Overview of the iEnabler TGP (Total Guaranteed Package) Salary Structure {P00005-28}

This option provides the facility for Personnel Members to access and maintain their TGP salary structures.

The following options are available, however, depending on the status of a person and the rules defined in {PTGP-1}, a maximum of one option will only be available to a person, at any given time.  If a person does not meet the rule requirements, then no options will be available:

• Convert from a Salary + Benefit Salary structure to a TGP Salary Structure
• Maintain TGP Salary Structure i.e., change from one Medical Aid Provider and / or Plan to another.
• For newly appointed personnel to setup their TGP Salary Structure

General Processing Rule

•  The options mentioned above are controlled by rules setup in {PTGP-1}.

•   Based on the status of the person or rules defined, only one of the three options will be available to a personnel member at any given time, or none.

• In {PTGP-1} for each TGP Component, rules may be setup regarding allowed changes as well as what the effective payroll cycle will be for the component changes, which may be a current payroll cycle if cycle date is null or a future payroll cycle as defined.

• Whether a change becomes effective immediately is not only dependant on the payroll cycle linked to the rule, but also on the date it is approved (if approval is required else it will be deemed approved).  In {PTGP-1} Tab 1, SOD ‘X1’ a cutoff date is setup (allowed values between 1 and 31), therefore, if the value of  ‘X1’ is set to 20, Event Type C in {FPRM-2} is set to 202306 and the system date = 15 June 2023 and the change is approved on 15 June 2023 (i.e. before or on the cutoff date (20)) then the change will become effective in the current Payroll cycle of 202306. If this change is approved on 23 Jun 2023, then the change will only become effective in Payroll cycle of 202307. 

• All changes are written into a staging table with an effective cycle and may only be copied into the back office, in the cycle in which they become effective.  {PTGPR-2} must be run to copy changes to the back office and Event Type C must be set to the correct payroll cycle for which changes are being copied. Until changes have been copied into the back office, they will not be effective or active.

• {PTGPR-2} can be setup to run via the scheduler on an hourly / daily / weekly basis as required.

• Personnel may be given access to use this functionality, on behalf of another personnel member; this includes:

• Convert to a TGP Salary Structure
• Change/Maintain the person's Salary Structure
• Structure a TGP Salary structure for a new employee. 

          The setup of this is done in {PTGP-2}. 

• Validations are done to ensure that the structuring of TGP Packages, both new employees and existing employees making changes, equals the total TGP Package amount, which is stored at Salary Notch Level {FPRI-1}.  If these amounts do not balance, or if there is a negative Non-Pensionable Allowance amount (used as the variable), the process will be stopped, and an error message displayed.

Convert to TGP Salary Structure

•   If a person is currently on a Salary + Benefits Salary Structure and the rules in {PTGP-1} allows the person to convert to a TGP Salary structure, i.e. Tab 2 and 3 for the person’s current Appointment Type and / or Grade and Rank and the system date falls within the From and To Date for which the rules are active, then the Button for the first option mentioned above will be active on the iEnabler in the Personal Confidential Information under the Total Guaranteed Package (TGP) Option.

• The TGP Components that form part of the new TGP Salary Structure for the person is determined in {PTGP-1} tabs 4, 5 and 6.  These tabs define the Salary + Benefit ED Codes to be converted to TGP Salary Structure ED Codes and include both Global ED Codes as well as Individual ED Codes

• The TGP Conversion process will result in a person having the same Earning and Deductions and linked to the same Fund Codes, however in the conversion, different ED Codes are used.

•  The PAYE and Net Pay will remain the same

• It is not advisable to allow conversions during a General Increase cycle, as the employee needs to compare their usual Standard Salary + Benefit Salary Structure to the new TGP Salary Structure. 

• If a person converts to a TGP Salary Structure the following happens on approval of the conversion, after the implementation of the TGP Conversion was run:

• The system will create a Notch record in {FPRI-1} with TGP Indicator = 'Y' and Pensionable Salary % as calculated.

•  The new Notch value is the annual Total Guaranteed Package vs the old Notch value, which was the Pensionable / Basic Salary amount.

• A new Service Record is created {PBOP-2} with the new TGP Appointment Type and Service Record Indicator.

• Individual Transactions as applicable will be ended and new transactions started, using the new TGP ED Codes.

• Future salary calculations will use the Global setup of the new TGP Appointment Type.

• Nett Pay, PAYE, Contribution to Funds etc. will remain the same in the conversion month.

• When future increases are implemented, the Notch value will always be the total TGP Salary Package, with Pensionable % defined and TGP Indicator set to ‘Y’.  The Global setup will calculate the new component values ensuring the total package amount is never exceeded in the structuring.

• All conversions require an Approval. The conversion is approved as one process by one-person, individual TGP components are not approved individually.

• If for any reason the conversion process does not balance between the Salary + Benefit Salary Structure and the TGP Salary Structure, the process is stopped, and an error message is displayed.

•  If the option is selected, the system will calculate the new TGP Salary Structure and display proformas for both the Salary + Benefit Salary Structure and the TGP Salary Structure for the person to compare.

•  The person may then submit the TGP Salary Structure conversion for approval, or clear the calculation and exit.

• Conversions are written to a stagging table and {PTGPR-2} must be run to copy these changes into the back office to make them active and effective.  {PTGPR-2} can be setup to run via the scheduler on an hourly / daily / weekly basis as required.

If a conversion does not balance



If a conversion balances

Changes to TGP Salary Structure

• A person must be on a TGP Salary Structure and have been on the TGP Salary Structure for a minimum of 1 cycle, in order to make changes to their package components i.e. the person must be linked to TGP Appointment Type and have a TGP Notch where TGP Indicator is set to yes, with cycle date minimum of 1 cycle less than sysdate.  If these conditions are not met, the person will not be able to access this functionality.

• Rules are setup on {PTGP-1} Tab 7 and 8 for Process Type E -Existing or All per component, per TGP Appointment Type and Rank and / or Grade, To and From Date for which a change may be made, the effective cycle of the change, whether approval is required for the change, whether supporting documentation must be attached and the ‘help note’ to be displayed. See below.

• PP - Pensionable %:

The rules will determine a valid % range.

• BP - Bonus Provision:

This Component cannot be set to Yes or No and is a display option only.  A Bonus Provision is determined by the TGP setup and whether a person has a bonus month defined or not.

• BM - Bonus month:

Allows the user to make changes to their Bonus Month and to decide if a Bonus will form part of their TGP Package structure.

The following options are available:

• X - No Bonus
• S - Subsidy Month (Bonus month = Apr (for birth month Jan-Mar, rest=Birth month)
• D - December Bonus Month
• J - January Bonus Month

•  
• B - Birth Month Bonus Month

• TB - Tax on Bonus:

Allows the user to select taxing their Bonus either Annually (when received) or Monthly.  These changes should only be applicable for March payroll cycle:

• A - Annually 
• M - Monthly

• HA - Housing Allowance:

The rule will determine how the user can apply changes to the Housing Allowance.  It is based on:

-        A valid % determined by the Min and Max % of Pensionable Earning rule OR

-        Max % of Pensionable % rule OR

-        An amount determined by the Min and Max amount rule OR

-        Max % of TGP Total rule OR

-        Using the Old and New Fund Code Rule, a LOV of valid Fund Codes.  Only Fund Codes where the Fund Type = 'O'ther may be selected here.

• TA - Travel Allowance:

The rule will determine how the user can apply changes to the Travel Allowance.  It is based on:

-        A valid % determined by the Min and Max % of Pensionable Earning rule OR

-        Max % of Pensionable % rule OR

-        An amount determined by the Min and Max amount rule OR

-        Max % of TGP Total rule OR

-        Using the Old and New Fund Code Rule, a LOV of valid Fund Codes.  Only Fund Codes where the Fund Type = 'O'ther may be selected here.

•  Other 1 - 5:

These TGP components were created for non-standard components and rules as defined above may be defined.  

• GL - Group Life:

Allows the user to make changes to their Group Life.  This is defined using the Old and New Fund Code rule.  A LOV of valid Fund Codes will display, only Fund Codes where the Fund Type = 'G'roup Life will appear on the LOV.  

• RF - Retirement Fund:

Allows the user to make changes to their Retirement Funding.  This is defined using the Old and New Fund Code Rule.  A LOV of valid Fund Codes will display, only Fund Codes where the Fund Type = P - Pension, R - Retirement Annuity or V - Provident Fund will appear on the LOV from which the user may select a valid Option.   

• MA - Medical Aid:

Allows the user to make changes to their Medical Aid provider / plan.  This is defined using the Old and New Fund Code rule.  A LOV of valid Fund Codes will display, only Fund Codes where the Fund Type = 'M'edicalAid will appear on the LOV from which the user may select a valid option.  

• DP - Dependants:

Allows the user to add new Dependants and maintain existing dependants, as defined.

•  Once the user has applied all required changes, they may then click on the 'Submit for Calculation' button

• The system will calculate the effect of the changes selected and display before and after proformas for each effective cycle, for which a change is being made.

• Changes to TGP Components may not exceed the total TGP Package amount (Notch record in FPRI-1 where TGP = 'Y').  This is controlled by the sum of all TGP Components that must equal the TGP Amount.  Where exceeded, the program will stop the process and display an error message.

• If satisfied with the changes and effect on the payslip, the user may submit for approval or may clear the calculation, make further changes or exit.

• Changes are written to a stagging table and {PTGPR-2} must be run to copy these changes into the back office to make them active and effective.  {PTGPR-2} can be setup to run via the scheduler on an hourly / daily, weekly basis as required.

Example

New Employee TGP Salary Structure.

• For a new employee to structure their TGP Salary Package, the employee must:
•  Be appointed with a Service record linked to a TGP Appointment Type as defined in {PACS-1}. 

• Have a Notch record in {FPRI-1} where the TGP Indicator = 'Y' and the Pensionable % is null.

• Functionality exists, for newly appointed employees to use this functionality and structure their TGP Packages prior to their official Appointment Date.  The employee must be linked to the Personnel Indicator defined for SOD ‘X7’ as set up in {PTGP-1} Tab 1.

• The rules defined on {PTGP-1} Tab 7 and 8 for Process Type N -New or All will determine the requirements per component. This has been detailed above

• Once the user has selected the applicable option per TGP Components they may click on the 'Submit for Calculation' button to view the results.

• The system will calculate and display a proforma payslip, for the Appointment cycle.

•  The selection of TGP Components may not exceed the total TGP value (Notch record in FPRI-1 where TGP Indicator = 'Y'), this is controlled by the sum of all TGP Components that must equal the TGP Value, where exceeded the program will stop the process and display an error message

• The user may submit the New TGP Salary structure for approval, if they are satisfied with the proforma calculations and the effect of options chosen or clear the calculation and exit or return to the TGP Component screen to make changes.

• The Salary Structure request must be approved and each TGP Component selected that requires approval as defined on {PTGP-1} Tab 4 is required to be approved separately.

• Changes are written to a stagging table and {PTGPR-2} must be run to copy these changes into the back office to make them active and effective.  {PTGPR-2} can be setup to run via the scheduler on an hourly / daily, weekly basis as required.