Show TOC

Retirement Plan Administration 

Use

As of Release 4.6C, it is possible to manage retirement plans in the plan category Savings . Within the Benefits component, the following new functions and infotypes enable you to manage plan-related data and communicate it to a third party administrator (TPA):

A new extraction program collects cumulated payroll results, which are required for the calculation of service and/or projected retirement benefits, and copies them to the new infotype Retirement Plan Cumulations (0602).
Employee length of service is the basis for various retirement plan related calculations, and can either be calculated using the new service calculation function in the Benefits component, or by a TPA. The flexible Customizing of the new service calculation function enables you to define the calculation according to your organization's policy regarding service credited for participation, benefit accrual, and vesting.
You can send the data required for the calculation of projected benefits and service to the TPA in an Intermediate Document (IDoc). When an IDoc is generated, data is read from the infotypes Retirement Plan Cumulations (0602) and Retirement Plan Calculation Results (0565). The results of the TPA calculation are returned in an IDoc and stored in your system on the Retirement Plan Calculation Results infotype (0565).

Projected retirement benefits are calculated externally by the third party administrator (TPA). This information and the calculated length of service can be displayed by employees in the new Employee Self-Service Retirement Benefits.

Effects on Data Transfer

To support retirement plan administration, the existing IDoc for the transfer of health plan data (BENEFIT1) has been replaced by a new IDoc (BENEFIT2) that allows you to transfer plan participation data, employee demographic data, and beneficiary data for plans in the category Savings (in addition to health plan data). A new IDoc is also available for the transfer of other data relevant for TPA calculations.

Effects on Customizing

For an overview of the Customizing steps for setting up a retirement plan and defining service calculation in the Benefits Implementation Guide, see the documentation for the section Plans -> Savings Plans.

See also

For more information on the new Employee Self-Service for displaying projected retirement benefits, see the release note New Employee Self-Services in Benefits .