Understanding Pension Payee Usage in Other HCM Applications

The system uses the same records for employees, retirees, and non-employee payees, and it needs to distinguish among these types of payees. This is important when Human Resources, Payroll for North America, and the Manage Base Benefits business process need to handle payees differently from employees.

When the system needs to distinguish pension payees from other employees, it uses these fields:

• Organizational Relationship (PER_ORG): This field classifies a person as an Employee or a Person Of Interest.

  Retirees, beneficiaries, and QDRO alternate payees are classified as Persons Of Interest. The system sets this value when you establish a payee record.

• Person of Interest Type (POI_TYPE): This field further classifies the people whom you track.

  Its value is Pension Payee for all pension payees: retirees, beneficiaries, and QDRO alternate payees. There are other values for job applicants, contractors, and COBRA participants. The system automatically sets this field to Pension Payee when you set up the payee record on the Create Payee page. For this reason, it's important that you always set up payees as described here. This field is on a person's Organizational Instance record, so a person with a payee record is classified as a pension payee regardless of any other job records that exist.

• Employee Status (EMPL_STATUS): This field provides status information for all employees, based on the action and reason history in the job record.

  Each job record has an associated status. The values that identify pension payee jobs are Retired - Pension Administration and Retired - Pension Paid Out. When you set up a payee, the system automatically sets the action to Retirement and the status to Retired - Pension Administration. A termination action on a payee job record switches the value to Retired - Pension Paid Out. You can view this field on the pension pages.

The system also uses these fields to identify processes that apply only to active employees.

The following are points to keep in mind when you use Pension Administration with other PeopleSoft applications.

• Human Resources.

  The termination workflow is not triggered when you enter a termination action in a retiree job record. However, the workflow is triggered if you enter a termination action in a retiree's active employment record.

• Payroll for North America.

  There are no default tax elections for pension payee jobs. When a pension payee moves from one state or locality to another, new tax elections are not automatically set up.

• PeopleSoft HR: Manage Base Benefits.

  COBRA processing does not occur when you enter a termination action on a payee job record. The only effect that a termination has on a payee job record is to change the employee status from Retired - Pension Administration to Retired - Pension Paid Out.

  A COBRA action does not occur when the employee status is Terminated Pension Pay Out or Retired-Pension Administration. This means that if a termination or retirement action for an active employment job occurs after a retiree record is established, COBRA is not triggered.

  Warning! To ensure that COBRA processing is accurate, be sure to enter a termination or retirement action in an employee's active employment record before you establish a payee record.