how do I configure and employer-only paid pension plan for when an employee is on leave

[Former Member]

We have 2 Defined contribution pension plans in which the contribution is 100% employer paid. These plans are used when the employee is on leave. There is no employee contribution. We have managed to configure the system so that an ER contribution calculates but it does not stop at the maximum limit. I have tried to activate the user exits, HRBEN0007 and BEB0014 however I am not sure of what the correct steps are to take.

[jimso101]

Hi Sonia,

You can definitely use BADI - PBEN0014 for ER contribution. But there are other options too, like Limit functionality in Schema.

Payroll--> Deductions-->Limits on Deductions. Create a wagetype class and assign ER wagetypes and then maintain the annual limit.

Or Other option is manual, maintain PA0169 records according to annual limits as you know the limit before hand(This option is not a good option if the solution is for larger employee group but can be considered for a handful of employees).

Thanks

Jim

[former_member193210]

Through Payroll PCRs and a Constant in table view V_T511K, you should be able to control the current pay's ER contribution (using the previous pay's CRT and the current pay's calculated contribution).

P.S.: Note that I believe you should be able to do it through the Pension Plan Configuration Tables, but we don't have that type of plans and it would take me some time to look it up and it would most likely require more information on your current config.

[Former Member]

Thank you Remi,

So in my scenario, am I correct to conclude that PBen0007 and PBEN0014 will not help? Or are these still required?

Kindly advise.

[former_member193210]

I couldn't comment on those UserExits/Includes since I'm not an ABAP programmer.

How do you manage the "Maximum Limit" for your other Pension Plans?

[Former Member]

What had been configured in the past was that there was a limit set on the Employee Contribution rule (which was half the annual limit). The employer match was 100% of employee contribution. When the employee contribution hit the max, the employer contribution would automatically stop. The issue is, when an employee is on leave, they are inactive (employee status), therefore there is no Employee contribution being calculated from the Rules (config). the employee contribution is manually entered on IT 0169, which generated the employee Match (at 100%). However this does not cap the ER contribution.