Entering ABP Salary Thresholds and Premiums That Vary By Age

For some pension types, the salary threshold or premium depends on the employee's age. When you define these pension types, you must select Yes in one or more of the following fields, as appropriate:

If you are setting up a pension type that has a salary threshold or premium that varies by age, you define the thresholds and premiums in user defined tables. Use the following predefined tables, where EE stands for Employee and ER for Employer:

The salary threshold tables are predefined with a column for the ANW pension type and each ABP pension type. Premiums depend on current age and the age at which the employee began making contributions, so the contribution percent tables are predefined with a column for each ABP pension type and start age combination (ages 16 to 59), such as FPU Total-25. In both cases, you define rows for the year of birth ranges, then enter values for age range and pension type combinations.

For example, you might define the Employee Contribution Percent table as follows:

Year of Birth FPU Base-16 FPU Composition-16 FPU Extra-16
1900 - 1953 6.5 6.5 6.5
1954 - 1963 5.5 5.5 5.5
1964 - 4712 4.5 4.5 4.5

arrow icon   To add rows to the age-dependent threshold or contribution tables:

  1. In the Table Structure window, query the appropriate table.

  2. Click the Rows button.

  3. Set your effective date to the day you want your rows to take effect.

  4. Enter a sequence number, such as 10.

  5. Enter a year of birth range, such as 1900 in the Lower Bound field and 1953 in the Upper Bound field.

  6. Repeat the previous two steps for as many rows as required to define your year of birth ranges.

  7. Save your work.

arrow icon   To add values to the age-dependent threshold or contribution tables:

  1. In the Table Values window, query the appropriate table.

  2. In the Column region, click in the Name field. Use the Down arrow to display the pension type that has age dependent thresholds or premiums.

  3. In the Values region, select the first year of birth range and enter the value of the threshold or premium for this range.

  4. Repeat these steps for other ranges and pension types, as required.

  5. Save your work.