**Retirement Allowance Amount Calculation
**

Use

The Retirement allowance amount
calculation report program calculates an employee's retirement
allowance amount based on settings in Customizing and in the
employee’s master data. The program also generates a batch input
session to update Infotype 0015 *Additional Payments* for each
selected employee.

**Features**

Formulas for Calculating the Retirement Allowance Amount

The program calculates the retirement allowance amount using one of the following formulas.

**Formula Based on
the Employee’s Basic Pay**

Use Infotype 0008 *Basic
payment* and Infotype 0014 *Recur. Payments / Deductions*
as the base amount for the retirement allowance amount
calculation.

Retirement allowance = <calculation base amount (basic pay)>

x <payment factor>

x <retirement reason reduction rate>

**Formula Based on
the Pay Scale for Retirement Allowance**

Use the fixed amount in the pay scale table, retrieved by each employee’s pay scale group or level, as a base amount for the retirement allowance amount calculation.

Retirement allowance = <calculation base amount (pay scale)>

x <payment factor>

x <retirement reason reduction rate>

**Formula Based on
the Individiual Employee’s Total Points**

Multiply Individual total point and unit amount to calculate the retirement allowance amount.

Retirement allowance = <unit price>

x <accumulation points>

x <retirement reason reduction rate>

You can choose the calculation formula to be used in the retirement allowance calculation report. In each of the calculation formulas, you can customize the following variables:

- Calculation base amount
- Unit price
- Payment factor

Retirement reason reduction rate

For information on customizing calculation formulas, refer to
the Implementation Guide (IMG) for *Retirement Allowance.*

**Adjustment of Retirement
Allowance Amount**

If necessary, you can adjust the retirement allowance amount, calculated by the report program, before you generate the batch input file.

The retirement calculation report displays calculated results on the screen so that you can check the results and, if necessary, make changes. This allows you to make special adjustments for each selected employee when you find that the customized calculation formula has not covered all cases.

**See
also:**

Calculating Retirement Allowance Amount