Pensions, PRSAs and RACs

You can set up and manage the following company pension schemes in Payroll:

Pension

This is an occupational pension scheme offered by an employer to employees. It involves employee and employer contributions.

Personal retirement savings account (PRSA)

A PRSA is a retirement account an individual sets up with a PRSA provider for the long term. The individual can change employment and continue to use the same PRSA. It involves both employee and employer contributions.

Employers not offering a pension plan must give employees access to at least one PRSA scheme.

Retirement annuity contracts (RAC)

A RAC is a personal pension scheme. It can be set up by a self-employed person or an employee who does not have an occupational pension scheme. Employers don’t make contributions to RAC schemes.

To set up a pension scheme deduction >

TIP: You can also create a new pension deduction when you process employee pay.

Select the Settings tab, then select Payments & Deductions.
Select the Deductions tab and select Create New Deduction.

Complete the following information:

Deduction Category	From the drop-down list, select Pensions.
Deduction Type	From the drop-down list, select one of the following options: Pension Pension - PRSA Pension - RAC
Name	Change the deduction name if you want.
Description	Enter explanatory text to make it clear what the deduction is for.
Employee's Standard Contribution	Enter the amount you want to deduct from your employees. This can be a fixed amount or a percentage of pay. You can also change this amount while you're processing an employee's pay details. Read the article Edit pay.
Employer's Standard Contribution	If applicable, enter your company's standard pension contribution. This can be a fixed amount or a percentage of pay. You can also change this amount during processing. Read the article Edit pay.

Select Save.

To start deducting pension contributions from an employee's pay >

When you’re processing employee pay in the Edit Pay window, carry out the following steps:

Select the employee.
Select Add Deduction.
Choose the relevant pension scheme deduction.
You can edit the employee or employer contribution amounts. Select the deduction, make the necessary changes.
Select OK.
Continue processing employee pay.
Complete the pay run as normal.

To stop deducting pension contributions from an employee's pay >