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_PENWT |
| Short Description | Pay Back to Pension Plan: Wage type |
Data Type
| Category of Dictionary Type | D | Domain |
| Type of Object Referenced | No Information | |
| Domain / Name of Reference Type | LGART | |
| Data Type | CHAR | Character String |
| Length | 4 | |
| Decimal Places | 0 | |
| Output Length | 4 | |
| Value Table | T512W |
Further Characteristics
| Search Help: Name | ||
| Search Help: Parameters | ||
| Parameter ID | ||
| Default Component name | BACKTOPENSWT | |
| Change document | ||
| No Input History | ||
| Basic direction is set to LTR | ||
| No BIDI Filtering |
Field Label
| Length | Field Label | |
| Short | 10 | BackPensWT |
| Medium | 15 | Back to Pen. WT |
| Long | 20 | BacktoPens. WageType |
| Heading | 0 |
Documentation
Definition
This wage type stores the amount of employer NI savings that are gained when an employee chooses a Salary Sacrifice option for a pension plan, where the NI saving is fed back into increased employer pension contributions on the employee's behalf.
Example
An employer offers a pension plan with salary sacrifice, and has also applied the principle of National Insurance Cost Neutrality. An employee contributes 5% of his contract salary to this GB flexible benefits pension plan.The employer contributes 8.75% of the employee's contract salary to the same pension plan.
However, the employer provides a Salary Sacrifice option for this pension plan in the GB flexible benefits system. The employee opts for a salary sacrifice of 5% of salary. This amount (GBP 1000) is transferred into increased employer pension contributions on the employee's behalf. This increases the total employer contribution to 13.75%, producing a saving on Employer NI contributions of GBP 128, which will be paid back to the employee in the form of increased employer pension contributions .
Standard Option (GBP)
Contract basic salary = 20000
ER 8.75% = 1750
EE 5% = 1000
ER NI AMOUNT= 1968
Flexed Option (GBP)
Contract basic salary = 19000
ER 13.75% = 2750
EE 5% -----
ER NI AMOUNT= 1840
Therefore, this wage type holds the NI savings which are fed back into increased employer pension contributions, 1968 -1840 = GBP 128.
History
| Last changed by/on | SAP | 20040223 |
| SAP Release Created in | 200 |
