The Voluntary Occupational Pensions Scheme (VOPS) allows Qualifying Employers to provide their Qualifying Employees with a voluntary private occupational pension, separate from the standard National Insurance (N.I.) contributions pensions scheme. Benefits for the Employees derived from the VOPS are enjoyed at/after retirement, same as with the mandatory (N.I.) government contributory pension scheme.
The VOPS is financed by a voluntary payment made by an Employer into a selected Scheme (as offered by the various authorized licensed operators, referred to as the Qualifying Agents on behalf of an Employee.
In addition, the employee has the right to top up such an employer contribution through his/her additional contributions to the scheme.
Step 1: Mark the employee if s/he qualifies for this scheme.
- First, go on Product Switcher, and click on People;
- From the main menu on the left-hand side, go on Employees, and then on List;
- Click on Edit/View to open the employee that you wish to select;
- Go on the Payrun Adjustment tab;
- Tick on the tick box Participating in a Voluntary Occupational Pension Scheme; (this makes the employee eligible for the scheme)
- Click on Save;
Step 2: Add the VOPS Payment as a recurring entry (Fixed Payroll Data). Alternatively, VOPS payments can be added manually during each pay run process.
Three new Payroll fields have been automatically (after Step1. has been completed) added to the list of Fixed Payroll Data field list:
- VOPS – Employer Addition (Post-Tax Addition field)
- VOPS – Employer Deduction (Post-Tax Deduction field)
- VOPS – Employee Deduction (Post-Tax Deduction field)
For more information on how to add fixed payroll data on WorkForce, please click here.
In certain cases, an employee might have VOPS – Employer only, or VOPS – Employee only, while in some cases, the employee might have both contributions. Note well: In case the employee has VOPS – Employer, please make sure to post the same amount as VOPS – Employer Addition and VOPS – Employer Deduction to leave the employee’s net pay unaltered.
Step 3: How VOPS payments are shown in employees’ Payslips and FS3s?
The entries can be noted in the employees’ payslips
The VOPS – Employer can be noted in the Employees’ FS3s
Article is closed for comments.