Hiring a pensioner and paying pension and salary

[jjoseph]

Hi,

We have to rehire a pensioner and pay pension (monthly) as well as salary (bi-weekly). Person was an employee before, got retired and changed employment status to retiree and is currently receiving pension through the pension payroll. In legacy it is done by assigning separate pernr for the pensioners so that processing is isolated between employee status and pensioner status of the same person. What would be the best practice in this scenario? Appreciate all comments.

Joe

[former_member193210 · Accepted solution]

I'd do the same in SAP, rehire the employee under a new employee number, and you could use IT0031 to link them (IT0002, IT0006, IT0009).

[jjoseph · Accepted solution]

Thank you Remi. I am already inclining more towards the same. Appreciate your input. Just wanted to hear from anyone who experienced a similar situation. What are the pros and cons.

Joe

[former_member235056]

Hi Joe,

I would say you should be able to use a different employee group/subgroup as Pensioner for same employee by running action to rehire employee with Active status then and only pay him whats needed.

I am unsure why you would need a different personnel number although I have seen many employers use this approach of new personnel number as it is easy to be done and monitored.

It really depends upon how your want to do year end reporting for same person.

Thanks,

Ameet

[jjoseph]

Hi Ameet,

Thank you for the response.

Please note that the pensioner is getting both pension payments and salary from the company. Moreover, pension payroll has to run on a monthly schedule and salary is run bi-weekly. As Remi mentioned, we need 2 personnel numbers in this scenario to handle both payroll areas and different schedules. If we could pay the pension using the salary payroll, your suggestion is the best option. Another variable is the company code / personnel area. Pensioner is on a separate company code than the regular employee.

Regards, Joe