Use Oracle HRMS to set up the pension and savings schemes available to your employees. For employees in the government and education sectors, you can set up pension schemes offered by ABP (Algemeen Burgerlijk Pensioenfonds). You can set up one pension scheme in each of these ABP categories:
OP/NP
OP/NP--Including AOW
OP/NP--Individual 65
OP/NP--Individual WOU 25%
OP/NP--Individual WOU 50%
IPBW Low
IPBW High
FPU Base
FPU Composition
FPU Raise
FPU Extra
FPU Total
FUR Standard
VSG
IPAP
For employees, ex-employees, and pensioners in the health-care and social-work sectors, you can set up pension schemes for the following PGGM (Pension Fund for Healthcare and Social Work Sectors) pension types:
OP Contribution
Flex Contribution
AP Contribution
Note: PGGM pensions support only monthly payrolls.
A pension provider is an organization that collects contributions provided by employees to their employer and then allocates the money to a particular pension or savings scheme. In Oracle HRMS you can assign as many pension types as you require to each pension provider, then select these for your employer organizations. The pension type defines how contributions are calculated, and this information is datetracked.
Within each pension type, you can create the pension and savings schemes in which you will enroll your employees. You can generate all the objects required for payroll processing for each scheme--elements, formulas, balances, balance feeds, and formula result rules. The formula is based on the rules you define for the pension type. You can configure the formula and other objects if you require additional rules.
ABP Pension schemes: You specify the default pension types for which employees are eligible at the business group or HR organization level. You can add types at the child organization or assignment level. You use eligibility profiles or element links to specify eligibility to enroll in any ABP pension scheme, then enroll employees by entering a single element. When it processes this element, Oracle Payroll checks the ABP pension types you have specified in the employee's organization hierarchy and assignment. Oracle Payroll enrolls employees in all schemes for which they are eligible.
Other pension and saving schemes: You specify pension types for your employers, which can be a business group or any HR organization within the default hierarchy. Pension types assigned at the highest level propagate to the child organizations unless overridden at the child level. If you enter any pension types at the child level, only those pension types are available for that particular organization.
You can establish eligibility for pension schemes using eligibility profiles attached to pension plans, with Standard or Advanced Benefits. If you also use Self-Service, employees can select their pension scheme from a list of types for which they are eligible. Otherwise you must enroll them individually (Standard Benefits) or in a batch (Advanced Benefits). With Advanced Benefits you can trigger automatic enrollment based on life events.
Using Standard or Advanced Benefits is the recommended approach, however you can establish eligibility using element links instead, if you prefer. You can use a standard link to automatically assign the pension scheme to all eligible employees, or you can use BEE or the Element Entries window to enroll employees in pension schemes.
Oracle HRMS supplies a predefined report to extract the data required for the monthly notification on ABP pensions. See: Notification of ABP Pensions. You could also use or adapt predefined global pension extracts to report on other pensions and savings data, as required. By default the NL HRMS Reports & Process request set does not include the global extract processes, but you can add them. See: Pension Extracts, Oracle HRMS Compensation and Benefits Management Guide.
Oracle HRMS provides pension pages to guide you through the setup of pension and savings schemes.
Yes, you set up as many pension types as you require, then create pension or savings schemes, which are specific instances of pension types. When you create a scheme, Oracle HRMS generates all the objects required for payroll processing.
For savings schemes, you can set up wage saving or premium saving schemes. The appropriate balance feeds are created automatically to ensure correct taxation.
For ABP pensions, you use the default organization hierarchy to specify which pension types are available to employees in each organization. Employees participate in pension types specified for their own organization and any parent organizations within the hierarchy right up to the business group. You can also specify additional pension types for individual employee assignments.
For other pension and savings schemes, you assign pension providers and types to your employer organizations within your default organization hierarchy. Employees can select from the providers and types that are valid for their organization. Pension types specified for a child organization override any entries further up the hierarchy.
For all schemes, you can also set up eligibility criteria using eligibility profiles or element links. If you set up pension or savings plans, you use eligibility profiles to control who can enroll in the plan.
You can specify minimum and maximum ages for a pension type. An employee's age is checked against these limits by a formula during each payroll run.
Pension contributions can be a percentage of pensionable salary, a flat amount, or a fixed premium amount specified by the pension provider and divided between employee and employer contributions.
You specify which earnings types contribute to pensionable salary by setting up balance feeds. You can also include bonus payments in the pension basis. You can specify a threshold amount to be deducted from the annual salary before calculation of percentage contributions.
Savings contributions can be a fixed premium amount per year, a flat amount per pay period, or a percentage of the maximum contribution allowed.
For pension contributions, the contribution amount is fed to an arrears balance if there are insufficient earnings to take the full deduction. This functionality does not apply to savings deductions.
You can define extract criteria to determine which people to include in the extract file, and a layout definition to determine which data to extract and how to format the records in the extract file. Oracle HRMS supplies a global pensions extract definition, which you can use or adapt to meet your requirements.
A predefined extract process meets the monthly reporting requirements for ABP pensions.
When you create a pension or savings scheme, Oracle Payroll generates a formula that calculates the contributions. The content of the formula depends on your choices when you set up the pension type and scheme. The formula uses default values specified for the pension type, or overrides you specify for the assignment or element entry. The formula may refer to balances for values, such as salary and past year bonuses.
Pension contributions can be:
A fixed premium amount specified by the pension provider and divided between employee and employer contributions
To set this up, you select a salary calculation method of Fixed Premium Amount for the pension type, and a Deduction Method of Percentage for the scheme. You enter the Annual Premium Amount and the percentage paid by the employee. The remaining proportion is paid by the employer.
Important: Fixed premium amount is not relevant to ABP pensions.
A percentage of the pension basis (which is normally related to pensionable salary), calculated as:
A payroll period contribution, based on salary in first payroll period in the year or
A payroll period contribution, based on the salary in that period
Important: The second option does not apply to ABP pensions. Percentage-based ABP pensions always use the salary calculation method Actual Salary of First Payroll Period in the Year.
To set this up, you select a salary calculation method of Actual Salary of first payroll period in the year or Actual Salary of each processing payroll period, and you select a Deduction Method of Percentage for the scheme. You enter the percentage of salary paid by employee and, if appropriate, employer. For certain ABP pension types, you can use a user-defined table to specify percentages that depend on the employee's age and the age at which the employee began contributing to the pension.
A flat amount entered separately for employee and employer (if there are employer contributions)
To set this up, you select a salary calculation method of Actual Salary of first payroll period in the year or Actual Salary of each processing payroll period, and you select a Deduction Method of Flat Amount for the scheme. You enter the flat amount paid by the employee and, if appropriate, employer.
In all cases the contributions are paid as a regular deduction each payroll period.
You can select a conversion rule to define how to prorate the pension deduction amount, salary, and annual salary threshold to a particular pay period. There are four conversion rules. One--used particularly by ABP pensions--is called Prorate to Pay Period. This conversion rule simply divides the annual amount by the number of payroll periods in the year, such as 12 for an employee on a monthly payroll.
The other three rules calculate a daily amount--by dividing the annual amount by a global value for average days per year--and multiply this by a different factor. The following table explains the factors and how to override them at assignment and element entry levels. Notice that element entry overrides take precedence over assignment-level overrides.
| Conversion Rule | Uses the Factor . . . | Override Factor At Assignment Level Using . . . | Override Factor At Lowest Level Using . . . |
|---|---|---|---|
| Average Working Days | Average number of working days in the payroll period (such as 5 for a weekly payroll) | Dutch Average Pension Days EIT | ABP schemes: ABP Pensions Override Information EIT (for a specific pension type) Other schemes: Override Pension Days input value on the Pension Deduction and Employer Pension Contribution elements. |
| Average Days With Work Schedules | Average Working Days calculated from the employee's work pattern (excluding non-SI absences). Average Working Days is calculated by dividing the number of days the employee is scheduled to work by the total number of days in the work pattern, and multiplying by the average number of days in the period. If the employee has no work pattern the calculation uses the same figures as in the Average Working Days method | Dutch Average Pension Days EIT | ABP schemes: ABP Pensions Override Information EIT (for a specific pension type) Other schemes: Override Pension Days input value on the Pension Deduction and Employer Pension Contribution elements. |
| Real Working Days | Real working days in the pay period, according to the employee's work pattern (including paid leave but excluding non-SI absences). If the working days from the work pattern exceed the maximum Social Insurance Days, this maximum figure (minus any non-SI absences) is used in the calculation instead. | Override Real SI Days field on the Social Insurance/Pension tab of the Assignment window. | ABP schemes: ABP Pensions Override Information EIT (for a specific pension type) Other schemes: Override Pension Days input value on the Pension Deduction and Employer Pension Contribution elements. |
You can specify an annual limit on contributions, set for each pension type, which you can override at the assignment level. If an employee has multiple assignments, the limit is split between assignments.
For percentage-based schemes, Oracle Payroll calculates the deduction as a percentage of the pension basis. You select one of the following as the pension basis for each pension type:
Basis equals Pension Salary--deductions are a percentage of pensionable salary (which can include bonuses)
Basis equals Annual Limit--deductions are a percentage of the maximum that employees and employers can contribute to this pension type
Pension Salary Minus Threshold--deductions are a percentage of pensionable salary minus the annual threshold prorated to the pay period using the specified conversion rule
No Basis Required--deductions are based on a Fixed Premium Amount or Flat Amount.
Additional Information: For PGGM, you can specify whether to round up or round down the contribution and pension basis values individually. The two methods give slightly different final deduction amounts.
Oracle Payroll supports the use of multiple pay periods while calculating the pension basis and part-time percentage for PGGM pensions. You can choose either calendar month (12 pay periods), lunar month (13 pay periods), quarter (4 pay periods), or week (52 pay periods).
If you select Basis equals Pension Salary or Pension Salary Minus Threshold, you must specify how to calculate pensionable salary. You can select which pension salary balance to use, and you can specify whether to include bonuses. You can include this year's bonuses--calculated as a percentage of salary and prorated to the pay period--and last year's bonuses, taken from a balance.
Note: Unlike ABP, OHT correction and inflation check are not applicable to PGGM pension salary.
Oracle Payroll calculates pensionable salary separately for each assignment, if an employee has multiple assignments. You can enter an override pensionable salary at the assignment level.
If you select the pension basis Pension Salary Minus Threshold, you must enter an annual threshold. For example:
Payroll = Calendar Month
Conversion Rule = Average Working Days
Employee Contribution Percentage = 10%
Pensionable Salary for the Pay Period = 5000
Annual Threshold = 12 000
Threshold for the pay period = (12000/261 ) * 21.75 = 1000
Deduction Amount for monthly pay period = 10% of (5000 - 1000) = 400
You can set a similar threshold for the employer contribution.
If an employee has multiple assignments, the threshold is split between assignments based on the FTE value of each assignment. For example, if the annual threshold is 1000 Euros for a pension type, the limit would be divided as follows:
Assignment A, FTE 0.5, Annual limit = 1000 * (0.5/0.9) = 555.56
Assignment B, FTE 0.4, Annual limit = 1000 * (0.4/0.9) = 444.44
For certain ABP pension types, you can specify age-dependent salary thresholds using user-defined tables.
For a pension type where contributions are based on salary, you can set the following values for both employee and employer contributions:
Contribution Percentage
Annual Limit
Annual Salary Threshold
For a pension type where contributions are based on a Fixed Premium Amount, you can set the following values:
Annual Premium Amount
Employee and employer percentage contributions (which must sum to 100%)
When you create a pension scheme, which is a specific instance of a pension type, these values are defaulted, but you can override them.
Important: For Fixed Premium Amount schemes, the premium amount is divided between all of an employee's assignments. If you override Fixed Premium Amount or contribution percentages for one assignment (on the pension element entry), you must make the same change for all of this employee's other assignments that contribute to a scheme of the same pension type. If you override one assignment but not the others, the Fixed Premium Amount will not be split correctly between assignments.
Savings contributions can be:
A percentage of the fixed premium amount, such as 600 Euros per year, prorated to the pay period using the conversion rule.
A flat amount, such as 100 Euros per pay period
A percentage of the annual limit. For example, if the maximum employee contribution is 600 Euros per year, a 10% contribution would be 60 Euros per pay period until the maximum of 600 Euros is reached.
To create a flat amount or a percentage of the annual limit scheme, you can leave the Salary Calculation Method field blank when you define the pension type.
For life savings scheme, you can specify the deduction amount as a percentage of the savings basis, which can be:
User-defined Balance - The application derives savings basis for the pay period from the ASG_RUN balance.
Note: If you use a customized balance, ensure that the balance gets populated when the application processes the savings scheme deduction elements.
Predefined Basis Balances - Enables you to include portions of employee earnings, which you plan to pay at a later date, in the savings basis. This can be an annual amount based on the value of a predefined balance.
Annual Premium Amount - The application considers the annual premium amount as the savings basis. For flat amount schemes, the application derives the amount by dividing the amount by the number of pay periods in an year. For percentage schemes, the application deducts a percentage of the annual premium amount as the life savings scheme amount.
Annual Limit - The application considers the annual limit for the employee or employer as the savings basis.
The employer can match the employee's contribution. However, an annual limit exists for both the employee and employer contributions.
The application considers the Savings deductions as third party payments, so that you can transfer the calculated contribution to a separate bank account for the employee.
This topic explains the purpose of the elements, formulas, and balances that the application generates when you create a pension or savings scheme.
When you create a pension type, Oracle Payroll generates a balance initialization element, <Pension Type> Balance Initialisation.
When you create a pension or savings scheme, Oracle Payroll generates the elements listed in the following table, where <BASE NAME> is the name you enter when you define the scheme. It generates all of the elements in the Tax Information and Social Insurance Information classifications, but only sets up formula result rules for the ones you selected when you defined the pension type.
Important: For ABP pensions:
All the pre-tax element names include "ABP". For example, <BASE NAME> ABP Pension Deduction.
There is a predefined element, in addition to the generated elements. The predefined element is called ABP Pensions, and you enter this element for all employees who are members of ABP schemes. The processing of this Information element feeds an indirect pre-tax element for each pension scheme for which the person is eligible.
| Element for Pensions | Elements for Savings | Description |
|---|---|---|
| <BASE NAME> Pension Deduction | <BASE NAME> Savings Deduction | ABP Pensions: This element receives an indirect result from the ABP Pensions element. Other schemes: This is the recurring element you use to enroll an employee in the pension or savings scheme. |
| <BASE NAME> Special Inputs | <BASE NAME> Special Inputs | All pension schemes: Use this element to enter a new value for deduction arrears. Non-ABP schemes: Use this element to enter any one-time changes to the deduction amount. You can enter an additional amount or a replacement amount. |
| <BASE NAME> Special Features | <BASE NAME> Special Features | All pension schemes: This element adjusts the arrearage balance. Non-ABP schemes: Also clears the additional and replacement amounts. |
| <BASE NAME> Employer Pension Contribution | <BASE NAME> Employer Savings Contribution | This element is created if you select Employer Contribution when you create the scheme. ABP Pensions: This element receives an indirect result from the ABP Pensions element. Other schemes: Use it to enter the amount of the employer contribution. |
| <BASE NAME> Tax SI Adjustment | <BASE NAME> Tax SI Adjustment | Feeds the seeded tax adjustment balances to keep track and ensure the proper reduction of Tax and Social Insurance balances |
| <BASE NAME> Standard Tax Adjustment | <BASE NAME> Standard Tax Adjustment | Holds the pension or savings contributions for the standard rate taxation balance. |
| <BASE NAME> Special Tax Adjustment | <BASE NAME> Special Tax Adjustment | Holds the pension or savings contributions for the special rate taxation balance. |
| <BASE NAME> SI Income Standard Adjustment | <BASE NAME> SI Income Standard Adjustment | Holds the pension or savings contributions for the standard rate tax deduction balance for SI Income. |
| <BASE NAME> SI Income Special Adjustment | <BASE NAME> SI Income Special Adjustment | Holds the pension or savings contributions for the special rate tax deduction balance for SI Income. |
| <BASE NAME> SI Income Non Tax Adjustment | <BASE NAME> SI Income Non Tax Adjustment | Holds the pension or savings contributions for the nontaxable balance for SI Income. |
| <BASE NAME> SI Gross Salary Standard Adjustment | <BASE NAME> SI Gross Salary Standard Adjustment | Holds the pension contributions for the standard rate tax deduction balance for SI Gross Salary. |
| <BASE NAME> SI Gross Salary Special Adjustment | <BASE NAME> SI Gross Salary Special Adjustment | Holds the pension contributions for the special rate tax deduction balance for SI Gross Salary. |
| <BASE NAME> SI Gross Salary Non Tax Adjustment | <BASE NAME> SI Gross Salary Non Tax Adjustment | Holds the pension contributions for the nontaxable balance for SI Gross Salary. |
| <BASE NAME> PGGM Disability Pension Contribution | <BASE NAME> PGGM Disability Pension Contribution | Holds PGGM pension contributions for disabled employees. |
| <BASE NAME> Retro PGGM Pension Deduction Current Year | <BASE NAME> Retro PGGM Pension Deduction Current Year | Holds retrospective changes to the employee's PGGM pension deductions for the current year. |
| <BASE NAME> Retro PGGM Pension Deduction Previous Year | <BASE NAME> Retro PGGM Pension Deduction Previous Year | Holds retrospective changes to the employee's PGGM pension deductions for the previous year. |
| <BASE NAME> Retro PGGM Employer Pension Contribution Current Year | <BASE NAME> Retro PGGM Employer Pension Contribution Current Year | Holds retrospective changes to the employer's PGGM pension deductions for the current year. |
| <BASE NAME> Retro PGGM Employer Pension Contribution Previous Year | <BASE NAME> Retro PGGM Employer Pension Contribution Previous Year | Holds retrospective changes to the employer's PGGM pension deductions for the previous year. |
| <BASE NAME> PGGM Extra Pensions | <BASE NAME> PGGM Extra Pensions | Holds additional PGGM pension contributions for an employee |
| <BASE NAME> Retro Standard Tax Adjustment Current Year | <BASE NAME> Retro Standard Tax Adjustment Current Year | Holds retrospective changes to the pension or savings contributions for the standard-rate-taxation balance for the current year. |
| <BASE NAME> Retro Standard Tax Adjustment Previous Year | <BASE NAME> Retro Standard Tax Adjustment Previous Year | Holds retrospective changes to the pension or savings contributions for the standard-rate-taxation balance for the previous year. |
| <BASE NAME> Retro Special Tax Adjustment Current Year | <BASE NAME> Retro Special Tax Adjustment Current Year | Holds retrospective changes to the pension or savings contributions for the special-rate-taxation balance for the current year. |
| <BASE NAME> Retro Special Tax Adjustment Previous Year | <BASE NAME> Retro Special Tax Adjustment Previous Year | Holds retrospective changes to the pension or savings contributions for the special-rate-taxation balance for the previous year. |
| <BASE NAME> Retro SI Gross Standard Adjustment Current Year | <BASE NAME> Retro SI Gross Standard Adjustment Current Year | Holds retrospective changes to the pension contributions for the standard-rate-tax-deduction balance for SI gross salary for the current year. |
| <BASE NAME> Retro SI Gross Standard Adjustment Previous Year | <BASE NAME> Retro SI Gross Standard Adjustment Previous Year | Holds retrospective changes to the pension contributions for the standard-rate-tax-deduction balance for SI gross salary for the previous year. |
| <BASE NAME> Retro SI Gross Special Adjustment Current Year | <BASE NAME> Retro SI Gross Special Adjustment Current Year | Holds retrospective changes to the pension contributions for the special-rate-tax-deduction balance for SI gross salary for the current year. |
| <BASE NAME> Retro SI Gross Special Adjustment Previous Year | <BASE NAME> Retro SI Gross Special Adjustment Previous Year | Holds retrospective changes to the pension contributions for the special-rate-tax-deduction balance for SI gross salary for the previous year. |
| <BASE NAME> Retro SI Gross Non Tax Adjustment Current Year | <BASE NAME> Retro SI Gross Non Tax Adjustment Current Year | Holds retrospective changes to the pension contributions for the nontaxable balance for SI gross salary for the current year. |
| <BASE NAME> Retro SI Gross Non Tax Adjustment Previous Year | <BASE NAME> Retro SI Gross Non Tax Adjustment Previous Year | Holds retrospective changes to the pension contributions for the nontaxable balance for SI gross salary for the previous year. |
| <BASE NAME> Retro SI Income Standard Adjustment Current Year | <BASE NAME> Retro SI Income Standard Adjustment Current Year | Holds retrospective changes to the pension or savings contributions for the standard-rate-tax-deduction balance for SI income for the current year. |
| <BASE NAME> Retro SI Income Standard Adjustment Previous Year | <BASE NAME> Retro SI Income Standard Adjustment Previous Year | Holds retrospective changes to the pension or savings contributions for the standard-rate-tax-deduction balance for SI income for the previous year. |
| <BASE NAME> Retro SI Income Special Adjustment Current Year | <BASE NAME> Retro SI Income Special Adjustment Current Year | Holds retrospective changes to the pension or savings contributions for the special-rate-tax-deduction balance for SI income for the current year. |
| <BASE NAME> Retro SI Income Special Adjustment Previous Year | <BASE NAME> Retro SI Income Special Adjustment Previous Year | Holds retrospective changes to the pension or savings contributions for the special-rate-tax-deduction balance for SI income for the previous year. |
| <BASE NAME> Retro SI Income Non Tax Adjustment Current Year | <BASE NAME> Retro SI Income Non Tax Adjustment Current Year | Holds retrospective changes to the pension or savings contributions for the nontaxable balance for SI income for the current year. |
| <BASE NAME> Retro SI Income Non Tax Adjustment Previous Year | <BASE NAME> Retro SI Income Non Tax Adjustment Previous Year | Holds retrospective changes to the pension or savings contributions for the nontaxable balance for SI income for the previous year. |
| PGGM Pensions General Information | PGGM Pensions General Information | Used to calculate the PGGM pension salary. Holds disability payment and disability percentage values. |
| PGGM Pensions Part Time Percentage | PGGM Pensions Part Time Percentage | Used to calculate the average part-time percentage for a period. Holds input values, such as part-time percentage, work hours, additional work hours, and parenta- leave information. |
| Retro PGGM Pensions General Information | Retro PGGM Pensions General Information | Holds retrospective changes to disability-payment and disability-percentage values. |
| Retro PGGM Pensions Part Time Percentage | Retro PGGM Pensions Part Time Percentage | Holds retrospective changes to overriding part-time percentage, work hours, additional work hours, and parental-leave information. |
| Retro PGGM Disability Pension Contribution | Retro PGGM Disability Pension Contribution | Holds retrospective changes to the PGGM pension contributions for disabled employees. |
| Retro PGGM Extra Pensions | Retro PGGM Extra Pensions | Holds retrospective changes to the additional PGGM pension contributions for an employee. |
For ABP pensions, you must define a link for the ABP Pensions element. For other schemes, you must define links for the Pension Deduction, Savings Deduction, Special Inputs, Employer Pension Contribution, and Employer Savings Contribution elements, if you want to use them. The payroll run enters the other elements as indirect results. You can define links for these also if you want to set up costing for them.
Creating a pension scheme also generates a payroll formula: <BASE NAME> Pension Deduction or <BASE NAME> ABP Pension Deduction. This formula does the following processing:
Checks that the employee is between the minimum and maximum ages defined for the pension type.
Checks if the person is eligible for the pension type.
Calculates the pensionable salary, using the selected salary calculation method, and adjusting the value if the employee is not full time. There are three salary calculation methods:
Actual Salary of first payroll period in the year
Note: This is the only valid method for ABP pension types.
Actual Salary of each processing payroll period
Fixed Premium Amount--No salary calculation necessary since the premium amount is supplied by the pension provider.
Calculates the maximum contribution for the pay period. These limits are always defined as annual amounts so they have to be prorated to the pay period by using the conversion rule defined on the pension type.
Returns the deduction amount, taking account of the maximum contribution permitted, and any arrearage. Also returns the addition to arrearage if the scheme allows arrearage. Partial deduction amounts are not taken - the deduction amount is either the whole amount or nothing at all.
Reduces the tax and Social Insurance balances that you selected for the pension type, in the sequence you specified, using the tax and SI adjustment elements generated for the scheme.
Creating a savings scheme also generates a payroll formula: <BASE NAME> Savings Deduction. This formula does the following processing:
Checks if the person is eligible for the savings scheme
Checks that the employee is between the minimum and maximum ages defined for the pension type
Checks if any additional or replacement amounts have been entered
Calculates the deduction amount, making sure that the year-to-date amount is less than the Annual Limit defined on the pension type
Reduces the tax and Social Insurance balances that you selected for the pension type, in the sequence you specified, using the tax and SI adjustment elements generated for the scheme.
Increases the Wage Saving or Premium Saving Taxable Amount balance by the amount of the deduction
Oracle Payroll includes seeded balances to store employee and employer pension and savings contributions, and the total of all pre-tax deductions:
Employee Pension Contribution
Employer Pension Contribution
Employee Savings Contribution
Employer Savings Contribution
Pre-Tax Deductions
Wage Saving Taxable Amount
Premium Saving Taxable Amount
Recurring Bonus
Non Recurring Bonus
PGGM Pension Salary
PGGM Part Time Percentage
PGGM Scale Salary
PGGM Full Time Recurring Payments
PGGM Part Time Recurring Payments
PGGM Scale Salary for Holiday Allowance
PGGM Full Time Recurring Payments For Holiday Allowance
PGGM Part Time Recurring Payments For Holiday Allowance
PGGM Scale Salary For End Of Year Bonus
PGGM Part Time Recurring Payments For End Of Year Bonus
PGGM Full Time Recurring Payments For End Of Year Bonus
Balances to keep track of the adjustments that the pensions or savings elements do to the tax and SI balances:
SI Income Non Tax Adjustment
SI Income Special Tax Adjustment
SI Income Standard Tax Adjustment
SI Gross Salary Non Tax Adjustment
SI Gross Salary Special Tax Adjustment
SI Gross Salary Standard Tax Adjustment
Special Tax Adjustment
Standard Tax Adjustment
ABP Employee Pension Contribution
ABP Employer Pension Contribution
ABP Pension Salary
When you create a pension type, Oracle Payroll creates primary balances for employee and employer contributions:
<Pension Type> EE Contribution
<Pension Type> ER Contribution
When you create a scheme, Oracle Payroll creates balance feeds from the generated elements to these balances.
Creating a pension scheme generates the following balances:
<Base Name> EE Contribution
<Base Name> ER Contribution
<Base Name> Additional Amount
<Base Name> Replacement Amount
<Base Name> Arrears
<Base Name> Not Taken
<Base Name> Pension Contribution
<Base Name> Prior Contribution
<Base Name> Pension Salary
Creating this balance is optional. Instead, the scheme can use the pension salary balance you specified for the pension type. The formula uses this balance for all calculations based on percentage of salary. By default, this balance is fed by all earnings. You can change the balance feeds, if required.
Creating a savings scheme generates the following balances:
<Base Name> EE Savings Contribution
<Base Name> ER Savings Contribution
<Base Name> Additional Amount
<Base Name> Replacement Amount
<Base Name> Arrears (for future use)
<Base Name> Not Taken (for future use)
The following secondary classifications control balance feeds for correct calculation of tax and SI.
In the Pre-Tax Deductions classification:
Standard Tax Deduction: Pre-tax Deductions
Special Tax Deduction: Pre-tax Deductions
In the Pre-SI Deductions classification:
SI Gross Salary Standard Tax Deduction: Pre-SI Deductions
SI Gross Salary Special Tax Deduction: Pre-SI Deductions
SI Gross Salary Non-taxable Deduction: Pre-SI Deductions
SI Income Standard Tax Deduction: Pre-SI Deductions
SI Income Special Tax Deduction: Pre-SI Deductions
SI Income Non-taxable Deduction: Pre-SI Deductions
The following secondary classifications control the balance feeds for the calculation of recurring and non recurring balances:
Non Recurring Bonus: Earnings
Recurring Bonus: Earnings
When you set up a pension scheme, you can specify whether you want to store arrears when employees have insufficient funds for the pensions contribution. Oracle Payroll does not take a partial deduction. Therefore, if there are insufficient funds to take the full contribution, this full amount is added to the arrears balance.
The Pensions Deduction element has an input value called Clear Arrears. You can use this to specify whether the payroll run should clear the arrears. If you set this input value to Y, the payroll run clears the arrears balance without affecting pay.
Oracle Payroll uses the Special Features element to manage arrears. This element - which is automatically generated when you set up the pension scheme - has the input values Not Taken, which holds any amount not taken for the deduction in the most recent payroll run, and Arrears Contribution, which feeds the arrears balance.
If you need to override the arrears balance, you enter the new arrears value in the Adjust Arrears input value of the Special Inputs element.
Follow these steps if you want to set up pension or savings schemes, enroll employees in the relevant schemes, and process contributions in the payroll run.
Enter your pension types. Choose the Pensions and Savings option in the Navigator then click on the Pension Types tab.
Enter your pension providers and assign pension types to your providers. Choose the Pensions and Savings option in the Navigator then click on the Pension Providers tab.
Important: Use the Pension pages - not the Organization window - to create pension providers, assign pension types to each provider, and assign providers and types to your HR organizations. The pages provide the required validation.
Do one of the following:
ABP and PGGM pensions: Specify the default pension types for your business group and other organizations within the default hierarchy. Use the Organization window.
Note: The pension types are cumulative. If you specify pension types at the business group, parent organization, and child organization levels, employees assigned to the child organization will be eligible for the pension types specified at all levels.
Other pension or savings schemes: Assign pension providers and types to your employers using the Pension pages.
Note: Pension types assigned at the highest level propagate to the child organizations unless overridden at the child level. If you enter any pension types at the child level, only those pension types are available for that particular organization.
All schemes: Generate the payroll objects required for your pension and savings schemes. Choose the Pensions and Savings option in the Navigator then click on the Schemes tab.
Link the generated elements.
ABP schemes: You must link the predefined ABP Pensions element.
PGGM schemes: You can specify whether the application should automatically create links for retro and deduction elements. This helps in reducing the additional overhead of creating links before running a retropay process for the scheme.
Life Savings Scheme: Link the predefined Employee Life Savings Contribution and Employer Life Savings Contribution elements to the relevant assignments.
Other schemes: You must link the Pension Deduction, Savings Deduction, Special Inputs, and - if the scheme has employer contributions - Employer Pension or Savings Contribution elements.
You can also link the other generated elements, if required, for costing purposes. The names of all generated elements begin with the base name you entered on the Schemes tab.
See: Defining Element Links, Oracle HRMS Compensation and Benefits Management Guide
Review the generated formula <BASE_NAME>_PENSION_DEDUCTION or <BASE_NAME>_SAVINGS_DEDUCTION or <BASE_NAME>_ABP_PENSION_DEDUCTION or <BASE_NAME>_PGGM_PENSION_DEDUCTION to ensure that it handles the processing you require. You can configure this formula and the generated formula result rules, if required.
Note: If you want the ABP formula to check whether an employee is receiving FLO Payment (which means they cannot contribute to an ABP pension), you must uncomment the code that checks this field in the formula.
For pensions, check the balance feeds to the balances that you are using to calculate the pension basis, if the scheme's contributions are a percentage of the pension basis:
If you chose to generate a new balance for the pension scheme, notice that all earnings feed this balance (<Base Name> Pension Salary), by default. You can change the balance feeds, or you can edit the formula to use another balance, if required.
If you are including last year's bonuses in the pension basis, make sure that you classify the appropriate earnings types with the secondary classifications Recurring Bonus: Earnings and Non Recurring Bonus: Earnings
For savings, ensure that the pay value of the Savings Deduction element feeds the Wage Savings Taxable Amount balance or the Premium Saving Taxable Amount balance, so that tax is calculated correctly.
For life savings scheme, ensure the employee and employer life savings elements feed the Employee Life Savings Contribution and Employer Life Savings Contribution balances. These balances enable you to report the savings amount on the wage tax report.
For savings schemes, define third party personal payment methods for your assignments.
Create an organizational payment method, of the direct deposit type, and enter a dummy account in the Bank Details window. See: Defining a Payment Method, Oracle HRMS Payroll Processing Management Guide
Select this method as a valid payment method for your payrolls. See: Defining a Payroll, Oracle HRMS Payroll Processing Management Guide
In the Personal Payment Method window, select this third party payment method for employees who enroll in the savings scheme. Enter the details of the bank account the employee is using for the savings. Do not enter Payee details. See: Entering Payment Methods for an Employee Assignment, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide
When you enroll the employee in the savings scheme, you select this payment method in the Payee field of the Entry Values window.
Select the appropriate EITs for your responsibilities, using the Information Type Security window:
| To Enable Users to Enter . . . | Select This EIT . . . |
|---|---|
| Override Average Pension Days (used in the Average Working Days and Average Days With Work Schedules conversion rules) | Dutch Average Pension Days EIT (NL_PAI) |
| Override pension salary and pension basis at the assignment level for ABP pensions | ABP Participation and Salary Information EIT (NL_ABP_PAR_INFO) |
| Other override information for ABP pensions at the assignment and pension type level | ABP Pensions Override Information EIT (NL_ABP_PI) |
| Which people receive FLO Payment, Disability Pay, or Payment of Resignation | Resignation Pay Details EIT (NL_RESIGNATION_PAY) |
| Holiday allowance and end of year bonus percentages for PGGM pensions
Note: You can override these percentages at the assignment level (for example, for ineligible employees) using the two input values in the PGGM Pensions General Info element. Enter zero for ineligible employees. |
PGGM General Info EIT (PQP_NL_PGGM_INFO) |
| Employee and total contribution percentages for PGGM pensions
Note: For PGGM pensions, you can specify the contribution percentages at either the organization or the element-entry level. You cannot specify them at the assignment level. |
PGGM Pension Types EIT (PQP_NL_PGGM_PT) |
See: Setting Up Extra Information Types Against a Responsibility, Oracle HRMS Configuring, Reporting, and System Administration Guide
If you are setting up ABP or ANW pensions in which the salary threshold or percentage contribution varies by employee age, set up the user-defined tables that hold the age-dependent values. See: Entering ABP Salary Thresholds and Premiums That Vary By Age.
For PGGM pensions, Oracle Payroll uses predefined salary-dependant and age-dependant thresholds in the pension-basis calculation.
If you are using element link criteria to establish eligibility for pension schemes, your setup is complete and you are ready to enroll employees using BEE or the Element Entries window. See: Managing Pensions and Savings Contributions
If you are using eligibility profiles to establish eligibility, you must set up a pension plan, and related items, following the usual procedures for Standard and Advanced Benefits, which are summarized in: Setting Up a Pension or Savings Plan in Standard or Advanced Benefits
For ABP pension schemes, check that you have performed all the setup required to run the notification report. See: Setting Up The ABP Notification Extract
Create a plan type.
See: Defining Plan Types, Oracle HRMS Compensation and Benefits Management Guide
Ensure you have Program/Plan years set up.
See: Defining a Program or Plan Year Period, Oracle HRMS Compensation and Benefits Management Guide
Create the participant eligibility profiles you require for your pension plans.
See: Defining an Eligibility Profile, Oracle HRMS Compensation and Benefits Management Guide
Advanced Benefits only: Check which life event reasons you will use to trigger enrollment in the pension plan.
See: Life Event Management, Oracle HRMS Compensation and Benefits Management Guide
Create the pension plan, selecting the plan type, plan periods, and eligibility profile you already created. If you use Advanced Benefits, select the life event reasons to trigger enrollment or de-enrollment.
See: Defining a Benefits Plan, Oracle HRMS Compensation and Benefits Management Guide
See: Defining Participant Eligibility Criteria for a Compensation Object, Oracle HRMS Compensation and Benefits Management Guide
See: Associating a Life Event Reason With a Compensation Object, Oracle HRMS Compensation and Benefits Management Guide
Define the plan enrollment requirements.
See: Defining an Enrollment Method for a Plan, Oracle HRMS Compensation and Benefits Management Guide
Create standard rates for your pension plans, selecting the <BASE NAME> Pension Deduction element or <BASE NAME> Savings Deduction element .
See: Defining Activity Rates for a Standard Contribution/Distribution, Oracle HRMS Compensation and Benefits Management Guide
Test your setup:
Enroll employees in the pension or savings scheme, using one of the following methods:
If you have set up a pension or savings plan, you enroll the employees in the plan using the Miscellaneous Plan window (for not-in-program plans) or Non-Flex Program window.
If you have associated life events with the plan, you can trigger an automatic enrollment opportunity by creating the life event (such as hiring the employee).
If you are not using a plan, you must enter the Pension Deduction element or the Savings Deduction element in the Element Entries window, or using BEE. For ABP pension schemes, you enter the ABP Pensions element.
If the scheme includes employer contributions, also enter the Employer Pension or Savings Contribution element.
Run a QuickPay for the employees and check the results.
For some pension types, the salary threshold or premium depends on the employee's age. When you define these pension types, you must select Yes in one or more of the following fields, as appropriate:
Age Dependant Employee Threshold
Age Dependant Employer Threshold
Age Dependant Employee Contribution
Age Dependant Employer Contribution
If you are setting up a pension type that has a salary threshold or premium that varies by age, you define the thresholds and premiums in user defined tables. Use the following predefined tables, where EE stands for Employee and ER for Employer:
PQP_NL_ABP_EE_ANNUAL_SALARY_THRESHOLD
PQP_NL_ABP_ER_ANNUAL_SALARY_THRESHOLD
PQP_NL_ABP_EE_CONTRIBUTION_PERCENT
PQP_NL_ABP_ER_CONTRIBUTION_PERCENT
The salary threshold tables are predefined with a column for the ANW pension type and each ABP pension type. Premiums depend on current age and the age at which the employee began making contributions, so the contribution percent tables are predefined with a column for each ABP pension type and start age combination (ages 16 to 59), such as FPU Total-25. In both cases, you define rows for the year of birth ranges, then enter values for age range and pension type combinations.
For example, you might define the Employee Contribution Percent table as follows:
| Year of Birth | FPU Base-16 | FPU Composition-16 | FPU Extra-16 |
| 1900 - 1953 | 6.5 | 6.5 | 6.5 |
| 1954 - 1963 | 5.5 | 5.5 | 5.5 |
| 1964 - 4712 | 4.5 | 4.5 | 4.5 |
To add rows to the age-dependent threshold or contribution tables
In the Table Structure window, query the appropriate table.
Click the Rows button.
Set your effective date to the day you want your rows to take effect.
Enter a sequence number, such as 10.
Enter a year of birth range, such as 1900 in the Lower Bound field and 1953 in the Upper Bound field.
Repeat the previous two steps for as many rows as required to define your year of birth ranges.
Save your work.
To add values to the age-dependent threshold or contribution tables
In the Table Values window, query the appropriate table.
In the Column region, click in the Name field. Use the Down arrow to display the pension type that has age dependent thresholds or premiums.
In the Values region, select the first year of birth range and enter the value of the threshold or premium for this range.
Repeat these steps for other ranges and pension types, as required.
Save your work.
You can enroll your employees in pension and savings schemes, and override the default values that apply to the pension type, if required.
Enroll your employees in pension and savings schemes. For ABP pensions, you enter the ABP Pensions element. For other schemes, you enter the elements generated for each scheme in which the employee enrolls. If the employer contributes to the scheme, you enter two elements.
If the employee's schemes use the Average Working Days or Average Days With Work Schedules conversion rules, you can override Average Pension Days for this assignment using the Dutch Average Pension Days EIT. If you don't enter an override, the number for Average Pension Days is taken from a predefined global value (for the Average Working Days conversion rule) or calculated from the employee's work pattern (for the Average Days with Work Schedules conversion rule).
Important: This override applies to all of the employee's schemes unless you entered a lower level override. For ABP schemes, you can enter an override for a specific pension type for the assignment using the ABP Pensions Override Information EIT. For other schemes, you can enter an override for a specific scheme in the Override Pension Days input value on the Pension Deduction and Employer Pension Contribution elements. The entry in the input value takes precedence.
For ABP pensions, check the pension types that are valid for this employee's organization. These appear in the Dutch ABP Pension Types EIT for the employee's organization or any parent organizations further up the default hierarchy. If you want to process any other pension types for this employee, use the ABP Pensions Override Information assignment EIT to enter the additional pension types.
You can override pension salary, annual limits, and contribution amounts for an employee assignment. For ABP pensions, use the ABP Participation and Salary Information assignment EIT to override pension salary and use the ABP Pensions Override Information EIT to override annual limits and contribution amounts for specific pension types. For other schemes, use the input values on the Pension or Savings Deduction element to override the contribution amount or annual limit.
For ABP pensions, see: Assignment Extra Information Types
For other schemes, see: Enrolling Employees in Pension Schemes or: Enrolling Employees in Savings Schemes
If the employee contributes to an ABP pension type with an age-dependent premium, record the age at which the employee began contributing to the pension in the Participation Start Age field of the ABP Participation and Salary Information assignment EIT.
If the employee receives FLO Payment, Disability Pay, or Payment of Resignation, record the fact using the Resignation Pay Details person EIT.
You enter the Special Inputs element if you want to enter a new arrearage amount or--for non-ABP schemes only--to make a one-time change to the employee contribution. See: Adjusting Pension or Savings Deductions
You enroll employees in pension schemes by entering the appropriate elements. If you set up a pension plan, you enroll the employee in the plan (using Standard or Advanced Benefits), and the application creates the element entry automatically.
Use the Element Entries window (or Batch Element Entry).
To enroll a person in an ABP pension scheme
Set your effective date to the day when the person's enrollment in the scheme should begin.
In the Element Name field, select ABP Pensions.
There are no input values for this element.
Save your work.
Note: If you want to override the default salary and pension information, enter the override values in the ABP Participation and Salary Information EIT (for pension salary and salary basis values) or the ABP Pensions Override Information EIT for values specific to the pension type.
To enroll a person in other pension schemes
Set your effective date to the day when the person's enrollment in the scheme should begin.
In the Element Name field, select the element for this pension scheme. Its name will take the form <base name> Pension Deduction.
Choose the Entry Values button to open the Entry Values window.
Do one of the following:
For a fixed premium amount scheme, check the values in the Fixed Premium Amount and Percentage fields. You can override the defaults. The Fixed Premium Amount is the annual total amount paid for this employee's pension scheme. The percentage is the proportion of this amount paid by the employee. If it is less than 100% the employer pays the remaining percentage.
Important: If you override the Fixed Premium Amount or contribution percentages for one assignment, you must make the same change for any other assignments of this employee that contribute to a scheme of the same pension type. This change throughout ensures the Fixed Premium Amount is split correctly between assignments.
For a percentage-based scheme, check the value in the Percentage field. You can override the default. This value is the percentage of the pension basis paid by the employee.
For a flat amount scheme, check the values in the Amount and Period fields. You can override the defaults. These values are the flat amount the employee pays and the period that this amount covers, such as month or year (used for prorating the amount to a pay period).
Optionally use the Prior Contribution and Year of Prior Contribution fields to carry forward any contributions the employee made to the pension scheme while working for another employer.
Enter Y or N in the Clear Arrears field. Y means the payroll run sets the arrears balance to zero. N means the arrears balance does not change.
Optionally use the Override Annual Limit field to enter the maximum employee contribution that can be deducted in a year.
Optionally enter a value in the Override Pension Days field if you want to override the pension days factor used to prorate the pension deduction amount to a particular pay period.
Save your work.
To enable employer contributions to a scheme
Set your effective date to the day when the person's enrollment in the scheme should begin.
In the Element Name field, select the employer contribution element for this pension scheme. Its name will take the form <base name> Employer Pension Contribution.
Do one of the following:
For a fixed premium amount pension scheme, save your work. The employer automatically contributes 100% minus the employee percentage of the fixed premium amount. You can skip the remaining steps.
For other schemes, choose the Entry Values button to open the Entry Values window, and proceed with the remaining steps
Do one of the following:
For a percentage-based scheme, check the value in the Percentage field. You can override the default. This value is the percentage of the pension basis paid by the employer.
For a flat amount scheme, check the values in the Amount and Period fields. You can override the defaults. These values are the flat amount the employer pays and the period that this amount covers, such as month or year (used for prorating the amount to a pay period).
Optionally enter a value in the Override Pension Days field if you want to overrides the pension days factor used to prorate the pension deduction amount to a particular pay period.
Save your work.
You enroll employees in savings schemes by entering the appropriate elements.
Use the Element Entries window (or Batch Element Entry).
To enroll a person in a savings scheme
Set your effective date to the day when the person's enrollment in the scheme should begin.
In the Element Name field, select the element for this savings scheme. Its name will take the form <base name> Savings Deduction.
Choose the Entry Values button to open the Entry Values window.
Do one of the following:
For a fixed premium amount scheme, check the values in the Fixed Premium Amount and Percentage fields. You can override the defaults. The employee pays the given percentage of the Fixed Premium Amount each year, and this value is prorated to the pay period.
For a percentage-based scheme, check the value in the Percentage field. You can override the default. This value is the percentage of the annual limit paid by the employee.
For a flat amount scheme, check the values in the Amount and Period fields. You can override the defaults. These values are the flat amount the employee pays and the period that this amount covers, such as month or year (used for prorating the amount to a pay period).
Optionally use the Override Annual Limit field to enter the maximum employee contribution that can be deducted in a year.
Optionally enter a value in the Override Pension Days field if you want to override the pension days factor used to prorate the deduction amount to a particular pay period.
Important: This field does not apply to savings schemes with the deduction method of Percentage of Annual Limit.
In the Payee Details field, select the name of the third party payment method set up for this payment.
Save your work.
To enable employer contributions to a scheme
Set your effective date to the day when the person's enrollment in the scheme should begin.
In the Element Name field, select the employer contribution element for this pension scheme. Its name will take the form <base name> Employer Savings Contribution.
Choose the Entry Values button to open the Entry Values window.
Do one of the following:
For a percentage-based scheme, check the value in the Percentage field. You can override the default. This value is the percentage of the annual limit or the fixed premium amount (depending on the deduction method) that the employer pays.
For a flat amount scheme, check the values in the Amount and Period fields. You can override the defaults. These values are the flat amount the employer pays and the period that this amount covers, such as month or year (used for prorating the amount to a pay period).
Optionally enter a value in the Override Pension Days field if you want to override the pension days factor used to prorate the pension deduction amount to a particular pay period.
Important: This field does not apply to savings schemes with the deduction method of Percentage of Annual Limit.
In the Payee Details field, select the name of the third party payment method set up for this payment.
Save your work.
Before a run, you can enter an amount to replace the run result of a pensions or savings contribution deduction, or an amount to add to, or subtract from, the run result. You can also change the arrears balance for a pensions deduction. For these changes, you use the Special Inputs element.
Important: For ABP pension schemes, you can change the arrears balance but you cannot adjust or replace the run result.
Use BEE or the Element Entries window.
To adjust a pension or savings deduction
In the Element Entries window, select the Special Inputs element, which has the name <base name of scheme> Special Inputs.
Choose the Entry Values button.
Enter an adjustment value in the Additional Amount field or a replacement value in the Replacement Amount field. An additional amount can be positive or negative.
If you want to override the arrears balance for a pensions deduction, make an entry in the Adjust Arrears input value.
Save your work.
Employees participating in the Life Savings Scheme (LSS) can withdraw the amount saved to compensate for unpaid leave, or when they retire. Additionally, employees withdrawing money from their LSS receive a discount, the Life Cycle Leave Discount (LCLD), which is paid as part of the employees Net Earnings.
To meet Dutch legislation, any unused LCLD is not carried forward to the next pay period. If an employee has multiple assignments, any unused LCLD is carried over to the secondary assignments in the same Payroll Object Group.
To Withdraw Savings
In the Element Entries window, select the Life Savings Scheme Withdrawal element.
Click Entry Values.
In the Withdrawal Amount field, enter the amount the employee wishes to withdraw.
According to Dutch legislation, the sum of the value entered in the Withdrawal Amount field and the wage amount cannot exceed the wage amount of the previous period.
In the Number of Years Saved field, enter the total number of years that the employee has participated in the Life Savings Scheme.
Optionally, to override the available LCLD amount, enter an amount in the Leave Discount field.
The Current and Previous Savings Adjustments fields displays the adjustments made to the savings balance by the current and previous employers.
The Previous Savings Adjustments field can go negative and is subtracted only if the withdrawal amount reduces the current employer savings balance to zero.
Save your work.
Stichting Pensioenfonds ABP (Pension Provider) requires that employers send monthly notification reports for any key data changes, including:
New Hire/Start of new Assignment
Change in ABP Registration Number
Change in Employee Number
Start of dismissal pay assignment
Change in employee personal details
Change in employee's address
Start and End of participation in ABP Pensions
Change in Pension Salary
Change in Pension Basis
Change in Pension or SI Contribution
Start and End of participation in certain SI types offered by ABP (WAO, WW, ZW and ZWF)
Termination or End of an Assignment
Oracle HRMS supplies a predefined system extract to report on these changes for all assignments. You can view the change events recorded for a person using the Change Event Log window. See: Viewing Extract Change Events for a Person, Oracle HRMS Configuring, Reporting, and System Administration Guide
To control which changes the application tracks for this report, you can enable or disable the appropriate lookup code for the lookup type BEN_EXT_CHG_EVT.
Before using this system extract, you must ensure you have set up employees' personal, pensions, and social insurance data on the system. See: Setting Up the ABP Notification Extract
Ensure you have set up your ABP pensions schemes. See: Setting Up Pension and Savings Schemes
Ensure you set up your Social Insurance (SI) providers and employer organizations.
See: Setting Up Tax, Social Insurance, and Private Health Insurance Organizations
Note: In the Dutch Organization EIT, make sure you select the WAO contribution insurance type that applies to your employees.
Use the Dutch ABP Provider organization EIT (PQP_ABP_PROVIDER) to enter the ABP Provider registration number. See: Entering Dutch ABP Provider Information
Enable the following lookups for the lookup type BEN_EXT_CHG_EVT so that the application tracks the changes to be reported in the notification:
APS - Add Period of Service
ASEA - Add Secondary Employee Assignment
COAEN - Change of ABP Employer Number
COAPPD - Change of ABP Pension Participation Date
COAPS - Change of ABP Pension Salary
COSIPD - Change of Social Insurance Participation Dates
CODB - Update Date Of Birth
COEN - Update Employee Number
COEC - Update Employment Category
COG - Update Gender
COLN - Update Last Name
COM - Update Marital Status
CONA - Update Pre Name Adjunct
COPR - Update Primary Address
COSS - Update Social Security/National Identifier
In the Extract Definition window, query the seeded extract definition (ABP Electronic Notification), enter a prefix in the New Extract Preface field, and choose the Copy Extract button. Use this copy to create your notifications.
Ensure that for each employee address you set up, you record the correct house number and postal code information. See: Entering Addresses
Enroll your employees in ABP pension schemes, overriding default information for individual employees, if necessary, using the ABP Pensions Override Information assignment EIT and the ABP Participation and Salary Information EIT. See: Managing Pensions and Savings Contributions
For each employee:
Use the Dutch Social Insurance Information assignment EIT to record participation in SI schemes.
Use the Dutch ABP Reporting Information assignment EIT to record the employee's level of participation in each ABP pension category.
For each employee, enter the following information, which appears in the report:
Select an employment type and subtype in the Employment Terms tabbed region on the Assignment window. See: Entering Additional Assignment Details
Enter the assignment budget value, for employees who work less than full time. See: Entering Assignment Budget Values, Oracle HRMS Enterprise and Workforce Management Guide
If an employee is receiving dismissal pay, ensure you select Dismissal Pay as the Assignment Category in the Assignment window.
Run the report using the Submit Requests window. See: Running the ABP Notification Extract
Note: Creation of the ABP Pension Scheme automatically generates all the elements and balances required for ABP Pensions retropay processing. It is the user's responsibility to make sure element links exist for the following elements:
<Base Name> Retro ABP Pension Deduction Current Year
<Base Name> Retro ABP Employer Pension Contribution Current Year
<Base Name> Retro ABP Pension Deduction Previous Year
<Base Name> Retro ABP Employer Pension Contribution Previous Year
Retro ABP Pensions Part Time Percentage
Retro ABP Pensions Premium Reduction Information
If you omit certain employees from a particular pay run, you can still extract information about those employees to send to ABP. The following steps enable you to extract the information for a specific set of employees without running the ABP notification extract for all employees again.
In the Find Extract window, query ABP Electronic Notification.
Click Copy Extract. Specify a suitable name for the prefix of the extract, for example New Hire.
Save the changes. Ensure this extract reflects any customization changes you might have performed for formulas.
Navigate to the Criteria Definition window. In the Find Profile window, query New Hire ABP Electronic Notification Main Criteria or the new extract name.
On the People tab, delete the rule-based criterion, New Hire_PQP_NL_ABP_USZO_CRITERIA_FP. This value may appear with a different name if you have not used New Hire for the extract.
Create a new rule criterion, Person Full Name, and save your changes. Then, choose the employees that need to be processed.
Process the ABP notification using the relevant dates. Ensure that you use the new extract, New Hire ABP Electronic Notification so that the application extracts data only for the people selected in step 16.
Note: If you need to reuse this extract for different employees, the only change you need to make is to add these employees and remove those that are not necessary.
Run this predefined system extract to generate the monthly notification report for ABP. Before doing so, ensure you have recorded all the necessary data for your employees. See: Setting Up the ABP Notification Extract
Use the Submit Request window.
To run the ABP notification extract
Select Pension Extracts (Electronic Notification) in the Name field.
Click in the Parameters field to open the Parameters window.
Select ABP Electronic Notification in the Extract Name field.
Select the employer in the Organization Name field. The process extracts data for employees assigned to this organization and its child organizations in the primary organization hierarchy.
Optionally select a payroll to restrict the report to employees assigned to this payroll.
Enter a Date From and Date To. These dates determine which changes are included in the extract.
Choose OK, then Submit.
View the output in the Extract Results window.
Set up PGGM pension types using the Pensions and Savings pages.
Enable the following lookups for the lookup type BEN_EXT_CHG_EVT so that the application tracks the changes you need to report in the notification:
| Lookup Code | Meaning |
|---|---|
| AAT | Add Actual Termination Date |
| AEPTU | Add Employee Person Type Usage |
| APS | Add Period of Service |
| ASEA | Add Secondary Employee Assignment |
| APA | Add Primary Address |
| COPC | Update Primary County |
| CORS | Update Primary Street |
| COTR | Update Termination Reason |
| COCN | Update Primary Country |
| COPR | Update Primary Address |
| CORC | Update Primary City |
| DAT | Delete Actual Termination Date |
| DPA | Delete Primary Address |
Ensure you record PGGM information, such as PGGM Employer Number and CAO Code at the organization level.
Define default PGGM pension types at the organization level.
Ensure you record the employee addresses in the relevant formats, such as Netherlands (NL) for Dutch employees and Netherlands International (NL_GLB) for foreign employees. If you use Netherlands International format, ensure you map Street, House Number, and Addition to House Number of the address to address_line1, address_line2, and address_line3 of the format respectively.
Create element links for the PGGM pension elements.
See: Defining Element Links, Oracle HRMS Compensation and Benefits Management Guide
Enroll your employees in PGGM pension schemes using element entries for PGGM elements.
Ensure the Earnings element feeds the relevant PGGM balances, such as PGGM Scale Salary, PGGM Scale Salary For Holiday Allowance, and PGGM Scale Salary For End Of Year Bonus.
Use the Submit Request window to run the PGGM Notification extract.
To run the extract
In the Name field, select PGGM Pension Extracts (Electronic Notification). The Parameters window opens.
Select PGGM Notification Request as the Extract Name.
Select the employer. The process extracts data for employees of the organization and its child organizations in the primary organization hierarchy.
Optionally, select a payroll to restrict the report to employees you assigned to the payroll.
Specify the period for which you want to extract the data.
Select the Extract Type, such as Monthly or Annual.
Click OK, and then submit the process.
View the output in the Extract Results window.