Pension Routine (PEN)

The Pension Routine (PEN) performs two calculations: first, it reduces the percentage-based pension contribution based on the Increased Take Home Pay (ITHP) fields on the Pension Profile (PENS) page; second, it reduces the pension deduction amount by the amount contributed towards the social security portion (OASDI) of FICA.

If the Pension Routine is selected, the Increased Take Home Pay Waiver flag is not Y, and the Increased Take Hone Pay Rate is a positive number, then Advantage HRM reduces the pension deduction percentage by the ITHP rate.  If the ITHP rate is greater than the deduction percentage, then Advantage HRM does not take the pension deduction.

If the FICA Reduces Pension checkbox on the FICA Class (FICL) page is checked, the Pension Routine is specified and the pension deduction is reduced by the amount contributed to the social security portion of FICA.

The Pension Routine does not use any of the Special Routine ID Amount/Percent fields on DPLN.  This routine is usually only required in the Northeast section of the U.S.