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

Follow the steps described here to create an additional rate for any absence rate that includes non-pensionable allowances.

This additional absence rate excludes non-pensionable allowance rate definitions as contributors. If an employee is on an absence and receiving less than full pay, this rate will ensure that their pensionable pay is reduced using the pensionable elements of their absence payment only.

Prerequisites

Elements and rate definitions for:

• Pensionable salary element
• Other pensionable elements
• Non-pensionable elements
• 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 Rate Definition – Derived Rate

1. Using the Rate Definition task, create a new (derived rate) rate definition for the reduced pensionable pay rate.
2. Enter the details as shown:

   FIELD	VALUE
   Category	Derived Rate
   Periodicity	Annual
   Calculate Live Rates	Selected by default
   Contributors	Salary and pensionable allowance rate definitions created previously

Create Calculation Value Definition

1. Using the Calculation Value Definition task, create new calculation value definition.
2. Enter the details as shown:

   FIELD	VALUE
   Calculation Type	Rate Definition
   Retrieval Date	Date Earned
   Calculation Values > Rate Definition	Rate definition created in previous step.

Create Calculation Factor

Create a calculation factor for the Entitlement Result absence element and link it to the calculation value definition created previously:

1. Using the Elements task, search for the Entitlement Result absence element.
2. Select Calculation Factors and click Create to create a new calculation factor.
3. Enter the details as shown:

   FIELD	VALUE
   Calculation Step	Rate Amount
   Calculation Value Definition	Calculation Value Definition (created in previous task)

Edit the Entitlement Result Element

Using the Elements task, open the absence Entitlement Result element.

1. 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.
2. Create 2 new monetary input values to return:
   • Direct result of daily reduction of pensionable pay (input value name: Reduced Pensionable Pay)
   • Daily reduction of pensionable pay with all factors (input value name: Reduced Pensionable Pay All Factors) Alternatively, create a separate element for returning the two values as an indirect result.
3. Using Status Processing Rules, created 2 new formula result rules on the Entitlement Result element to return the:
   • Reduced pensionable pay value.
   • Reduced pensionable pay value with all factors.
4. Enter the details as shown:

   FIELD	VALUE
   Result rule (1)	Direct Result (if using the Entitlement Result element, otherwise Indirect)
   Result Returned	L_REDUCE_PP
   Target Input Value	New input value - Reduced Pensionable Pay (created previously)
   Result rule (2)	Direct Result (if using the Entitlement Result element, otherwise Indirect)
   Result Returned	L_REDUCE_PP_ALL_FACTORS
   Target Input Value	New input value - Reduced Pensionable Pay All Factors (created previously)