Setting Up Benefit Plans

This chapter discusses how to:

Click to jump to parent topicDefining Benefit Plans

To define benefit plans, use the Benefit Plan Table (BENEFIT_PLAN_TABLE) component.

This section provides an overview of benefit plans and discusses how to enter benefit plan information.

Click to jump to top of pageClick to jump to parent topicUnderstanding Benefit Plans

Benefit plans are the benefits you want to offer to your employees. Benefit plans can be broken down into categories. A 2-character alphanumeric numbering scheme is used to identify the different categories. Nine categories are already set up in the Manage Base Benefits business process.

Category

Numbering Sequence

Simple Benefits

A0 – A9, AA – AZ

Health

10 – 19, 1A – 1Z

Life and Accidental Death

20 – 29, 2A – 2Z

Disability

30 – 39, 3A – 3Z

Savings

40 – 49, 4A – 4Z

Leave

50 – 59, 5A – 5Z

Flexible Spending Accounts

60 – 69, 6A – 6Z

Retirement

70 – 79, 7A – 7Z

Pension

80 – 89, 8A– 8Z

Vacation Buy/Sell

90 – 99, 9A – 9Z

Within each category, a set of predefined benefit plan types help the system identify the type of benefit plan. The following table lists the delivered benefit plan types.

Benefit Plan Type

Description

A0

Long-Term Care

A1

Legal Services

A2

Wellness Credit

10

Medical

(USF) FEHB (federal employees health benefits)

11

Dental

12

Medical and Dental

13

Major Medical

14

Vision

15

Nonqualified Medical

16

Nonqualified Dental

17

Nonqualified Vision

20

Basic Life

(USF) FEGLI (federal employees' group life insurance)

21

Supplemental Life Additional

(USF) Option B – Additional

22

AD/D (life and accidental death and dismemberment)

23

Life and AD/D

24

Dependent AD/D

25

Dependent Life

(USF) Option C – Family

26

Survivor Income

27

Supplemental AD/D

2Y

(USF) FEGLI Living Benefits

2Z

(USF) Option A – Standard

30

Short Term Disability

31

Long Term Disability

40

401(k)

41

Profit Sharing

42

Thrift

43

IRA (individual retirement account)

44

Capital Accumulation

45

US Savings Bonds

46

Elective 403(b)

47

Non-Elective 403(b)

48

Employer Only 403(b)

49

457(b)

4A

Stock Purchase (Stock Purchase Administration only)

50

Sick Leave

51

Vacation Leave

Annual Leave

52

Personal Leave

53

FMLA Leave (Obsolete)

5A

Company Car (global users only)

60

Flexible Spending Health Care

61

Flexible Spending Dependent Care

65

Flexible Spending Canadian Health Care

66

Flexible Spending Canadian Retirement Counseling

67

Health Savings Account (health care for U.S. companies)

70

PERS (public employees' retirement system)

Retirement

7Z

(USF) TSP 1% Agency Contribution (thrift saving plan 1 percent agency contribution)

80

(CAN) Standard Pension

81

(CAN) Supplementary Pension

82

(USA) Pension Plan 1

83

(USA) Pension Plan 2

84

(USA) Pension Plan 3

85

(USA) Pension Plan 4

86

(USA) Pension Plan 5

87

(USA) Pension Plan 6

90

Vacation Buy

91

Vacation Sell

You can add additional benefit plan types. However, you need to understand the numbering scheme behind benefit plan types. The system is designed to recognize specific sequences.

For example, anything with a 1 as the first character is recognized as a health plan. Anything with a 2 as the first character is recognized as a life and accidental death plan.

Because Oracle's PeopleSoft application adds plan types starting from the beginning of the alphabet, Oracle recommends that you start with Z and work backward to A. Oracle also recommends that you not delete a plan type; simply make it inactive.

Note. You should work within the PeopleSoft plan type series. If you add plan types that do not conform to the provided series, you'll have to add the new plan type to the Translate Table and update associated processing logic.

To set up a benefit plan:

  1. Identify the benefit provider for the benefit plan and enter the benefit provider in the Provider/Vendor Table page.

  2. Enter the detail information for the benefit plan on the Benefit Plan Table page.

  3. Repeat this process for each benefit plan that you will offer to your employees.

Click to jump to top of pageClick to jump to parent topicPage Used to Define Benefit Plans

Page Name

Definition Name

Navigation

Usage

Benefit Plan Table

BENEFIT_PLAN_TABLE

Set Up HRMS, Product Related, Base Benefits, Plans and Providers, Benefit Plan Table, Benefit Plan Table

Enter benefit plan information.

Click to jump to top of pageClick to jump to parent topicEntering Benefit Plan Information

Access the Benefit Plan Table page (Set Up HRMS, Product Related, Base Benefits, Plans and Providers, Benefit Plan Table, Benefit Plan Table).

Set ID

Select a set ID for the vendor to be used.

Vendor ID

Enter the provider ID.

Define vendor IDs on the Provider/Vendor Table page.

SPD URL ID (summary plan description uniform resource locator identifier)

Enter the URL ID for the provider.

This URL is used with the PeopleSoft Enterprise eBenefits application to provide access to the summary plan description.

Group Number

Enter the group number.

Group numbers are defined on the Provider Policy Table page.

Default Deduction Code

(Optional) Entering a default code saves you from typing the deduction code each time that you associate this benefit plan with a benefit program on the Benefit Program Table.

Deduction codes are created on the Deduction Table.

Minimum Spousal Allocation % (minimum spousal allocation percentage)

Certain qualified plans in the life, savings, or pension category have mandated lower limits on the percentage amount that must be assigned to a spouse. Enter that amount here for the system to enforce or monitor compliance with this beneficiary right.

Include in Nondiscrimination

Check to include in nondiscrimination testing. Available only to plan types in the 40-series (savings plans).

Pay Mode

Complete if you are using PeopleSoft Enterprise Payroll for North America with PeopleSoft Enterprise Payables.

Select when the vendor will be paid:

Pay as Deducted: Pay the vendor each time payroll calculates this deduction.

Pay at Specified Date: Specify the date in the AP Payment Date Type field.

Pay when Collection Complete: Pay the vendor only when the goal amount or deduction end date has been reached. (This pay mode is valid for general deductions and garnishments.)

AP Payment Date Type (accounts payable payment date type)

Choose from Check Date or Pay Period End Date.

EDI Plan Coverage Description (electronic data interchange coverage description)

(Optional) Enter a value that is included in the HIPAA (Health Insurance Portability and Accountability Act of 1996) file.

EDI Insurance Line Code (electronic data interchange insurance line code)

Select a value from the drop-down menu.

Self-Service Plan Description

Used only for health (1x), disability (3x), leave (5x), and retirement (7x) plans. Enter text describing the benefit plan to appear on PeopleSoft Enterprise eBenefits application pages.

Contact Type

Select the type of contact: COBRA Administrator (Consolidated Omnibus Budget Reconciliation Act), HIPAA Administrator (Health Insurance Portability and Accountability Act), or Plan Administrator.

Contact ID

Select the contact ID for the administrator.

Contact IDs are defined on the Benef Administrative Contact (benefits administrative contact) page.

See Also

Setting Up Internal Administrative Contact Information

Click to jump to parent topicSetting Up Health Plans

To set up health plans, use the Health Plan Table (HEALTH_PLAN_TABLE) component.

This section discusses how to enter health plan details.

Click to jump to top of pageClick to jump to parent topicPage Used to Set Up Health Plans

Page Name

Definition Name

Navigation

Usage

Health Plan Table

HEALTH_PLAN_TABLE

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Health Plan Table, Health Plan Table

Enter health plan details.

Click to jump to top of pageClick to jump to parent topicEntering Health Plan Details

Access the Health Plan Table page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Health Plan Table, Health Plan Table).

Health Provider Required

Select whether an employee must declare a health provider when enrolling in this plan through self-service.

Wait Period Days

Enter the number of days an employee must wait to be eligible for the plan.

Click to jump to parent topicSetting Up Simple Rate Plans

To set up benefit plans, use the Simple Plan Table (SIMPLE_PLAN_TABLE) component.

This section provides an overview of simple rate plans and discusses how to enter simple benefits plan details.

Click to jump to top of pageClick to jump to parent topicUnderstanding Simple Rate Plans

Simple rate plans, also called simple benefits plans, are a generic plan type for benefits that have no additional participation attributes other than their election. The costs for these plans are calculated from the benefit rate tables.

While these plans do not have any participation attributes, they can be extended by establishing a link to other components, both delivered and custom. From these other components, additional information can be maintained manually.

Click to jump to top of pageClick to jump to parent topicPage Used to Set Up Simple Rate Plans

Page Name

Definition Name

Navigation

Usage

Simple Plan Table

SIMPLE_PLAN_TABLE

Setup HRMS, Product-Related, Base Benefits, Plan Attributes, Simple Plan Table, Simple Plan Table

Define simple benefits that have no participation attributes and are rate-driven.

Click to jump to top of pageClick to jump to parent topicEntering Simple Benefits Plan Details

Access the Simple Plan Table page (Setup HRMS, Product-Related, Base Benefits, Plan Attributes, Simple Plan Table, Simple Plan Table).

Extended Attributes Management

Complete this group box if you want to collect optional extended information about enrollments in this plan. Select a menu name and component name.

If you want to override the label that is supplied by default from the component definition, enter an optional link label.

If you define an extended attributes component, the component link appears on the Base Benefits enrollment page. This enables you to navigate to the component and enter additional information for the employee.

Click to jump to parent topicSetting Up Life Insurance and Accidental Death Plans

To set up life and accidental death plans, use the Coverage Formula Table (BN_FORMULA) and Life and AD/D Plan Table (LIFE_ADD_TABLE) components.

This section provides an overview of coverage calculation formulas and discusses how to:

Click to jump to top of pageClick to jump to parent topicUnderstanding Coverage Calculation Formulas

You can create simple formulas to define how coverage should be calculated. These formulas are used by both life and disability insurance plans. You can specify how the benefits compensation base is determined, a formula to apply against that base to derive a coverage amount, and limits on the coverage amount. You can also define whether the coverage is subject to reduction based on attained age. The examples illustrate calculation possibilities with as of rates:

Example: Employer Pays Increased Premium

An employee belongs to a life insurance plan that uses the premium as of January 1, current year and coverage as of the current date. The system uses the benefit base for the calculation.

Employee

Effective Date

Salary

Benefit Base

Ann Jeffrey

January 1, 2008

10,000

12,000

Ann Jeffrey

April 1, 2008

15,000

15,000

Ann Jeffrey

January 1, 2009

17,500

18,000

 

Table

Effective Date

Rate

Per

Life (employee)

January 1, 2008

1.00

Thousand

Life (employer)

January 1, 2008

2.00

Thousand

The employee gets a raise, so coverage increases during the year; however, until the next January 1, the system calculates the employee premium as if the coverage did not increase. The employer pays the difference between the employee deduction and the actual cost. This affects imputed income.

Pay End Date

Coverage

Employee Amount

Employer amount

January 31, 2008

12,000

12.00

24.00

February 28, 2008

12,000

12.00

24.00

March 31, 2008

12,000

12.00

24.00

April 30, 2008

15,000

12.00

33.00

May 31, 2008

15,000

12.00

33.00

Example: Coverage and Premium Remain the Same

Another employee belongs to a life insurance plan that uses the premium as of January 1, current year and coverage as of January 1, current year.

Employee

Effective Date

Salary

Benefit Base

Jim Henry

January 1, 2008

10,000

12,000

Jim Henry

April 1, 2008

15,000

15,000

Jim Henry

January 1, 2009

17,500

18,000

 

Table

Effective Date

Rate

Per

Life (employee)

January 1, 2008

1.00

Thousand

Life (employer)

January 1, 2008

2.00

Thousand

No change is made in Jim Henry's coverage or premium until the new year.

Pay End Date

Coverage

Employee Amount

Employer Amount

January 31, 2008

12,000

12.00

24,00

February 28, 2008

12,000

12.00

24,00

March 31, 2008

12,000

12.00

24,00

April 30, 2008

15,000

12.00

24,00

May 31, 2008

15,000

12.00

24,00

Click to jump to top of pageClick to jump to parent topicPages Used to Set Up Life Insurance and AD/D Plans

Page Name

Definition Name

Navigation

Usage

Coverage Formula Table

BN_FORMULA

Set Up HRMS, Product Related, Base Benefits, Rates and Rules, Coverage Formula Table, Coverage Formula Table

Create coverage calculation formulas.

Life and AD/D Plan Table

LIFE_ADD_TABLE

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Life and AD/D Plan Table, Life and AD/D Plan Table

Enter life or AD/D plan details.

Click to jump to top of pageClick to jump to parent topicCreating Coverage Calculation Formulas

Access the Coverage Formula Table page (Set Up HRMS, Product Related, Base Benefits, Rates and Rules, Coverage Formula Table, Coverage Formula Table).

You can select from existing formulas to calculate life insurance coverage or create your own coverage calculation formulas, both from the Coverage Formula Table page.

Benefit Base

Coverage Base As Of

Select the employee's salary that the system will use for coverage calculation. Values are:

  • Check Date

    The date of the pay check is used to calculate the coverage amounts.

  • Last Year On

    A specific date is used to calculate the coverage amounts. You must enter the month and day.

  • Pay End Date

    The pay end date is used to calculate the coverage amounts.

  • This Year On

    A specific date is used to calculate the coverage amounts. You must enter the month and day.

Premium Base As Of

Select the employee's salary that the system will use for premium calculation. The options are:

  • Check Date

    The date of the pay check is used to calculate the coverage amounts.

  • Pay End Date

    The pay end date is used to calculate the coverage amounts.

  • Last Year On

    A specific date is used to calculate the coverage amounts. You must enter the month and day.

  • Pay End Date

    The pay end date is used to calculate the coverage amounts.

  • This Year On

    A specific date is used to calculate the coverage amounts. You must enter the month and day.

Source

Annual Rate

Select this field for the system to use the regular compensation base entered on the Job Data - Compensation page in Workforce Administration.

Annual Benefits Base Rate

Enter a rate from the drop-down menu. The system uses the rates defined in the Annl Benef Base Rt Type Tbl page.

Multiple Job Rules

Combine Base for Multiple Jobs

Select this option if you want to aggregate salary from multiple jobs as a basis for a coverage determination.

Group Method

This field is available if you selected the Combine Base for Multiple Jobs option.

Select the grouping method for the system to use when selecting jobs to contribute to the total benefit base. Values are:

  • All Flagged Jobs

    All flagged jobs are included in the calculation regardless of the benefit record number.

  • Flagged Jobs in Benefit Record

    All flagged jobs within the current record number are included in the calculation.

  • Primary Job in Benefit Record

    Only the primary job within the current benefit record number is included in the calculation.

Consider Active Jobs Only

Select to have the system consider only jobs with an active status.

Maximum Benefit Base

Enter the maximum amount of benefit base that can be used in the coverage formula calculation.

Note. This is most often used in disability plans to limit the amount of salary subject to replacement.

Coverage Minimum and Maximum

Coverage Minimum

Enter the minimum amount of coverage that an employee can receive. If the calculated coverage falls below this amount, this amount will be covered as a default.

Coverage Maximum

Enter the maximum amount of coverage that an employee can receive. If the calculated coverage exceeds this amount the coverage is capped.

Note. For disability plans, indicate the maximum salary before the salary replacement percentage. The coverage maximum amount for a disability plan is used to multiply by the salary replacement percent and not an amount an employee can receive.

Coverage Formula

Coverage Formula

Displays the formula in an algebraic format.

Show Formula

Click to refresh the Coverage Formula field.

Formula

Operand

Select from these mathematical options to build your formula.

Entry Type

Select an entry type. Values are:

  • Constant

    Select if the value is a constant.

  • Base

    Select if the base salary may change.

Numeric Value

This field is available if you select Constant in the Entry Type field.

Enter a numeric value.

Round to Multiple of

Enter a numeric value to designate the precision of the rounded number. Typical multiples are 100 and 1000.

Round Up Amount

Enter a numeric value to designate when a number gets rounded.

Age Coverage Reduction

Age

Enter the age of employee. The system determines the age by the pay period end date.

Percent

Enter a percentage that the system will deduct from the employee's coverage.

An Example for Creating a Formula

Here is an example for setting up the formula for ((2 X BASE) ROUND + 1000)) ROUND

  1. For Seq No field 10, select the ( symbol in the Operand field.

  2. Add a row.

  3. For Seq No field 20, select the ( symbol in the Operand field.

  4. Add a row.

  5. For Seq No field 30, select Constant in the Entry Type field and enter 2 in the Numeric Value field.

  6. Add a row.

  7. For Seq No field 40, select the * symbol in the Operand field and select Base in the Entry Type field.

  8. Add a row.

  9. For Seq No field 50, select the ) symbol in the Operand field.

  10. Add a row.

  11. For Seq No field 60, select Round in the Operand field, enter 500 in the Round to Multiple of field, and enter 1000.00 in the Round Up Amount field.

  12. Add a row.

  13. For Seq No field 70, select + in the Operand field, select Constant in the Entry Type field, and enter 1000.00 in the Numeric field.

  14. Add a row.

  15. For Seq No field 80, select the ) symbol in the Operand field.

  16. Add a row.

  17. For Seq No field 90, select the ) symbol in the Operand field.

  18. Add a row.

  19. For Seq No field 100, select Round in the Operand field, enter 500 in the Round to Multiple of field, and enter 1000.00 in the Round Up Amount field.

The formula creation area should look like this:

When you are done and have clicked Save Formula or Save, the formula that you created appears in the Coverage Formula Scroll area.

Other examples of formulas you may want to create are:

Click to jump to top of pageClick to jump to parent topicEntering Life Insurance and AD/D Plan Details

Access the Life and AD/D Plan Table page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Life and AD/D Plan Table, Life and AD/D Plan Table).

Life/ADD Plans

Coverage Group Code

(Optional) Enables you to define a maximum benefit amount for a group of life and AD/D plan types. Coverage group codes are defined on the Life and AD/D Coverage Groups page.

You might do this if employees can choose more than one life plan type—perhaps life and AD/D—but the total benefit for the combined plans cannot exceed a specific amount. The coverage group code maximum applies to all the life and AD/D benefit plans that you associate with a coverage group code and one benefit program.

Discriminatory Life

Select this field for the system not to deduct any coverage amounts from the U.S. imputed income calculation.

Coverage Type

Plan Level

Select to indicate that coverage for this plan is determined by a specific formula ID.

Employee Level

Select to indicate that coverage for this plan is specified by the flat amount on the enrollment page.

Formula ID

Select from the available coverage formula IDs.

Insured Person Type

Employee

Select to indicate that the person insured by this plan is the employee.

On the enrollment page, this directs the system to collect beneficiary allocations.

Dependents

Select to indicate that the persons insured by this plan are the employee's dependents and not the employee.

On the enrollment page, this directs the system to collect a list of covered individuals.

Dependent Specific Coverages?

Select to indicate that each covered dependent will have an individual coverage amount entered for him or her on the enrollment page.

If this option is not selected, then a single coverage amount is specified and each covered person receives this same amount of coverage.

Restricting Insurance Coverage

You can associate coverage formulas that include coverage minimum and maximum amounts with a life benefit program and benefit plan combination. When you do this, the system verifies that coverage for participants doesn't exceed those minimums and maximums, regardless of the coverage that you enter on the Life and AD/D Plan table. This enables you to restrict the amount of coverage for an individual life plan.

You can use the Coverage Group Code page to also restrict the amount of coverage across all life insurance plans in which the employee enrolls. For example, you define a coverage group code with a 500,000 USD maximum, then enter that coverage group code for a supplemental life plan and a group life plan, and associate both benefit plans with a benefit program. If you enrolled an employee in both of these plans, the system would ensure that the employee's total coverage by both plans does not exceed 500,000 USD.

If the maximum is exceeded, the system reduces the total coverage to meet the coverage maximum. When the system processes deductions, it accumulates the coverage amounts and begins reducing coverage when the coverage group maximum is reached. The system processes plans in order of deduction priority. If more than one plan has the same priority, it processes in increasing plan type order.

Click to jump to top of pageClick to jump to parent topic(USF) Understanding Option A - Standard FEGLI Plan Calculations

PeopleSoft Enterprise Payroll for North America calculates coverage and premiums for the Option A - Standard FEGLI optional life plan in accordance with federal regulations. The Option A - Standard plan provides at least 10,000 USD in additional coverage, depending upon the employee's rate of pay.

When an employee's annual rate of pay is more than the sum of the annual rate of basic pay for Level II Executive Schedule positions under 5 U.S.C. 5313, plus 10,000 USD, Option A coverage automatically increases. The amount then becomes the difference between the employee's annual rate of pay and the maximum allowable Basic Insurance Amount (BIA). Calculations are included in the Calculation Rules Table for calculation rule ID OPTA.

The maximum allowable BIA appears in the Maximum Benefits Base field on the Calculation Rules Table page. PeopleSoft Payroll for North America uses this information to calculate coverage and premium amounts.

Click to jump to parent topicSetting Up Disability Plans

To set up disability plans, use the Disability Plan Table (DISABILITY_PLN_TBL) component.

This section lists prerequisites and discusses how to enter disability plans details.

Click to jump to top of pageClick to jump to parent topicPrerequisites

Insurance companies typically quote disability benefits in monthly terms (as opposed to life insurance benefits, which are quoted in annual terms). Define the amount of covered salary that forms the basis for a disability plan on the Coverage Formula Table page.

See Insert link to Coverage Formula Table page

Click to jump to top of pageClick to jump to parent topicPage Used to Set Up Disability Plans

Page Name

Definition Name

Navigation

Usage

Disability Plan Table

DISABILITY_PLN_TBL

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Disability Plan Table, Disability Plan Table

Define details for disability benefit plans.

Click to jump to top of pageClick to jump to parent topicEntering Disability Plan Details

Access the Disability Plan Table page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Disability Plan Table, Disability Plan Table).

Salary Replacement % (salary replacement percentage)

Enter the percent of employee salary that this plan will replace, limited to the maximum monthly benefit.

Use as Base for Premium Calc (use as base for premium calculation)

Select for the system to use the employee covered salaries to calculate disability plan premiums. When this option is selected, disability plan premium calculations are based on the salary replacement percentage of the employee's disability benefit rather than the employee's covered salary. This amount is still limited to the specified maximum monthly benefit.

Calculation of Disability Plan Coverage

Similar to life insurance, disability plans use a coverage formula to determine the covered salary against which the premium rate is applied. Whereas life insurance plans typically calculate coverage in annual terms, disability plans typically calculate salary replacement coverage in monthly terms. You typically create a very simple formula for disability plans:

Base/12

You may want to round the base salary or final result. You could use the maximum benefit base to cap the employee's covered annual salary before the calculation, or you could use the coverage maximums to cap the resulting covered monthly salary.

The final monthly salary could be subject to either a percent-of-base type rate or a rate-per-unit type rate. Unless Use Salary Replacement as Base is selected, the rate takes into account the salary replacement percentage. This means that you would have a different rate for 50% replacement than you do for 66% replacement because the base represents only the covered salary and not the actual replace salary. However, if Use Salary Replacement as Base is selected, then the coverage base already accounts for the replacement percentage and a single set of rate would probably be used. The treatment and presentation of this plan is determined by your own business practice.

Click to jump to parent topicSetting Up Savings Plans

To set up savings plans, use the Savings Plan Table (SAVINGS_PLAN_TBL) component.

This section discusses how to:

Click to jump to top of pageClick to jump to parent topicPages Used to Set Up Savings Plans

Page Name

Definition Name

Navigation

Usage

Employee Limit on Investments

SAVINGS_PLAN_TBL1

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table, Employee Limit on Investments

Define employee investment limits.

Employer Contribution/Match

SAVINGS_PLAN_TBL2

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table, Employer Contribution/Match

Define employer contributions.

Rollover of Funds

SAVINGS_PLAN_TBL5

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table, Rollover of Funds

Set up employee rollover options.

Click to jump to top of pageClick to jump to parent topicDefining Employee Investment Limits

Access the Employee Limit on Investments page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table, Employee Limit on Investments).

Use Special Accumulator

Enter a special accumulator to identify eligible earnings for calculating employee deductions. Special accumulators are set up using the Special Accumulator Table.

Plan Contribution

Select who will be a contributor to this savings plan:

EE Contribution Optional (employee contribution optional): You might use this for plans that feature an employer nonmatching contribution, with voluntary additional employee contributions. You might also use it for a zero-contribution enrollment plan allowing for rollover funds.

EE Contribution Required (employee contribution required): This option enables employer matching.

Employer Only (No EE) (employer only [no employee]): You could use this to establish an employer-funded savings benefit.

Limits on Employee Investments

Employee YTD Earning Threshold (employee year-to-date earning threshold)

This amount is used to determine when the over-threshold limit applies. If this amount is left at zero, the up-to-threshold limits apply to all levels of earnings.

 

Up-To-Threshold Limit (Percent of Earnings)

Enter the before-tax, after-tax, and total percentage of earnings that an employee can invest, as long as the employee year-to-date (YTD) earnings threshold has not been met.

Over-Threshold Limit (Percent of Earnings)

Enter the before-tax, after-tax, and total percentage amounts that an employee can invest after the YTD earnings threshold has been met.

Rules for Highly Compensated Employee Investments

In response to marginal or failed 401(k) and 401(m) nondiscrimination testing, you may need to reduce investments by highly compensated employees (HCEs) to comply with regulations. Enter the before-tax, after-tax, and total investment amounts that an employee can invest.

For example, you could set a lower 8% before-tax contribution cap on HCEs or set up a 2% reduction on elected contribution of each HCE to bring deferrals into compliance. Depending on the results of the nondiscrimination testing, you can adjust the limits throughout the year.

Investments

Enter a numerical identifier for each investment option and a description.

Note. U.S. federal government users enter an alphabetical identifier.

Click to jump to top of pageClick to jump to parent topicDefining Employer Match or Other Contributions

Access the Employer Contribution/Match page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table, Employer Contribution/Match).

Employee YTD Earning Threshold (employee year-to-date earning threshold)

Displays the value enter on the Employee Limit on Investments page for this field.

Service Step Table ID

Use to link the rate of employer matching contributions to an employee's length of service.

If you enter a service step table ID, the system automatically selects Service Step Table option in the Before Tax Employer Contribution and After Tax Employer Contribution group boxes.

Before and After Tax Employer Contribution

Employer contribution refers to amount employer contributes towards employee's savings plan, either on a matching or nonmatching basis.

In a matching contribution, the employer's contribution is dependent or limited by employee's contribution in the savings plan.

Pct of Employee Investment (percent of employee investment)

Select to enter the percentage the organization will match of an employee contribution in the Percent Match field. For example, if an organization matches 25% of an employee's contribution, the system will generate an employer match of 25 U.S. dollars (USD) for an employee with a 401k contribution of 100 USD.

Service Step Table

Select to use a service step table that defines different levels of percent match of employee's earnings per length of service and deduction class. For example, the service step table specified After 24 Months of Service, the employer will matches 40% of up to 3% of Employee's Earnings and 60% of up to 8% of Earnings for Before Tax. Hence if employee had 36 months of service and had Before Tax contribution 10% of his Before Tax Earnings of $1,000, then his first 3% of contribution is at 40% giving $12 while the next 5% (8% less 3% already matched) is at 60% giving $30. Hence, Employer Match Total is $42.

In a nonmatching contribution, the employer's contribution is independent of employee's contribution and sets the contribution using the following options:

Flat Amount Per Pay Period

Select and enter the dollar amount that the employer will contribute per pay period regardless of the amount an employee contributes in the Flat Amount field.

Pct of Special Accumulator (percent of special accumulator)

Select and enter a percentage of an employer contribution in the Under Threshold field. A special accumulator is predefined total of certain earnings, a percentage of which is what employer will contribute.

You can also identify other options or enter additional information, such as contribution percentages and amounts, for employer matching and contribution.

Special Calculation Routine

Select to have the system use a custom routine that is not supported by the standard PeopleSoft system. You must modify your COBOL programs.

Percent Matching

Enter the percentage the organization will match of an employee contribution. This field appears when the Pct of Employee Investment option is selected.

Flat Amount

Enter the dollar amount that the employer will contribute per pay period regardless of the amount an employee contributes. This field appears when the Flat Amount Per Pay Period option is selected.

Under Threshold

Enter a percentage of an employer contribution. This field appears when the Pct of Special Accumulator option is selected.

Allow Negative Employer Match/Contribution

Select to enable negative earnings to result in an employer match when the employee's contribution is negative. The system will not make a positive contribution when there are negative earnings present, this includes rollovers, flat dollar contribution amounts, and excess credits. The earnings are used in the calculation, but only to generate running employer totals—the earnings do not interfere with the match-tier processing. The negative employer match/contribution resets to zero if not allowed.

Employer Limits on Non-Matching Contribution or Employee's Contribution Subject to Employer Match

Before Tax % of Earnings Limit, After Tax % of Earnings Limit, and Combined % of Earnings Limit

Enter a percentage of before, after, or combined earnings that will be matched by the employer contribution.

For example, if the Before Tax % of Earnings Limit field had 6%, then the employer would match contributions up to 6% of the employee's rate of contribution. If the employee only contributed 5%, only 5% would be matched.

Amount Per Pay Period Limit

Select a dollar amount upon which to apply the employer contribution.

Limit Employee Match

Select a method for calculating an employer's savings plan match. This can be done in two different ways: one limits the employee's contributions subject to matching after the employer match calculation and the other limits the employee contributions prior to calculating the employer match. Options are After Employer Match and Before Employer Match.

You can define the maximum amount that the employer contributes to a savings plan, on either a matching or nonmatching basis.

Example: Limiting Employee Match Before or After Employer Match When Using the Service Step Table

This example uses the following data:

After Employer Matching

The reduction (limit) of the employee contributions that are subject to matching after the match calculation is calculated like this:

Before Employer Matching

The reduction (limit) of the employee contributions subject to matching before the match calculation is calculated like this:

Click to jump to top of pageClick to jump to parent topicSetting Up Employee Rollover Options

Access the Rollover of Funds page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table, Rollover of Funds).

Note. Employer-only plans cannot receive rollovers from another plan, because rollovers are a form of employee contribution.

Rollover Options

Choose from the following:

None: Rollovers are not allowed.

Refund Excess Over Limit: Use with 403(b) plans, for which the limiting of employee contributions is more dynamic. In certain situations, an employee's contributions are not limited as quickly as they should be. On subsequent pay runs, the system may determine that the employee was allowed to contribute too much. This option enables the system to reduce prior contributions in excess of the current limit by creating a refund or negative deduction of the excess deferral amount.

Specified at Employee Level: Rollover amounts are based on information entered on the employee enrollment pages. The plan type, benefit plan, deduction code, and class for before-tax, after-tax, or both are made on employee enrollment records.

Specified at Plan Level: Rollover amounts are based on information entered on the benefit plan pages. Enter the plan type, benefit plan, deduction code, and class for before-tax, after-tax, or both.

Note. Specified at Plan Level and Specified at Employee Level require that the employee be enrolled in the specified rollover savings plan before the actual rollover event occurs during a payroll run. If you want a savings plan to receive rollover funds without active employee contributions, set up the plan as Employee Contribution Optional on the Employee Limit on Investments page and enroll employees with a zero contribution amount.

Before Tax Rollover and After Tax Rollover

Enter the plan type, benefit plan, deduction code, and class for the rollover options.

Calculate Pct of Annual Rate (calculate percentage of annual rate)

Select to enable PeopleSoft Enterprise Payroll Interface to calculate deductions for a savings plan. Payroll Interface estimates employee deductions using an employee's annual compensation rate.

This is considered an estimate because the annual rates and actual earnings, not available to PeopleSoft Payroll Interface, are not necessarily the same. Also, no year-to-date accumulators are available to apply regulatory limits.

With the exception of savings plan deductions, PeopleSoft Payroll Interface does not calculate deductions that are based on a percentage of an employee's earnings. To calculate such deductions, you need either PeopleSoft Enterprise Payroll for North America or an appropriate interface with another payroll system.

Click to jump to parent topicSetting Up Leave Plans

To set up leave plans, use the Leave Plan Table (LEAVE_PLN_TBL) component.

This section discusses how to enter leave plan details.

Note. Before you begin, make sure that you have created earnings codes for the leave plans.

The payroll tables summarized in this section are from PeopleSoft Payroll for North America. If your organization does not implement PeopleSoft Payroll for North America, work with your payroll department to ensure that the system can access the proper data for leave accrual processing.

See Also

Setting Up Calculation Rules

Click to jump to top of pageClick to jump to parent topicPage Used to Set Up Leave Plans

Page Name

Definition Name

Navigation

Usage

Leave Plan Table

LEAVE_PLAN_TABLE

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Leave Plan Table, Leave Plan Table

Enter leave plan details.

Click to jump to top of pageClick to jump to parent topicEntering Leave Plan Details

Access the Leave Plan Table page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Leave Plan Table, Leave Plan Table).

Balance Visible to EE for Self-Service (balance visible to employee for self-service)

Select to enable employees to view their leave balances on the self-service transaction View Paycheck.

Accrual Process Date

Displays the date on which the leave accrual calculation process was last run.

Service Units

Select a unit by which length of service is calculated.

If you select Months, the system uses the service date on the employee employment record as the basis for accrued service. If you select Hours, the system uses the actual hours from the appropriate earnings code maintained by PeopleSoft Enterprise Payroll for North America.

Accrual Rate Units

The unit by which the accrual rate is quoted. Accrual awards are always measured in hours.

Hours Per Hour: Leave hours accrued on an hourly basis.

Hours Per Month: Leave hours accrued on a monthly basis.

Hours Per Pay Period: Leave hours accrued on a pay period basis. Defines the hours that an employee will accrue per pay period.

Hours Per Week: Leave hours accrued on a weekly basis.

Hours Per Year: Leave hours accrued on a per year basis.

Award Frequency

Displays how often the leave accrual award is given to employees. This is determined by the accrual rate unit.

If the accrual rate unit is Hours per Hour, then the award frequency is Every Run.

If the accrual rate unit is Hours per Month, then the award frequency is First Run of Month.

If the accrual rate unit is Hours per Year, then the award frequency is First Run of Year.

Automatic Accrual Processing

Defines how leave hours are calculated.

Special Calculation Routine: means that your company has a custom calculation method.

Service Calc at Year Begin (service calculation at year begin): calculates leave hours according to length of service as of January 1 of the current year.

Max Leave Balance (maximum leave balance): defines the maximum leave hours that an employee can accrue. If no maximum exists, enter 9999.

Max Leave Carryover (maximum leave carryover): defines the maximum number of hours that an employee can carry from one calendar year to the next. If no maximum exists, enter 9999.

Manual Accrual Processing

The values that you enter here are for reference only; they do not affect leave accrual processing in any way.

First Year Award Values

For leave plans with annual accruals, use to define a leave plan in which, during the first year of service, leave hours are prorated based on the month that employment begins. This is available only when the leave plan's accrual rate unit is Hours Per Year.

Although the award frequency for annual accrual leave plans is First Run of Year, you will actually run the Leave Accrual process each month to process the first year award values exclusively. After the first year, employees receive awards only on the first run of the year, as planned.

Accrual Rate Values

Defines how your employees accrue leave time. This is tied directly to what you selected in the Service Units field.

Service Bonus Values

Defines how employees accrue bonus hours (in addition to regular leave accruals).

Click to jump to parent topicSetting Up FMLA Plans

To set up Family Medical Leave Act (FMLA) Plans, use the FMLA Plan Table (FMLA_PLAN_TBL) component.

This section lists prerequisites and discusses how to enter FMLA plan details.

See Also

Managing FMLA Plans

Click to jump to top of pageClick to jump to parent topicPrerequisites

The FMLA contains provisions regarding employer coverage, employee eligibility and entitlement, notice and certification, continuation of health benefits, and job restoration. Because an FMLA plan is an entitlement type of leave plan, it is managed separately from your other enrolled leave plans. Before you can set up FMLA plans, you must activate FMLA administration.

To activate FMLA administration:

  1. Access the Product Specific page on the Installation Table.

  2. Select FMLA Administration in the Benefits Functions group box.

    This enables you to gain access to pages and fields for setting up and administering FMLA plan balances.

See Also

Entering Application- and Industry-Specific Installation Information

Click to jump to top of pageClick to jump to parent topicPage Used to Set Up FMLA Plans

Page Name

Definition Name

Navigation

Usage

FMLA Plan Table

FMLA_PLAN_TBL

Set Up HRMS, Product Related, Base Benefits, FMLA (Family Medical LV), FMLA Plan Table, FMLA Plan Table

Enter FMLA plan details.

Click to jump to top of pageClick to jump to parent topicEntering FMLA Plan Details

Access the FMLA Plan Table page (Set Up HRMS, Product Related, Base Benefits, FMLA (Family Medical LV), FMLA Plan Table, FMLA Plan Table).

Calendar Type

Employees who are eligible for FMLA-protected leave are entitled to at least 12 weeks of leave during each 12–month FMLA year. Three different ways are available to define the FMLA year:

Fixed Calendar: Defines a 12–month period with a specific starting date (defined with the Begin Month and Begin Day fields). It can be the calendar year, fiscal year, or a 12–month period that is defined by state law. Employees with Fixed Calendar FMLA leave plans are entitled to the defined annual entitlement, less any FMLA-protected leave taken in the current fixed calendar year. The eligibility weeks for an FMLA request that is made using a fixed calendar year are reduced according to the date that the request is made.

Roll-Forward: Begins the FMLA year when employees take an FMLA-protected leave and ends 12 months later. Employees' next FMLA year begins with the first FMLA-protected leave they take after the first 12-month FMLA year has passed.

Roll-Backward: Counts the FMLA year backwards for 12 months from the time that employees take FMLA protected leave. If employees have taken FMLA leave in the year previous to their scheduled FMLA leave start date, that amount of leave is subtracted from their annual entitlement for the upcoming FMLA-protected leave request.

Annual Entitlement

Defines the number of weeks of FMLA-protected leave that employees are entitled to every FMLA year. You can define an entitlement of more than the government-mandated 12 weeks, but not less.

Minimum Service Weeks Required and Minimum Earned Hours Required

Use to define the length of service requirements that must be met before an employee is eligible for FMLA coverage. According to the standards set by the FMLA, the values for these fields cannot be greater than 52 weeks (12 months) and 1,250 hours, respectively.

Working any portion of a week counts as a full week of employment, which enables part-time and seasonal employees to meet this requirement. The weeks of employment are also not required to be consecutive, which means that employees who are rehired after a gap in employment may still meet this requirement. The Earned Hours Required field enables the definition of a specific number of hours (up to 1,250) that an employee must have worked for the company during the previous 52 weeks to qualify for FMLA coverage.

Use Standard or Payroll Hours

If you use PeopleSoft Payroll for North America, define how earned hours required and entitlement hours are calculated.

Std Hrs (standard hours): Calculates the earned hours using standard hours per work week. The system determines standard hours per work week from the employee Job record effective as of the leave begin date.

Pay Hrs (payroll hours): Calculates the standard hours using the actual hours worked per week during the 52 weeks prior to the request begin date. Provides more accuracy for employees who work an irregular schedule.

If payroll hours are used, you must establish an FMLA hours special accumulator to track FMLA hours. Special accumulators and their codes are defined through the Special Accumulator Table.

Note. If you do not use PeopleSoft Payroll for North America, the Pay Hrs option is not allowed.

See Also

Setting Up Special Accumulators

Click to jump to parent topicSetting Up FSA Plans

To set up FSA plans, use the FSA Benefits Table (FSA_BENEFITS_TABLE) and HSA Excluded Coverages (HSA_EXCLUDED_CVRGS) components.

This section provides an overview of FSA plans and discusses how to:

Click to jump to top of pageClick to jump to parent topicUnderstanding FSA Plans

The PeopleSoft system enables you to manage two types of spending accounts: Flexible spending accounts (FSAs) and Health savings accounts (HSAs).

Flexible spending accounts (FSAs) are before-tax employee savings plans that can be used for certain approved expenses, such as health care or dependent care. The following plan types are predefined for FSAs:

HSAs are tax-advantaged accounts that enable eligible people to save money and subsequently use that money and any earnings from that money to pay for medical expenses tax-free. People are eligible to contribute to an HSA if they are covered under a high deductible health plan (HDHP).

The PeopleSoft system delivers the plan type 67 to use for HSAs, however any 6x plan type can be used. However, PeopleSoft does not recommend using 60, 61, 65 and 66, as these are delivered plan types for FSA Health and Dependent care for US and Canada.

Click to jump to top of pageClick to jump to parent topicPages Used to Set Up FSA Plans and HSA Excluded Coverages

Page Name

Definition Name

Navigation

Usage

Spending Accounts

FSA_BENEFITS_TABLE

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, FSA Benefits Table, Spending Accounts

Define spending account plan details for US and Canada

HSA Contribution Limits

HSA_CONTRIB_LIMITS

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, FSA Benefits Table, HSA Contribution Limits

If you are using PeopleSoft Enterprise Base Benefits, define the contribution limits for HSA plans.

Note. This page is used only with Benefits Administration.

FSA Admin Config

FSA_ADMIN_CONFIG

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, FSA Benefits Table, FSA Admin Config

Define the FSA Admin Configuration.

HSA Excluded Coverages

HSA_EXCLUDED_CVRGS

Set Up HRMS, Product Related, Base Benefits, Program Structure, HSA Excluded Coverages

Define specific plans that will be excluded from coverage when one selects an HSA.

Click to jump to top of pageClick to jump to parent topicEntering FSA Plan Details

Access the Spending Accounts page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, FSA Benefits Table, Spending Accounts).

(CAN) Employer Carryforward Choice

Carry forward credit or claim amounts from one plan year to the next.

(CAN) Future Borrowing

Select to allow plan enrollees to spend FSA credits prior to their inclusion within the plan year.

Plan Management

Type of Account

Select whether the spending account is a Flexible Spending Account or a Health Savings Account.

If you are using PeopleSoft Enterprise Benefits Administration, the system shows the HSA Contribution Limits page when you select Health Savings Account.

Plan Contribution

Indicate whether employees are expected to contribute to the plan by selecting one of the following options:

  • EE Contribution Optional

  • EE Contribution Required

  • Employer Only (No EE)

Contribution Frequency

Select a frequency to define how you quote amounts for this spending account plan.

If, when you are entering an employee's election, an employee contribution percentage is specified in addition to an annual pledge, then it is specified in terms of this contribution frequency.

Balance ID

The system uses the pay period end date or check date and the schedule of balance periods associated with this balance ID to calculate deductions.

Employee Contribution

Minimum Annual Contribution

Enter the minimum contribution employees can make annually.

Maximum Annual Contribution

Enter the maximum contribution employees can make annually either here or on the HSA Contribution Limits page.

See Entering HSA Contribution Limits.

Catch-up Extension Amount

Enter the annual HSA catch-up extension amount as defined by the IRS.

Catch-up Contribution Age

Enter the age as of which employees can contribute the additional catch-up amount.

Employer Contribution

Employer Contribution

Indicate whether and how an employer matches contributions to this plan:

  • None: No employer match is contributed.

  • Flat Amount: Matches the employee contribution with a flat amount that you enter, up to a chosen percentage.

  • Percent of Employee Contribution: Matches a percent of the employee contribution that you enter, up to a limit that you define.

  • Special Calculation Routine: Uses a custom routine not supported by the standard PeopleSoft system.

Note. HSA plans only use the None and Flat Amount options.

Flat Contribution Amount

If you are using Benefits Administration, enter the employer contribution on the HSA Contribution Limits page only if the plan is an HSA plan. If the plan is an FSA, then enter the contribution amount on this page.

See See Entering HSA Contribution Limits.

Click to jump to top of pageClick to jump to parent topicEntering HSA Contribution Limits

Access the HSA Contribution Limits page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, FSA Benefits Table, Spending Accounts, HSA Contribution Limits).

Employees can contribute to an HSA only if they are covered by an HDHP. Their contributions to an HSA are determined by the HDHP and the coverage code. For each controlling plan you enter, make sure that you include a row for each coverage code.

Contribution Controls

Controlling Plan Type

Select the benefit plan type whose membership controls eligibility for this plan.

Controlling Benefit Plan

Select the HDHP benefit plan whose membership controls eligibility for this plan.

Coverage Code

Select the plan's coverage code.

Maximum Annual Contribution

Enter the maximum annual amount that can be contributed to the HSA when an employee is covered by this plan and coverage code. This maximum is the total limit for both employee and employer contributions combined.

Employer Contribution Amount

Enter the amount that employers will contribute based on the Employer Contribution Frequency to the HSA for employees covered by this plan and coverage code.

Limit to % (limit to percent)

Leave blank because employer contributions must be nondiscriminatory.

Click to jump to top of pageClick to jump to parent topicDefining FSA Administration Parameters

Access the FSA Admin Config page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, FSA Benefits Table, FSA Admin Config).

Use the following fields to determine the service dates that are valid for submitted claims:

FSA Service From Date

This field by default displays the effective date of the plan and must be within the service date range to be paid under the plan.

This value can also be longer than 12 months and overlap the service dates of other plans that the employer offers and in which the employee is enrolled.

Through

This field by default displays the date that is 12 months after the effective date of the plan.

FSA Plan Year

Select the year pertaining to this plan.

FSA Minimum Check Amount (flexible spending account check amount

Enter a cost below which the system does not pay out any claims.

Ignore Min Check Amt at Close (ignore minimum check amount at close)

Select to close out the plan and process and pay out any approved, pending claims below the minimum amount. All claims are paid when the system runs the closure process for the benefit plan.

Note. If this option is not selected, all claims below the minimum amount remain unpaid. If the pending claim has a service date that overlaps two FSA plans in which an employee is enrolled, the system moves the claims to the second FSA plan until enough claims exist to meet the minimum check amount of the second FSA plan.

Click to jump to top of pageClick to jump to parent topicDefining HSA Excluded Coverages

If an employee enrolls in an HSA, he or she cannot enroll in some plans. These nonpermitted plans are defined in an HSA Excluded Coverages table by plan type and plan. This table validates all HSA enrollments through eBenefits and Benefits Administration.

Access the HSA Excluded Coverages page (Set Up HRMS, Product Related, Base Benefits, Program Structure, HSA Excluded Coverages).

Click to jump to parent topicSetting Up Retirement Plans

To set up a retirement plan for PERS (the California Public Employees Retirement System) or the U.S. federal government, use the Retirement Plan Table (RTRMNT_PLAN_TABLE) component.

This section discusses how to enter retirement plan details.

Click to jump to top of pageClick to jump to parent topicPage Used to Set Up Retirement Plans

Page Name

Definition Name

Navigation

Usage

Retirement Plan Table

RTRMNT_PLAN_TABLE

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Retirement Plan Table, Retirement Plan Table

Set up California PERS or U.S. federal government retirement plans.

Click to jump to top of pageClick to jump to parent topicEntering Retirement Plan Details

Access the Retirement Plan page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Retirement Plan Table, Retirement Plan Table).

Employer Contribution to Employee % (employer contribution to employee percentage)

Define how much the employer contributes to the employee's total contribution percentage.

Use Special Accumulator Instead of Gross

To have the system use a special accumulator instead of the total gross, enter the desired accumulator code here.

To use a special accumulator, work with your payroll department to define the code and its detail. You can set up special accumulators—as many as you need—to process savings, retirement, and pension plans.

(USF) Federal Retirement Plans

Federal employees who are enrolled in FERS retirement plans are automatically enrolled in a TSP (Thrift Savings Plan) 1% Agency Contribution plan as well. In this plan, the employee's agency contributes 1% of the employee's basic pay for each pay period to the employee's TSP account. The TSP 1% Agency Contribution plan is predefined; its benefits do not take the place of those offered by other retirement plans. Employees enrolled in the TSP 1% Agency Contribution plan receive these contributions regardless of whether they contribute their own money to their TSP accounts.

Select OASDI Offset and Subject to OASDI for retirement plans that have employee contributions offset by employee contributions to OASDI. The system reduces employee retirement plan contributions by the OASDI contribution amount until the maximum OASDI/FICA contribution level is reached.

See Also

Setting Up Special Accumulators

Enrolling Employees in the TSP Agency Automatic Contribution Plan

Click to jump to parent topicSetting Up Pension Plans

To set up pension plans, use the Pension Plan Table (PENS_PLAN_TABLE_US) component.

This section discusses how to enter US and Canadian pension plan details.

Note. Pension plans are also managed by PeopleSoft Enterprise Pension Administration. However, the pension plan must be set up in the Manage Base Benefits business process.

See Also

PeopleSoft Enterprise Pension Administration 9.1 PeopleBook

Click to jump to top of pageClick to jump to parent topicPages Used to Set Up Pension Plans

Page Name

Definition Name

Navigation

Usage

Pension Plan Table

PENS_PLAN_TABLE_US

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Pension Plan Table, Pension Plan Table

Enter details for U.S.-defined pension plans.

Pension Plan Table CAN

PENSION_PLAN_TABLE

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Pension Plan Table CAN, Pension Plan Table CAN

Enter details for Canadian-defined pension plans.

Click to jump to top of pageClick to jump to parent topic(USA) Entering Pension Plan Details

Access the Pension Plan Table page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Pension Plan Table, Pension Plan Table).

Allow Contingent Beneficiaries

Select if the plan allows nonspouse beneficiaries. (If selected, the MDIB group box appears.)

Plan Yr Begins (Month/Day) (plan year begins [month/day]) and Plan Yr Ends (Month/Day) (plan year ends [month/day])

Specify the month and day when your plan year begins. A plan year normally ends the day before the next one begins. However, if you change your plan year, the row for the resulting short plan year will have nonconsecutive begin and end dates.

Be sure to include a row for a short plan year. Failure to do this can cause calculation errors. A short plan refers to the period of transition when a change occurs in the plan year. For example, assume a plan has a fiscal year starting from July 1 to June 31. Due to a business decision, the plan year changes to January 1 to December 31, beginning on January 1, 2004. The short plan year would be from July 1, 2003 to December 31, 2004.

MDIB Rule Should Apply (minimum distribution incidental benefit rule should apply)

Select if the MDIB rule applies.

MDIB Age Difference (minimum distribution incidental benefit age difference)

Enter an age difference.

Contributory Plans

You can incorporate U.S. pension plans (plan types 82 to 87) into a manual or automated benefit program only if the plan is defined as a contributory plan in which the employee contributes some portion of earnings to the plan.

Note. The system does not determine whether the rules that you set up meet Internal Revenue Code qualification standards. Such compliance is your responsibility.

Voluntary Contributions Allowed

No parameters exist for defining voluntary contribution rates; these are established on an employee-by-employee basis when you enroll employees in the plan.

Special Accumulator Code

Enter the code that tracks pensionable earnings.

Rates of Deduction

Enter contribution rates. You can have different rates above and below a threshold. For example, employees can contribute 2% of earnings up to 50,000 USD and 3% of earnings above that. Enter the rate up to the threshold in the first Rates of Deduction field, the threshold in the next field, and the rate beyond the threshold in the final field.

If the threshold changes—for example, if you use the Taxable Wage Base (TWB) as the threshold—insert additional effective-dated rows to record the changes.

Click to jump to top of pageClick to jump to parent topic(CAN) Entering Pension Plan Details

Access the Pension Plan Table CAN page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Pension Plan Table CAN, Pension Plan Table CAN).

Use Special Accumulator Instead of Gross

Enter the special accumulator code that you want the system to use in pension calculations.

The system normally performs pension plan calculations based on employee total gross. If you use a special accumulator, work with your payroll department to define the code and details. You can define several special accumulators—as many as you need—to process savings, retirement, and pension plans.

Based on YTD (based on year-to-date)

Select if you identified a special accumulator in the Use Special Accumulator Instead of Gross field.

The system will add the current period special accumulator earnings to the special accumulator year-to-date balance. If you do not select the check box, the system takes the special accumulator earnings for the current pay period and annualizes them based on the number of pay periods in the year.

Pension Plan Type

Select the type of pension plan. Valid values are Def Benfit (defined benefit), MoneyPurch (money purchase), Non Qual (nonqualified), and Qualified.

Defined benefit calculates the pension credit and does not maintain a pension adjustment balance for the employee. Defined benefit pension credits must be calculated based on the retirement benefits accrued by each employee, according to the provisions of the plan and the plan year. The system doesn't have the information to perform this calculation.

Money purchase calculates the pension credit for the current period as the total of all employee and employer contributions to the plan. The system posts the total of all pension credits for the period (an employee can be enrolled in more than one pension plan at the same time) to the Pension Adjustment Year-To-Date balance for the employee. If your pension plan has been defined as a money-purchase type, the Pension Adjustment (PA) amount is automatically calculated and maintained by the pay confirmation process and represents a combination of the employee and employer contributions.

Voluntary Contributns Allowed (voluntary contributions allowed)

Select to allow employees whom you enroll in the plan to make voluntary contributions above the amount that you define for the plan.

Coordinate with CCP (coordinate with Canadian Pension Plan)

Select to have the system reduce the calculated contribution amount for both the employee and the employer by the amount contributed to the Canada Pension Plan (CPP) for the current pay period.

Warning! When you define the pension contribution as a before-tax deduction, the system calculates the amount to deduct before it performs the normal tax calculation. When you select Coordinate with CPP, the system performs a special CPP/QPP calculation prior to calculation of the pension contribution. To ensure that CPP/QPP is correctly calculated, you or your payroll department must define the pension benefit deduction priority as lower (a higher number) than all taxable benefits.

Plan Registration Nbr (plan registration number)

Enter the registration number for the pension plan. The system uses the plan registration number for reporting on the T4 tax form at the end of the year.

Contribution Percent

Use this group box to define the employer and employee contribution percentages. The rate type that you select determines the information that you will need to provide.

Rate Type

Select a rate type. Valid values are Fixed Rate, None, and Slide Rate.

If you select Fixed Rate, the Pension Rate Table becomes available and you must enter the rates to use to process the employee and employer contributions. This is based on YTD earnings and should not be selected even if a special accumulator is used. If more than one set of rates apply, Oracle recommends that you use Slide Rate.

If you choose None, use the fields to the right to define the rates.

If you select Slide Rate, the Pension Rate Table becomes available and you must enter the rates to use to process the employee and employer contributions. To avoid setup problems, define your rates in both Contribution Up to YMPE and Contribution Over YMPE for each earnings limit and ensure that a ceiling earnings limit is entered that cannot be exceeded by annualizing an employee's pay. Otherwise, an error message is reported during the pay calculation run.

Contribution Up To YMPE (contribution and up to yearly maximum pensionable earnings), Contribution Over YMPE (contribution and over yearly maximum pensionable earnings), Employer % (employer percent), and Employee % (employee percent)

To define rates that are not based on a table, select None in the Rate Type field and use Contribution & Up to YMPE, Employee %, and Employer %, and Contribution & Over YMPE, Employee %, and Employer %. YMPE is an amount set by the government upon which CPP/QPP contributions are made. It is a ceiling, and excess earnings on this ceiling are not subject to CPP/QPP contributions.

Annual Rate

To define fixed or sliding rates, select either Fixed Rate or Sliding Rate in the Rate Type field.

For example, you enter three sets of rates and you enter limits of $20,000, $60,000, and $80,000 for the rates. When the system processes an employee pension contribution for pensions defined using fixed rates, it looks for the set of rates with the lowest associated earnings limit that is greater than employee annual earnings. If employee annual earnings exceed the highest earnings limit amount, the system uses the rates associated with the highest amount. When the system processes an employee pension contribution for pensions with sliding rates, it splits the earnings between different rate levels up to employee annual earnings.

Here is an example for fixed rates: An employee with annual earnings of $50,000 uses rates associated with the $20,000 earnings limit for the first $20,000, and uses rates associated with the $60,000 earnings limit for the remaining $30,000.

Here is an example for sliding rates: an employee with annual earnings of $50,000 uses the rates associated with the $60,000 earnings limit. If the annual earnings for another employee are $90,000, the system uses the rates associated with the $80,000 earnings limit.

Defined Benefit PA Factors

If you want to use the SQR (Structured Query Report) program TAX104CN as a template Pension Adjustment Calculation routine, complete the Defined Benefit PA Factors group box. TAX104CN calculates and loads the appropriate balance records. To complete the group box, contact your pension administrator or an appropriate governing office. The only optional field in this group box is PA Annual Base Hours. If this field is blank, the system applies the employee's standard work hours from the Job Data - Job Information page to perform the calculation.

If your pension plan has been defined as a money purchase type, the pension adjustment (PA) amount is automatically calculated and maintained by the pay confirmation process and represents a combination of the employee and employer contributions.

If you have pension plans set up as defined benefit plans, leave the pension adjustment amounts in the Defined Benefit PA Factors group box blank. Typically, you will generate the pension adjustment amounts using an external service provider, or perhaps an internal process, outside of the PeopleSoft application. When the information is calculated, you must import it into the PeopleSoft system.

Click to jump to parent topicSetting Up Vacation Buy/Sell Plans

To set up vacation buy/sell plans, use the Vacation Buy/Sell Table (VACATION_TABLE) component.

This section discusses how to enter vacation buy/sell plan details.

Click to jump to top of pageClick to jump to parent topicPage Used to Set Up Vacation Buy/Sell Plans

Page Name

Definition Name

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Usage

Vacation Buy/Sell Table

VACATION_TABLE

Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Vacation Buy/Sell Table, Vacation Buy/Sell Table

Enter details for vacation buy/sell plans.

Click to jump to top of pageClick to jump to parent topicEntering Vacation Buy/Sell Plan Details

Access the Vacation Buy/Sell Table page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Vacation Buy/Sell Table, Vacation Buy/Sell Table).

With a vacation buy plan, employees can use earnings to gain more vacation days. With vacation sell, they contribute vacation hours for cash.

Vacation Buy or Sell

Select either Vacn Buy (vacation buy) or Vacn Sell (vacation sell), depending on the plan type.

Vacation Buy is predefined plan type 90; Vacation Sell is plan type 91.

Accruals Earnings Type

Select the earning type to use for this plan.

Accruals earning types are defined on the Earnings Table for PeopleSoft Payroll for North America.

When employees buy vacation, accrual balances increase. When employees sell vacation, accruals decrease.

Amount Frequency

Select the rate at which the system will store and calculate the value of vacation hours that an employee buys or sells. This field is independent of pay period.

When an employee buys or sells vacation, two kinds of data are affected: leave accruals and pay. The first time you process leave accruals after an employee buys or sells vacation hours, you see current leave accrual balances, based on the total vacation hours bought or sold. However, for employee pay, PeopleSoft Payroll for North America spreads the vacation buy or sell amount over the remainder of the calendar year. This is done with the help of the amount frequency and accruals earnings type that you define.

Vacation Hours and Vacation Amount

When an employee buys or sells vacation, the system verifies that the amount is at least the minimum, not more than the maximum, and in the increment that you define. The system also verifies that the value of the hours bought or sold does not exceed the percent of salary or the maximum amount.

See Also

Managing Leave Plans

Managing Vacation Buy/Sell Plans