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Why is my Pension Direct Debit different to what I am seeing on PayFit?
Why is my Pension Direct Debit different to what I am seeing on PayFit?
Rebecca Russell avatar
Written by Rebecca Russell
Updated over a week ago


This article will explain the most likely reasons that the amount taken by your pension provider is different from the value you see on PayFit.

1️⃣ Employee leaves scheme directly via the Pension Provider & not updated this on PayFit

The most common cause for this occurs when employees have left the scheme directly through the pension provider and this was not updated on PayFit before payroll ran. This means that PayFit has taken contributions from the employee via the payroll but these contributions will not be accepted by the pension provider as they no longer have the employee in the scheme.

How is this fixed?

If PayFit manages your pension scheme then we will be notified that the employees contributions were not accepted as they have left the scheme. We will then add a pension refund to the employees payslip for the following month to correct the previous month.

2️⃣ Pension Provider doesn't take contributions from members until the employee is past their 1 month opt-out period

Another reason could be that your pension provider does not take contributions from members until the employee is past their 1 month opt-out period. Smart Pension is an example of a provider who does this so this article will use them in an example.

This means that PayFit uploads the contributions for all members but Smart Pension will only take the contributions of members who have been in the scheme for over a month, and they will leave the contributions of the members in their opt-out period in the Smart Pension 'pot'. Then the following month, when the member has passed their 1 month opt-out deadline, the contributions will be taken in addition to the current months contributions.

For Example:

Amount PayFit submit to Smart Pension: £560

Amount Smart Pension take for January: £400

In February when Steve Jobs is no longer in his opt-out period Smart Pension will take the February contributions and the £160 from January

3️⃣ Discrepancy due to different values

If there is a discrepancy and is not due to one of the above reasons please contact our team here.

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