Sample Formula for Pensions Enrolment Using Employee Self Service

You have the option to add the rate validation formula to a pension scheme definition.

This enables you to implement validations that are more complex that just checking for minimum and maximum contributions, and increments.

After you have created this formula, you can attach it to the pension scheme definition at the organization-level for a legal employer. Here's how you can do this:

Use the Legal Entity Calculation Cards task for PSU-level values and the Legal Reporting Unit Calculation Cards task for TRU-level values.
Click Create and select Organization Pensions Automatic Enrolment.
Select the Qualifying Pension Scheme Formula that you've created.
Select the name of the Qualifying Pension Scheme the formula applies to.

Rate Validation

Scenario: The selected rate should be an integer number, but should additionally allow the values with decimals such as 4.5% and 5.5%

Solution: The rate is setup in the Pension Scheme Definition without an increment value. Instead, the rate validation formula is used to validate the rate.

FORMULA NAME: P_ALPHA_EE_RATE_VALIDATION
FORMULA TYPE: Payroll Access to HR
DESCRIPTION: This formula validates the selected employee contribution rate.
INPUTS ARE IV_EE_RATE, IV_COMPONENT_NAME
ERROR_MESSAGE = ' '
VALID = 'Y'

l_ee_rate = IV_EE_RATE
/* if the rate is not an integer value */
if ((l_ee_rate - floor(l_ee_rate)) > 0) then (
  /* if the value is not 4.5 or 5.5 */
  if (not (l_ee_rate = 4.5 or l_ee_rate = 5.5)) then (
      /* raise an error message in the UI */
      VALID = 'N'
      ERROR_MESSAGE = 'Rate needs to be whole number or 4.5 or 5.5'
  )
)
RETURN VALID, ERROR_MESSAGE

These contexts and input values are available for this formula type:

Contexts

Context Name	Data Type
EFFECTIVE_DATE	Date
HR_RELATIONSHIP_ID	Number
HR_TERM_ID	Number
HR_ASSIGNMENT_ID	Number
LEGAL_EMPLOYER_ID	Number
LEGISLATIVE_DATA_GROUP_ID	Number
PERSON_ID	Number

Input Values

Variable Name	Data Type	Description
IV_COMPONENT_NAME	Text	Component name or scheme name
IV_EE_RATE	Number	Value of employee rate

Employer Rate Calculation

You need to attach the employer rate calculation formula to the pension scheme definition. This enables you to decide on the employer contribution depending on the rate selected by the employee.

These contexts, input values, and return variables are available for this formula type:

Contexts

Context Name	Data Type
EFFECTIVE_DATE	Date
HR_RELATIONSHIP_ID	Number
HR_TERM_ID	Number
HR_ASSIGNMENT_ID	Number
LEGAL_EMPLOYER_ID	Number
LEGISLATIVE_DATA_GROUP_ID	Number
PERSON_ID	Number

Input Values

Variable Name	Data Type	Description
IV_EE_RATE	Number	Value of the employee rate
IV_COMPONENT_NAME	Text	Component name or scheme name

Return Variables

Variable Name	Data Type	Description
Value	Number	Employer Rate Value

Scenario: The rate contributed by the employer should match the rate selected by the employee up to a value of 5%. If the employee selects a higher rate, the employer rate will stay at 5% maximum.

Solution: The rate is setup in the Pension Scheme Definition without an increment value. The Rate validation formula is used to validate the rate instead.

FORMULA NAME: P_ALPHA_ER_RATE_CALCULATION
FORMULA TYPE: Payroll Access to HR
DESCRIPTION: This formula calculates the employer contribution rate.
INPUTS ARE IV_EE_RATE,IV_COMPONENT_NAME

VALUE = 0.0

/* cap employee rate at 5% */
VALUE = LEAST(IV_EE_RATE, 5.00)

RETURN VALUE

Rate Details Override

You can use this formula if the scheme setup parameters for the rates differ for different groups of persons. The formula returns values that'll be used for the rate processing in the user interface instead of the values directly specified on the scheme setup. Note that no values should be entered for these parameters, if the formula is used. The formula defines the guide text to be shown, the default value, whether the employee may select a rate, the minimum, maximum and allowed increment for the rate – based on criteria that may be evaluated using the provided context values. The formula doesn't override the validation and employer calculation formulas eventually selected for the rate.

These contexts, input values, and return variables are available for this formula type:

Contexts

Context Name	Data Type
EFFECTIVE_DATE	Date
HR_RELATIONSHIP_ID	Number
HR_TERM_ID	Number
HR_ASSIGNMENT_ID	Number
LEGAL_EMPLOYER_ID	Number
LEGISLATIVE_DATA_GROUP_ID	Number
PERSON_ID	Number

Input Values

Variable Name	Data Type	Description
IV_COMPONENT_NAME	Text	Component name or scheme name

Return Variables

Variable Name	Data Type	Description
GUIDE_TEXT	Text	Guide text shown in the UI
ENTERABLE	Text	Employee can change the value
UOM	Text	Unit of Measure (P:percent, A:amount)
VALUE	Number	(Default) value
MIN	Number	Minimum value
MAX	Number	Maximum value
INCREMENT	Number	Allowed increment