Setup Deduction Plans for Pensions

The Deduction Plan (DPLN), Employee Fringe Benefit Plan (BENP), and Employer Fringe Benefit Plan (EFBP) pages define the Retirement Process ID, Retirement Contribution Type, Retirement Contribution Code, Retirement Pay Code, and Rate Summary that is used for pension processing. Refer to the "Deduction Plan" topic in the Deduction Processing User Guide and the "Employee Fringe Benefit Plan" and "Employer Fringe Benefit Plan" topics in the Benefits Processing User Guide for more information.

Open the Deduction Plan (DPLN), Employee Fringe Benefit Plan (BENP), or Employer Fringe Benefit Plan (EFBP) page. Data is displayed for each deduction plan and deduction type. In this example, you are using the Employee Fringe Benefit Plan (BENP) page.

Enter search criteria and select Search.
Select the desired record from the grid and then choose Edit from the row-level menu.
Expand the Pension System Parameters section.
The Retirement Process ID flag should be checked for all deductions that are eligible for pension processing. Deductions that are not checked will not have the pension fields updated by the payroll engine and therefore will not appear on the Retirement Contribution Detail table.
Select a valid Retirement Contribution Type. This field is used identify the type of pension deduction being established. Valid options are: Not Applicable, Member, Employer, and Survivor. This field is ultimately used to determine which fields on the Retirement Contribution Detail table are updated with this deduction’s activity. For example, if Member is selected, then the deduction rate, deduction amount and Retirement Contribution Code associated with this deduction updates the Member Contribution Rate, Member Contribution Amount and Member Contribution Code on the Retirement Contribution Management (RTCM) activity folder.

Enter the Retirement Contribution Code associated with this deduction for regular payroll processing. This Retirement Contribution Code is used on the Retirement Contribution Code (RTCC) page to determine override Retirement Contribution Codes for special payroll circumstances.
Enter a valid Retirement Pay Code to be used for employees receiving this deduction. The Retirement Pay Code entered here is used for calculating the Retirement Pay Rate for STRS / PERS deductions when the Pension System (PNST) page has the Retirement Pay Code Source field set to Use DPLN Path. The valid values for Retirement Pay Code are:

For a Retirement System, valid values for this field are 01 (Monthly), 04 (Hourly), and 08 (Daily).
For a Retirement System of STRS Member and STRS Non-Member, the valid values for this field are 0 (Annual), 1 (12 Month Contract), 2 (11 Month Contract), 3 (10 Month Contract), 4 (Hourly), and 8 (Daily). Note: These values are 1 digit codes.

Select a valid Rate Summary value. This field is used to determine if deduction rates are to be combined and where the combined rate is stored on the Retirement Contribution Detail table. The valid values are:

Sum for Member Rate - When this option is used, the system adds the deduction rates together for each unique occurrence of Deduction Type and Deduction Plan that has the Rate Summary field is set to Sum for Member Rate on Deduction Plan (DPLN). The summarized rate is placed in the Member Contribution Rate field on the Retirement Contribution Detail table.
Sum for Employer Rate - When this option is used, the system adds the deduction rates together for each unique occurrence of Deduction Type and Deduction Plan that has the Rate Summary field is set to Sum for Employer Rate on Deduction Plan (DPLN). The summarized rate is placed in the Employer Contribution Rate field on the Retirement Contribution Detail table.
Not Applicable - If the Rate Summary field is set to Not Applicable, then no rate summarization occurs and Member Contribution Rate and Employer Contribution Rate is based on the rate listed for the deduction on the Deduction Plan (DPLN) table. For Employee Fringe Benefit Plan (BENP) only, the STRS Non-Member field identifies if the Employee Fringe Benefit Plan is to be used for STRS Non-Member processing. If the record is to be used for STRS Non-Member processing, this field must be checked. This field is not on Deduction Plan (DPLN) or Employer Fringe Benefit Plan (EFBP).

Select Save from beneath the grid. Result: the new entry is saved to the table and is visible in the grid with the populated fields.