Deducting Pension Contributions

Set up all the pension plans in PeopleSoft HR: Manage Base Benefits before establishing the plan's calculation rules. When you deal with contributory plans, you have to perform some extra steps during plan setup:

1. Ensure that each plan has a unique plan type.

   The Manage Base Benefits business process enables employees to enroll in only one plan per plan type—for example, one medical plan and one dental plan. If the employees ever contribute to more than one plan at a time, you need to ensure that each plan has a unique plan type. PeopleSoft delivers six different plan types for U.S. pension plans (types 82 through 87); they are translate values.

2. Create a deduction code for each contributory plan.

3. Set up the pension plan in the Benefit Plan table and the Pension Plan table just as you set up a noncontributory plan—except that you enter a default deduction code in the Pension Plan Table page.

4. Add the pension plan to a benefit program.

5. On an ongoing basis, enroll employees in the pension plans.

   "Enrolling" means that you sign up the employees for deductions. It has nothing to do with an employee's eligibility, as determined by the Pension Administration eligibility function.