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SAP SuccessFactors Employee Central: Managing Pensioners

This blog describes the implementation design principle document on managing pensioners in Employee Central.

 

SuccessFactors Employee Central is the Core HR module that is usually the system of record for many downstream systems such as payroll. Employee Central holds data of active employees as well as pensioners of an organization. While most transactions in EC pertain to active employees, some transactions need to be performed on pensioners. These changes also need to be replicated to downstream systems for further processing.

 

Persons who have worked as a regular employee for several years and has retired from their occupation are called as a pensioner. The pensioner in certain companies get payments called pension from the day of retirement. This blog focuses on how pensioners can be managed in Employee Central specifically for those who get a pension from the company.(The focus is not for pensioners getting paid from the government).

What are the typical requirements of maintain a pensioner?

  • Handling Position and cost center
  • Handling death of a Pensioner
  • Handling Survivors /Beneficiaries
  • Maintaining Address
  • Maintaining Bank Information
  • Maintaining Personnel Information
  • Maintaining changes to payments for pensioners
  • Where are the SFIDPs published?

The details of the solution for are mentioned in the implementation design principle document. Link at the end of this blog.

 

Solution details

There are two possibilities with respect to the Employee Central core. Customers can decide if they want to create new employment or retain the same employment.

Typically rehire is performed on the same employment .

There are two use cases for a new employment for a retiree. In certain countries, it is necessary to create a new employment to make sure that the privacy laws are adhered to. In such scenarios, a new employment is created for such employees. The advantage of creating new employment (New PERNR) is that the admin cannot see the previous work history of the pensioner though the history user interface of the job information portlet.

There could be scenarios where retirees/pensioners return to work at the same company as a separate employment. This could be returning to work as a Contractor (Contingent Worker) or in a different job role. If the employee returns to work in a different job role, they should be hired into EC with new employment. This will provide the ability to run a regular payroll for the new employment while the pension payments can be processed on the previous employment that has been retired/terminated.

 

 

Employment Status and Mapping of Event reasons with that of ERP actions

In dealing with pensioner it is important to know the different employee status in Employee Central. For each Employee Central status, the corresponding user status for Employee Profile is shown in the table below.

 

Employee Profile /User Status Inactive user Active user
Employee Central Status Discarded Active
Furlough Suspended
Retiree Dormant
Terminated Paid leave
Unpaid Leave

 

Before the event reasons are mapped to actions in ERP, it is necessary to know the status available for Employees.

 

ERP STATUS

There are 3 status indicators in ERP. The customer-defined status(STAT1), Employment status(STAT2), and the special payment status(STAT3). The below table shows the values and the description. Typically payroll considers the employees in status (Inactive, Retiree, Active). Payroll only considers the employee in withdrawn status if a date is defined in infotype 3 – field “Run Payroll up to“ (ABWD1).

 

Though all the 3 statuses could influence the payroll, we could focus on Employment status (STAT2).

 

Status Code Status Description
0 Withdrawn
1 Inactive
2 Retiree
3 Active

 

The Event reason in Employee central is mapped to the actions in ERP. The employee status in Employee Central is set by the event reason configuration and similarly, in ERP the Action (not the Action Reason) sets the employment status of the employee in ERP

 

The below table shows the recommended mapping between EC and ERP to handle the retiree.

 

EC Event Reason EC Event Employee Status EC SAP ERP Action Type ERP Action Reason

Employee

Status ERP

 

1000-Regular Termination Termination Terminated 10 – Leaving 01-Voluntary 0 – Withdrawn
2000-Retirement with no Pension Termination Retiree 10 – Leaving 02- regular retirement 0 – Withdrawn
2001-Retirement with Pension payment through PY Termination Retiree 14 – Retirement 03-retired with pension 2 – Retiree
3000-Death after Retirement Termination Terminated 10 – Leaving 04- Death 0 – Withdrawn

3500 Death after Retirement

With survivor

Termination Terminated 10 – Leaving 05- Death with company pension survivor 0- Withdrawn *
1100 Hire as Pensioner(New employment use case) Hire Retired 11-Hiring of Pensioner 02- Hired as a retiree 2 – Retiree

Note that if there is a beneficiary/ Survivor who continues to get the pension after the death of the retiree that person should be hired as a survivor.

Document Details

The implementation deign principle document has more details on

  • Mapping of Event reasons in Employee central to Employee Central Payroll actions
  • Handling Partial Retirement (Germany-Altersteilzeit)

Link to the Implementation principle document

 

Where are the SAP Successfactors  implementation principle documents published?

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2 Comments
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  • Hi Sarath,

     

    Nice post. I have a question related to same.

     

    if employee is terminated and status set to retired, how do we change status to dead when they die if they are already terminated?

    I am fairly sure you cannot terminate him twice, once for retirement and once for death.