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4796. Will your system be updated automatically when the new AE increased minimum contributions come into force on 6th April 2020?

Yes, our system will automatically update the minimum percentage contribution rates to meet the new increased minimum percentage contribution rates for both employee and employer AE contributions on the day the new rates become effective on 6th April 2020.

The pension contribution output file will update on the effective day to reflect the increase. Pension contributions processed for pay periods ending on or after 6th April 2020 will be calculated at the new rate.

The increase in contributions will apply for the the whole pay period run following the rate increase. There will be no pro-rata adjustment. i.e. if the 6th April rate change occurs half way through the pay period being processed, the pension contribution will be calculated at the new rate for the whole pay period, not half at the old rate and half at the new rate.