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Smart Pension Integration

Kay North avatar
Written by Kay North
Updated today

What is the Smart integration?

The Smart Pension integration connects your PayFit account directly with Smart to keep pension information synchronised between both platforms. It simplifies scheme setup, improves accuracy, and handles employee updates like opt-outs and contribution changes more efficiently.

Key Features

  • Automatic synchronisation of scheme information

  • Validation of employee and employer contributions against Smart group rules

  • Nightly data synchronisation

  • Manual sync option available at any time

  • Supports opt-ins, opt-outs, contribution changes and pension refunds

  • Matches employees between PayFit and Smart using multiple identifiers

How to activate the Smart integration

  1. Go to Integration Hub > Smart Pension in your PayFit account

  2. Click activate and you will be redirected to the Smart employer account login page

  3. Login to your Smart Pension account

  4. You will be redirected back to PayFit with the Smart Pension activated

Once activated, the integration will begin syncing data nightly and will appear in your Integration Hub.

Manual Data Sync

If you need to sync data immediately (outside of the automatic nightly sync):

  1. Go to the Pensions page in PayFit

  2. Click Sync now

  3. The sync will run and confirm once completed

Scheme Sync Details

When connecting to Smart, the integration will detect and configure the appropriate scheme type based on your setup in Smart:

  • Scheme Types Supported:

    • Net Pay Arrangement

    • Salary Sacrifice

Required Manual Inputs

While most scheme information is synced automatically, you’ll still need to fill in the following details in PayFit:

Scheme Details

  • Display name

  • Is this a qualifying scheme?

  • Should PayFit make submissions for this scheme? (Defaults to yes)

Contribution Settings

  • Basis for contributions

  • Earnings basis

If you’re using a salary sacrifice scheme, you’ll see an optional toggle to “Split contribution percentages on PAPDIS file” in your pension scheme settings.

Contributions remain combined, but switching this on will split the % between employee and employer, while £ amounts remain combined as ER. This means employees can see a breakdown on their Smart account, of what they contribute as % as well as what the employer contributes.

SMART Pension Settings

  • Group ('default' group is synced for new schemes)

  • Start of earning period (only retrieved if contributions have already been submitted via Smart)

Employee Matching & Contribution Handling

Employees are matched between PayFit and Smart using the following (in order of priority):

  1. Payroll ID (External ID on Smart)

  2. National Insurance number

Once matched, the connector will:

  • Opt out any employees who have opted out in Smart

  • Issue pension refunds for opted out employees that are eligible

  • Opt in employees who have chosen to join the scheme via Smart

  • Apply any pending contribution changes

Current Limitations

Please be aware of the following:

  • A maximum of 5 pension schemes is currently supported

  • Scheme deletion must be done manually

  • Not all scheme details can be pulled from Smart (see "Required Manual Inputs")

  • Salary sacrifice contribution updates are not supported automatically. You will receive a required action in PayFit and must manually confirm the salary sacrifice amounts

  • Fixed amounts are not supported. Smart does not allow fixed contributions to be set up on their portal, and these will not sync through the integration, instead these will be skipped.

  • If an employee wants to contribute more, Smart advise doing this by increasing the % contribution and adding the difference as an Additional Voluntary Contribution (AVC) instead.

Fixed Amount Contributions

Smart does not support fixed amount contributions on their platform.
When syncing data between PayFit and Smart, any employees with fixed contribution amounts will be skipped during the sync.

All other actions, such as opt-ins, opt-outs and refunds will still process as normal.
Employees with fixed amounts will remain unchanged in both PayFit and Smart, and their contributions can continue as they are in PayFit.

Questions?

If you need help activating or using the Smart integration, feel free to reach out to our support team through your PayFit account.

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