Mixed-Value Pension Scheme 

Definition

This infotype subtype stores the contributions and additional contributions the employee and employer are to pay into the employee's mixed-value pension scheme. Employees paying into a mixed-value pension scheme can make percentage or flat-rate contributions depending on their pay levels.

Structure

Mixed contributions

The figures in the Reference fields under Employee and Employer in the Mixed contributions group box appear as defaults and are the standard employee and employer contributions agreed within your company. If an employee has a different arrangement, you should enter the relevant figures in the Actual fields of this group box. These amounts will be paid into the employee's pension scheme.

Band levels

The low and high band levels divide an employee's monthly gross salary into three bands - lower, middle, and upper.

The flat-rate or percentage values specified for the lower, middle, and upper bands are used by the payroll to calculate the amount to be deducted from the employee's monthly gross salary and paid into the pension scheme:

The low band level has been defined as £500.00.
The high band level has been defined as £750.00.
The lower band percentage contribution has been defined as 5%.
The middle band flat rate contribution has been defined as £20.00.
The upper band percentage contribution has been defined as 5%.

An employee earns a monthly gross salary of £1000.
The employee's monthly contribution into the pension scheme would be £57.50.
(500 x 0.05) + (20) + (250 x 0.05) = 57.50

Supplements

For information on the Supplements group box, see Additional Voluntary Contributions (AVCs).