Managing Retropay Processing for CPF

CPF is calculated for ordinary earnings based on the period in which it was earned. However, for additional earnings, CPF is calculated based on the period in which it is paid. Since the retro method for Singapore is Forwarding, the ordinary CPF deductions are also specified as Forwarded in the Retro Process definition. This means that where retro is concerned, ordinary CPF is re-calculated for the original pay period, and the difference forwarded to the current pay.

To ensure CPF is not also calculated on the retro earnings in the current period, all ordinary earnings are forwarded to earning codes that are not included in the CPF ordinary wages accumulator. For additional earnings, the CPF deductions from the original period are not forwarded into the current period, so the additional CPF deductions are not included in the retro process definition.

Note:

The Earning, CPF RTO AWS (Retro Adjustment for AWS) can be used for any retro processing on Additional Wages.

Additional earnings elements are included in the retro process definition, and do not need to be forwarded to a different element. Other deductions such as MBMF, SINDA and CDAC are all forwarded and calculated based on when they were earned.