LGPS Gordon Rennie

Transcription

1 LGPS 2014 Gordon Rennie

2 Overview Main & 50/50 Sections EE s & ER s Cumulatives Tiered Bands/Percentages Assumed Pensionable Pay Pension Contributions Q & A

3 Main Section and 50/50 Section A new field (LGSCH) has been added to LGPS Pension Scheme table (T5GPBSP_SCH) to identify the relevant Public Sector Scheme Type that is applicable. This field defines the additional Public Sector functionality that is available for a Pension Scheme. LGPS has been split up into three legislative regions as each of these have separate statutory instruments covering their rules. LG E Local Government Pension Scheme (EN/W) LG N Local Government Pension Scheme (NI) LG S Local Government Pension Scheme (SCOT) N.B. Currently the SAP system treats all three the same way. If you have LGPS requirements that are specific to Scotland or Northern Ireland then please contact SAP as soon as possible (via a customer message).

4 Main Section and 50/50 Section T5GPBSP_SCH

5 Main Section and 50/50 Section A new field (PSSCH) has been added to the Pensions Details infotype (0071). This field is only available if the scheme is defined as an LGPS scheme in table T5GPBSP_SCH. For LGPS schemes, this field defines whether the Pension record is for the Main Section or the 50/50 Section. Main Section L2 50/50 Section N.B. The look and feel of this field may be re-designed to a simple checkbox, if there is enough time. The current design is intended to allow flexibility, so that the field can be re-used for other Public Sector schemes should the need arise in April 2015.

6 Main Section and 50/50 Section IT0071

7 Main Section and 50/50 Section An employee can only change from the Main Section to the 50/50 Section (and vice-versa) at the start of a pay period. A new check has been implemented if the HR User tries to change, an employee s section. The check enforces that a change must occur on the first day of the pay period. An employee cannot remain in the 50/50 Section if they are continuously on Nil Pay due to Sickness or Injury into the next pay period. A new check has been implemented in the payroll to reject the employee if they have been continuously sick (or injured) on Nil Pay in the previous pay period and are still are on Nil Pay AND are still in the 50/50 scheme.

8 EE s and ER s Cumulatives Employee s Pensionable Pay (/160) Identical to /111 except Includes Non-Contractual Overtime Dated to only start from Employer s Pensionable Pay (/161) Identical to /160 except Includes APP relevant wage types APP1 APP pensionable pay APP2 PP pensionable pay (i.e. a negative amount that has been replaced by APP) N.B. These wage type are generated by the new payroll function GBAPP When Paid Processing /160: /A60 and /Z60 /161: /A61 and /Z61 N.B. The In-flow and Out-flow is handled automatically as the last part of the new payroll function GBAPP

9 Tiered Bands No changes to GBLGP except Assessment is based on Actual Pay not FTE. N.B. I am clarifying with LGPS what exactly they mean by Actual pay because it could simply mean /160 factored up to an annual figure, but it might not. Non-contractual Overtime If/how you choose to include Non-Contractual Overtime in Actual Pay is left up to you. But if you can include it, then you should include it! 50/50 Section: EE s Contribution Percentage halved PENS-PCTEE will be half the value that it would have been had the employee remained in the Main Section ER s Percentage (new feature GBLG1 and BADI)

10 Assumed Pensionable Pay Assumed Pensionable Pay only becomes applicable in one of the following cases; Sickness or Injury: Reduced or Nil Pay Adoption, Maternity and Paternity during the APP/MPP/PPP: Reduced or Nil Pay Adoption, Maternity and Paternity after the APP/MPP/PPP: Reduced Pay only Reserve Forces Service Leave The Regulations state: The relevant event [that causes APP to be applicable] is the date on which the employee drops to reduced contractual pay or nil pay due to sickness or injury, or reduced or nil pensionable pay during relevant child related leave* (i.e. ordinary maternity, paternity or adoption leave and any paid additional maternity, paternity or adoption leave), or the date the member commenced reserve forces service leave.

11 Assumed Pensionable Pay Assumed Pensionable Pay (APP) is a 3 month (or 12 week) average of Pensionable Pay and is only stored in the pay period where the relevant event occurred. APP0 is the annual rate of the APP APP only replaces Pensionable Pay (PP) if APP is greater than PP. APP1 is the value of APP that replaces PP APP2 is the value of PP that has been replaced by APP APP1 and APP2 are pro-rated using the method defined in feature GBPPF. APP1 = APP0 / Periods per Year * (AB Split PSP) / (Whole Period PSP) APP2 = /160 for the pay period * (AB Split PSP) / (Whole Period PSP) APP can be overridden in any pay period. APX0 is used to override the annual rate of APP APX1 is used to override the total value of APP APX2 is used to override the total value of PP replaced by APP

12 Pension Contributions No changes to GPENS except EE s and ER s Pensionable Pay can have different values (i.e. /160 and /161) but not activate the SAP standard ER s Pensionable Pay solution. A new field (NOPEN_ER) has been added to T5G31 to signify that, even though the EE s and ER s Pensionable Pay wage types are not the same, that there is no need to do any ER s Pensionable Pay processing.

13 Pension Contributions T5G31

14 Questions?