Benefits>>Pension Admin

Early Retirement: The option for a member to begin receiving pension benefits before the normal retirement age, usually with a reduction in benefits.

G

Guaranteed Pension: A retirement plan where an employer or pension provider promises a fixed, predictable monthly benefit for life. The benefit amount is based on factors like salary and years of service. The employer assumes the investment risk and ensures sufficient funding for the promised benefits. Guaranteed pensions offer financial security and predictability for retirees but can be costly for employers.

I

Ill Health Retirement: Retirement that occurs before the normal retirement age due to medical reasons.

Interest Rates: The rates at which interest is calculated on the contributions made to a pension plan or on the benefits accrued.

L

Late Retirement: The option to retire after the normal retirement age, often resulting in an increase in pension benefits.

Leaver with Contribution Refund: A member who has left the pension scheme and opted to receive a refund of their contributions, usually available if they have not met the vesting period requirements.

Leaver with Transfer Value: A member who has left the pension scheme and transferred the value of their accrued benefits to another pension scheme.

Lump Sum Payment: A one-time payment made to a member, typically upon retirement, in lieu of or in addition to periodic pension payments.

N

Normal Retirement Age: The age at which a member is eligible to receive full pension benefits, as defined by the pension plan.

O

Ordinary Contributions: Regular, mandatory payments made by both the employee and employer into the pension plan according to the plan rules.

P

Pension Status: The current state or condition of a member’s pension, such as active, deferred, or retired.

Pension Status Sequence: The progression of a member’s status through various stages such as active, deferred, and retired.

Pension Type Plans: Different categories of pension schemes, such as defined benefit plans, defined contribution plans, and hybrid plans.

R

Retirement Type: The classification of retirement based on circumstances, such as early retirement, normal retirement, or ill-health retirement.

S

Spouse Pension: A pension benefit paid to the surviving spouse of a member after the member's death.

T

Transfer Value: The amount of money representing the value of a member’s pension rights that can be transferred to another pension scheme. This amount is calculated by the actuaries of the pension plan administrator. They will calculate the amount of money (transfer value), that would be needed to provide a pension based on current earnings.

Transfer Value from Employer: The value of pension benefits that an employer transfers to another pension scheme on behalf of a member.

V

Vested: The status of having earned the right to receive full benefits from a pension plan, even if the member leaves the employer before retirement. This typically occurs after a specified period of service or contributions.

Benefits>>Pension Admin>>Pension Setup>>Pension Status

Pension Status Code/Description: Enter a user-defined unique code and description, must be entered in CAPS!

Benefits>>Pension Admin>>Pension Setup>>Pension Status Sequence

 Pension Status/Next Pension Status: Enter all valid logical pension status sequence changes.

See the example below for reference.

Benefits>>Pension Admin>>Pension Setup>>Retirement Types

Benefits>>Pension Admin>>Pension Setup>>Interest Rate Codes

Interest Rate Code/Description: Enter a user-defined, unique code and description to identify the interest rate.

Benefits>>Pension Admin>>Pension Setup>>Pension Type Plans

Plan ID/Description: Enter a user-defined, unique code and description to identify the pension plan.

Company Name: Select the company to which the pension plan belongs.

Benefits>>Pension Admin>>Pension Setup>>Transfer Value - Employer

Benefits>>Pension Admin>>Pension Setup>>Pension Constants

Select the respective code from the drop-down for each field on the list. The system will use these codes in its processing.

User defined limits should be entered in the fields above. Limits are categorized and explained as follows:

AGE LIMITS

•    Age Limit (Lower): The minimum age at which a member can join or participate in the pension plan. Must be at least 16 years old. (e.g., 18)

•    Age Limit (Upper): The maximum age up to which a member can join or participate in the pension plan. Must be no more than 99 years old. (e.g., 70)

FINANCIAL LIMITS

•    Transfer Value Received Limit: The maximum amount of money that can be received as a transfer value from another pension scheme.

•    Salary Limit (Lower) (Monthly): The minimum monthly salary considered for calculating contributions and benefits within the pension plan.

•    Salary Limit (Upper) (Monthly): The maximum monthly salary considered for calculating contributions and benefits within the pension plan.

CONTRIBUTION LIMITS

•    Ordinary Contributions Paid Limit: The maximum amount of regular contributions that can be paid into the pension plan by both the employee and the employer.

•    Additional Voluntary Contributions (AVCs) Paid Limit: The maximum amount of extra contributions a member can voluntarily pay into the pension plan to boost their benefits.

•    Contribution Refund Limit: The maximum amount that can be refunded to a member if they leave the pension scheme before becoming vested.

BENEFITS AND PAYOUT LIMITS

•    Contributions with Interest at Exit Limit: The maximum value of contributions, including accrued interest, that can be paid out when a member exits the plan.

•    Current Deferred Pension Limit: The maximum pension amount that can be deferred for future payment if a member leaves the plan but does not yet retire.

•    Transfer Value (Leaver) Limit: The maximum value of benefits that can be transferred to another pension scheme when a member leaves the current scheme.

•    Pre-Commutated Pension Limit: The maximum amount of pension a member is entitled to before any lump sum is taken at retirement.

•    Lump Sum at Retirement Limit: The maximum amount that can be taken as a lump sum payment upon retirement.

•    Post-Commutated Pension Limit: The remaining pension amount after a lump sum has been taken, expressed as a percentage of the pre-commuted pension. Must be greater than 0 and less than or equal to 100%.

CURRENT PENSION LIMIT

•    Current Pension Limit: The maximum pension amount currently being paid out to a member.

MINIMUM AGE AT RETIREMENT

• Minimum Age at Retirement if Type of Retirement is NOT Ill-Health: The minimum age at which a member can retire under normal or early retirement conditions, excluding ill-health retirement. Must be at least 16 years old and no more than 99 years old.

Ensure that you click the Submit button on the completion of data entry!

Benefits>>Pension Admin>>Administration>>Pension Interest Rates

Interest rates MUST be entered/specified for each year that interest is to be calculated.

 You MUST set up Interest Rates for NORMAL ORDINARY CONTRIBUTIONS, ADDITIONAL VOLUNTARY CONTRIBUTIONS and TRANSFER VALUE FOR A GIVEN YEAR.

If other interest rates exist, then they must be defined here!

 Interest Rate Description: Select the interest rate code description from the drop-down list.

Interest Rate: Enter the value of the interest rate applicable.

Effective Date: Enter the effective date of the pension interest rate.

Save the record and repeat to enter additional interest rates.

Benefits>>Benefits>>Benefits Setup>>Benefit Plan Types>>[Select Benefit Type

Code]>>[+]>>Enrolled Employees

 Company Code: Select the Company from the drop-down list.

Pay Group: Select the Pay Group from the drop-down list. Pay groups shown will be filtered based on the Company selected.

Badge Number, Last Name, First Name: Select the Name or Badge number of the employee from the drop-down list. Names shown will be filtered based on the Pay Group selected.

Date Join: Enter the date the employee joined the benefit plan (e.g. the date on the employee’s registration form)

Date Start: Enter the effective date the employee became active on the plan.

Certificate Number: Enter the registration number of the employee that is obtained from the insurance company upon enrollment in the plan.

Option: This field shows how the contribution is paid. It is either cash or percentage and is set at the Plan level. This field cannot be edited in from this screen and is view ONLY.

Employee Contribution: Enter the value of the employee’s contribution to the plan. This can be either cash or a percentage based on what was set up at the plan level. This only needs to be entered at the employee level if the value of the contribution is different for each employee.

Employer Contribution: Enter the value of the employer’s contribution to the plan. This can be either cash or a percentage based on what was set up at the plan level. This only needs to be entered at the employee level if the value of the employer's contribution is different for each employee.

Date End: This field is left blank until you are aware of the date that the date the benefit plan type will end (cease to exist). Once the date is entered here, the employee will no longer be on the plan and deductions will stop generating for them in the payroll.

It should also be noted that when an employee is separated, if the flag titled Stop Benefits is set to YES, then the end date will be automatically populated with the separation date of the employee. This is another integrated feature of HRplus where data only has to be entered in one module but can be linked to connected modules.

Sum Insured: If this is a non-life insurance policy with a sum insured, then enter the value of the reimbursement here.

Benefits>>Pension Admin>>Administration>>Plan Members

 Pension Id: Enter user-defined unique pension ID.

Company: Auto-fills with the employee's company name.

Badge Number/First Name/Last Name/Date of Birth: Enter employee details to be placed in a member plan.

Date of Birth Confirmed?: Select "Yes" to indicate that the employee's date of birth was verified. Otherwise, select "No".

Company Start Date: The date the employee first started at the company.

Pension Type Plan Id/Pension Type Plan Description: Select the pension plan that the employee is joining.

Deduction Code/Deduction Description: Select the payroll deduction code for the pension plan.

Date Join Plan: Enter the date the employee joined the pension plan.

Date Left Active Status: Enter the date the employee was separated from the company. Otherwise, leave blank.

Save the record and repeat to enroll additional employees.

Benefits>>Pension Admin>>Administration>>Plan Members

Benefits>>Pension Admin>>Administration>>Plan Members>>[Select

Employee]>>[+]>>Personal Data Details>>Personal Data Details

Benefits>>Pension Admin>>Administration>>Plan Members>>[Select

Employee]>>[+]>>Personal Data Details>>Personal Data Other

Benefits>>Pension Admin>>Administration>>Plan Members

Benefits>>Pension Admin>>Administration>>Calculations

To view the calculations, navigate to Pension Admin>>Reports>>Employee Reports and Select the report you wish to view;

OR

Navigate to Pension Admin>>Pension Administration>>Plan Members>>[find employee and expand record]>>[click respective tab].

Benefits>>Pension Admin>>Administration>>Calculations>>Transfer Value Interest

Calculations

 How does it work?

To calculate the Transfer Value:

1.     Set up the Pension Interest Rate(s) for the Transfer Value

2.     Run the Calculations for the Current Year

3.     View the Transfer Value Calculations

Benefits>>Pension Admin>>Administration>>Calculations>>Ordinary Member

Contributions Interest Calculations

To view the calculations, navigate to Pension Admin>>Pension Administration>>Plan

Members>>[find employee and expand record]>>Member Contribution History;

OR

Navigate to Pension Admin>>Reports>>Employee Reports and Select the report you wish to view.

Benefits>>Pension Admin>>Administration>>Calculations>>Additional Voluntary

Contributions Interest Calculations

How does it work?

To calculate the Ordinary Member Interest Value:

1. Set up the Pension Interest Rate(s) for the Additional Voluntary Contributions

 To view the calculations, navigate to Pension Admin>>Pension Administration>>Plan

Members>>[find employee and expand record]>>Member Contribution History;

OR

Navigate to Pension Admin>>Reports>>Employee Reports and Select the report you wish to view.

Benefits>>Pension Admin>>Administration>>Calculations>>Pensions in Payment Increases

Calculations

To view the calculations, navigate to Pension Admin>>Reports>>Employee Reports and Select the report you wish to view;

OR

Navigate to Pension Admin>>Pension Administration>>Personal Data>>[find employee]>>Pension History.

Benefits>>Pension Admin>>Administration>>Calculations>>Deferred Pension Increases

Calculations

To view the calculations, navigate to Pension Admin>>Reports>>Employee Reports and Select the report you wish to view;

OR

Navigate to Pension Admin>>Pension Administration>>Personal Data>>[find employee]>>Deferred Pension History/Deferred Pensioner Data.

Benefits>>Pension Admin>>Administration>>Recalculations