At Exaserv, we recently had customers interested in the Pension Payout functionality in Employee Central and this gave us a reason to dig deeper into the functionality, what it can do and where it could be improved.
So first, what is the pension payouts functionality? The Pension payout functionality lets you create a new employment for currently active employees and for retired employees who are captured in the system as pensioners so that you can create and track employee data and payments that are separate from their current salary payments.
This functionality is very similar to both concurrent employment and global assignment. When you create a pension pay-out, a new employment is created, so that you have 2 employments for an employee and can take action on each separately, as shown below.
Let’s give you a few day-to-day examples: the employee below was terminated before the pension pay-out was added, so one employment is inactive, while the other is on pension pay-out:
The next employee is currently active, so the first employment is in active status, and the second is in pension payout status (which is an inactive status).
Pro’s and Con’s
For each employee, you can have different data elements, different permissions (for both employee and admins) and different workflows.
Unfortunately, when looking from an org chart perspective, you cannot see that this employee is on a pension payout status like you can with Contingent Workers or Global Assignment:
To Configure pension payouts, you will need to enable the Pension Payouts on ‘Manage Employee Central Settings’ and grant the required RBP. The applicable event reasons for Pension Payout should also be configured in the instance as shown below:
Start Pension Payout: This is the event reason to start the Pension Payouts. It consists of ‘Start Pension Payout’ as event and employment status as Retired. This is the creation of the second employment for the employee.
End Pension Payout: This is the event reason to end Pension Payouts. It consists of ‘End Pension Payout’ as an event and the employment status as Retired.
The user should now be able to see “Add Pension Payout Details’ action under the Take Action menu (on People Profile) for the applicable employees as per the permissions. This event should be used to add a pension payout event for an employee.
During “Add Pension Payout Details’ event, the event reason (Start Pension Payout), Pension Period (start and end date) and Pension Provider (which will appear after choosing the dates) should be populated for the respective employee.
As a prerequisite, the pension provider should be set up as a company foundation object in the instance.
After the pension payout employment has been started, the same portlets and fields that have been created for the employee will present for the pension payout employment. Enter the relevant information and continue through the portlets.
After submission, the system will display the confirmation pop as below.
When you are ready to end the Pension Payout employment, go to the Pension employment, go to Take Action and select Manage Pending Payout Details:
Here, you click End link to end the pension payout:
Then choose the event reason (End Pension Payout), and enter the Actual End Date, and Payroll End Date as needed, then save the record.
There are no standard reports that are just for Pension Payouts, but you can report on any of the fields in the employment just as you would for a regular employee.
The pension pay-out process is not often used by customers, but we think it could be useful to have full management and reporting capabilities for employees throughout their whole lifecycle, even after they have been terminated.
Our current customers were managing these employees in their legacy HRIS system as employee’s, but grouping them as non-employees so they could exclude them from other employee activities. The Pension Payout process is a better functional way to manage these employees.
Author(s): Julie Delatorre