Process documentationRetirement Allowance

 

This process describes how to register and pay retirement allowance.

Prerequisites

You must have determined how to calculate retirement allowance for retirees.

If you activate Rehiring following Retirement, you can choose either Additional Payments infotype (0015) or Retirement Allowance infotype (3204) to record the employee’s retirement allowance data. Each infotype has the respective business calculation logic for retirement allowance. Therefore, the system does not support the combined usage of infotype 0015 and infotype 3204 to record the retirement allowance for one employee.

  • When employees leave the company, for a lump-sum retirement allowance, you can choose infotype 0015 or 3204 to store the allowance; there are no differences between the infotypes.

  • However, if the retirement allowance is divided into several payments, you can choose either infotype 0015 or infotype 3204 to store the payments. Once you choose one of them, you can not change to the other one.

  • If the employee re-enters the company on the date after he or she leaves the company, you must use the infotype 3204 to store the information.

We recommend that you use the infotype 3204 to store the information on the retirement allowance.

Process

  1. Complete the registration of the amount of retirement allowance in the infotype 0015 or the infotype 3204.

  2. Perform payroll for retirement allowance

Result

Registered Retirement Allowance is paid to the employee including the income tax calculated in the payroll process.