Automating pension processes

Automating pension processes

Pensions are a major pain point for payroll professionals and bureaux, with administration of things like auto-enrolment, reporting pension payments and updating pension scheme details causing a lot of manual work - it can be a frustrating and time consuming task each pay run.

KeyPay removes the pain from pension processing. It automates assessment, notification and auto-enrolment pension processes, and by integrating with PensionSync, completely eliminates the need for any manual processing. See more on this in our blog about automated pension processing.

We’ve recently enhanced KeyPay to further streamline pension scheme management: bureaux can now set up multiple pension schemes and customise each scheme to include specific pay elements, cater for salary sacrifice and even automatically calculate a National Insurance rebate. Let’s take a look at how these work:

Pay categories in pension calculations

KeyPay users can now specify which pay categories will be eligible to be included in pension calculations. For example, you can set the pension calculations to apply only to the “Salary” pay category and exclude other non-pensionable pay categories.


Salary sacrifices

Users can now specify salary sacrifice amounts at a “scheme” level - previously this was only available at an employee level so users had to set the salary sacrifice component up for each individual employee. Now users can set the salary sacrifice pension component up at the scheme level and override it at the employee level as required. As with the employee and employer contributions, you can also limit the salary sacrifice amount to specific pay categories.                

Automatically calculate National Insurance rebates

Finally, with salary sacrifice pension contributions, users can also specify a National Insurance rebate amount. Because the salary sacrifice pension amount is reducing the employee’s gross earnings, it’ll reduce the employer’s National Insurance contribution and some employers give some, or all, of the saving back to their employees to increase their overall pension amount.

If you want to set a rebate amount, just set it in the salary sacrifice settings:



All of these settings work with both manual and PensionSync enabled pension schemes so all KeyPay users can take advantage of these new features.

Phil Bernie

Co-founder of KeyPay. Follow me on:


You might also like...

This is an image of fireworks over New Zealand, with the KeyPay logo in the top left corner.
June 16, 2022

New Zealand’s Matariki public holiday explained

New Zealand’s new public holiday, Matariki, is on Friday 24th June 2022. Learn how accountants and bookkeepers can achieve compliance with the help of KeyPay.
Industry Insights
This is a photo of 5 people sitting around a table discussing.
April 12, 2022

Fair Pay Agreements in NZ: What you need to know

The New Zealand Government is planning to implement a Fair Pay Agreement (FPA) system to improve pay and working conditions for middle-income earners.
Industry Insights
New Zealand Tax Year End processing
March 8, 2022

Payroll updates for NZ New Tax Year 2022-2023

The new tax year is fast approaching in New Zealand. Here's how KeyPay is helping partners and their clients with end of tax year processing.
Automation illustration

Not using KeyPay yet?

Speak to our sales team

Learn more