Scheduled RCEA Routine (RCEA)

The Scheduled RCEA Routine calculates an employee’s pay period retirement contribution, employer contribution and final compensation while including pensionable cafeteria contribution amounts.

The Scheduled RCEA Routine utilizes the following fields on the Deduction Plan (DPLN), Employee Fringe Benefit Plan (BENP) and Employer Fringe Benefit Plan (EFBP) reference pages:

Amount/Percent 1 - defines the Membership Type. Where, 1 = Monthly LACERA Member, 2 = Non-Monthly LACERA Member, 3 = JRS Member.
Amount/Percent 2 - defines the annual Retirement Contribution Earnings Amount (RCEA) cap amount. This field is used to store the IRC 401(a) annual compensation limit (that is. $230,000 in 2008). If the field is set to 0, then there is no annual RCEA cap amount applied.

For deductions and benefits assigned the Scheduled RCEA Routine, Gross-to-Net (GTN) calculates the deduction as follows:

Step 1: If the Amount/Percent 1 field is set to 1, the Calculated Salary Routine is executed to obtain the semi-monthly calculated salary amount.

If the employee’s Employment Status on the pay period end date does not have the Retirement Contribution Earnings Amount Termination check box on Employment Status (EMPS) reference page is checked, the semi-monthly calculated salary value is used and if the employee had pay rate changes during the pay period, the employee’s pay rate on the pay period end date at a semi-monthly level is used.
If the employee’s Employment Status on the pay period end date has the Retirement Contribution Earnings Amount Termination check box on EMPS checked, and the pay period being processed is the first pay period of the month, the pay period end date value is multiplied by 2 to obtain the monthly calculated salary.
If the employee’s Employment Status on the pay period end date has the Retirement Contribution Earnings Amount Termination check box on EMPS checked, and the pay period being processed is the second pay period of the month, the semi-monthly calculated salary value is used.

If the Amount/Percent 1 field is set to 2, actual earnings is used to calculate the semi-monthly amount.
If the Amount/Percent 1 field is set to 3, actual earnings is used to calculate the semi-monthly amount.

Step 2: If the Amount/Percent 1 field is set to 1 and the employee’s Employment Status on the pay period end date has the Retirement Contribution Earnings Amount Termination check box on EMPS checked, the system retrieves the fringe pay amount for the fringe pay event on the employee pay summary with the Evaluate Pensionable Cafeteria Contribution check box selected on the Pay and Leave Events (EVNT) reference page.

If the pay period being processed is the first pay period of the month, the fringe pay amount is multiplied by 2 to obtain the monthly pensionable cafeteria amount.
If the pay period being processed is the second pay period of the month, the semi-monthly pensionable cafeteria amount is used.

Step 3: All the pay categories that are identified to be included with Calculated Salary or excluded with Calculated Salary on Include/Exclude Pay Categories (DPPC), Benefits Include/Exclude Pay Categories (BPPC), or Employer Fringe Include/Exclude Pay Categories (EFPC) are summed.

Step 4: The amounts from step 1, 2, 3 are summed.

Step 5: If Amount/Percent 2 is not 0, the employee’s year to date Scheduled RCEA subject gross amount is subtracted from the amount in Amount/Percent 2. If the resulting number is less than the calculated Scheduled RCEA amount from step 4, then the resulting number is used as the Scheduled RCEA subject gross. If the resulting number is greater than the calculated Scheduled RCEA amount from step 4, then the amount from step 4 is used.

Step 6: The Scheduled RCEA amount from step 5 is used to apply the deduction rate using the standard deduction processing.

Note: The functionality described above is only available when utilizing the Next Generation Payroll service.