Scheduled RCEA Routine 2 (RCEA2)

Scheduled RCEA Routine 2 calculates an employee’s pay period retirement contribution, employer contribution and final compensation while excluding pensionable cafeteria contribution amounts. Scheduled RCEA Routine 2 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. 1 = Monthly LACERA Member.

  • Amount/Percent 2 - defines the annual RCEA2 cap amount. This field is used to store the State AB 340 limit (that is, $132,120 in 2013). If the field is set to 0, then there is no annual cap applied.

For deductions and benefits assigned the Scheduled RCEA 2 Special Routine, Gross-to-Net (GTN) calculates the deduction amount as follows:

  • The Scheduled RCEA 2 Special Routine utilizes the same logic as the Calculated Salary routine to get the employee’s Calculated Salary. 

  • Once the Calculated Salary is determined, the logic evaluates all salary components included in that calculated salary to subtract any non-pensionable bonus amounts. A pay event is considered as a non-pensionable bonus if the Salary Event field is set as Base Salary Event or Other Base Salary Event and has the User Field 10 set as NP on the Pay and Leave Events (EVNT) reference page.

  • 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.

  • 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 Calculated Salary value from step 2 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 Calculated Salary value from step 2 is used.

  • 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 added to the Calculated Salary from step 2.

  • If Amount/Percent 2 is not 0, the employee’s year to date Scheduled RCEA 2 Subject Gross Amount is subtracted from the amount in Amount/Percent 2. If the resulting number is less than the calculated Scheduled RCEA 2 amount from step 3, then the resulting number is used as the Scheduled RCEA 2 subject gross. If the resulting number is greater than the calculated Scheduled RCEA 2 amount from step 3, then the amount from step 3 is used.

  • The Scheduled RCEA 2 amount from step 4 is used to apply the deduction rate using the standard deduction processing.

Note: Unlike Scheduled RCEA Special Routine, Scheduled RCEA 2 Special Routine does not utilize the Evaluate Pensionable Cafeteria Contribution check box value from the EVNT reference page to include the fringe pays in the Scheduled RCEA 2 subject gross amount.

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