New Teachers Pension Calculations Incorrect For Part Time Employees (Doc ID 2022714.1)

Last updated on JUNE 20, 2017

Applies to:

Oracle HRMS (UK) - Version 12.1.3 and later
Information in this document applies to any platform.

Goal

We applied the Teachers Pension Scheme patches to our test environment (EBZPAT) - 19425414 and 20031909.


On testing we are finding that for part-timers it is still looking at the fte salary rather than their actual part-time earnings.
Eg 728161-2 we would expect deductions from April 2015 of £94.99 per month, (7.4%) but they are coming out as £123.24 -(9.6%)
  700277 we would expect deduction from april 2015 of £29.19 per month, but they are coming out as £40.23 (10.2%)

We are using the seeded formula for the Teacher 2015 EES
We have also found a workaround in the Teachers 2015 v2 whitepaper (below) which we we have applied and seems to be working and this is now calculating correctly

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Open issue:
Currently to handle part timer contributions, user needs to revise the formula as recommended below, until a formal patch is released to address the same.
EES FORMULA : Employee Contribution Formula attached to EES OCP Contribution element.
else
(/* Annualised FTE below refers to “Annual Actual Salary”. */
Annualised_FTE = FLOOR( (Pensionable_Salary_PTD ) * PAY_STATUTORY_ANNUAL_PERIODS)
l_Contribution_Percent = to_number(GET_TABLE_VALUE (''PQP_TPA_PENSIONABLE_PAY_RANGE'', ''Employee Contribution Rate'', to_char(Annualised_FTE)))
/* In the computation logic below, user has to replace the balance placeholders ( and ) with the user defined balances relating to Retro and Overtime processing. */

/* Pensionable_Pay = Pensionable_Salary_PTD + + */
Pensionable_Pay = Pensionable_Salary_PTD
l_ocp_contribution = ((Pensionable_Pay * l_Contribution_Percent)/100)
l_ocp_contribution = l_ocp_contribution - Period_OCP_Contribution
l_ocp_contribution = ROUND(l_ocp_contribution,2)
Pension_Tier = to_number(GET_TABLE_VALUE(''PQP_TPA_PENSIONABLE_PAY_RANGE'',''Pension Tier'', to_char(Annualised_FTE) ) )
/* TPS end */)
ERS Formula : Employer Formula
ELSE
(
/* Annualised FTE below refers to “Annual Actual Salary”. */
Annualised_FTE = FLOOR (Pensionable_Salary ) * PAY_STATUTORY_ANNUAL_PERIODS
l_ER_Contribution_Percent = to_number(GET_TABLE_VALUE
(''PQP_TPA_PENSIONABLE_PAY_RANGE'', ''Employer Contribution Rate'', to_char(Annualised_FTE)))
/* Pensionable_Pay = Pensionable_Salary + + */
Pensionable_Pay = Pensionable_Salary
l_eer_contribution = ROUND((Pensionable_Pay * (l_ER_Contribution_Percent/100)),2 )
Pension_Tier = to_number(GET_TABLE_VALUE
(''PQP_TPA_PENSIONABLE_PAY_RANGE'',''Pension Tier'', to_char(Annualised_FTE)) )
/* TPS end */ )
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However we thought that this should have been fixed in 20031909.

Please confirm whether we need to continue using the workaround in the white paper or should this now be fixed?
 

Solution

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