What is 'pension scheme' in SAP PY - Payroll?

pension scheme - Overview

• Component: PY

• Component Name: Payroll

• Description: A plan to save money for life after retirement.

pension scheme - Details

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  Key Concepts: 
  A pension scheme is a type of retirement plan that provides employees with a regular income after they retire. It is typically funded by contributions from both the employer and the employee, and is managed by a third-party provider. In SAP Payroll (PY), pension schemes are used to manage the contributions and payments associated with an employee's retirement plan. 
  
  How to use it: 
  In SAP Payroll, pension schemes are set up in the system by defining the contribution rates, payment terms, and other details associated with the plan. Once the scheme is set up, it can be assigned to individual employees or groups of employees. The system will then automatically calculate and process the contributions and payments associated with the scheme. 
  
  Tips & Tricks: 
  When setting up a pension scheme in SAP Payroll, it is important to ensure that all of the details are correct. This includes setting up the correct contribution rates, payment terms, and other details associated with the plan. Additionally, it is important to ensure that all of the employees who are assigned to the scheme have their personal information correctly entered into the system. 
  
  Related Information: 
  For more information on setting up pension schemes in SAP Payroll, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide