SAP Pension Plans

[jimso101]

Dear All,

We have a Pension Plan in which employee contribution is based on Seniority.

If employee has less than  5 year experience he should contribute 2.5%.

Once employee is more than 5 year experiencing he should contribute 4 %. I have set up the Employee Contribution rules accordingly as well.

But now the problem is when employee completes 5 years of service , manual intervention is required to change the % contribution. Is there any way to set up so that system automatically switches the contribution %.

Please advice??

Thanks & Regards

Jim

[Former Member · Accepted solution]

Hi Michael,

As pension plans can be a country specific feature in PY, it will make sensible responses more likely, if you tell us, which country you are referring to.

Kind regards

Sven

[jimso101 · Accepted solution]

Hi Sven,

The pension plan is for Canada...

Thanks & Regards

Jim

[Former Member · Accepted solution]

ok. Then, I'm afraid, I'm out. Not much knowledge about the colonies

[jimso101 · Accepted solution]

Hi Sven,

It doesnt matter , i hope configuration will be same for all .

I just wanted to know whether the percentage information will automatically changed.

Whether i can set it as default based on Seniority or not???

Thanks & Regards

Jim

[former_member193210 · Accepted solution]

Unfortunately for you (and me), new IT0169 must be created when there is a contribution change.

We have Pension Plans with a set of Pre-Tax and Post-Tax (YMPE) rates that usually change every January, so we do the configuration for the minimum/maximum rates for Pre-YMPE and Post-YMPE rates, and the users have to create new IT0169 with the new rates for each employee.

Luckily for them, we can upload their changes through LSMW batch jobs that they execute, and some of them use WinShuttle.

[jimso101 · Accepted solution]

Thanks Remi for your valuable input...........

Regards

Jim

[jimso101 · Accepted solution]

Hi Remi,

I have one more query, whether any standard report exists for checking when the employees are changing the Years of service ???? or whether i need to create a custom report for the same???

Thanks & Regards

Jim

[former_member193210 · Accepted solution]

You should check in the standard SAP reports (SAP Standard Menu > HR > Information Systems > HR Management > etc... and you will find t-code S_PH9_46000216 and some others that could be useful to you, but depending on what defines your "Years of Service", an ad-hoc report (if derived from a date on IT0041) or t-code PT_BAL00 (if Time Evaluation generates a Time Type with that information) may suit your needs.

[jimso101 · Accepted solution]

Hi Remi ,

Sorry to bother you again.

Incase if employee completes 6 years of service and we forgot to create a new record.

In that case whether error will thrown during Payroll execution.

If no error is thrown, how will contribution takes place??

Employee was contributing 4% till 6 years and ER contribution is 30% of EE contribution.

So after 6 years also the same will continue???

Please advice, i tired payroll simulation not getting clear answer out of it.....

Thanks & Regards

Jim

[former_member193210 · Accepted solution]

You can set-up PCRs to compare Years of Service with Contribution Rates to generate errors when an IT0169 does not match set parameters, or simply run an ad-hoc Query every week (programmed to run in the background) to chedk on these same figures.

An ABAP programmer should be able to create a program to create new IT0169 when required.