TOTAL REMUNERATION PACKAGE IMPLEMENTATION

Background Total Remuneration Package – 2009 Executives and Senior Management. Less than 50 employees. Increase - All new Appointments on TRP. 2012 CoS Excel Spreadsheet to calculate the package breakdown.

Components of TRP Pensionable Salary – Employee option between 55% to 80%. Bonus (if applicable) Medical Aid. Retirement Fund. Travel Allowance. Non Pensionable Earnings – Balance of Package.

Manual Calculation and Updates

Challenges Manual Updates – Risk of possible errors on the payroll masterfile due to the increase in the number of staff on TRP – 900 employees. Increase Workload – General Increase, Medical Aid Increases, Addition and Deletion of dependants. Package Value and Pensionable Percentage not readily available to view on the ITS system. Payroll Staff to provide details from excel spreadsheet – values may not be the same as per the salary calculation. Different Conditions of Service, Pension on Bonus, Contribution Rates, etc

Development Workshop with Adapt IT. UKZN Presented all requirements and processing rules in terms of the TRP structure and calculations. Processing rules were determined by the respective Conditions of Services, Retirement Funds, Medical Aid Schemes, Bonus Calculation (Pensionable/Non Pensionable/Accrued Method, etc.

TRP Processing Rules Total Package Value R 500 000.00 Pensionable Salary @ 60% R 300 000.00 Bonus – 1/12 of Pensionable Salary R 25 000.00 Retirement Fund R 45 000.00 Medical Aid R 64 000.00 Sub Total R 434 000.00 Non Pensionable Earning (Balance of Package) R 56 000.00

Design Fpri option 1- TRP Value Updated in Notch Field. Fpri option 2 – pensionable percentage. Non Pensionable Earnings automatically calculated by system. Negative NPE – Pensionable earnings reduced. Report to identify negative values.

Fixed Salary Detail Update – FPRI – 1

Individual Update – FPRI - 2

Implementation Project Team – Payroll/HR and IT Department, Adapt IT. Critical tasks were assigned – deadlines. UKZN: Creation of appoint types – due to employees on existing fund salary. Provide List of Earning Codes for the TRP calculations. Provided list of staff on TRP with the respective pensionable percentage. Provide Bonus listing on Employees on Accrued method.

Earning Code for TRP Calculations

Testing Verified all employees on TRP were moved to the new appointment types. Identified employees from the different Condition of Service, Bonus, Retirement Funds, Travel Allowance, Medical Aid Scheme, etc. Proforma’s generated for each of the different scenario’s and verified against previous month’s compensation summary report. Full Salary Calculation and Variance Report generated and verified.

Live Rollout – June 2014 Followed same process as per testing. Proforma’s generated and verified. Full Calculation and Full Variance report generated. All Transactions verified and sign off. TRP implementation successfully completed….

Full Variance Report – June 2014

Value Add of the New TRP System Created an efficient and accurate process flow within the payroll function – no excel calculation. Reduction in work time on manual calculations. The TRP value and pensionable percentage is easily available on ITS.

Value Add of the New TRP System December 2014: Medical Aid Increase: New Rates updated on the system. TRP package automatically calculated to reflect the new values – 800 employees. No manual calculations.

December 2014 Variance Report

Value Add of the New TRP System January 2015 – General Salary Increase: TRP values on FPRI – 1 – Notch Table increased programmatically by the percentage increase. No Manual calculations. New package values automatically calculated.

January 2015 Variance Report

Future Enhancements to the System Pensionable Salary Value to be display in FPRI-1. Pensionable Percentage Value to be displayed in FPRI-1. Back Pay Program for Salary Increases.

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