Absence Rate for Reducing Pensionable Pay to Exclude Non-Pensionable Allowances

An absence rate that includes non-pensionable allowances (for example, subsistence) requires a second absence rate definition.

This is to ensure that the pensionable earnings are reduced correctly, in cases where an employee is receiving reduced absence pay. This additional rate ensures that their pensionable pay is reduced using the pensionable elements of their absence payment only.

Follow the steps described here to create an additional absence rate that excludes non-pensionable allowance rate definitions as contributors.

Prerequisites

• Element and rate definition for (pensionable) salary element
• Element and rate definition for pensionable elements
• Element and rate definition for non-pensionable elements
• Element and rate definition for absence payment/deduction
  • Absence element processing priority must be later than that of the salary and allowance elements
• Rate definition category: Derived rate
  • Contributors: Rate definitions for salary, non-pensionable and pensionable elements

Reduced Pensionable Pay Rate Setup

Create a rate definition for the reduced pensionable pay rate:

• Category: derived rate
• Periodicity: Annual
• Live rates: checked by default
• Contributors: salary and pensionable allowance rate definitions

Create calculation value definition:

• Calculation type: rate definition
• Retrieval date: date earned
• Calculation values: rate definition created in Step 1

Add a calculation factor to the Entitlement Result absence element.

• Calculation type: rate amount
• Calculation value definition: select the definition created in Step 2.

Edit the Entitlement Result element formula to fetch the pensionable pay value, convert it to a daily value and return the daily reducing pensionable pay. See the reduced_pensionable_pay_entitlement_result_ff.txt file that is associated with this document.

Edit the Entitlement Result element and create a new input value to return a direct result of daily reduction of pensionable pay:

Alternatively, create a separate element for returning the daily reduced pensionable pay as an indirect result.

Add a new formula result rule on the Entitlement Result element for returning the reduced pensionable pay value:

• Result returned: L_REDUCE_PP
• Result rule: direct result (using the Entitlement Result element)
• Target input value: new input value (e.g. Reduced Pensionable Pay)