A pension refund may be required for employees who have opted out of the company pension following re-enrolment. To refund a salary sacrifice pension, follow the steps under the relevant section below.
⚠️Important: Pension refunds can't be actioned in period one of a new tax year.
Multiple EE's pay element
If your employee's salary sacrifice deduction pay element is a multiple, you will need to create a new pay element to action the refund. To do this, follow the steps below.
Create and assign pay elements
Create a new pay element, matching the current EE's element.
Don't select the Multiple checkbox.
Assign the refund pay element to the employee.
Exclude the deduction pay element.
Process refund
Click Payroll, then click Run Payroll.
Find and select the required employee.
Click the refund pay element assigned above.
Enter the employee's value to be refunded.
Enter a quantity of 1.
Click the Pension tab.
Click the Employer Contributions drop-down, then click Refund.
Enter the refund value into the new field.
Click Save.
No multiple EE's pay element
If your salary sacrifice pay elements are a fixed deduction, the refunds can be made under the same pay element. To do this, follow the steps below.
Process refund
Click Payroll, then click Run Payroll.
Find and select the required employee.
Click the employee's salary sacrifice pay element.
Enter the employee's value to be refunded.
Enter a quantity of 1.
Click the Pension tab.
In the Employer Contributions field, enter the refund value.
Click Save.