Saskatchewan Teachers Pension – User Guide
The Saskatchewan Teachers pension is handled through the setup of the Group 1 Type 6 pension deduction along with some values defined under the Saskatchewan Teachers Profile. The Saskatchewan Teachers pension eligible and deduction amounts are both calculated based on the employee's daily rate. The Group 1 Type 6 pension deduction calculates the pensionable eligible and pension deduction amount as separate calculations. This Group 1 Type 6 deduction allows for employer paid benefits to be included as pensionable earnings in the calculation of the pension eligible and deduction amount.
The Saskatchewan Teachers and Substitute payrolls may be paid using a different number of School days than total pension days. Each payroll must define the School and Pension days per year in the Saskatchewan Teacher Profile. Pension days are the employee's paid days multiplied by the pension day's conversion factor of total Pension days divided by total School days. For example, if the current years School days is 195 while the pension days are 197 then the pension days conversion would be 197/195 = 1.01256. Within the payroll system the employee's paid days will be reported with the 19.50 days per month with the pension days converted to the 19.70 days. The pension formula including yearend recalculation and retro are based on the pension days.
The daily rate is calculated by first accumulating all earnings and pension days defined as regular salary. Regular salary pay codes are those defined as Contract Salary Pay Codes on the Saskatchewan Teacher Profile for payrolls with the profile set for Teachers.
The actual eligible earnings and eligible pension days are the total earnings and pension days for all applicable pay codes an employee was paid under. This may include docking pay codes.
For Substitutes pension, as defined in the Saskatchewan Teacher Profile, the daily rate is defined as the total eligible earnings divided by the total eligible pension days paid.
NOTE: Saskatchewan has two different Teacher pensions, TSC and STRP. The STRP pension calculation does not include the use of the Daily CPP Exemption. A zero would be entered in the second position of the EXTRAS line in this situation. The Daily YMPE entered on the EXTRAS line for TSC is reduced by the Daily CPP Exemption amount, while the Daily YMPE for the STR is the full amount.
Example of EXTRAS line for TSC pension:
.0605/17.77/.0785/180.71/10/200109/200206/99/190/197/
Example of EXTRAS line for STR pension:
.0700/0/.0900/198.48/10/200109/200206/99/190/197/
The calculation of the pension eligible is as follows:
Daily amount = | accumulated regular salary divided by accumulated regular pension days. |
Eligible = | daily amount multiplied by the full eligible pension days (includes any docking) |
Annual Eligible = | eligible multiplied by the employee's number of pay periods in year (as defined by the employee's pay cycle code). |
Eligible = | Annual eligible divided by pension periods (number of pay periods defined in the 5th position of the EXTRAS line). |
Eligible = | Eligible plus 10-month salary, when applicable. Where: earnings that are defined as 10-month salary only when the pay code is defined under field 08=TEN Month Salary Pay Codes on the Saskatchewan Teacher Profile. |
Eligible = | Eligible plus pension taxable, when applicable. Where: an employer paid benefit was included on field 20=DEDS [I/DD, /DD,] for the specific Group 1 Type 6 pension deduction. This final eligible is reported as the employee's pensionable eligible. |
The calculation of the pension deduction amount is as follows (for STR, where there is a reference to the CPP Exemption insert zero):
Annual salary = | accumulated regular salary multiplied by the employee's number of pay periods in year (as defined by the employee's pay cycle code). |
Annual salary = | annual salary plus annualized 10-month salary, where: earnings that are defined as 10-month salary only when the pay code is defined under field 08=TEN Month Salary Pay Codes on the Saskatchewan Teacher Profile. |
Annual salary = | annual salary plus annualized pension taxable, when applicable. Pension taxable are annualized base on 10 months. where: an employer paid benefit has been included on field 20=DEDS [I/DD, /DD,] for the specific Group 1 Type 6 pension deduction. |
Annual days = | accumulated regular pension days multiplied by the pension periods (number of pay periods defined in the 5th position of the EXTRAS line). |
Daily Rate = | Annual salary divided by the annual pension days. |
Pen1 Rate = | Daily CPP Exemption amount (2nd element from EXTRAS line). |
Pen2 Rate = | Daily Rate minus the Daily CPP Exemption amount |
When Pen2 Rate is greater than the Daily YMPE (4th element from EXTRAS line) then: PEN1 Rate = Pen2 Rate (from above) minus Daily YMPE plus Daily CPP Exemption PEN2 Rate = Daily YMPE | |
Daily Pen = | Pen2 rate times rate (%1) in first position on EXTRAS line plus Pen1 rate times rate (%2) in third position on EXTRAS line. |
Daily rate = | Annual salary divided by the annual days - pen1 rate = amount of daily rate less Daily YMPE plus Daily CPP Exempt. |
Pen2 rate = | Amount of daily rate that exceeds the Daily YMPE less the Daily CPP Exempt. |
Daily pen = | Pen1 rate times rate (%1) in first position on EXTRAS line plus pen2 rate times rate (%2) in third position on EXTRAS line. NOTE: Employees marked with VOPP have the full daily rate taken at the higher percentage |
Deduction amount = | Daily Pen multiplied by the full eligible pension days (includes any docking) |
The Saskatchewan Teachers Pension also includes a school year end (June) which is controlled based on the values defined in the sixth to tenth positions on the EXTRAS line. RECAL YYYYPP (position 7) defines which pay period the recalculation will take place. LOW LIMIT (position 9, e.g.: 190) and UPPER LIMIT (position 10, e.g.: 197) define if an employee's total number of pensionable days needs to be adjusted during the school year end recalculation.
When an employee was paid for 190 or more pension days but less than the full 197, the employee must have the pension adjusted up to the full 197 days for the school year. The Fall YYYYPP (position six) defines the beginning of the school year. All school year totals are based on the accumulation of year to date records from the Fall period to the RECAL period, including the current values from the RECAL pay period.
When an employee requires a bump up of pensionable days:
Total pensionable days - accumulated pension days paid including docking for the school year.
Adjustment days = 197 (or UPPER LIMIT) less total pensionable days. No bump up occurs when the employee's total pensionable days equals 197.
The number of adjustment days are then applied to specific months where absences occurred or more specifically when an employee has less than 19.70 days paid in a month. The adjustment days are applied starting at September (or Fall pay period) until all adjustment days have been applied.
The additional pensionable eligible and deduction amount applicable to these adjustment days is calculated and added to the employee's current pay period pensionable eligible and deduction amount. The daily rate used on all adjustments is based on the daily rate in effect during that month.
When an adjustment occurs in the current calendar year (January to June) the current pension deduction rates are used from the EXTRAS line using the same calculation process as defined under the deduction calculation definition.
When an adjustment occurs to the Fall months the system will refer to the Fall Rates fields on the Saskatchewan Teacher Profile. These Fall Rates fields allow a means to define the rates that were in effect during the fall months. Two Fall Rates fields are supplied to accommodate the two different Saskatchewan pension plans rates.
A special report is generated during the Payroll Processing phase of the payroll run for the RECAL pay period. Report #####S.LST, where ##### is the first five characters of the job number, details the employee existing annual pension values, pension adjustments and final pension values.
Each adjustment will list the month, the number of days applied, pension eligible and deduction amount calculated for the month. This detail is carried over to the Saskatchewan Pension Generation Report for reporting to the pension board.
When the Payroll Update is processed for a RECAL pay period the total adjustment days are recorded as a Year to Date Adjustment using the Pay Code defined in the eighth position of the EXTRAS line. If there is any possibility that an employee will have both Saskatchewan pensions at the same time, then the Pay Code used on the two pension deductions should be two different pay codes.
The month-based details of the adjustment days are recorded under a separate history file. The details of the adjustments will be picked up and included on the Saskatchewan Pension Generation Report when the report is run for or including the RECAL pay period. On the monthly report, each adjustment will list the month, the number of days applied, pension eligible and deduction amount calculated for the month. These details will also carry through to the pension electronic file.
The Cheque Cancellation process will also reverse these adjustments should be employee's cheque be cancelled to ensure correct recalculations on any special pay runs.