This chapter discusses how to:
Define benefit plans.
Set up health plans.
Set up simple rate plans.
Set up life insurance and accidental death plans.
Set up disability plans.
Set up savings plans.
Set up leave plans.
Set up FMLA (Family and Medical Leave Act) plans.
Set up FSA (flexible spending account) plans.
Set up retirement plans.
Set up pension plans.
Set up vacation buy/sell 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.
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:
Identify the benefit provider for the benefit plan and enter the benefit provider in the Provider/Vendor Table page.
Enter the detail information for the benefit plan on the Benefit Plan Table page.
Repeat this process for each benefit plan that you will offer to your employees.
Page Name |
Definition Name |
Navigation |
Usage |
BENEFIT_PLAN_TABLE |
Set Up HRMS, Product Related, Base Benefits, Plans and Providers, Benefit Plan Table, Benefit Plan Table |
Enter 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 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 Payroll for North America with PeopleSoft 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 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
To set up health plans, use the Health Plan Table (HEALTH_PLAN_TABLE) component.
This section discusses how to enter health plan details.
Page Name |
Definition Name |
Navigation |
Usage |
HEALTH_PLAN_TABLE |
Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Health Plan Table, Health Plan Table |
Enter 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. |
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.
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.
Page Name |
Definition Name |
Navigation |
Usage |
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. |
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.
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:
Create coverage calculation formulas.
Enter life insurance and AD/D plan details.
(USF) Understand Option A - standard FEGLI plan calculations.
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 |
Page Name |
Definition Name |
Navigation |
Usage |
BN_FORMULA |
Set Up HRMS, Product Related, Base Benefits, Rates and Rules, Coverage Formula Table, Coverage Formula Table |
Create coverage calculation formulas. |
|
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. |
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:
|
Premium Base As Of |
Select the employee's salary that the system will use for premium calculation. The options are:
|
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:
|
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. |
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:
|
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
For Seq No field 10, select the ( symbol in the Operand field.
Add a row.
For Seq No field 20, select the ( symbol in the Operand field.
Add a row.
For Seq No field 30, select Constant in the Entry Type field and enter 2 in the Numeric Value field.
Add a row.
For Seq No field 40, select the * symbol in the Operand field and select Base in the Entry Type field.
Add a row.
For Seq No field 50, select the ) symbol in the Operand field.
Add a row.
For Seq No field 60, select Round in the Operand field, enter 1000 in the Round to Multiple of field, and enter 500.00 in the Round Up Amount field.
Add a row.
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.
Add a row.
For Seq No field 80, select the ) symbol in the Operand field.
Add a row.
For Seq No field 90, select the ) symbol in the Operand field.
Add a row.
For Seq No field 100, select Round in the Operand field, enter 500.00 in the Round to Multiple of field, and enter 1000 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:
Flat Amount
2 x Base
(2 x Base) Round
(2 x Base) Round + Flat Amount
((2 x Base) + Flat Amount) Round
(Base + Flat Amount) Round
((2 x Base) Round + Flat Amount) Round
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.
PeopleSoft 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.
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.
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 Coverage Formula Table page
Page Name |
Definition Name |
Navigation |
Usage |
DISABILITY_PLN_TBL |
Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Disability Plan Table, Disability Plan Table |
Define details for disability benefit plans. |
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.
To set up savings plans, use the Savings Plan Table (SAVINGS_PLAN_TBL) component.
This section discusses how to:
Define employee investment limits.
Define employer match or other contributions.
Set up employee rollover options.
Page Name |
Definition Name |
Navigation |
Usage |
SAVINGS_PLAN_TBL1 |
Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table, Employee Limit on Investments |
Define employee investment limits. |
|
SAVINGS_PLAN_TBL2 |
Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table, Employer Contribution/Match |
Define employer contributions. |
|
SAVINGS_PLAN_TBL5 |
Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Savings Plan Table, Rollover of Funds |
Set up employee rollover options. |
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.
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.
When you are defining a nonmatching contribution plan, this data defines the actual amount an employer contributes.
For example, your organization might fund savings plans with after-tax dollars at 3% of the employee's earnings, up to 500 USD per pay period. You would enter 3% in the After-Tax % of Earnings Limit field and 500 in the Amount Per Pay Period Limit field.
When you are defining a plan that has an employer match, this data defines the maximum amount of employee funds eligible for matching, rather than defining the amount of the employer match.
For example, your organization might match 50% of an employee's contributions, but only on a before-tax basis, up to 6% of earnings or 1,000 USD per pay period, whichever is less. In this example, you would enter 6% in the Before-Tax % of Earnings Limit field and 1000 in the Amount per Pay Period Limit field.
Use the Combined % of Earnings Limit field to combine the limits for both before-tax and after-tax employer match.
Use the Limit Employee Match field to specify whether the limit or reduction is applied before or after the employer match is calculated as described in the examples below.
This feature applies only for employer match calculations that use the Service Step Table.
Example: Limiting Employee Match Before or After Employer Match When Using the Service Step Table
This example uses the following data:
Savings plan limit for employer contribution: 4.5%
Service Step table:
Up to 3% of employee earnings: 100% match.
Up to 6% of employee earnings: 50% match.
Employee enrollment:
Before-tax: 1%
After-tax: 6%
Earnings: $5225
Before-tax deduction: 52.25
After-tax deduction: $315.50
After Employer Matching
The reduction (limit) of the employee contributions that are subject to matching after the match calculation is calculated like this:
Before-tax employer match: $52.25
(1% earnings x 100% match)
Non-taxable Employer match: $182.88
[( 3% x 100% match = $156.75) + (3% x 50% match = $78.38)] = (4.5% x $5225) = $235.13 match
$235.13 – $52.25 = $182.88
Before Employer Matching
The reduction (limit) of the employee contributions subject to matching before the match calculation is calculated like this:
Before-tax employer match: $52.25
(1% earnings x 100% match)
Non-taxable Employer match: $169.82
[(4.5% limit – 1% earnings used for before-tax = 3.5%) (3% x 100% match = $156.75) + (.5% x 50% =13.06) = $169.82
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 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 Payroll for North America or an appropriate interface with another payroll system. |
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
Page Name |
Definition Name |
Navigation |
Usage |
LEAVE_PLAN_TABLE |
Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Leave Plan Table, Leave Plan Table |
Enter 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 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. For US Federal users only. Defines the hours 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). |
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
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:
Access the Product Specific page on the Installation Table.
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
Page Name |
Definition Name |
Navigation |
Usage |
FMLA_PLAN_TBL |
Set Up HRMS, Product Related, Base Benefits, FMLA (Family Medical LV), FMLA Plan Table, FMLA Plan Table |
Enter 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
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:
Enter FSA plan details.
Enter HSA contribution limits.
Define FSA Administration parameters.
Define HSA excluded coverages.
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:
Plan type 60 - FSA health care for U.S. companies.
Plan type 61 - FSA dependent care for U.S. companies.
Plan type 65 - FSA health care for Canadian companies.
Plan type 66 - Canadian retirement counseling accounts.
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.
Page Name |
Definition Name |
Navigation |
Usage |
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_CONTRIB_LIMITS |
Set Up HRMS, Product Related, Base Benefits, Plan Attributes, FSA Benefits Table, HSA Contribution Limits |
If you are using PeopleSoft Base Benefits, define the contribution limits for HSA plans. Note. This page is used only with Benefits Administration. |
|
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_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. |
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 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:
|
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:
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 Entering 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. |
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. |
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).
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.
Page Name |
Definition Name |
Navigation |
Usage |
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. |
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
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 Pension Administration. However, the pension plan must be set up in the Manage Base Benefits business process.
See Also
PeopleSoft Pension Administration 9.1 PeopleBook
Page Name |
Definition Name |
Navigation |
Usage |
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 |
Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Pension Plan Table CAN, Pension Plan Table CAN |
Enter details for Canadian-defined pension plans. |
Access the Pension Plan Table page (Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Pension Plan Table, Pension Plan Table).
Pension Type |
Select the type of pension plan. Valid values for U.S. pension plans are Qualified and Non Qualified. Do not select Defined Benefit or Money Purchase, as these are valid only for Canadian pension plans. |
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. |
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 for Canadian pension plans are Defined Benefit and Money Purchase. Do not select either Qualified or Non Qualified, as these are valid only for U.S. pension plans. 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. |
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.
Page Name |
Definition Name |
Navigation |
Usage |
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. |
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 Vacation Buy/Sell Plans