AFB Retirement Allowances
This section discusses:
Retirement allowance entitlement.
Retirement allowance calculation.
The AFB labor agreement defines entitlement to the retirement allowance. In cases of voluntary retirement, the allowance defined by the collective agreement supersedes the one defined by law. In cases of compulsory retirement, the legal retirement allowance supersedes the allowance defined by the labor agreement. The earning used to calculate the retirement allowance for AFB is IND DRET AFB.
The bracket AFB BR IND LIC returns values used to calculate the retirement allowance. Entitlement to this allowance depends on the reason for a payee's retirement. Although there are many reason codes defined in the HR application, only one confers entitlement to retirement pay in the delivered bracket: VRE (retirement for voluntary reasons). If you want to add additional entitlement reasons, include the corresponding reason codes in this bracket.
The retirement allowance IND DRET AFB is triggered by the generation control element AFB GC IND DRET CC. This generation control element contains the actions or reasons that entitle a payee to the retirement allowance. The reasons listed in this generation control element must be the same as the reasons used as search keys in the bracket AFB BR IND DEP RET.
You must maintain the generation control element by populating it with whatever actions or reasons are required.
Bracket for AFB Labor Agreement Retirement Allowance Parameters
The search keys for the bracket AFB BR IND DEP RET are GEN VR MOTIF (the retirement reason) and GEN VR AN ANC CONT (the number of years of seniority), and the return column elements are the bracket AFB BR IND DEP RET and the variable GEN VR IND RET CC.
|
Element Name |
Usage |
|---|---|
|
AFB BR IND LIC |
The bracket AFB BR IND LIC resolves to the calculation rate, which is applied to the average salary of the last 12 months. |
|
GEN VR IND RET CC |
Stores an indicator with the value of 1 if the retirement allowance defined by the collective agreement is resolved. This variable is checked to avoid payment of the legal retirement allowance if the labor agreement retirement allowance has already been paid. |
|
GEN VR MOTIF (Key) |
GEN VR AN ANC (Key) |
AFB BR IND DEP RET (Return) |
GEN VR IND RET CC (Variable) |
|---|---|---|---|
|
VRE |
10 |
0,666666 |
1 |
|
VRE |
15 |
1,25 |
1 |
|
VRE |
20 |
2 |
1 |
|
VRE |
30 |
2,5 |
1 |
It is important that you understand the definition of this bracket because PeopleSoft delivers, but does not maintain, it. You must maintain this bracket to ensure that it functions properly.
If your organization applies the AFB collective agreement, use the sample values in this bracket and in the AFB BR IND LIC bracket to manage severance and retirement allowances. If you have a collective agreement other than AFB, don't use these brackets.
If you are applying the AFB collective agreement, and the agreement uses different values to calculate the allowance, you may need to change the parameters of the brackets, but you do not need to create any new brackets for this allowance.
Note: If you use the AFB BR IND DEP RET bracket, make sure that the variable GEN VR IND RET CC is set to 1. This variable, along with variable GEN VR IND LIC CC in the bracket AFB BR IND LIC, tells the system that the allowances are being calculated using a labor agreement bracket and should not be calculated again based on the legal setup.