How To Fix 5G110 - Employee holds a contracted out pension scheme

5G110 - Overview

• Message type: E = Error

• Message class: 5G - HR: Messages for Britain

• Message number: 110

• Message text: Employee holds a contracted out pension scheme

What causes this issue?

You have entered a not contracted out NI category. However, the person
concerned holds a contracted out pension scheme.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

As this person is eligible for a contracted out NI category, you should
change the NI category you have entered.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 5G110 - Employee holds a contracted out pension scheme ?

  The SAP error message 5G110, which states "Employee holds a contracted out pension scheme," typically occurs in the context of payroll processing in the UK, particularly when dealing with pension schemes. This error indicates that the employee in question is enrolled in a contracted-out pension scheme, which affects how their National Insurance contributions are calculated.
  
  Cause:
  
  Contracted-Out Pension Scheme: The employee is part of a pension scheme that has been contracted out of the State Second Pension (S2P). This means that the employee and employer pay reduced National Insurance contributions.
  Incorrect Configuration: The employee's records may not be set up correctly in the SAP system, leading to discrepancies in how their pension contributions are processed.
  Missing or Incorrect Data: There may be missing or incorrect data related to the employee's pension scheme, such as the scheme type or the employee's eligibility.
  
  
  Solution:
  
  Check Employee Records: Verify the employee's pension scheme details in the SAP system. Ensure