on 06-16-2010 1:22 PM
Hi All,
we are delimiting the pensions schems for the UK employees.
Here the problem is about the retro scenarios. If the pensionable pay is increased for the employee back dated.
e.g.
Pension schmes are delimited from 01042010
Employee basic salary was £1000 from 01012010 to 31.12.9999
Now increased to £1200 rom 01012010 to 31.12.9999 in the month of May 2010
So now as the pensionable pay is increased the old pension amount is getting recalculated and getting paid in May 2010.
User wants that these should stop into employees payment as they want to do the seperate processing for this.
even if the calculation happens its ok but that should not be paid to employees and no posting should happen for these pension schemes.
Please suggest.
Regards,
Umesh Chaudhari.
Please see note 1113862 regarding LGPS parameters
Im afraid you have lost me when you say
"the pension amount from Jan to April should not be paid to employee"
Is this a retired employee ?
Usually a salary increase means more EE pension contributions should be deducted ? and therefore a retro would occur re-calculate the deduction on a higher rate and deduct more
Can you clarify what you mean by "paid to the employee" ?
Can you clarify why this is an issue - what are the implications of this retro ?
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Hi Stuart,
Sorry for the delayed reply.
Yes I want that no recalculation should happen for the pension amounts based on the increased salary.
This requirement came up because these are the pension schemes which are delimited from certain date and Business do not want any amount to reappear in the employees payslip and no posting should happen for these pension amounts.
Basically business wants to handle it separately as special accounts.
One of the solution for this i can think of is passing the ORT values for these pension schemes to RT again so RT will always contain the same value as of old pension amount and the retro effect is nullified. But i am not sure about the other effects of it, i am still checking this possibility.
Regards,
Umesh Chaudhari.
Hi Umesh
So what you are saying is a back-dated pay increase awarded in May and back-dated to January
retroactively calculates what the employee should have paid in pension deductions since Jan 2010 based on the new salary
and deducts that from May payroll
What is LGPS parameters 1,2,3 set to
Best wishes
Stuart
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Hi Stuart,
yes this the way standard is behaving. But my requirement is the pension amount from Jan to April should not be paid to employee and no posting should happen for that amount also.
you are also asking
What is LGPS parameters 1,2,3 set to
I am not exactly sure where i can find this. can you please elaborate.
Regards,
Umesh Chaudhari.
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