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Process documentationAnnual Percentage Contributions (APC) Locate the document in its SAP Library structure

Purpose

This pension scheme calculates (if applicable) employee, employer, and employee additional voluntarypension contributions based on system calculations from a formula and entries in the table Irish pension contributions (V_T7IEP).

Process Flow

Contributions are calculated once a year at the start of the pension year. Based on the amount calculated by the contribution formula, the same pension contribution amount will be deducted per pay period from an employee with the APC scheme.

Note

The fields indicated below are located in the table Irish pensions contributions (V_T7IEP). 

Standard Contribution

The contribution amount is calculated as follows:

1.       The system determines an employee‘s adjusted base pay for pension based on the employee's annual salary from Infotype Basic Pay (0008), and the entries from the Increased Salary By section from Infotype Pensions Ireland (0361).

2.       The system calculates the pensionable pay exemption amount by multiplying the factor figure (in the Standard Factor field) by the State pension constant amount STPEN from the table Payroll Accounting Constants (V_T511P).

3.       The system then subtracts the an exemption amount from the adjusted base pay for pension to determine the employee's adjusted base pay for pension.

4.       The system determines the employee's contribution amount by multiplying the standard employee percentage contribution (as indicated in the Contributions section) by the adjusted base pay for pension. This annual contribution amount is then cumulatively over the pension year.

 

If an employee starts working for a company at a date after the start of the pension year, set the indicator in the Alternative Salary Indicator field. This indicates that the system will look up the employee's start date as indicated in Infotype Basic Pay (0008).

This graphic is explained in the accompanying textFor additional information and to maintain company wide pension scheme details for annual percentage contributions, see the IMG, under: Payroll Ireland ® Pensions Schemes ® Create pensions schemes.

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