Creating lump sum pension payments

Note: If you make a change to an existing lump sum payment, Payroll automatically updates Time Record Entry (PR36.1).

Lump sum pension payments are payouts of pension or retirement funds that occur in a single payment.

Create lump sum pension payments

Access Pension Payment Maintenance (PR29.1).
Select the participant you want to create the pension payment for in the Participant field.

Note: The effective date is applied to the future time records Payroll creates for this lump sum payment.
Type the effective date in the Effective Date field.
Define the parameters of the pension payment on the Main tab. Use the following guidelines to enter field values:

Distribution Type

Select a lump sum distribution type.

Distribution Code (1)

Select the code or codes determining how Payroll reports the pension payment to the 1099R. This code is reported on the 1099R and Payroll uses the code to determine if it creates more than one 1099R.

Distribution Code (2)

A pension payment can have two distribution codes associated with it.

Tax Category

The tax category defaults in based on the selection you make in the Distribution Type field.

Process Level

If you want to override the participant process level, select the process level you want to associate with the pension payment.

Payroll assigns this process level to the future time record created for this pension payment.

Payroll uses this process level to determine the reporting entity for this payment.

Department

If you want to override the participant department, select the department you want to associate with the pension payment.

Payroll assigns this department to the future time record created for this pension payment.

Addl Federal Tax (Additional Federal Tax)

Type an additional amount to withhold from federal tax for this pension payment. This field overrides any additional amount on U.S. Employee Taxes (PR13.1) for federal tax.

Tax Frequency Override

If you want to override the participant's current tax frequency, select a value in this field.

If you select a tax frequency, you must select a process group.

Process Group

Type a numeric process group to define the deduction cycle for this payment. Type an alphabetic process group to use as a break level on Earnings and Deductions Calculation (PR140) that is passed to the tax engine. All time records for this payment have the same process group.

Percent Total Dist (Percent Total Distribution)

Enter the beneficiary's percent of the total distribution. This is reported on the 1099R.
Define the funding sources you want to use to pay this pension payment on the Source tab. Use the following guidelines to enter field values:

Source

The funding source you want to issue the pension payment from.

Note: You can use more than one funding source for each pension payment.

Amount

The amount you want to issue from this funding source.
Define the standard time record you want Payroll to create on the Time Record tab. Use the following guidelines to enter field values:

Pay (Pay Code)

The pay code you want to use to create the future time record for this pension payment.

Note: You can use more than one pay code for each pension payment.

Amount

The amount you want to associate with this pay code.

The number of sources and number of pay codes do not need to match, but the total dollar amount of the sources and total amount of time records must equal each other before you can create the pension payment.
If the recipient of the payment is someone other than the participant, define the recipient's name and address on the Payment tab.
If you need to override the direct deposit information set up for the participant, override it on the Direct Deposit tab.

Related reports and inquiries


To	Use
List funding sources	Funding Sources Listing (PR204)
List future time records	Time Record Edit (PR135)
List Pension Payments	Pension Participants Listing (PR229)