SAP ABAP IMG Activity PYGB_PAE_PENSSCHEMES (Pension Schemes Overview)
Hierarchy
☛ SAP_HRCGB (Software Component) Sub component SAP_HRCGB of SAP_HR
   ⤷ PY-GB (Application Component) United Kingdom
     ⤷ PC08 (Package) HR accounting: GB
IMG Activity
ID PYGB_PAE_PENSSCHEMES Pension Schemes Overview  
Transaction Code S_L4H_49003113   (empty) 
Created on 20121121    
Customizing Attributes PYGB_PAE_PENSSCHEMES   Pension Schemes Overview 
Customizing Activity    
Document
Document Class SIMG   Hypertext: Object Class - Class to which a document belongs.
Document Name PYGB_PAE_PENSSCHEMES    

Pension Schemes

You need to distinguish between your Auto-Enrolment duties and your Pension Scheme rules. SAP is only going to actively help you with your Auto-Enrolment duties. Your Pension Scheme rules are your own affair.

Most SAP customers will already be providing a Pension Scheme to their employees, before their Staging Date(s). Some employees will already be in the scheme, others will not. Pensions Reform brings new duties and new requirements for Pension Schemes.

Pensions Reform Pension Schemes breakdown into 4 types;

  • Auto-Enrolment Scheme (AES)
  • Qualifying Pension Scheme (QPS)
  • Minimum Requirements Scheme (MRS)
  • Other Schemes (not suitable for AE duties)

The decision on whether your existing schemes fall into one type or another is for you and your Pension Provider to discuss. This is not some that SAP can or will help with.

EJHs not in a QPS have to be AE'ed into and AE scheme

EJHs not in a QPS have the right to Opt-In to a QPS

NEJHs not in a QPS have the right to Opt-In to a QPS

EW not in a QPS have the right to join a UK Tax Registered Pension Scheme

So this means that you MUST provide a Pension Scheme that is an

  1. AES
  2. QPS
  3. MRS

You do not have to provide separate schemes, if you wish you can use one scheme for all three, but in this case the Pension Scheme must be an Auto-Enrolment Scheme (AES). All your "other" pension schemes will become obsolete as they will not meet you Auto-Enrolment duties.

In SAP, we simply provide you with the fields against a Pension Scheme to decide which type the Pension Scheme is.

IMPORTANT:

  1. A number of customers have implemented their Pension Scheme rules without using SAP's delivered Pension Scheme details infotype (0071) and/or have implemented bespoke solutions within the payroll.

    The PAE solution assumes that you have

  1. defined your Pension Scheme rules in table T5G30 , T5G31, T5G32, T5G33, T5G34, T5G35, T5G36 and T5G37
  2. defined the Pension Scheme(s) that an employee has joined in Pension Scheme details infotype (0071)
  3. defined your Payroll Schema so that all the necessary EEs and ERs contributions can be calculated during the processing of GPENS.

    If any of these are not the case, then you will struggle to implement the PAE solution without making significant     customer modifications to it.

  1. A number of customers have implemented their T5G37 wage types, so that the PAE arrears handling doubles up the EEs value of the arrears.

Any T5G37 entry should only ever fill either the "Taxed EE contribution" wage type (T5G30-LGAEE) or the "Tax Free EE contribution" (T5G30- LGAXEE), but it should not fill both.

Example

Business Attributes
ASAP Roadmap ID 207   Establish Reporting 
Mandatory / Optional 2   Optional activity 
Critical / Non-Critical 2   Non-critical 
Country-Dependency I   Valid for countries specified 
Customizing Attributes Country Key Country Name
PYGB_PAE_PENSSCHEMES GB United Kingdom
Assigned Application Components
Documentation Object Class Documentation Object Name Current line number Application Component Application Component Name
SIMG PYGB_PAE_PENSSCHEMES 0 HLA0009560 United Kingdom 
Maintenance Objects
Maintenance object type    
History
Last changed by/on SAP  20121129 
SAP Release Created in