CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF STUDY
Pension System ‘is the
income received for a lifetime from an approved pension arrangement, and also
from a non approved pension arrangement by a pension who has retired. Such
payment should be made at least annually. I n addition to the number of the
approved pension arrangement. Another person may be entitled to pension
benefits provided under the pension plan upon the death of the member.
Retirement is one of the most important stages that we may experience in our
lives. Reaching your retirement goal requires smart planning and a disciplined
approach to making investment. So how important should a pension be? While
other retirement options can be a good fit, particularly, if planned
sufficiently.
A retirement should be
something to look forward to. It should not be a managing doubt that someone
avoid thinking about while retirement option are ever evolving having a clue
about how a pension works. Definitely, retirement move worry free, according to
(Dave 1988). The payroll of a pensioner use to be calculated manually without
the help from a computer. Accountant invest a lot of time and energy in keeping
tracks of all employees, data files and information calculating pensioners
monthly salaries, hourly remunerations, and bonus, deductions, etc. All these are done by keeping numerous files
filled with track records for and every person employed. Nowadays, however
things are simpler than they use to be, because technologies always dedicated
to making things easier and better. Quite a variety of computerized pension
system is available to save us from this tedious task. Now instead of keeping
dozens of files and spending endless hours calculating all employees pension,
all you have to do is to get a payroll software and let it do all the nasty
work. A manual pension system means doing everything with hand while a
computerized one will be enabled it users to store unlimited data keeping track
of everything, whole with manual, it does not to have to keep tracks of
employees by hand. It can even separate regular work hours from over time and
calculate the different remuneration according to set perimeter.
The computerized
pension software will provide accurate calculation regardless of the amount of
data stored. The computerized pension software spends time and money and they
are very easy to use and they are also much practicalised. The program also
allows the monthly payroll of a pensioner schedule to be calculated accurately.
The amount of salary credited into employee or a pensioner’s account is a
variety of their allowances. This pension’s payroll processing application also
considered employee income tax and regulation loan payment details. Based on
their consideration the salary of each employee is deducted at the sources.
Moreover, instead of using a manual pension system which you have to do
everything with hand. A computerizes pension software will enable u calculate
automatically all pay frequency employee statutory reduction, bonus and monthly
pension allowances. In conclusion, the computerized pension system can be done
or calculated with the guide of a program which is the application software and
the operating system. The system is good in for it specialty in the field of
accounting. It also calculates the payroll of a pensioner easily, efficiently,
effectively and accurately.
Prompt payroll
of pensioners salaries by management of an organization boost the morale of
employee and enhances productivity. Manual preparations of pensioners salary
are often associated with a lot of problems which often times disrupt workers.
The problems range from banks arithmetic error in computation, delay in
payment, under payment or over payment. The most common method of keeping the
financial record of a company or organizations manually. The billing machine
which was designed to typewrite names, address, description to multiply, to
compute discount and to add net pay and posting requisition data to the proper
account and so to prepare a customer bill automatically once the operator has
entered necessary information used. Early accounting machines were marveled of
mechanical complexity often combining a typewriter and various kinds of
calculator element. Refinement at speed and accurate made possible by advance
in electronics and operating complexity of these machines. Many of the newer
generations of accounting machines are operated by a computer to which they are
permanently connected. A computerized pension system will not only resolve difficult
problems but also, it will provide fast process and accurate calculation of the
salary of a pensioner.
In manual
pension system there are so many possible errors that may be encountered but if
the pension system is computerized. Pension system cheque will not need
calculator to compute the salary of any other thing about a pensioner.
1.2 STATEMENT OF THE PROBLEM
The problems of
current systems are all those things associated with manual working system. It
is time consuming to produce reports as compared to any computerize system.
Humans are probe to errors, there is always possibities of errors in producing
results. It can also be overpayment, under payment of pensioner salary, delay
in payment of pensioner salary because of too much time spent in preparing of
the payroll of a pensioner. As all work done is written on registers, if any
register is missed or damaged at is simply very difficult to produce or present
accurate figure of a pension. An employee can make fraud by writing wrong
entries on simply impossible to catch the defaulters because there is no proof.
1.3 AIM AND OBJECTIVES OF THE STUDY
The
objectives of this project is to primarily computerized the existing system
which the manual ways to assist and ease the work of any type of organization.
In particular, pension management system is being developed. Payroll of a
pension management system take care of the day to day attendance of all
employees. Regular backup data can be taken and backup data can be restored
effectively so the pension management system assists the employees of an
organization in each and every aspect of in and out. Pension management system
is developed according to the needs of any types.
1.
TO design and implement a pension system
that should accept employee hour worked computer net pay and record all pensioners’
data for subsequent processing.
2.
The system should prepared pension
cheques and payroll ledger for and a payroll ledger for a pension and maintain
on a sequential vote.
3.
Non statutory deduction such as union
development plan to be made.
4.
The payroll of a pension data are
employee number, employee name, pay rate and union members’ flag.
5.
The total should contain earning,
federal tax, pension plan and union dates.
To
accomplish these tasks, we have fun out exactly what the program is meant to do.
1.4
SIGNIFICANCE
OF THE STUDY
The important of this study of at
computerized pension system is to make work easier, faster for an accountant or
a clerk to keep track of every employee or pension’s data file information
computerized pension system save time and money. It also allow the monthly
pension schedule to be calculated accurately and effectively and it because
pension system .In order words, computerized pension management system is
Important and recommended so that errors in the payroll of a pensioner will be
reduced and also the long queues of pensioners in the band will be reduced it
maintains and generated the pension pay slip accurately.
1.5
SCOPE
OF THE STUDY
This developed a
computerized pension system that would keep a record of employees or pension
data including their pension plan allowances; gratuity, taxes and net pay, rent
pay and also calculates the pay of the pensioners taking into consideration employee’s
pensioner’s data.
1.6
LIMITATION
OF THE STUDY
The big problem
associated with in sourcing pension is that force organizations to take on the
burdens associated with hardware upgrades as well as the personnel cost linked
to system maintenance.
Computerized pension
management system can best be used to control errors and frauds the pension
system. A computerized pension system control task of process and accurate
calculation of the salaries.
1.7
DEFINITION
OF TERMS
COMPUTERIZED
PENSION SYSTEM: It is a use of friendly service that
will save the time to calculate various pensioners benefit and process the
monthly payment and update cash book text and accurately.
PENSION
SYSTEM: It is the income received time for a life by a
person who has retired.
PENSION
PLAN: It is a method in which an
employee’s transfer part of his or her current income stream towards retirement
income.
PENSION:
This according to Oxford Advanced Learner Dictionary defined pensions as the
amount of money paid regularly by government or an organization or to somebody
that is considered to be too old.
EMPLOYEE
DATA: This is the employee
information in the organization it consists of the employee identification
number, employee name pay rate, pension plan and union number flag.
HOURS
WORKED: This is the number of times
that employees work in a month. The
hours worked is used to calculate the pay that an employee will received for
the month.
NET
PAY: This is the remaining amount of
an employee gross pay after deduction such as taxes and retirement
contributions are made.
DEDUCTION:
Oxford Learner Dictionary define “Deduction” as the process of taking an amount
of money away from a total, the amount that
is taking away is deducted from a pay for tax, pension contributions and
tax deduction.
TAXES:
A taxes consist of state dues and federal dues. A percentage of employee salary
goes to state and country.
PAYSLIP:
Oxford Advanced Dictionary defined pay slip as a piece of paper pay cheque given
to an employee that shows how much money they have been paid and how much has
been taken away from tax.