Contribution Per Period (CPP) 

Purpose

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

Process Flow

Contributions are based on a per pay period basis, based on the amount calculated by the pension contribution formula. The fields indicated below are located in the table Irish pensions contributions (V_T7IEP).

Calculating pension contributions with the CPP scheme allow the system to take an employee's salary increase into account, thereby adjusting contribution amounts accordingly.

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 cumulative wages for the pay period (as indicated in /111) 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 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. 

For additional information, and to maintain company wide (CPP) pension scheme, see the IMG, under: Payroll Ireland ® Pensions Schemes ® Create pensions schemes.