Establishing an Interest-Only Definition
If an employee stops contributing to a plan because the employee becomes ineligible for the plan, or because the plan stopped requiring contributions, the account doesn't necessarily close. Interest continues to accrue even though there are no contributions.
To deal with this, create separate employee accounts definitions to use when there are no contributions. If the plan stops requiring contributions, you create a new effective-dated rule in your function result. If the plan still requires contributions, you set up separate groups for employees who are contributing and those who are not contributing. For example:
Group Criteria |
Definition |
---|---|
Pension status is active participant |
Accrue contributions and interest |
Pension status is anything else |
Accrue interest only |
The system can now to continue to process employees with no contributory information.