The following events result in the payment of employee pension benefits:

The recipient of these benefits does not have to be the insured person. Dependents and children can also receive these pension payments.

This procedure creates the necessary data structures for paying out benefits. A retiree account is only necessary if the pensions are to be posted there. This is used for statistical purposes (statistics info-list), or, if necessary, to reduce the death-related equity. For the following, it is assumed that a pension account is required. You determine the level of benefits and who is entitled to them. If necessary, carry out a personnel action Entry for the benefit recipients, and enter them as an employee.

If an Individual Values PF (0279) infotype record exists for the retiree when payroll is run, then the defined pensions in the payroll integration must be the same amount as those in the payroll master data. If this is the case, you can post the pensions to the retiree’s accounts. Otherwise, the personnel number is rejected.

An insured person is entitled to pension benefits. The benefit recipient must be in the system (as insured person, family member, heir).

If a pension is to be paid out to a third person, this recipient must have a separate personnel number in the system.

 If you have determined that Urs Bluntschli is entitled to receive orphan pension due to the death of Ueli Bluntschli, carry out the following steps:

1. HR: Enter Urs Bluntschli as a retiree (= pension recipient).
   He is in the same fund(s) as his father, Ueli. The determined level of orphan pension is in the Basic Pay (0008) or the Recurring Payments/Deductions (0014) infotypes. Where this involves several funds, the pension wage types are fund-dependent.
2. PF: Create the Individual Values PF infotype (0279) for all funds.
   Transfer the corresponding pension from the payroll infotype with the same amount in each fund. If this is not done, Urs is rejected in the payroll run.
3. PF: Assign the accounts (all funds, active/passive) for Ueli Bluntschli.

By doing this, you can post the pension due to Urs to the passive account created for Ueli.

Even if Urs already has a personnel number, it is a good idea to create a personnel number for Ueli’s pension payments, because:

• Pension payments are usually made earlier in the month than wage payments (for this payroll area).
• If Urs subsequently receives his own pension (for example, Invalidity pension), it could cause conflicts with the passive account.
  Only one account type can exist for a personnel number in a fund. Otherwise, you cannot clearly determine the correct account when you create a posting.

All PF data, relevant for the payment of pension benefits, is created.