2015 Pension Reform - Scheme Contributions Based On FTE Earnings Rather Then Actual Earning
(Doc ID 1994376.1)
Last updated on DECEMBER 03, 2019
Applies to:Oracle HRMS (UK) - Version 12.1.3 and later
Information in this document applies to any platform.
In order to comply with the required changes for public sector pensions reform our Scheme Contributions need to be based on Actual Earnings rather than FTE earnings.
Currently this is not the case e.g.
Employee works 18.5 hours (0.5FTE) per week has FTE Salary of £20k with no pensionable allowances, this gives a pensionable pay value of £10k per year. This employee should pay pension deductions under the new rules of 3% of earnings (band 1 in the salary bands table). Currently the system is deduction contributions based on FTE so is incorrectly deducting 4.6% for this employee.
Employee works 37 hours (1 FTE) per week has FTE Salary of £20k with no pensionable allowances, this gives a pensionable pay value of £20k per year. This employee should pay pension deductions under the new rules of 4.6% of earnings (band 2 in the salary bands table). This is correct for our full time staff.
I cannot find any mention in the White Paper on Pension reform on how to change the configuration in our system to take account of the new rules. Please advise.
To view full details, sign in with your My Oracle Support account.
Don't have a My Oracle Support account? Click to get started!
In this Document