A pension refund is the return of contributions made by an employee to their pension scheme. This typically occurs when an employee leaves a job or opts out of the pension plan before reaching retirement age.
For UK employees, processing a pension refund is crucial to ensure they receive any excess contributions made to their pension during their employment.
We have compiled a list of possible reasons why a pension refund may not process, along with steps to resolve each issue.
No pensionable pay
There is no pensionable pay recorded for the employee during the period.
To resolve this, enter a timesheet value on a pensionable pay code for 0.01 pence.
No Year-to-Date (YTD) pension
The employee has not accumulated any YTD pension amount.
A pension refund cannot be generated through the system if the employee has no YTD pension value.
Generate refund not enabled
The option to generate refunds has not been activated.
To resolve this, go to the Maintain Employee Pension Details screen in Back Office. Check the box to enable Generate Refund for the affected employee and ensure the adjustment amount is entered.
In Portal, open the Edit Pension screen, enable the Generate Refund toggle for the employee, and confirm the adjustment amount is entered.
To access an employee's pension record, follow the steps in the relevant section below.
Portal
Click Employee then in the search field, search for employee.
Beside the relevant employee, click VIEW then click Pension.
Highlight the relevant pension scheme then click the three dot icon.
Click Edit.
Back office
Click CorePay then click Employee.
Click Maintain Employee Details then search for the relevant employee.
Under Select details, click Pension.
For the relevant pension scheme, click Edit.
End date set
An end date has been established for the pension scheme.
To resolve this, on the Maintain Employee Pension Details screen, ensure no end date is set for the pension record. A refund will not process if the pension record is closed.