Hierarchy
EA-HRCGB (Software Component) Sub component EA-HRCGB of EA-HR⤷
PA-BN-FB-XX (Application Component) General Parts⤷
PAOC_BEN_FBN (Package) Flexible Benefits System
Basic Data
| Data Element | FBN_PAYBK |
| Short Description | Pension Pay Back Indicator |
Data Type
| Category of Dictionary Type | D | Domain |
| Type of Object Referenced | No Information | |
| Domain / Name of Reference Type | XFELD | |
| Data Type | CHAR | Character String |
| Length | 1 | |
| Decimal Places | 0 | |
| Output Length | 1 | |
| Value Table |
Further Characteristics
| Search Help: Name | ||
| Search Help: Parameters | ||
| Parameter ID | ||
| Default Component name | ||
| Change document | ||
| No Input History | ||
| Basic direction is set to LTR | ||
| No BIDI Filtering |
Field Label
| Length | Field Label | |
| Short | 10 | Pay Back |
| Medium | 19 | Pay Back to Pension |
| Long | 20 | Pay Back to Pension |
| Heading | 5 | PayBk |
Documentation
Pension Pay Back Indicator
Use
If you have assigned salary sacrifice to a particular pension plan option which also has National Insurance Neutralityapplied, you can also determine whether any Employer National Insurance Contributions (NICs) savings produced as a result of the salary sacrifice are paid back to the employee. This process is referred to as pension payback.
You set the Pay back to Pension indicator to define whether Employer NICs savings resulting from the application of NI neutrality will be paid back in the form of increased employer pension contributions on behalf of the employee.
Settings:
'' : ER NIC savings will not be paid back in the form of increased employer pension contributions on behalf of the employee.
'X': ER NIC savings will be paid back in the form of increased employer pension contributions on behalf of the employee.
Note:
In Flexible Benefits for Great Britain (GB FlexBens), the Pay back to Pension indicator is read by the GB FlexBens system. When you display the relevant plan detail screen, if this indicator is set as 'X', the system will calculate and display the pension payback amount.
Setting the Pay back to Pension indicator results in the pension payback amount being added back into employer pension contributions. However, there are a number of other possibilities for this payback amount. It could also be:
- Retained by your organisation
- Paid back to the employee as a salary enhancement
- Used by the employee to fund other flexible benefits selections
Wage type customizing will be required if you wish to administer any of the above three pension payback administration options, rather than return any pension payback amounts in the form of increased employer pension contributions.
Customizing will involve assigning a pension payback wage type in the Payroll GB IMG step: Assign Flexible Benefits Plan Wage Types for Benefits Plans (FLEX) and configuring the wage type's attributes. This pension payback wage type will be handled by the payroll, depending on your payroll schema and on your wage type configuration, such as processing class setting, cumulation class and so on.
Dependencies
This flag is only meaningful when field SCRIF is set as 'X'. In other words, only when salary sacrifice parameters have been applied to a pension plan will any potential Employer NICs savings be generated, which create the pension payback amount.
Examples
You set both the Salary sacrifice and Pay back to Pension indicators to' X'. Therefore, the salary sacrifice option applies to this pension scheme and any Employer NICs savings produced by employees opting for salary sacrifice are translated into increased employer pension contributions, per employee.
History
| Last changed by/on | SAP | 20040223 |
| SAP Release Created in | 200 |
