There is an important difference between exiting a member, and transferring a member out of a pay centre. Similarly, there is a difference between bringing a member on to the scheme as a new entrant, and transferring a member into a pay centre.
- An exited member is no longer a member of the scheme. Membership ceases, and a benefit is paid from the scheme.
- A new entrant is a member who is not an existing member of the scheme, and is effectively joining the scheme for the first time, as at the current date.
- A transferred member remains a member of the scheme, and all membership details remain unchanged. Only the pay centre to which the member belonged will change. The new pay centre could belong to a different participating employer.
In order to handle the transfer process properly, the system provides for the following:
Transfer Member out of Pay Centre
This is done by the payroll clerk responsible for the pay centre from which the member is transferring. The system does not provide a facility to insert the day of the transfer. The date of the transfer will default to the 1st day of the cycle month.
Transfer Member Into Pay Centre
This is done by the payroll clerk responsible for the pay centre into which the member is transferring. The system provides a facility to insert the day of the transfer, and makes provision for mid-month transfers.
Contribution Adjustments
Adjustments may be required, particularly in the case of mid-month transfers. For example, a payroll could close on the 17th of the month, at which stage it is assumed that the member will be on that particular payroll until the last working day of that month. Should the member be transferred between the 17th and the last day of the month, (this could typically happen with weekly paid employees), then the transfer could result in contribution adjustments being needed. The "transferring out" pay centre has to recoup part of the member’s salary from the "transferring in" pay centre, and also recoup part of the contributions paid to the scheme (in a subsequent cycle).
Pending Transfers
Once a member has been successfully transferred out of the pay centre, he will move to a holding area for a limited period, and wait there until another pay centre completes the transfer process. This should be monitored so that the transfer doesn't remain pending indefinitely.
Note:
Cases where a member has been transferred into a new pay centre, but has not been transferred out of the old pay centre, must be investigated.
If a member is receiving a part contribution under more than one pay centre, then the member must appear under more than one pay centre. For this reason the system does not assume that because a member has been transferred into a pay centre, that the member must have been transferred out of another pay centre.
However, if the member should only belong to one pay centre, and the member has been transferred into a new pay centre but has not been transferred out of the old pay centre, then the transfer out of the old pay centre must be created, otherwise the member will still appear under both the old and new pay centres.
For information on transfer reports, refer to
Processes
Contributions
Payroll
Reports
For information on the transfer of Retirement Annuity Product members between Pay Centres refer to Transfers between Pay centres in Add new members details under
Products
Retirement Annuity Fund