How To Fix HRPAYDESV274 - Standard retirement age has been reached. PI exemption is possible.

SAP Error Message - Details

• Message type: E = Error

• Message class: HRPAYDESV - Error Messages Germany Payroll, Social Insurance

• Message number: 274

• Message text: Standard retirement age has been reached. PI exemption is possible.

What causes this issue?

The standard retirement age is reached in this payroll period. There is
then an exemption from pension insurance for employed pensioners.

How to fix this error?

This means that the employee no longer has to pay an employee
contribution to pension insurance. An employer's contribution only has
to be paid. This means that as of this payroll period, PI indicator 3
(half contribution) must be entered in infotype 0013 (Social Insurance)
and person group 119 (pensioners) must be entered in infotype 0020
(DEUEV). This means that this employment no longer results in an
increase to the pension.
However, the employed pensioner can waiver his exemption from pension
insurance by making a declaration to the employer. This waiver may only
be effective in the future and for the duration of the employment. The
additional legal rights to pension payments acquired from obligatory
contributions in a calendar year are considered and increase the pension
as of July 1 of the subsequent year. As of the day after this waiver, PI
indicator 1 (full contribution) must be entered in infotype 0013 (Social
Insurance) and person group 120 (pensioners liable to insurance
contributions) must be entered in infotype 0020 (DEUEV).
Note:
For employees who were exempt from pension insurance on December 31,
2016 as they were receiving pension payments and who have not yet
reached the standard retirement age, the continuance right regulation
applies and the employment is also not subject to pension insurance
after December 31, 2016. If the employee has waivered this insurance
exemption by making a declaration to the employer, this waiver
declaration still applies after the standard retirement age has been
reached. This means that PI indicator 1 (full contribution) must still
be entered in infotype 0013 (Social Insurance) and person group 120
(pensioners liable to insurance contributions) in infotype 0020 (DEUEV).

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message HRPAYDESV274 - Standard retirement age has been reached. PI exemption is possible. ?

  The SAP error message HRPAYDESV274 indicates that an employee has reached the standard retirement age, which is defined in the system. This message typically arises in the context of payroll processing, particularly when dealing with pension insurance (PI) contributions.
  Cause:
  
  Retirement Age Reached: The employee has reached the age defined as the standard retirement age in the system. This age can vary based on country-specific regulations and settings in the SAP system.
  Pension Insurance (PI) Exemption: The message suggests that while the employee has reached retirement age, there may be an option for exemption from pension insurance contributions, depending on local laws and regulations.
  
  Solution:
  
  Review Employee's Age: Check the employee's date of birth and ensure that the system correctly calculates their age.
  Check Retirement Age Settings: Verify the standard retirement age settings in the system. This can usually be found in the configuration settings for the country-specific payroll.
  Evaluate PI Exemption: If applicable, determine if the employee qualifies for a pension insurance exemption. This may involve checking local labor laws or consulting with HR or legal advisors.
  Adjust Payroll Processing: If the employee is eligible for exemption, ensure that the payroll processing logic is set up to reflect this. This may involve adjusting the employee's infotype records (e.g., IT 0000, IT 0001, IT 0014) to indicate the exemption.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling retirement age and pension insurance exemptions in your version of SAP.
  
  Related Information:
  
  Country-Specific Regulations: The standard retirement age and pension insurance rules can vary significantly by country. Ensure that your SAP system is configured according to the local laws.
  Infotypes: Familiarize yourself with relevant infotypes in SAP HR, such as:
  
  IT 0000 (Actions)
  IT 0001 (Organizational Assignment)
  IT 0014 (Recurring Payments/Deductions)
  
  
  SAP Notes: Check for any SAP Notes related to this error message for updates or patches that may address specific issues.
  Testing: After making any changes, conduct thorough testing to ensure that payroll calculations are correct and that the error message does not reappear.
  
  If the issue persists after following these steps, it may be beneficial to consult with an SAP HR expert or your organization's SAP support team for further assistance.