Define Pension Plan

OBJECTIVE

The Define Pension Plan function is used to manage RPP, RRSP, DPSP, group RRSP and Labour funds (LF) deductions.

Before creating a pension plan, refer to the How-to Create a pension plan in maestro* document to learn about the impacts of each pension plan.

Steps

maestro* > Time Management > Maintenance > Payroll > Define Pension Plan

Create a pension plan

Enter the required information in the Main Fields tab:

The Configuration icon is used to define entry options for the Code field.

Field

Description

Code

Pension plan code.

Description

French description of the fund.

English Desc.

English description of the fund.

On stub

French description to be printed on the pay slip.

English stub

English description to be printed on the pay slip.

Type

Fund type. Available values:

RPP

Registered pension plan.

RRSP

Registered retirement savings plan.

DPSP

Deferred profit sharing plan.

Coll. RRSP

Registered group retirement savings plan.

LF

Labour funds.

Number

Permit number of the fund.

Select a management method from the three methods below:

Field

Description

Flat Rate

Employee/Employer

Gross amount used to calculate the pension plan.

Hourly amount

Employee/Employer

Hourly amount used to calculate the pension plan.

% Gross Earning

Employee/Employer

Percentage of the gross salary used to calculate the pension plan.

Field	Description
Flat Rate Employee/Employer	Gross amount used to calculate the pension plan.
Hourly amount Employee/Employer	Hourly amount used to calculate the pension plan.
% Gross Earning Employee/Employer	Percentage of the gross salary used to calculate the pension plan.

Select a maximum type from the two types below:

The maximum is the maximum applicable for all employees affected by the pension plan.

The maximum entered in Employee Management supersedes this value.

Field

Description

Weekly maximum

Maximum accumulated weekly.

Annual Maximum

Maximum accumulated annually.

Field	Description
Weekly maximum	Maximum accumulated weekly.
Annual Maximum	Maximum accumulated annually.

Complete the other fields based on requirements:

Field

Description

No govern. plan

Used if the maximum RRQ and CPP (federal pension plan) has been reached or the RRP and CPP amounts calculated equal 0 on Payroll Calculation.

Reference formula

Used to specify the variable for the amount used to calculate the pension plan.

NOTE: If no formula is specified, the system uses the SALFP variable by default.

Variables that can be used include:

For all sectors:

SBFED

SBPRO

SALCOMITE

SALREG

SALREGRAT

SALOVER

SALDOUBLE

HRPAYE or HRPAID

HRTRAV or HRWORKED

VACCALCULE

VACIMP

For sector 0 only:

SALFP0

SALREG0

SALREGRAT0

SALOVER0

SALDOUBLE0

HRPAYE0 or HRPAID0

HRTRAV0 or HRWORKED0

SALTOTEMP

According to the sectors applicable to the unions in payroll settings.

SALSYNDICAT

NOTE: A table explaining the variables required to create the formulas is available in the appendix.

Fed Credit Factor

Employee/Employer

Federal income tax credit factor

NOTE: 1.000 = 100%

Prov Credit Factor

Employee/Employer

Provincial income tax credit factor

NOTE: 1.000 = 100%

Fed Income Tax Credit %

Federal income tax credit percentage.

NOTES: This is a factor. It is divided by 100 for the calculation.

This percentage applies only to pension plans managed by unions.

Prov Income Tax Credit %

Provincial income tax credit percentage.

NOTES: This is a factor. It is divided by 100 for the calculation.

This percentage applies only to pension plans managed by unions.

Fringe Benefit Account

The Fringe Benefit account is an accrued fringe benefits account if the hour transfer is set to Balanced. However, if the hour transfer is defined as Normal, an expense account must be entered in the Fringe Benefit Account field.

Remittance Account

The remittance account is a liability account used to track pension plan deductions.

Field	Description
No govern. plan	Used if the maximum RRQ and CPP (federal pension plan) has been reached or the RRP and CPP amounts calculated equal 0 on Payroll Calculation.
Reference formula	Used to specify the variable for the amount used to calculate the pension plan. NOTE: If no formula is specified, the system uses the SALFP variable by default. Variables that can be used include: For all sectors: SBFED SBPRO SALCOMITE SALREG SALREGRAT SALOVER SALDOUBLE HRPAYE or HRPAID HRTRAV or HRWORKED VACCALCULE VACIMP For sector 0 only: SALFP0 SALREG0 SALREGRAT0 SALOVER0 SALDOUBLE0 HRPAYE0 or HRPAID0 HRTRAV0 or HRWORKED0 SALTOTEMP According to the sectors applicable to the unions in payroll settings. SALSYNDICAT NOTE: A table explaining the variables required to create the formulas is available in the appendix.
Fed Credit Factor Employee/Employer	Federal income tax credit factor NOTE: 1.000 = 100%
Prov Credit Factor Employee/Employer	Provincial income tax credit factor NOTE: 1.000 = 100%
Fed Income Tax Credit %	Federal income tax credit percentage. NOTES: This is a factor. It is divided by 100 for the calculation. This percentage applies only to pension plans managed by unions.
Prov Income Tax Credit %	Provincial income tax credit percentage. NOTES: This is a factor. It is divided by 100 for the calculation. This percentage applies only to pension plans managed by unions.
Fringe Benefit Account	The Fringe Benefit account is an accrued fringe benefits account if the hour transfer is set to Balanced. However, if the hour transfer is defined as Normal, an expense account must be entered in the Fringe Benefit Account field.
Remittance Account	The remittance account is a liability account used to track pension plan deductions.

Click Save.

APPENDIX

Variables available to determine the calculation for the Pension Plan

The Define Earning/Deduction Codes function has a direct impact on formulas that calculate the pension plan. You must correctly configure the bonus in the Payroll Calculation tab. The table below explains how the bonuses must be configured to ensure that the variables use them.

Variable	Source of the calculation to determine the pension fund	Sectors	Define Earning/Deduction Codes - Payroll Calculation tab
			Federal Income Tax	Provincial Income Tax	Pension Fund	Committee Calculation	Union
SALFP	Paid hours (regular, half, double and vacation) + Taxable vacation pay + all types of bonuses for which the Pension Fund box is checked. NOTE: The amount of Taxable vacation pay comes from the Hours Management in the Taxable VacPay field.	All			X
SBFED	Paid hours (regular, half, double and vacation) vacation pay + all types of bonuses for which the Federal Income Tax box is checked.	All	X
SBPRO	Paid hours (regular, half, double and vacation) + vacation pay + all types of bonuses for which the Provincial Income Tax box is checked.	All		X
SALCOMITE	Paid hours (regular, half, double) + paid vacation + all types of bonuses for which the Provincial Income Tax box is checked.	All				X
HRPAYE or HRPAID	Paid hours (regular, half, double) + all types of bonuses for which the Committee Calculation in Hours box is checked. NOTES: Income bonuses are calculated based on regular time. Paid vacation days are not included in this variable.	All
HRTRAV or HRWORKED	Hours worked + all types of bonuses for which the Committee Calculation in Hours box is checked.	All
VACCALCULE	Vacation amount calculated only.	All
SALREG	Hours paid at regular time + all types of bonuses at regular time.	All
SALOVER	Hours paid at time-and-a-half + all types of bonuses paid at time-and-a-half.
SALDOUBLE	Hours paid at double time + all types of bonuses paid at double time.
SALFP0	Paid hours (regular, half, double and vacation) + Taxable vacation pay + all types of bonuses for which the Pension Fund box is checked. NOTE: The amount of Taxable vacation pay comes from the Hours Management in the Taxable VacPay field.	0			X
SALREG0	Hours paid at regular time + all types of bonuses at regular time for sector 0.	0
SALOVER0	Hours paid at time-and-a-half + all types of bonuses paid at time-and-a-half for sector 0.	0
SALDOUBLE0	Hours paid at double time + all types of bonuses paid at double time for sector 0.	0
SALREGRAT	Worked Hours time * regular hourly rate. NOTE : Does not include premium and bonus, only worked hours.	All
SALREGRAT0	Worked Hours time * regular hourly rate for sector 0. NOTE : Does not include premium and bonus, only worked hours.	0
HRPAYE0 or HRPAID0	Paid hours (regular, half, double) + all types of bonuses for which the Committee Calculation in Hours box is checked for sector 0. NOTES: Income bonuses are calculated based on regular time. Paid vacation days are not included in this variable.	0
HRTRAV0 or HRWORKED0	Paid hours (regular, half, double) + all types of bonuses for which the Committee Calculation in Hours box is checked for sector 0. NOTES: Income bonuses are calculated based on regular time. Paid vacation days are not included.	0
SALTOTEMP	Paid hours (regular, half, double) + all types of bonuses for sector 0 for which the Committee Calculation in Salary box is checked.	0				X
SALSYNDICAT	Paid hours (regular, half, double) + paid vacation + all types of bonuses for which the Affect the union calculations in salary box is checked.	Based on Config.					X
VACIMP	Amount of taxable vacation paid comes from Hours Management. NOTE: This amount can be entered manually in Hours Management, Taxable VacPay field or automatically if you use a bonuses type Vacation.

Last modification: September 20, 2024