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Supplemental Insurance for Bank Employees: Introduction of Relief Fund as of 01.06.1999

Scope of Functions

As of 01.06.1999, banks can convert their supplemental insurance (BIF) from the pension fund to the relief fund. The advantages of doing this are the tax and contribution exemptions for employer and employee contributions. A salary conversion is planned for the employee contributions.

Previously, contributions could only be calculated and paid for the BIF pension fund. The basic insurance contribution is calculated using the contribution classes from the gross assessment amount. The employer paid two-thirds, and the employee one-third of this amount. The employer share was taxed according to the setting in the Supplementary Pension infotype (0126), individually from the employee, or at a flat-rate from the employer (standard setting).

Within the relief fund procedure, contributions are determined according to the employee's assigned pay-scale.
The pay-scale calculation types are as follows:

In the standard system, new special rules have been entered for new relief fund tarifs. To determine basic contributions, these special rules are:

Previously, in addition to the basic pension for the BIF (special rule 00 ), the following special rules were evaluated from payroll and reported with the contribution statement (RPCSVDD0):

These rules remain in the system to be used for those employees who do not take part in the relief fund process.

The employees who had BIF insurance in addition to the basic insurance prior to the conversion, and fall under the special rules 01, 02, 08 and 9, can continue these contracts using the previous special rules, and can have the allotted employer contributions transferred to the BIF.

If the bank carries out a conversion to the relief fund process, it must enter the employees into the system with insurance over and above the basic contribution, with special rules

If an employee has joined the company since the conversion, and has insurance over and above the basic contribution, use the special rule 03 for voluntary continued insurance, and special rule 04 for increased insurance. You must enter an amount into the system for both special rules.

Maintenance of master data

The infotypes SI Additional Insurance (0079) and Supplementary Pension (0126) are affected.

NOTE - For flat-rate tax use only
If, after the conversion, you have employees with the basic calculation according to special rule 00, the employer pays the flat-rate employment tax for the BIF employer share in some cases, and in other cases the flat-rate tax is passed on to the employee. This case is not included in the standard system. The switch for this has previously been the wage type /38K. This is set in the standard system, so that the employer pays the flat-rate tax. If there are also cases where the employee should pay the flat-rate tax, show these cases using a parallel wage type to the wage type /38K in the persoonel calculation rule DV80 (Tax liability).
For non-standard cases, you must enter a switch wage type using the Recurring Payments/Deductions (0014) and the Additional Payments infotypes. This is used to decide whether the wage type /3BT (taxed flat-rate employer share) goes directly into /38K or into the parallel wage type, in rule DV80. Use the wage type MY10 (Force transfer) as a template for the switch wage type.

Changes in Payroll

For the new relief fund tarif (special rule A1), the BIF contributions are calculated using the percantage rates in the view Percentage Rates for Additional Pensions (V_T5D1X). The percentage rate read from the View is determined by the personnel calculation rule DVB8 (Determine BIF Rule). In the standard system, the rule 1 is defaulted to read the View V_T5D1X for all employees. The personnel calculation rule DVBB has been entered in the schema DSVI (Social insurance initialization).

In addition, the personnel calculation rule DVBA (BIF: SI gross reduction through salary conversion) has been entered in the schema DSVB (Social insurance calculation). In this rule, the SI gross is reduced to the level of the salary reduction (to a maximum of zero).

Also, the rule DV80 has been entered in the schema DSVB for the wage type /3UR for the reduction of the gross tax amount.

For the previous basic calculation using the level tables, the entries were extended to the level of the BIF assessment threshold (Constant DBVVG). The affected tables are the view Contribution classes for supplementary insurance (V_T5D1G) for the total contribution, and the view Contribution classes for additional pensions (V_T5D1W).

Changes to the Contribution Statement

The previous contributions statement is unchanged and can still be used if you have not yet converted to the relief fund procedure.

If you have already converted to the new felief fund procedure, use the new contributions statement RPCSVDD1 , which has been modified to match the data record structure. An extra column has been added to the individual statement. This is marked K for the fund. The indicators P and U specify whether they are pension contributions or relief fund contributions respectively.

The processing feature VK has been split into the processing features VK and V0.

For the current and retroactive accounting months, the totals are displayed separately according to pension fund and relief fund.
For more information, see the report documentation RPCSVDD1.

Changes to the Data Carrier

New fields have been added and modifed corresponding to the data record description.

Effects on Customizing

Wage types

To display the new regulation, the following technical wage types have been supplied:
/3BA: BVV ER Contribution Military Service
/3BB: BVV EE Contribution Military Service
/3BF: BVV ER Contribution
/3BG: BVV EE Contribution
/3BI: BVV Partial Amount Military Service
/3BR: Tax Liable ER Contribution Bonus
/3BS: Tax Liable EE Contribution Bonus
/3BT: Flat-Rate Taxation of ER Contribution Bonus
/3UA: Dummy Gross Pay Regular UK
/3UD: BVV Gross Pay Regular UK
/3UE: BVV Gross One-Time Payment UK
/3UF: BVV ER Contribution UK
/3UG: BVV EE Contribution UK
/3UH: BVV Salary conversion
/3UI: BVV Partial Military Service UK
/3UJ: BVV ER Military Service UK
/3UK: BVV EE Military Service UK
/3UL: Garnishment-Free EE Contribution BVV
/3UO: BVV Threshold Net UK-NT
/3UP: BVV Special Payment Contribution UKU
/3UQ: BVV Minimum Special Payment UK
/3UR: No longer used
/3US: No longer used
/3UT: BVV Remaining GU from Previous Month
/3UY: BVV Gross Absence UK
/3UZ: BVV Remaining Salary Conversion

For the following technical wage types, you must be sure that the posting to the accounts department has been completed:
/3UF: ER share BIF UK
Here, you must match the Views Time dependency of wage type posting (V_T52EZ) and Wage type posting (V_T52EL) in your productive client with the supplied system client.
Fore more information, see the Implementation Guide German Payroll in the section Posting to Accounts -> Wage Type Maintenance -> Define Posting Characteristics of Wage Types

Percentage Rates and Contribution Classes

New percentage rates (ER and EE shares) for the BIF relief fund have been provided with the implementation of the relief fund procedure. To transfer the new percenatage rates, you must match the View Percentage Rates for Additional Pensions (V_T5D1X) in your productive client with the standard client.
For more information, see the Implementation Guide, German Payroll in the section Social Insurance -> Supplementary Benefits -> BIF Pension -> Determine Percentage Rates for Bank Pensions .

As a result of the increase in the pension insurance assessment- threshold, new BIF contribution classes have been supplied. To transfer the new contribution classes, you must match the Views Contribution Classes for Supplementary Pensions (V_T5D1W) and Contribution Classes for Supplementary Insurance (V_T5D1G) in your productive client with the standard client..
For more information, see the Implementation Guide, German Payroll in the section Social Insurance -> Supplementary Benefits -> BVV Pension ->

Pay statement

If you have converted to the relief fund procedure, you must modify your pay statement for the new wage types.

Schemas and Rules

The following schemas have been modified:
D000: (Payroll Schema Germany)
DAL0 : (Factoring and Storing (Gross summary))
DSVB: Social Insurance Calculation

The following schemas are new:
DBVV (Dummy Run BVV)
DBVF (BVV Dummy Schema Germany)
DBVA (Reset BVV Wage Types in the IT)
DBVK (Reduction of Gross Pay with BVV)

The following rules have been modified:
DVB0 (Create BVV Assessment Basis)
DVB1 (Create BVV Minimum Special Payment Contribution)
DVB2 (Additional Insurance, Transfer of Dummy Gross Amounts)
DVB3 (Add BVV Non-Reduced Contribution)
DVB4 (Import BVV One-Time Payments (from previous year))
DVB5 (Determine BVV Special Payment Contribution)
DVB6 (Create BVV Assessment Gross Amount)

The following rules are new:
DBVC (BVV Save All BVV Wage Types in AIT)
DBVD (BVV Save All BVV Wage Types in RT)
DBVE (BVV Copy BVV-EE-Contr. in a Negative Wage Type)
DBVF (Transfer BVV-EE-Contr. Remainder from Previous Month)
DBVG (Transfer BVV-EE-Contr. from Dummy Payroll Run)
DBVH (BVV Reduction of wage elements through BVV-EE-Contr.)
DBVI (BVV Storage of BVV-EE-Contr.Remainder in RT /3UZ)
DBVJ (BVV Restore BVV Wage Types from RT to ide IT)

These schemas and rules are already contained in the payroll schema D000 . If you are using a different or modified payroll schema, modify your schemas to the standard system.