Location: Retirement Process
After a retirement application has been received and uploaded to the database, a Retirement Calculation is performed and saved as 'Pending'. Then an option letter is generated and sent to the member. Upon receipt of the returned option form, Final Processing is performed to set Payment, Tax, and Deduction Instructions and change the Status to 'Process'. Lastly, the Disbursements/Payroll batch is run to disburse the benefit.
The following procedure describes the calculation and final processing stages of the retirement process.
Use the following steps as a guide to retire a member from a DB plan.
Ensure that the correct plan is selected and from the Retirement process, and then click to select the Retirement Calculation event. The system displays the Calculation wizard with the Calculation Type 'Retirement' selected.
If necessary, use the Calendar to change the defaults for Date of Retirement and Trade/Payment Date and then click Next to continue. The system displays a Custom Parameters page that may be used to add additional service or override the calculated pension.
Enter Additional Service and/or Pension Override amounts, if appropriate and click Next to display a Summary.
If the Summary is correct, click Next. The system displays the Calculation Results worksheet.
The system displays the Calculation Results screen for the selected member. Calculation tabs include Options, General, Service, Contributions, Factors Earnings, Summary, and Pension. In addition, you can access system table data by selecting the table you want from the Data folder.
To save the calculation, scroll down and click Finish. The system saves the calculation as Pending and displays the Calculation History browser from which you can open and review the calculation.
The following supporting views are associated with a Retirement Calculation:
From the Retirement process, ensure that the correct plan is selected and then click to select the Final Processing event. The Benefit Disbursement Wizard launches and displays a list of available payment options for this member. Payment options are based on the optional forms and disbursement rules set up for the selected plan.
Select the option required by the member and then click Next. You see the disbursements Summary screen from which you can modify the default values for the Disbursement Fee, Tax Instructions, Deduction Instructions, and Payment Instructions.
Click the Modify button beside the Disbursement Fee, set the fee to $100.00, and click Next to return to the Summary screen.
Click the Modify button beside the Tax Instructions to open the Modify Pension Tax Instructions screen. Set the Tax Type, Tax Calculation Method, Tax Marital Status, and Tax Form. If necessary, enter a Flat Amount.
Click Next to return to the Summary screen.
Click the Modify button beside the Deductions Instructions to open the Modify Deduction Instructions screen. Set the Effective Date, and select the Deduction Account from the drop-down list (Options include all entries set up under Deduction Accounts). Set the Deduction Amount and select the Before/After Tax indicator.
Click Next to return to the Summary screen.
Click the Modify button beside Payment to open the Modify Payment Instructions screen.
Set the Payment Method, Issue Method, Percent, Payee, and Address ID/Financial Information
Click Next to return to the Summary screen.
If the summary is correct, click Finish. The system completes the final processing and displays the Pensioner Status screen.
The following supporting views are associated with a Final Processing event:
For information on how to disburse the benefit, see How to Run a DB Disbursements/Payroll Batch Online.
Build 1136
