Activating Pension Administration and Setting PeopleTools OptionsThis chapter discusses how to:
Activate Pension Administration and set PeopleTools options.
Set up retiree departments and security.
Set up other control tables.
Create a logical file for the trustee extract.
Note. To track pension payees, you need to establish the payees in the PeopleSoft system. This requires you to perform several tasks, which are described in “Establishing Pension Payees.”
See Also
Activating Pension Administration and Setting PeopleTools OptionsOn the Installation Table - Products page, select Pension Administration (access this page under Set Up HRMS, Install, Installation Table, Products).
Note. If you are using PeopleSoft Enterprise Human Resources full position management, consider switching to partial position management. You almost certainly do not want to manage retirees by position. You change to partial position management on the Installation Table - HRMS Options page.
On the PeopleTools Options page, select two check boxes: Multiple-Company Organization and Multiple Jobs Allowed (access this page under PeopleTools, Utilities, Administration, PeopleTools Options). You need to do this because:
Pension plans are independent tax reporting entities. Therefore, the system should be set up to support multiple companies.
In PeopleSoft, a company is typically defined as a business unit that has a unique federal employer identification number (EIN) for payroll tax reporting purposes.
When you retire an employee with the Pension Administration system, you create an additional retiree “job,” concurrent with the employee’s original job.
Note. You must select Multiple Jobs Allowed in order to run Pension Administration. However, if your organization does not have employees with multiple concurrent jobs, you can run the application in a single user environment by selecting Single Job Environment on the Plan Implementation page.
See Also
Setting Up and Installing PeopleSoft HRMS
Setting Up Retiree Departments and SecurityWithin a company, payees need to belong to departments. You may want to create separate departments for different categories of payees: retired employees, beneficiaries of employees, and QDRO alternate payees. Alternatively, you can set up a single department and distinguish payee types by creating a job code for each one.
Creating departments specifically for pension payees enables you to secure the payee data using the department security tree. Be sure to add the payee department (or departments) to the department security tree; otherwise users cannot access payee data.
An alternative approach to structuring a retiree organization is to create a retiree department organization that mirrors the organization for active employees. You can then put payees into the same departments that housed them as employees. This approach offers the ability to report on payees based on their originating departments. However, this method also presents the significant burden of maintaining two or more identical organizations. This is especially significant if your organization changes frequently. PeopleSoft does not recommend this approach unless you have a real need for the enhanced reporting capability.
See Also
Setting Up and Administering HRMS Security
Enterprise PeopleTools PeopleBook: PeopleSoft Tree Manager
Setting Up Other Control Tables
The other control tables you need to set up for payees are locations, job codes, and pay groups. You must create an establishment ID before you set up the locations. You must create an earnings program before you set up the pay groups.
Note. Although Pay Group is a required field in pension payee job records, the system does not make pension payments using PeopleSoft payroll processing. Instead, it produces the Trustee Extract file, which provides payment information for the third-party who produces the pension checks.
Creating a Logical File for the Trustee ExtractPension Administration produces the Trustee Extract file, which provides payment information for the third-party who produces the pension checks.
When you run the Trustee Extract process, the system writes the data to the file that you define using the system variable TRSPYMT. You can set up the variable so that the file resides on any accessible drive.
Your database platform determines how you define this variable. Under Sybase, you define it on the client. On a UNIX server, you define it on the server. See your database administrator for more information on defining a system variable.
For example, to set up this variable on a Windows NT client, access the Control page and click the System button. Enter TRSPYMT as the variable name, and provide a directory path (including a file name) for the value.
See Also
Creating the Trustee Extract File