Presented by: Cheryl Whitmore Date: 16th March 2015 Session 41 Implementation of Total Remuneration Salary Package Structure (TRP) at UKZN (Adapt IT perspective) Presented by: Cheryl Whitmore Date: 16th March 2015

Implementation of TRP at UKZN Contents Pre-implementation Implementation Local Software Development Questions

TRP implementation at UKZN Pre-implementation process Workshop Client’s expectation (goal to be achieved) Current process (existing /new structure) Existing, maintained on a spreadsheet Employee categories to be moved onto TRP Structure

TRP implementation at UKZN Pre-implementation process Components of TRP Pensionable salary = determined by employee, between 50 and 100% of total TRP Pension /Provident Funds = 7 Funds, variable percentage Medical Aid = 2 Funds Group Life = 2 Funds Bonus Provision (monthly tax on bonus offered) Pension Provision on Bonus Provision = 4 of 7 funds Executive Allowance Car Allowance Travel Allowance Housing Allowance Medical Allowance Non pensionable earnings (balancing factor)

TRP implementation at UKZN Pre-implementation process Identifying /prioritizing any potential Local Software development In Scope (Adapt IT) /Out of Scope (UKZN) responsibilities Timeline (High Level) Minutes of Workshop Project Plan /Time Line /Quote Acceptance of quote /Start Date & Delivery Date set Critical area = Time Line /Commitment to project

TRP implementation at UKZN Implementation process Refresh of Test Machine TRP employees moved onto unique calc number, salary calc run (before image), rollback New Appointment Types defined, access control setup Service Records {PBOP-2} Backup of table (PAQSAL) Conversion Codes Existing Service Record ended, new Service Record started Future Service Records

TRP implementation at UKZN Implementation process Salary Notch {FPRI-1 pg5} Backup of table (FTDSER) New Notch inserted (total TRP), with Note Code indicating TRP Implementation Future Salary Notches

TRP implementation at UKZN Implementation process Design of Structure

TRP implementation at UKZN Implementation process ED Code P010 - TRP Pension /Provident Fund (7 Funds)

TRP implementation at UKZN Implementation process ED Code P045 - TRP Pension /Provident Provision on Bonus Provision (4 of the 7 Pension /Provident Funds)

TRP implementation at UKZN Implementation process ED Code P050 – TRP Non Pensionable Earnings (Total TRP less Components = Non Pensionable Earnings)

TRP implementation at UKZN Implementation process Bonus calculation rules Tax on Bonus calculated either monthly or annually Bonus payment: accumulated monthly bonus provision (C4 employees) or Fund Salary (non C4 employees) Bonus may be pensionable or non-pensionable For both C4 and non C4 employees; 7 Pension /Provident Funds of that 4 funds pensionable, 3 funds non-pensionable The bonus provision accumulated for C4 employees prior to TRP implementation to be included in Bonus payment after TRP implementation

TRP implementation at UKZN Implementation process Design of Bonus calculation

TRP implementation at UKZN Implementation process Bonus Calculation (Local Software Development) Package developed to use with Calc Method ‘I’ To identify C4 employees (Personnel Indicator {PBOP-22}) To identify which ED codes used in previous months salary calculations are to be summed for bonus payment To identify the period to be summed, service period, broken service, maximum 12 months New SOD developed on {FPRM-9} ED Group defined on {FPRC-7}

TRP implementation at UKZN Implementation process ED Code C011 – TRP BONUS FOR C4 EMPLOYEES ONLY (C4 employees only, sum actual Bonus Provision from salary transactions table (FSFTRN) for maximum 12 months prior to bonus month, taking into account service period

TRP implementation at UKZN Implementation process ED Code C012 – TRP C4 Fund Salary Bonus Contra (For C4 employees, where actual Bonus provision is calculated (ED C011) contra out the Fund Salary Bonus (ED C010))

TRP implementation at UKZN Implementation process ED Code C013 – TRP Bonus Non Pensionable (For all TRP employees (i.e. C4 and non C4), if employee belongs to Pension /Provident Fund where Bonus is not pensionable, contra out the Bonus at pensionable salary level)

TRP implementation at UKZN Implementation process ED Code 0150 – Bonus (Sum all Bonus transactions, print on payslip set to yes)

TRP implementation at UKZN Implementation process Design Global transactions for new Appointment Types {FPRG-7} New TRP ED Codes Merge existing structure Identify existing Individual Transactions that form part of TRP, for TRP employees that need to be converted to new ED Codes {FPRI-2} End existing transaction Create new transaction using TRP ED Code Pension Level conversion Create Individual Transactions for Bonus Provision Accrual (pre TRP Implementation) and contra entry Create scripts to insert data (no manual capturing)

TRP implementation at UKZN Implementation process Backup tables Transfer and run scripts Re-run salary calc, testing Handover meeting with UKZN in order for UKZN to start extensive testing Production Machine Client to give go-ahead Backup of all applicable tables Selects re-run on Individual Transactions, compared to previous data Scripts transferred and run Output files verified Extensive testing by UKZN Go-live

TRP implementation at UKZN Local Software Development (excluding Bonus calculation discussed earlier) Back port development of Calc Method ‘I’ to Integrator 1 Report to identify employees who have a negative TRP Non-Pensionable amount, prior to running the salary calc New SOD on {FPRM-9} ED Group defined on {FPRC-7}

TRP implementation at UKZN Questions

Disclaimer The information, comments and material presented in this presentation are provided for information purposes only. The presentation is not addressing all possible technical or business aspects and does not claim to be complete or exhaustive. Adapt IT reserves the right to change its business or product development plans as circumstances dictate. This document may not be reproduced or distributed without the written permission of Adapt IT.

Thank you