Defining Pension Plans

Use the Pension Plan Definition ESP (GPES_PP_DEFN) component to define and maintain pension plans.

This topic discusses how to set up pension plans.

Page Name

Definition Name

Usage

Pension Plan Definition ESP Page

GPES_PP_DEFN

Set up pension plans.

Use the Pension Plan Definition ESP page (GPES_PP_DEFN) to set up pension plans.

Navigation:

Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Pensions > Pension Plan Definition ESP > Pension Plan Definition ESP

This example illustrates the fields and controls on the Pension Plan Definition ESP page. You can find definitions for the fields and controls later on this page.

 Pension Plan Definition ESP page

Pension Plans

Field or Control

Description

Effective Date

Enter the date that the pension plan becomes valid.

Status

Enter the effective status of the pension plan, either Active or Inactive. When changing the status of an active pension plan to inactive, you should verify that no persons are assigned to the pension plan.

Plan Type

Select a type for the pension plan. Values are:

  • Collective: Select to define a pension plan in which the promoter is an entity, corporation, society, or legal entity and the contributors are the promoter's own employees.

  • Individual: Select to define a pension plan that is based on the individual system.

Pension Plan Contribution

Select to indicate that the purpose of the pension plan is to improve the retirement benefits. Prior to December 2013, this caused the amounts that the company pays to be free from Social Security contribution requirements.

Note: Starting December 2013, pension plan contributions contribute to Social Security, irrespective of whether they improve retirement benefits or not.

Law 12/22 Reduction

Select this checkbox if the Pension Plan is eligible for the new Social Security Reduction.

Collective Information

If you selected a pension plan type of collective, use this group box to specify register data for the pension plan and related pension fund. Pension funds are patrimonies that are created to fulfill pension plans and guarantee their effectiveness. The wealth of a pension fund comes from contributions made by the contributors as well as the interest generated. The contributions are administered by a managing organization. This data is necessary for the proper generation of the Model 345 file.

Field or Control

Description

Company

Select the organization that manages the pension fund for the pension plan.

Plan Name

Enter the name of the pension plan at the managing organization.

Plan Provider

Enter the code of the Pension Plan provider. AFI files should contain this value as well as the employer's monthly contribution to pension plans.

Fund Name

Enter the register number of the pension fund at the managing organization.

Fund Fiscal ID (pension fund numero de identificación fiscal)

Enter the fiscal identification code of the pension fund.