Compensation Model for Benefits

Hi All,
I am new to benefits. I would like to know, some information about compensation model in benefits. We have 401k salary,hourly,catchup,Deferredcompensation Bonus and Salary Plans in infotype 169. I am  using /102 wagetype as Technical base. Can anyone explain why a compensation model needs to be created in SAP? and all the Plans in infotype 169 requires a compensation model. Appreciate your help.
Regards,
Fred

Benefit Compensation Model: A compensation model is a set of wage types that represents either earnings or working hours. There are therefore two types of compensation model:
1. Compensation model for earnings
2. Compensation model for working hours
The values for a compensation model are stored on a compensation wage type and can be used as the basis for further calculations as follows:
1. Earnings can be used to determine pensionable earnings for retirement plans and/or salary-based contributions.
2. Working hours can be used to determine length of service for retirement plans (using the hours-counting method).

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    Electrical standard is SSTL15 (DDR3), my slew is Fast, we are in HP bank and my VccAux_IO = 2.0V.
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    I can not believe I'm the only one to ask ...
    Arnaud

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