Proration

When you create or update a recurring element, you can make it subject to proration.

Perform the following steps to enable proration:

1. In the Payroll Calculation work area, select the Manage Elements task, and click Create.
2. On the Create Element: Additional Details page, select 'Yes' for the following question: Is this element subject to proration?
3. Select the predefined event group (Entry Changes for Proration) or a new group that you created.
4. Select Proration Units and Proration Rate Conversion Rule.
5. Select a Proration Conversion Rule formula.

If an earnings element is subject to proration, then the user must select proration units and the proration rate conversion rule.

The proration rate conversion rule can be one of the predefined rate conversion rules. or a user defined proration rule, this means that it is not helpful when determining a consistent proration strategy for calculating mid-month changes to actual pensionable pay.

Teachers are paid 12 months, 365 days per year if they are on a permanent contract, or 39 weeks per year, 195 days per year if they are on a temporary contract.

EMP_CAT Mapped to	Definition	Proration
FT	Member with a Full- time contract	Based on Number of Days in Calendar Month, Annual amount/12 or Monthly amount Divide by number of days in calendar month = daily rate Daily rate * total number of days in proration period
PTR	Member with a Part- time contract that specifies a regular pattern of work	Based on Number of Days in Calendar Month, Annual amount/12 or Monthly amount Divide by number of days in calendar month Multiply by total number of days in proration period
PTIC	Member with a Part- time contract that is for an irregular pattern of work (Supply Teacher), where they are deemed as being in employment when they are not working	The daily rate for Supply Teachers is based on the full- time salary divided by 195 days in the year Annual amount/195 = daily rate Daily rate * total number of working days in proration period
PTIN	Member with a Part-time contract that is for an irregular pattern of work (supply teacher), where they are deemed as not being in employment when they are not working This value is not yet available on MCR so should not be used.	N/A

The archive prorates the appropriate balances based on the above information.

Note:

• Some allowances will not be prorated as part of the pensionable earnings for MCR; bonus and overtime.
• Overtime, although it can be pensionable, is not included in pensionable earnings, and is reported separately.
• Bonus is included in pensionable earnings but is always reported in the pensionable earnings of the last row.
• Rate definitions are therefore not required for proration purposes, although they may be needed for calculation purposes.