PeopleSoft Global Payroll for Germany 9.1 PeopleBook

Managing BVV Funds

This chapter provides overviews of the Pension Insurance Association of the German Banks and Banking Industry (BVV) and the contribution payment process and discusses how to set up BVV provider types.

Understanding BVV Funds

This section discusses:

BVV Description
Registration
Tax regulations
Accumulators
Pay elements
Delivered elements

BVV Description

The (BVV) is an intercompany pension fund as defined in § 1 Section 3 of the German Company Pension Plan Act. This type of insurance is not direct insurance as defined in § 1 Section 2 of the Company Pension Plan Act; rather, it can be taken out only within the framework of mandatory enrollment based on employment in a member company. If an employee leaves a member company, coverage can continue on a voluntary basis. In addition, you can tax employer contributions into the pension fund as a lump sum.

In PeopleSoft Global Payroll for Germany, the contribution statement is an electronic data interchange notification, which includes personal and other data on contributions for an insured person according to contribution class. For reasons of immediacy and completeness, you must report transaction records even if they do not involve the payment of contributions. You report back payments and retro payments separately for an insured person according to the months in which the payments take effect. In addition, you can process employee contributions to other types of insurance, such as supplemental insurance policies, voluntary insurance policies, and voluntary differential payments toward existing basic insurance policies.

Registration

Register all employees with mandatory insurance coverage, including self-employed field workers who work exclusively for a member company. In such cases, these workers are considered statutory employees. When you register an employee for the first time, enter 00000000 as the BVV member number and then specify the actual hire date for employment with the company. Every insured person receives an eight-digit BVV membership number. PeopleCode verifies this eight-digit check number.

See Also

Entering BVV Employee Data

Tax Regulations

You must add employer contributions to an employee's taxable earnings and have the employee pay the resulting taxes unless you pay income tax as a flat amount. The flat rate is 20 percent of the employer contributions, including church tax. If the employee pays a flat rate tax, the employer contributions are subject to social insurance.

If the employee changes from a member company to another company that is not a member and continues insurance on a voluntary basis, the new employer can participate in payment of the insurance contributions. However, a flat rate is applicable in this case only if the employer contributions are based on mandatory requirements.

Accumulators

To create BVV contribution statements, you need to set up two specific accumulators. The accumulators are PeopleSoft-delivered, but you might want to add your own salaries. This table lists the accumulators required for BVV gross earnings and provides examples of the elements that they contain:

Accumulators	Description	Example Elements
DE_BV_KBVV00	Earnings relevant to regular BVV gross.	DE_ER_M10000 Regular salary. DE_ER_M10001 Salary. DE_ER_M10002 Base pay.
DE_BV_KBVV05	Earnings relevant to BVV one-time pay, gross.	DE_ER_M14000 Vacation pay. DE_ER_M14001 Profit-sharing bonuses.

Accumulators

Description

Example Elements

DE_BV_KBVV00

Earnings relevant to regular BVV gross.

DE_ER_M10000 Regular salary.

DE_ER_M10001 Salary.

DE_ER_M10002 Base pay.

DE_BV_KBVV05

Earnings relevant to BVV one-time pay, gross.

DE_ER_M14000 Vacation pay.

DE_ER_M14001 Profit-sharing bonuses.

See Also

Setting Up Accumulators

Pay Elements

This table lists the pay elements related to BVV. This PeopleSoft application automatically generates these pay elements for each BVV employee:

Pay Element	Type	Description
DE_DD_BVV 00	Deduction	Total BVV Contribution.
DE_DD_BVV 10	Deduction	BVV Employee Contribution.
DE_DD_BVV 20	Deduction	BVV Employer Contribution.
DE_ER_BVV 23	Earning	BVV Lump-Sum Tax EE.
DE_ER_BVV 24	Earning	BVV Lump-Sum Tax ER.
DE_ER_BVV 25	Earning	BVV Tax EE (qualified EE discount).
DE_ER_BVV 26	Earning	BVV Tax ER (qualified EE discount, gross-up).
DE_DD_BVV 30	Deduction	BVV Voluntary.
DE_DD_BVV 40	Deduction	BVV Additional Risk Insurance.
DE_DD_BVV 50	Deduction	BVV General Supplemental Insurance.
DE_DD_BVV 60	Deduction	BVV Differential Amount.
DE_DD_BVV 70	Deduction	BVV Contr Military / Civilian Service.
DE_DD_BVV80	Deduction	Supplemental pension insurance.
DE_DD_BVV90	Deduction	Supplemental risk insurance.
DE_DD_BVV100	Deduction	Supplemental risk insurance.
DE_DD_BVV110	Deduction	Supplemental widow pension.
DE_DD_BVV120	Deduction	Widow pension/decrease.
DE_DD_BVV130	Deduction	Supplemental orphan pension.
DE_DD_BVV140	Deduction	Supplemental insurance-deathfund.
DE_DD_BVV150	Deduction	Voluntary/supplemental pension.
DE_DD_NBV00	Deduction	Total contribution DN/RN.
DE_DD_NBV10	Deduction	EE contribution DN/RN.
DE_DD_NBV20	Deduction	ER contribution DN/RN.
DE_DD_NBV30	Deduction	Tariff N voluntary tariff.
DE_DD_NBV40	Deduction	Tariff N supplemental risk insurance.
DE_DD_NBV50	Deduction	Tariff N general risk insurance.
DE_DD_NBV60	Deduction	Tariff N difference amount.
DE_DD_NBV80	Deduction	Tariff N supplemental pension insurance.
DE_DD_NBV90	Deduction	Tariff N supplemental risk insurance.
DE_DD_NBV100	Deduction	Tariff N supplemental risk insurance.
DE_DD_NBV110	Deduction	Tariff N supplemental widow pension.
DE_DD_NBV120	Deduction	Tariff N widow pension/decrease.
DE_DD_NBV130	Deduction	Tariff N supplemental orphan pension.
DE_DD_NBV140	Deduction	Tariff N supplemental insurance death fund.
DE_DD_NBV150	Deduction	Tariff N voluntary/supplemental pension.
DE_DD_BVV22	Deduction	ER contribution BVV taxable part.
DE_ER_BVVB26	Earning	Grossed up portion of the BVV contribution.

Delivered Elements

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

Understanding the Contribution Payment Process

This section discusses:

Contribution payments.
Contribution classes.
Interruptions of employment and withdrawals.
Contribution determination.

Contribution Payments

You must make contributions to the BVV by the tenth day of every month. If you cannot make a contribution statement by this time, you can pay the contribution in the form of a partial payment that corresponds to the amount of the anticipated contribution.

For other benefits, such as maternity benefits, the contributions must be set up in the corresponding contribution class. Employers are not obligated to pay contributions for inactive or suspended jobs, such as during maternity leave and extended maternity leave. No contribution is withheld when an employee dies or reaches retirement age.

Contribution Classes

Employees with mandatory insurance coverage are divided into contribution classes according to their monthly earnings. This classification process includes special payments, such as commissions, travel expenses, and profit-sharing bonuses. Because profit-sharing bonuses, awards, and irregular commissions can be totaled only at the end of the year, you must determine the sum of these payments by December at the latest. One-twelfth of the sum that must be included when figuring an employee's income limit can be calculated in December and added to the payments to be made on the first of the next year. This calculation is then included in the contribution statement. One-time payments, such as those for marriage, birth, and overtime, are not included in the contribution calculations.

Note. PeopleSoft Global Payroll for Germany assigns employees with mandatory insurance coverage who work only part of the month to the contribution class that corresponds to the earnings paid for the respective full-time working hours.

Interruptions of Employment and Withdrawals

PeopleSoft Global Payroll for Germany treats an interruption as a suspension of contribution payments rather than as a withdrawal. Enter the reason for an employment interruption as one of the process types beginning with 0 on the BVV Employee Data page. The second digit corresponds to the reason for the interruption.

Note. If you select process types 01 through 08 (interruption) on the BVV Employee Data page, PeopleSoft Global Payroll determines both the contribution share and contribution class. If no BVV gross is available, the system creates a reporting record without a contribution, indicating a contribution class of 00 and the respective process type.

Classes 10 through 19 are for withdrawals. Use withdrawal and registration notifications to report internal company transfers that result in changing the BVV company. When an employee's employment or affiliation with the company is terminated, specify the termination date, the reason for termination, and the employee's most recent valid address.

Enter information about an employee's employment interruption or withdrawal on the BVV Employee Data page.

Use the following process types to indicate the reason for the interruption or withdrawal:

Type	Reason
01	Maternity leave.
02	Rehire commitment.
03	Temporary military service.
04	Unpaid leave.
05	End of supplemental sick pay.
07	Change to part-time.
08	Accepted pre-seniority.
10	Previously class 00 and not termination reasons 11-18.
11	Death.
12	Retirement disability.
13	Old age pension.
14	End of company seniority.
15	transfer to group.
16	Insurance suspended from the beginning.
17	Change to part-time (= withdrawal).
18	Termination (resignation).

See Also

Entering BVV Employee Data

Understanding How to View Delivered Elements

Contribution Determination

In PeopleSoft Global Payroll, the section DE_BV_1000 of the process list DE_AL_DEU1 process calculates the BVV contribution. Define all earnings that are relevant to the regular BVV gross in the accumulator DE_BV_BVV00 and all the one-time payments relevant to the next calendar year in the accumulator DE_BV_BVV05_YTD.

Entering BVV Employee Data

Setting Up BVV Provider Types

Use the BVV Provider Fund Types DEU (GPDE_BV_PRVDR) component to set up BVV provider types.

This section discusses how to:

Set up BVV provider fund types for your organization.
Define a BVV reporting record.
Define BVV bank transfer information.
Display BVV contribution amounts for contribution classes.
Enter BVV employee data.
Enter additional BVV employee data.

Set up a BVV provider type for your organization and then define a BVV reporting record using the BVV provider type component. The system supports relief and pension provider types. The provider type definition contains general information such as the address, sorting and banking data.

Pages Used to Set Up a BVV Provider Type

Page Name	Definition Name	Navigation	Usage
BVV Provider Fund Types DEU - Provider	GPDE_BV_PRVDR1	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, BVV Provider Fund Types DEU, Provider	Set up a BVV provider type for your organization.
BVV Provider Fund Types DEU - Reporting	GPDE_BV_PRVDR2	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, BVV Provider Fund Types DEU, Reporting	Define a BVV reporting record. The BVV defines the sorting fields on this page and provides you with the information to enter here. Use these to sort the data files and reports every time you send information to the BVV company.
BVV Provider Fund Types DEU - Bank Transfer	GPDE_BV_PRVDR3	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, BVV Provider Fund Types DEU, Bank Transfer	Enter the bank account information for the BVV fund.
BVV Contribution Classes DEU	GPDE_BV_RATE	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, BVV Contribution Classes, BVV Contribution Classes DEU	Display BVV contribution amounts for a specific contribution class. The table displays a validity record per contribution class (00-36). This table is delivered with data valid as of October 2000. You must enter any changes delivered by BVV.
BVV Provider Data	GPDE_AL_PE_BV	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Pay Entities DEU, BVV Provider Data	Enter BVV provider data, such as provider number and fund type.
BVV Limits	GPDE_BV_LIMIT	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, BVV Limits DEU, BVV Limits	Define BVV contribution limits.
BVV Transfer Disk	GPDE_RC_BV01	Global Payroll & Absence Mgmt, Pension, BVV Transfer Disk DEU, BVV Transfer Disk	Create a BVV transfer disk.
Maintain BVV Data - General	GPDE_BV_EE	Global Payroll & Absence Mgmt, Payee Data, Pension Information, Maintain BVV Data DEU, General	Enter BVV employee data. Specify each employee with mandatory insurance coverage who participates in BVV reporting.
Maintain BVV Data - Detail	GPDE_BV_EE_DTL	Global Payroll & Absence Mgmt, Payee Data, Pension Information, Maintain BVV Data DEU, Detail	Enter additional BVV employee data.

Setting Up BVV Provider Fund Types for Your Organization

Access the BVV Provider Fund Types DEU - Provider page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, BVV Provider Fund Types DEU, Provider).

Fund Type

This value can be either Pension or Support.

Defining a BVV Reporting Record

Access the BVV Provider Fund Types DEU - Reporting page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, BVV Provider Fund Types DEU, Reporting).

Enter a default reporting setup. The data can be overridden individually on the pay entity level.

Sort Key	Enter the BVV sort key provided by BVV.
Sort Key Length	Enter the BVV sort key character length.
Insurance Sort Key	Enter the insurance sort key provided by BVV.
Sort Key Z1-Z4	Enter the additional sort keys provided by BVV.

Defining BVV Bank Transfer Information

Access the BVV Provider Fund Types DEU - Bank Transfer page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, BVV Provider Fund Types DEU, Bank Transfer).

Country Code

Select the country for the provider's bank account.

International ACH Bank Account (international automatic clearing house bank)

Select to indicate that the bank is located outside the territorial jurisdiction of the United States.

Note. This field appears only if you have PeopleSoft Payroll for North America or PeopleSoft Global Payroll for United States installed.

Already have an IBAN Number

Select to indicate that the provider has an IBAN. When you select this check box, the Bank ID, Bank Branch ID, and Account Number fields become display-only and the IBAN field and Validate button become available.

If you deselect this check box for a provider who already has an IBAN entered and validated in the IBAN field, the system alerts you that this action will result in clearing the IBAN and bank account detail fields. You can click OK to continue, or Cancel to leave the check box selected.

Note. This check box appears on this page only when the IBAN Enabled check box is selected and the IBAN Required check box is deselected on the IBAN Country Setup page.

IBAN (International Bank Account Number)

Enter the IBAN for the provider. This field is editable only if you select the Already have an IBAN Number check box or if the IBAN Required check box is selected on the IBAN Country Setup page.

Validate

Click to validate the number entered in the IBAN field. The validation process alerts you if there is an error in the entered IBAN. In addition, the validation process populates the Bank ID, Bank Branch ID, and Account Number fields based on the entered IBAN.

This button is available only if you select the Already have an IBAN Number check box or if the IBAN Required check box is selected on the IBAN Country Setup page.

Bank ID and Account Number

When the Already have an IBAN Number check box is selected or if the IBAN Required check box is selected on the IBAN Country Setup page, these fields are not editable. The system populates them based on the entered IBAN when you click the Validate button.

For accounts without an IBAN, manually enter values in the Bank ID and Account Number fields.

Bank Branch ID

Enter the bank branch ID for the provider.

Account Name

Enter the account name for the provider.

Currency Code

Select the code of the currency in which the account is maintained. The code you enter in this field is for informational purposes only and is not used by the banking process.

Displaying BVV Contribution Amounts for Contribution Classes

Access the BVV Contribution Classes DEU page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Pensions, BVV Contribution Classes, BVV Contribution Classes DEU).

BVV Class Limit Amount

Enter the upper limit of the monthly earnings of this contribution class.

BVV Total Contribution

Enter the sum of the BVV employer contribution and BVV employee contribution.

BVV Employer Contribution

Enter the amount that the employer pays toward the BVV pension fund.

BVV Employee Contribution

Enter the amount that the employee pays toward the BVV pension fund.

See Also

Contribution Classes

Entering BVV Employee Data

Access the Maintain BVV Data - General page (Global Payroll & Absence Mgmt, Payee Data, Pension Information, Maintain BVV Data DEU, General).

Membership Number

Enter the employee's employee ID as reported by the BVV. The eighth digit of the employee ID is a check digit.

Note. Enter 00000000 when you register an employee for the first time, and replace this number after the BVV provides an employee ID number.

Provider Number

The system assigns the provider number, provider type, and default definition at the pay entity level. The pay entity membership numbers are stored on the EE level. Thus, EE, provider number, and pay entity.

Hire Date

Enter the employee's hire date.

Seniority Date

Enter the date when BVV membership through your company began. You can enter a date other than the actual BVV hire date in the case of an intercompany job transfer.

Tariff

Select Base Pension/Old Tariff - Pension Fund (DA), Base Pension/Old Tariff - Relief Fund (RA), Base Pension/New Tariff - Pension Fund (DN), or Base Pension/New Tariff - Relief Fund (RN). The value you enter here controls the presence of the Empl Percent Tariff N field on this page and the Civil Service and Empl Cntb Taxable Supported field on the Maintain BVV Data - Detail page.

Process Type

In the case of a job interruption or withdrawal, select the related BVV process type.

Note. In the case of a termination (process type 10-19), do not enter the last day worked as the effective date but rather the first day after termination. For example, if an employee leaves the company at the end of the month, you should enter the first day of the next month as the effective date.

Employer Pays Contribution

Select this check box if the employer pays all BVV insurance contributions. No employee contributions (TBVV10) are paid while this check box is selected.

Employer Pays Taxes

Select this check box to extrapolate if the lump-sum limit is exceeded. This selection is only necessary if you—not the employee—are paying the tax.

Note. If you select this check box and the lump-sum limit, which is currently EUR 145206 as of September 1998, is excluded, then PeopleSoft Global Payroll calculates the contribution based on the excess amount.

Unlimited Tax Contribution

Select this check box if the lump sum ceiling limit varies for group insurance policies. You must monitor the ceiling limit. The complete BVV employer contribution (TBVV20) is taxed at a flat rate.

Warning! You must verify the limit of the possible lump sum ceiling yourself.

Contribution Without Bonus

Select this check box for employees who are in early retirement. You do not include bonuses when you calculate contributions for these employees.

Note. If you select this check box, the element TBVV2T (BVV 1/12 one-time payment in previous year) is not included in the calculation. This check box applies to employees in early retirement, for example.

Entering Additional BVV Employee Data

Access the Maintain BVV Data - Detail page (Global Payroll & Absence Mgmt, Payee Data, Pension Information, Maintain BVV Data DEU, Detail).

Civil Service (BVV contribution for civil service)

Enter the contribution that the employee pays during military or civil service, if any. During an employee's military or civil service, you must deduct contributions as if the employee is still working for the company.

Note. If the Class and Contribution fields contain values, then the contribution is paid during military/civilian service.

Empl Cntb Taxable Supported (employee contribution taxable supported)

Enter the contribution for additional insurance.

Supplementary Insurance

Select the type of supplementary insurance that the employee may have.

Amount

Enter the amount the employee pays for the insurance.

Country Code	Select the country for the provider's bank account.
International ACH Bank Account (international automatic clearing house bank)	Select to indicate that the bank is located outside the territorial jurisdiction of the United States. Note. This field appears only if you have PeopleSoft Payroll for North America or PeopleSoft Global Payroll for United States installed.
Already have an IBAN Number	Select to indicate that the provider has an IBAN. When you select this check box, the Bank ID, Bank Branch ID, and Account Number fields become display-only and the IBAN field and Validate button become available. If you deselect this check box for a provider who already has an IBAN entered and validated in the IBAN field, the system alerts you that this action will result in clearing the IBAN and bank account detail fields. You can click OK to continue, or Cancel to leave the check box selected. Note. This check box appears on this page only when the IBAN Enabled check box is selected and the IBAN Required check box is deselected on the IBAN Country Setup page.
IBAN (International Bank Account Number)	Enter the IBAN for the provider. This field is editable only if you select the Already have an IBAN Number check box or if the IBAN Required check box is selected on the IBAN Country Setup page.
Validate	Click to validate the number entered in the IBAN field. The validation process alerts you if there is an error in the entered IBAN. In addition, the validation process populates the Bank ID, Bank Branch ID, and Account Number fields based on the entered IBAN. This button is available only if you select the Already have an IBAN Number check box or if the IBAN Required check box is selected on the IBAN Country Setup page.
Bank ID and Account Number	When the Already have an IBAN Number check box is selected or if the IBAN Required check box is selected on the IBAN Country Setup page, these fields are not editable. The system populates them based on the entered IBAN when you click the Validate button. For accounts without an IBAN, manually enter values in the Bank ID and Account Number fields.
Bank Branch ID	Enter the bank branch ID for the provider.
Account Name	Enter the account name for the provider.
Currency Code	Select the code of the currency in which the account is maintained. The code you enter in this field is for informational purposes only and is not used by the banking process.

BVV Class Limit Amount	Enter the upper limit of the monthly earnings of this contribution class.
BVV Total Contribution	Enter the sum of the BVV employer contribution and BVV employee contribution.
BVV Employer Contribution	Enter the amount that the employer pays toward the BVV pension fund.
BVV Employee Contribution	Enter the amount that the employee pays toward the BVV pension fund.

Membership Number	Enter the employee's employee ID as reported by the BVV. The eighth digit of the employee ID is a check digit. Note. Enter 00000000 when you register an employee for the first time, and replace this number after the BVV provides an employee ID number.
Provider Number	The system assigns the provider number, provider type, and default definition at the pay entity level. The pay entity membership numbers are stored on the EE level. Thus, EE, provider number, and pay entity.
Hire Date	Enter the employee's hire date.
Seniority Date	Enter the date when BVV membership through your company began. You can enter a date other than the actual BVV hire date in the case of an intercompany job transfer.
Tariff	Select Base Pension/Old Tariff - Pension Fund (DA), Base Pension/Old Tariff - Relief Fund (RA), Base Pension/New Tariff - Pension Fund (DN), or Base Pension/New Tariff - Relief Fund (RN). The value you enter here controls the presence of the Empl Percent Tariff N field on this page and the Civil Service and Empl Cntb Taxable Supported field on the Maintain BVV Data - Detail page.
Process Type	In the case of a job interruption or withdrawal, select the related BVV process type. Note. In the case of a termination (process type 10-19), do not enter the last day worked as the effective date but rather the first day after termination. For example, if an employee leaves the company at the end of the month, you should enter the first day of the next month as the effective date.
Employer Pays Contribution	Select this check box if the employer pays all BVV insurance contributions. No employee contributions (TBVV10) are paid while this check box is selected.
Employer Pays Taxes	Select this check box to extrapolate if the lump-sum limit is exceeded. This selection is only necessary if you—not the employee—are paying the tax. Note. If you select this check box and the lump-sum limit, which is currently EUR 145206 as of September 1998, is excluded, then PeopleSoft Global Payroll calculates the contribution based on the excess amount.
Unlimited Tax Contribution	Select this check box if the lump sum ceiling limit varies for group insurance policies. You must monitor the ceiling limit. The complete BVV employer contribution (TBVV20) is taxed at a flat rate. Warning! You must verify the limit of the possible lump sum ceiling yourself.
Contribution Without Bonus	Select this check box for employees who are in early retirement. You do not include bonuses when you calculate contributions for these employees. Note. If you select this check box, the element TBVV2T (BVV 1/12 one-time payment in previous year) is not included in the calculation. This check box applies to employees in early retirement, for example.

Civil Service (BVV contribution for civil service)	Enter the contribution that the employee pays during military or civil service, if any. During an employee's military or civil service, you must deduct contributions as if the employee is still working for the company. Note. If the Class and Contribution fields contain values, then the contribution is paid during military/civilian service.
Empl Cntb Taxable Supported (employee contribution taxable supported)	Enter the contribution for additional insurance.
Supplementary Insurance	Select the type of supplementary insurance that the employee may have.
Amount	Enter the amount the employee pays for the insurance.