Managing BVG Deductions

This chapter provides an overview of BVG calculations and discusses how to:

• Manage BVG data.

• Exchange pension data with PEKA.

Understanding BVG Calculations

Global Payroll for Switzerland provides you with two ways of calculating BVG deductions, externally and internally. Both methods require you to maintain PK data within the payroll system.

External Calculations

The Global Payroll for Switzerland BVG calculation feature enables you to interface solely with the PEKA pension software from AG Büro 70. The process described below is designed for interacting with PEKA. To calculate BVG deductions externally, you must complete these steps:

1. Indicate that the BVG deductions will be calculated externally by selecting Eligible in the PK Status field on both the PK Data page and the Pension Fund Data CHE page.

2. Run a payroll.

   Note. The system will only calculate BVG deductions for employees included in this pay run.

3. Run the Pension Interface Download process from the Pension Interface Download CHE page.

   This process will extract the relevant personal, job, and dependent data from the global payroll system using the PK data writable array (GPCH_RP_PK11). An Application Engine then packages this information into an ASCII file and populates the download staging table (GPCH_RP_PK12).

4. View the outgoing data on the Outbound Pension Data CHE page.

5. Send the ASCII file to PEKA, the solution from AG Bϋro 70.

6. Retrieve the calculated contributions from PEKA.

7. Run the Pension Interface Upload process from the Pension Interface Upload CHE page.

   This process will extract the data from the ASCII file to a BVG process table.

8. View the incoming data on the Inbound Pension Data CHE page.

9. Run the payroll. The payroll process now includes the BVG deductions.

Internal Calculations

To calculate BVG deductions internally, you must complete these steps:

1. Indicate that the BVG deductions will be calculated internally by selecting Calculate or Eligible in the PK Status field on both the PK Data page and the Pension Fund Data CHE page.

2. Set up your specific rules, valid rates and provider in brackets CH_PI_BR001 and CH_PI_BR002.

3. Run a payroll.

   Included in the delivered payroll process is section CH_PI_S1000, which will calculate the BVG deductions.

   The payroll process populates a writable array containing all the BVG data to be downloaded. This writable array contains a row for payees with information to be sent to the provider.

   Note. The system will only calculated BVG deductions for employees included in this pay run.

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Switzerland. Instructions for running the query are provided in the PeopleSoft Global Payroll PeopleBook.

See Also

Understanding How to View Delivered Elements

Managing PK Data

To manage PK data, use the BVG Limits CHE (GPCH_PK_LIMIT) component.

This section provides an overview of PK data and discusses how to:

• Set up PK insurance plans.

• Enter PK age limits.

• Maintain employee pension fund data.

• Define BVG limits.

PK Data Management

Whether interfacing with PEKA or calculating BVG deductions internally, you must maintain the PK within your payroll system. You'll need to check the information set up in the system to determine which employees are eligible for BVG deductions, and if those deductions will be calculated outside of the global payroll system.

To do this you will:

1. Use the Provider CHE page to set up PK insurance plans, and PK insurance status.

2. Use the PK Data page to make the company eligible for external BVG calculations or internal calculations, select the company's PK providers, and establish age limits and download file options.

3. Use the Pension Fund Data CHE page to make an employee eligible for external BVG calculations or internal calculations, and to select the employee's PK provider, insurance plan, and insurance status.

   Note. To be eligible for external BVG calculations, the PK status for the company and the employee must be set to eligible.

If you will be calculating BVG deductions internally, you must also:

• Set up deduction limits on the BVG Limits CHE page.

• Maintain the PK provider contribution amounts in bracket CH_PI_BR001 using the Bracket Data page.

If you will be calculating BVG deductions externally, you must also map the pension provider and Global Payroll elements using the Convert PK code to PS code bracket (CH_PK_BR005).

Pages Used to Manage PK Data

Setting Up PK Insurance Plans

Access the Providers page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Providers CHE, Providers).

Sign File	If the SuperUser parameter is set to Yes in the online properties, the system enables this check box. Deselect this check box to create an unsigned file, although the standard setup requires a signature (electronic signature by certificate).
Encrypt File	Not currently supported.
Compress File	Not currently supported.
Add Addressee and Broker	Select the Add Addressee check box and then select a broker if a third party is going to supply insurance for the provider.
Transmission Mode	Select either EIV or PIV as the transmission mode.
Use Distributor	Select this check box if you are using the distributor. If you select this check box, you cannot enter any information in the fields below it. If you are not using a distributor, fill in all the fields that appear in the group box.
PK Insurance Status and Description	Enter a 1 digit number or character to represent the status of the PK insurance plan. Then enter a description in the Description field.
PK Insurance Plan and Description	Enter a 1 or 2 digit number or character to represent the status of the PK insurance plan. Then enter a description in the Description field.

Entering PK Age Limits

Access the PK Data page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Company SI Contributions CHE, PK Data).

The Lower Age, Upper Age for Man, and Upper Age for Woman fields are required for both internal and external BVG calculations.

PK Insurance ID from EMPLID	Select this option to populate the PK Insurance ID field on the Pension Fund Data CHE page with the employee's Person ID.
Retro	Select this option to apply changes retroactively. If you select this option, the system will review data from previous segments. If you do not select this option, changes, like a salary change, are only applied to the current month. If you select this option, the system will download previous salary changes using the effective date of the salary change. If you do not select this option, the system would report the salary change as of the month of the PK download.
Full Delta	Select this option to extract rows to the download file for all employees. If this option is not selected, the system includes only the delta rows in the downloaded file.

Maintaining Employee Pension Fund Data

Access the Pension Fund Data CHE page (Global Payroll & Absence Mgmt, Payee Data, Pension Information, Pension Fund Data CHE, Pension Fund Data CHE).

PK Insurance ID	Enter an insurance ID or accept the default if you selected PK Insurance ID from EMPLID on the PK Data page.
PK Alternate ID	Enter a numeric ID to use when interfacing with PEKA. The system will populate this field with the Person ID if that field is numeric and less than ten digits.
PK Salary	Enter to override the yearly salary amount used to calculate the BVG contribution.

Defining BVG Limits

Access the BVG Limits CHE page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, BVG Limits CHE, BVG Limits CHE).

PK Offset Periods	The number of months of employment required for salaried employees to enroll in PK.
PK Hourly Offset Weeks	The number of weeks of employment required for hourly employees to enroll in PK.

Exchanging Pension Data with PEKA

This section discusses how to:

• Download BVG Data.

• Upload BVG Data.

Pages Used to Exchange Pension Data with PEKA

Downloading BVG Data

Access the Pension Interface Download CHE page (Global Payroll & Absence Mgmt, Pension, Pension Interface Download CHE, Pension Interface Download CHE).

Calendar Group ID	Enter the calendar group ID. If the download process has previously been run for this calendar group, the history appears in the BVG Download Process History group box.
Message	Displays the status for the selected Calendar Group ID.

Processing Phases and Options

Uploading BVG Data

Access the Pension Interface Upload CHE page (Global Payroll & Absence Mgmt, Pension, Pension Interface Upload CHE, Pension Interface Upload CHE).

Select a pay entity, pay end date, provider code, and run type. Enter a file name and the directory where you want the system to upload the file, and then click Run.