PTS Pensjons Trygden for Sjømenn - New rules from 2020

Rules for calculation of Pension amount

These rules can be found in Norwegian on PTS' homepages here:
https://www.pts.no/arbeidsgiver/omfang-og-plikter/

Employee Share

SeaService-based
Employees who have SeaService before 1st of January 2020 and were born before 1970, the amount in employee fee to "Pensjons Trygden for Sjømenn - PTS" is still based on:

1. The position being in Officer or Rating category

2. The number of days worked in the payroll period. 

Income-based
Employees born in 1970 or later or has their first contribution to "Pensjons Trygden for Sjømenn - PTS" after 1st if January 2020, the contribution will be 1,7% of the employees Gross Wages. The employee contribution should only be up to 12G of the wages; however, in the report to PTS it should be the Gross Salary, similar to today. 

Employer Share

The employer share is 3.3% of the employee's gross income, which is the same amount used when calculating the employer's contribution to the National Insurance, but not included Food allowance and the PTS premium.

New calculation of employer share for seafarers on fishing and trapping vessels

Employer share for employees on fishing and trapping vessels is 150% of the employee premium for employees on a SeaService scheme. As of 1st of January 2020, the employer share amounts to 3.3% of the employee's gross income for those on the income-based scheme.

Person set up

You need to identify persons that fall under the Income-based scheme under Payroll | Constants, by setting a check mark in the box "Incomebased Pension Scheme".

Reporting to Pensjons Trygden for Sjømenn 

You will find the new report to PTS under Payroll | Reports | Bi-Monthly reporting, named "Pension Fund Report 2020". The report will contain two additional columns for reporting of pre-paid Sick Wages for NAV. These columns are called "Beløp Betalt Av NAV, 1. Måned i terminen, 2. Måned i terminen".
The old layout of the report can still be found in the same place and be used for reporting of payroll before 2020.

Open

Open

Adonis Set up Changes for Pension entry code (mandatory change)

The same entry code used today for the Pension premium should still be used. The only change is to add the Income-based calculation rules, which is done as follows:

1. Please select one of the empty Global Rates via Setup > Organization Structure and define the percentage deduction of 1.7% for the income-based scheme:
   
   
   
   
   

2. Set up a temporary accumulator to sum up the Gross Income via Payroll module > Payroll scripts:
   
   

   
   
   
   

3. Add the selected accumulator to all Entry Codes where the amount is part of the Gross Income (they have field L66 defined on them).
   W50=W50+L61 //W50 - the basis for the Pension contribution.
   W50 will, after calculation, sum the amounts of all the entry codes where this line is added, and use it as the basis for calculating the 1.7% contribution.
   
   

4. On the Pension Entry Code, normally number 600, add the below condition:
   If P367="Y" THEN
   L61=[(W50*GB51/100)+0,5] // GB51 - 1,7% // W50 - basis for pension income
   ELSE
   (here keep the existing calculation rule).
   
   
   

Adonis Set up Changes for Sick Wages entry codes (optional change)

The new PTS report has 2 new columns under "Beløp betalt av NAV" named "1. måned i terminen" and "2. måned i terminen".
These columns should only be filled by those customers that pay full Sick Wages to the employees and get a refund from NAV and the amounts should be limited to the expected refund amount from NAV.
The expected refund amount from NAV will be limited to maximum 1/12 6G (6 x Folketrygdens grunnbeløp - 1G = 99 858 NOK per 01.05.2019) per full month.

This setup is optional, as it is still possible to modify the report after it is uploaded in the PTS portal, and the new columns can be filled out manually.
We highly recommend the use of 3 different entry codes in APM payroll module to ease the work load related to the PTS reporting:

1. "Sick wages first 16 days" - Sykelønn arbeidsgiverperioden:
   This entry code should be used for the first 16 days of sick wages payment.
   If there is no such entry code in the system, it can be created by duplicating the entry code for "Basic wages"/"Fixed monthly salary". Depending on the payroll setup this entry code can be used manually or it can be autogenerated based on certain activities.

2. "Sick wages NAV (max 6G)" - Sykelønn NAV (maks 6G):
   This entry code should be used to pay sick wages after the first 16 days in a sick note period.
   If there is no such entry code in the system, it can be created by duplicating the entry code for "Basic wages"/"Fixed monthly salary" and adjusting the script setup:
   
   IF L23>(((GB10*6)/12)/30) THEN
   W21=L61-((((GB10*6)/12)/30)*L22)
   W20=L61-W21
   L61=W20
   ENDIF
   

    
   Make sure that the temporary accumulators W34 and W35 are free in the system, if they are not free, replace them with 2 that are (see bullet 2 in the previous chapter on how to set up the temporary accumulator). In addition, please verify that GB10 is the correct rate for "Folketrygdens grunnbeløp" in your global rates and make sure that the rate up to date - it changes 1st of May each year (see bullet 1 in the previous chapter to find the global rates in APM).
   Make sure that the script is not calculating any amount in L66 (pensjonsavgift, reders andel) - if it does, put // in front of the calculation, like this: //L66=L61*GB8/100
   Depending on the payroll setup this entry code can be used manually or it can be autogenerated based on certain activities.
   
   

3. "Sick wages over 6G" - Sykelønn over 6G:
   This entry code should be automatically calculated if the employees wages on the previous entry code is above 6G.
   Start by duplicating the previous entry code and change the name. Update the script of the new entry code like this:
   
   IF W21>0 THEN
   L61=W21
   ENDIF
   
   

   
   If temporary accumulator W35 was not free, please remember to update the script with the correct temporary accumulator.
   Make sure that L66 (pensjonsavgift reders del) is calculated on this entry code.
   In addition, set Priority to 2 to make sure that it is calculated after "Sick wages NAV (max 6G)" - this is done in the Calculation tab on the Entry code setup:
   
   

4. Go back to the entry code "Sick wages NAV (max 6G)" and link entry code "Sick wages over 6G" in the Always Generate Entry Code field:
   

Set limit for income-based pension deductions

1. Define a permanent accumulator (e.g. ACC 10) for Income-based Pension Basis:
   
   

2. Entry code 600 Pensionfee must be set with the option "Transfer to History Even If Calculations Are Zero":
   
   

3. For all the entry codes that are a part of Base Wage for Pension contribution that is on which Accumulator W50 is defined in the script, @L61 (or other L field from L62 to L71 - depending on the setup of the entry code and script it's linked to) should be defined in the accumulator that you defined in step 1, in this example Accumulator 10:
   
   

   
   To find such entry codes you can:
   
   

   • Enable Properties pane in script window:
     
     

   • Click Script Links on Field icon:
     
     

4. Script for EC 600 should be updated. The below part should be added after the line IF P367="Y" THEN:

   // Check YTD Income-based pension basis against G12 limit
   IF W110 >= GB10*12 THEN // W110 - accumulated YTD income-based pension basis at the beginning of the month
   L61=0
   ELSE
   IF W110<(GB10*12) AND W310>(GB10*12) THEN //W310 - accumulated YTD income-based pension basis at the end of month
   L61=[((W310-(GB10*12))*GB51/100)+0,5]
   L21=L61
   ELSE
   L23=GB51+%  //optional - depending on the current script setup
   L24=W309-(GB10*12) //optional - depending on the current script setup
   ELSE
   L61=[(W50*GB51/100)+0,5] // GB51 - 1,7% // W50 - basis for pension income - existing line
   ENDIF
   ENDIF
   
   
   
   
   

   
   
   

5. Global Rate 10 where 1G amount is stored should be updated every year. This is stored in Setup | Organization | Top organization level > Rates. It usually changes on the 1st of May: