(USF) Managing Interest Calculations on Retro Pay
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
GVT_RETRO_INT |
(USF) Define the retroactive interest rate as mandated by the OPM. |
Agencies are required to pay interest on retroactive payments that are over 30 calendar days late. Payments are based on Office of Personnel Management (OPM) interest rates. Following are additional setup and processing details for managing interest calculations.
Additional Setup Steps
Follow these steps in addition to the general retro pay setup and processing steps that are documented earlier in this topic:
On the Earnings table, define retro earnings interest codes.
Retro interest earnings codes have unique payment requirements. The interest that is paid to employees is classified as income with no federal, Old Age, Survivors and Disability Insurance (OASDI), or Medicare withholdings.
Assign the retro pay interest earning code at the pay group level.
Enter the interest earning code in the Interest field on the Pay Group Table - Calc Parameters (Pay Group table - Calculation Parameters) page.
Enter the current interest rate, as stipulated by the OPM, on the Retro Pay Interest page.
When you define the retro pay mass request on the Retro Pay Mass Request Criteria page, select the Eligible for Interest check box.
For retro pay requests that are not generated by the Retroactive Pay Mass Process, select the Eligible for Interest check box on the Retro Pay Request and Trigger Summary page.
Interest Processing
During the Retroactive Pay Load Paysheets process, the interest is calculated on the sum of the retro payment and inserted into the paysheet using the interest earnings code that you defined for the employee's pay group.
(USF) Use the Retro Pay Interest page (GVT_RETRO_INT) to define the retroactive interest rate as mandated by the OPM.
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Image: Retro Pay Interest page
This example illustrates the fields and controls on the Retro Pay Interest page.
|
Field or Control |
Definition |
|---|---|
| Interest Rate |
Enter the interest rate that is specified by the OPM. |