What is retained pay plan in SAP PSM-FG - Functions for U.S. Federal Government?

SAP Term: retained pay plan

• Component: PSM-FG

• Component Name: Functions for U.S. Federal Government

• Description: The pay plan an employee retains when moving to a position in a covered pay schedule that is lower in grade than the position held immediately prior to a demotion that resulted from a reduction in force, a reclassification, or a management decision as described in 5 CFR 536.103b

Smart SAP Assistant

• Key Concepts: 
  Retained pay plan is a feature of the SAP PSM-FG Functions for U.S. Federal Government component. It allows agencies to retain a portion of an employee’s salary for a period of time, usually up to one year, and then pay it out in a lump sum at the end of the period. This feature is used to incentivize employees to stay with the agency and to reward them for their performance. 
  
  How to use it: 
  To use the retained pay plan feature, an agency must first set up the plan in SAP. This includes defining the parameters of the plan, such as how much of an employee’s salary will be retained and for how long. Once the plan is set up, it can be applied to individual employees or groups of employees. The employee’s salary will then be adjusted accordingly and the retained amount will be paid out at the end of the period. 
  
  Tips & Tricks: 
  When setting up a retained pay plan, it is important to consider how long it should last and how much of an employee’s salary should be retained. It is also important to ensure that all employees are aware of the plan and understand how it works. 
  
  Related Information: 
  For more information on setting up and using retained pay plans in SAP PSM-FG Functions for U.S. Federal Government, please refer to the official SAP documentation.