24

Assessment Update Actions 27

Employee Enrolled into a Qualifying Pension Scheme – Automatic or Manual

Employee Opt-In for a Qualifying Pension Scheme 27

Employee Leaving a Qualifying Pension Scheme 27

Employee Opt-Out from Qualifying Pension Scheme 27

Employee Pension Postponement - DBSCHEME/ELIGIBLEJH/WORKER 27

Postponements for Pensions Automatic Enrolment 28

Overriding Default Postponement Values 28

How Postponements Are Processed 28

Manually Enrolling an Employee into a Qualifying Pension Scheme 30

Creating a Benefits and Pensions Calculation Card 30

Updating the Pensions Automatic Enrolment Card (Employee Not Previously

ORACLE FUSION HCM UK: PENSIONS AUTOMATIC ENROLMENT

Pension Scheme (Employee Currently Enrolled) 31

Opting In to a Qualifying Pension Scheme 31

Opting Out of a Qualifying Pension Scheme 32

Leaving a Qualifying Pension Scheme 32

Overriding the Default Qualifying Scheme for an Employee 33

Pensions Automatic Enrolment Audit Reports 34

Employee Notification Letters 35

Employee Notification Letters Delivery Preference 36

Pensions Automatic Enrolment Report – Data Archived 36

Pensions Automatic Enrolment Archive Process 37

Recommended Configuration for Salary Sacrifice for Pension Contributions 41

Setting up Regular and Irregular Earnings 41

Setting Up Salary Sacrifice element 41

Configuring the Pension Element 41

Recommendations for Data Migration 43

and Pensions card. 43

ORACLE FUSION HCM UK: PENSIONS AUTOMATIC ENROLMENT

ORACLE FUSION HCM UK: PENSIONS AUTOMATIC ENROLMENT

This document covers the following aspects of Pensions Automatic Enrolment:

ORACLE FUSION HCM UK: PENSIONS AUTOMATIC ENROLMENT