Requirement of 4 savings plan and employer contribution cap

[Rahul_Rathi]

Hi,

We have a requirement where we have 4 savings plan - RRSP , TFSA and two others for the employees in Canada. Employee contribution and employer contributions for these saving plans are percentages of annual salary and editable by the employee. The Employer matches double of the employee contribution subject to a maximum of 10% across all the 4 savings plans. Since both the employee and employer contributions have to be replicated to EC payroll and the country is non USA, savings plan (which is for USA only) and other pension plans were ruled out and the only option we had to implement this was Workplace Pension Plan. Workplace Pension Plan does not allow multiple pension funds and allows single pension fund only and therefore we had to create 4 Benefits of type Pension / Retirement Savings Plan, one for RRSP, one for TFSA, and so on for the other two. When we are saving 1 of those 4 benefits we are not able to get the employer contributions employee has saved in other 3 and implement the 10 % employer contribution cap through a business rule. Any inputs on how we can implement this requirement of 4 savings plan and meet the 10 % employer contribution cap.

Example for the above question:
There is an employee A who has the options of choosing from 4 different plans - RRSP, TFSA, Plan X, Plan Y. Employer will match double of the employee contribution to a max of 10%.

Employee A goes to the RRSP plan, enters  3% employee contribution,  6% of employer contribution and saves the plan.
Then he goes to TFSA plan and specifies employee contribution % to 3% and specifies employer contribution % again to 6%. While saving the TFSA plan contributions,  system should know that employee had selected 6% RRSP employer contribution  and now 6% TFSA contribution will make employer contributions ( RRSP 6% + TFSA 6%) above the employer 10% max cap and the system should throw an error that employer % exceeds the 10% limit.

If employee changes employer contribution % on TFSA to 4% then employer contributions ( RRSP 6% + TFSA 4 %) follow employer 10% max cap and employee should be able to save the TFSA contribution.

So basically while saving each plan the system should know the employer contributions in the other 3 plans and ensure that they do not exceed the employer 10% cap.

Thanks a lot for your help.
Regards,
Rahul

[SimarK]

Hi Rahul, 

Can you share an example to help me understand?

Best

Simar

[Rahul_Rathi]

Thanks SimarK for your comment. I can give you an example:

There is an employee A who has the options of choosing from 4 different plans - RRSP, TFSA, Plan X, Plan Y. Employer will match double of the employee contribution to a max of 10%.

Employee A goes to the RRSP plan, enters  3% employee contribution,  6% of employer contribution and saves the plan.
Then he goes to TFSA plan and specifies employee contribution % to 3% and specifies employer contribution % again to 6%. While saving the TFSA plan contributions,  system should know that employee had selected 6% RRSP employer contribution  and now 6% TFSA contribution will make employer contributions ( RRSP 6% + TFSA 6%) above the employer 10% max cap and the system should throw an error that employer % exceeds the 10% limit.

If employee changes employer contribution % on TFSA to 4% then employer contributions ( RRSP 6% + TFSA 4 %) follow employer 10% max cap and employee should be able to save the TFSA contribution.

So basically while saving each plan the system should know the employer contributions in the other 3 plans and ensure that they do not exceed the employer 10% cap.

Hope this clarificaiton helps. Thanks for your help.

[I064341 · Accepted solution]

Hi Rahul,

Currently the multiple funds are not supported in Workplace pension. 

As a workaround, you can try a business rule on save of each pension benefit that you configure. The business rule should be configured to read the look up object 'Benefit Enrollment' and check if user has already enrolled into other pension benefits and what is the employer contribution saved in that benefit. You can throw an error message on save of enrollment if the sum of Employer contirbution of all pension benefits exceed 10%.

This rule should be on save of Benefit enrollment object, and in the rule you can mention the benefit names for which it needs to be executed and read the employer contributions.

I am not sure if you are using workflows for Benefit enrollment, because if the enrollment is in pending then this rule cannot validate the Employer contribution information from Benefit enrollment object, as it only retrieves the active or approved enrollments data.

Regards,

Bijo