What to do if you processed NHS pensions using incorrect legislation

How to correct employees' payments if you processed NHS pension using old legislation in Sage 50 Payroll.

NHS pension legislation changed from 1 April 2025. However, the confirmed new legislation only became available on 8 April 2025.

If you had payrolls for 1 April onwards that you had to process before the new legislation became available, we recommend you reprocess them. This is to ensure you use the correct tier for all employees' payments. 

 

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Reprocess employees' pay

Your background software update can't automatically correct prior periods if you processed any employees on what's now an incorrect tier.

Follow the steps below to reprocess the incorrect periods using the new NHS pension legislation:

1. Back up your data.
2. Rollback any payments you processed using the old legislation.
    NOTE: For help with doing this, follow the how to use the rollback option article. 
3. Follow our how to enter new NHS pension legislation article to update your legislation.
4. Reprocess the payments you rolled back until all employees' payments are back up to date.

If any employees' values have changed, issue them a new payslip and submit an FPS adjustment for their most recent pay period. Calculate whether their original payment was too low or high, and pay any balance owed or agree how to recover any overpayment. 

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