Using Withdrawal and Purchase Subaccounts

The system uses withdrawal subaccounts to track amounts that employees withdraw from and repay to the plan contributory account. It uses purchase subaccounts to track amounts that employees pay into the system to purchase service for leave periods or other periods when they were not contributing to the plan.

Withdrawal and purchase subaccounts are associated with the plan’s main employee account and with one or more service function results. This architecture enables the system to make a simultaneous adjustment to the employee account and the service accrual.

Important:

Always use a withdrawal account when withdrawing contributions. This prepares the system to for administering repayment of the withdrawn contributions and the corresponding service buyback.

If using withdrawal accounts, you can use the Withdraw Contribution page to pay out withdrawn contributions through the trustee extract.

When you set up the service purchase process in PeopleSoft Pension Administration, you associate the purchase and withdrawal subaccounts with the appropriate service purchase types so that the system can post payments to the appropriate accounts.

The service purchase process uses each subaccount only once per employee. So when you set up your employee accounts for service purchase or service buyback, the best practice is to create a set of identical accounts where the base account name has at most eight characters, and the additional accounts have the same name with sequential two-digit suffixes, starting with 01. Then, if an employee enters into more than one service purchase arrangement using the specified account, the system automatically looks for the next unused account in the set.