New definition options will be available in the area of LOB insurance from calendar year 2024. These relate on the one hand to insurance contracts (company) and on the other hand to hiring in the personnel master data (employees).
Insurance configuration
A LOB insurance policy must be added in the "Company - Insurance" area. To do this, first enter some information about the insurance contract. If a LOB insurance policy already exists, this can also be adjusted.
Insurance code
Various pension schemes work with codes. A code consists of 1 - 8 characters (numbers and letters). The code "NoCode" is automatically created for new insurance policies. This code is a valid code and is used for pension plans without codes, but is also used as a valid code for insurance contracts with codes. This code can also be deleted if a separate code has been entered.
Settings
The following settings can be made for the entered code:
| Valid from | The new settings will take effect from 2024. Changes can be made at the beginning of each calendar year. |
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Supplemental insurance
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Some companies only insure the mandatory amount with their pension fund. This checkbox can be used to activate/deactivate the extra-mandatory LOB contribution. |
| Employer contribution | Most of the LOB contribution rates shown by the pension solutions in tables include the combined employee and employer contributions. By law, at least 50% of these must be paid by the employer. |
| Advanced |
LOB salary coordination: With the "Annual" LOB salary coordination setting, higher incomes in individual months are offset against other months. If "Monthly" is selected, there is no equalisation and each month is calculated separately. Degree of employment reduces coordination deduction: If the checkbox is activated, the coordination deduction is reduced based on the degree of employment. This results in a higher insured salary for part-time employees. Do not reduce limit amounts for entries/leavings during the month: If the checkbox is activated, the ordinary coordination deduction, for example, is calculated for entries/leavings during the month. If the checkbox is not ticked, the calculation is made on a daily basis. Obligation to pay contributions if joining before the 16th and leaving after the 15th of the month: If the checkbox is activated, employees joining on the 1st to 15th of the month are considered liable to pay contributions. However, employees joining after the 16th are not liable to pay contributions. If they leave on the 16th to the last day of the month, employees are considered to be liable to pay contributions in the month they leave. |
Contributions
The contributions per age bracket can be entered in the contribution table. The percentage contributions should correspond to the total employee and employer contributions. The programme then calculates the respective employee and employer contributions. The default split (50%:50% for employee + employer) can be adjusted in the settings if required.
Employee - Insurance
The LOB settings can be defined for each employee in the personnel master data.
LOB-Settings
| LOB-Code |
Insured with fixed deduction (fixed LOB amount must be entered in the employee salary data) Insured with deduction according to pension fund contract (automatic contribution calculation based on contribution table) Not insured |
| LOB-obligation to make contributions
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Determine automatically (18 - 65 or 64 years) Subject to contributions (without age check, e.g. for continuation after retirement) Non-contributory (suspension of contributions, employee remains insured) |
| LOB-Degree of employment |
This value overrides the regular degree of employment from the employment data. The LOB employment level can therefore normally be left at 0%. |
| LOB-Degree of invalidity |
Reduces the relevant threshold amounts. |
LOB-Insurance
The LOB insurance defined in the insurance master must be assigned to all employees. If LOB insurance is not defined for all employees, an error message is displayed in the payroll run.
Recommendation: To ensure that the insurance is assigned automatically for new employees, the corresponding insurance can be defined as the default under "Company - Insurance" on the "Standard insurance" card.
Settlement
The LOB contribution per month is shown on the payslips. This includes both the mandatory and any supplementary portion.
The "Monthly journal" and "Annual journal" analyses show additional information on the settled LOB contributions and are also suitable for control purposes.
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