When you process the first period of a new tax year, the phasing wizard helps you check your pension contributions are compliant. The wizard applies the standard total contributions of 8%, with minimum 3% from the employer. 

If you operate a Type 3 pension scheme with 7% total contributions,  follow the steps below to complete the phasing wizard.

 NOTE: If you don't subscribe to the pensions module, follow our automatic enrolment phasing - increase the contribution rates manually article. 

If total contributions for any of your employees is below 8%, the phasing wizard flags this as below the regulatory minimum.

With a tier 3 scheme you must run the phasing wizard with rates set to the 8% minimum first. Once you've done this the phasing wizard won't reappear this tax year, and you can amend the rates on your scheme back to the required tier 3 amounts.
 NOTE: The phasing wizard is mandatory. You must complete it to process the first period of the tax year.

Update to Tier 3 certification

• If you haven't yet completed the Phasing Wizard for the 2025/2026 tax year, for example you haven't processed period one yet, follow steps 1 to 17 below
• If you've already completed the Phasing Wizard this tax year, for example your scheme is changing to tier 3 mid tax year, follow steps 6 to 17 to update your rates to tier 3

1. Click Payroll, then click Change Process Date.
2. Set your process date to your first pay date in the 2025/2026 tax year.
3. Select a single employee.
4. Click Enter Payments.
5. The Phasing Wizard opens, complete this and uplift to the 8% minimum.
    TIP: For help to complete the phasing wizard, visit our automatic enrolment phasing - update the percentages using the pensions module article.
6. Click Close in Enter Payments.
7. Click Change Process Date.
8. Set your process date to 05/04/2019.
9. Click Company then Pension Schemes.
10. Select the pension scheme you want to be on the type 3 certification and click Edit.
11. Select the Employee and Employer tabs and change to the contributions you wish to use.
12. Press OK and Close.
13. Open the employee record for an individual on this pension scheme.
14. Click the Pensions tab, then click Manage Schemes.
15. Select this scheme and click Edit.
16. You can check here that the contribution rates are correct. You can also edit contributions here for each employee if required.
17. Click Change Process Date, set this to your next pay date in 2025/2026 ready for processing, the pension schemes are now on the 7% minimum.

NOTE: Follow our separate article if you see the error - 'Failed to update pension schemes in the pensions module during this process.