Pension Administration (Setup)
Pension Setup
Benefits>>Pension Admin>>Pension Setup>>Pension Status
How do I set up Pension Status?
Pension Status
An employee's pension status allows you to classify employees according to their pension eligibility/ status.
Default Pension Statuses that should be created include:
Active
Deferment
Deferment on Ill-Health
Death in Deferment
Death - No Further Benefit
Death in Service
Death prior to Retirement
Early Retirement
Guaranteed Pension Status
Leave with Contribution Refund
Pensioner
Voluntary Withdrawal
Additional Voluntary Contribution
Pension Status Code/Description: Enter a user-defined unique code and description, must be
entered in CAPS!
Set Up Pension Status
Benefits>>Pension Admin>>Pension Setup>>Pension Status Sequence
How do I set up Pension Status Sequence?
Pension Status Sequence
Pension status sequence records are used to determine the NEXT pension status to which a pension plan member is allowed to move to, given his/her CURRENT pension status.
All new pension plan members start off in a pension status of Active.
Enter as many sequences as you wish.
Set Up Pension Status Sequence
Pension Status/Next Pension Status: Enter all valid logical pension status sequence changes.
See the example below for reference.
Pension Status Sequence Example
Benefits>>Pension Admin>>Pension Setup>>Retirement Types
How do I set up Retirement Types?
Retirement Type
The Retirement Type screen allows you to define, categorize and manage various reasons for retirement so they can be easily tracked. Examples include early retirement, medical retirement, and normal retirement.
Retirement Type Code/Description: Enter a user-defined, unique code and description to identify
the retirement type.
Set up Retirement Type
Save and repeat to enter more records.
Benefits>>Pension Admin>>Pension Setup>>Interest Rate Codes
How do I set up Interest Rate Codes?
Interest Rate Codes
The rates at which interest is calculated on the contributions made into a pension plan or on the benefits accrued must be defined. Interest rates within a pension administration plan can differ based on several factors.
You must enter interest rate codes for normal (ordinary) and additional voluntary contributions. If other interest rates exist, then this must be defined here.
Interest Rates MUST be set up for Normal (Ordinary) and Additional Voluntary Contributions.
Set up Interest Rates 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
How do I add Pension Plans?
Pension Type Plans
Enter user-defined unique pension plan codes and descriptions and link to company. This plan should match the description of the plan set up in the benefits module.
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.
Pension Type Plans
Save the record and repeat to enter more records.
Benefits>>Pension Admin>>Pension Setup>>Transfer Value - Employer
How do I set up Transfer Values - Employer?
Transfer Values - Employer
Employer Transfer Values are the amounts of money that have been contributed to the pension fund and an employer then transfers to another pension scheme on behalf of a member.
This code must be configured here to enable the entry of the interest rate, which will be calculated on a separate screen.
Employer Code/Description: Enter a user-defined, unique code and description to identify the
employer transfer value.
Transfer Values - Employer
Save the record.
Benefits>>Pension Admin>>Pension Setup>>Pension Constants
Failure to enter the required codes will result in the non-functioning of many of the features in
the Pension Administration module!
How do I set up Pension Constants?
Pension Constants
These are codes that are used for programming purposes. Use both user defined codes as well as codes that were previously set up to define the following:
Pension Status Codes
Interest Rate Codes
Limits
Other Constants
To understand the terms (field names) on the screens, users MUST be knowledgeable about pension plans in general and, more specifically, about their company's pension plans.
Step 1. Select Pension Status Codes
For each field on the list, select the respective code from the drop-down. The system will use these
codes in its processing.
Step 2. Select Interest Rate Codes
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
Step 3. Configure 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.
Select the respective code from the drop-down for each field on the list. The system will use these
codes in its processing.
Pension Guarantee Period: A defined period during which pension payments are guaranteed to continue to a beneficiary or estate even if the pensioner passes away. Typically, this period is set at the start of the pension payments and can range from 5 to 10 years or more. If the pensioner dies during this period, the remaining guaranteed payments are made to the designated beneficiary or
estate.
Ensure that you click the Submit button on the completion of data entry!
Step 4. Setup Other Constants
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