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OHBEN7535 - Define Premium Calculation Formulas

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In this step, you define the formulas for calculating premium amounts of corporate pension plans. This formula is defined for a combination of the following:

• Calculation group in a specific corporate pension plan

• Premium type

• Contributor

• You have defined the premium types in Define Premium Types

• You have defined the calculation groups for corporate pension plans in Define Contribution Calculation Groups

• You have defined the premium parameters in Define Premium Parameters

• You have completed the settings in the IMG activity Define Calculation Factor Parameters

• You have defined the rounding rules in Define Rounding Rules

The formulas defined here is only for calculating the monthly premium.

You can use the following parameters in creating a formula:

• Basis payment, represented by BASPAY, is only applicable for defined contribution pension plans

• Standard payment, represented by STDPAY, is applicable for defined benefit pension plans and employees' pension fund plans

• Calculation factor parameters, represented by CALFAC###, are defined in Define Calculation Factor Parameters. ### is the number used to differentiate factor parameters

• Premium parameters, represented by PREMIUM###, are defined in Define Premium Parameters. ### is the number used to differentiate premium parameters

• Operators: includes '+' (addition), '-' (subtraction) , '*'(multiplication), '/' (division)

• Figures

• Parenthesis

You calculate the premium amounts by multiplying the basis payment by premium rates that is defined by employee's age. You have defined PREMIUM001 as age premium parameter.

In this case, you define the calculation formula as follows:

BASPAY * PREMIUM001

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This documentation is copyright by SAP AG.

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