PeopleSoft Pension Administration 9.1 PeopleBook

Defining Service and Break Rules

This chapter provides an overview of service and break rules and service definition types and discusses how to:

Use service results.
Set up service function results for multiple jobs.
Set up break rules.

Understanding Service and Break Rules

Service rules can be very complex. The system has three components, each containing parameters specific to a particular service calculation method. Service rules present options for the elapsed time, hours counting, and hours equivalence calculation methods. In addition, there is a separate component to define break rule and service restoration.

Note. In contributory plans, employees who forfeit service if they withdraw their contributions, may be able to buy back the forfeited service, if rehired, by repaying the withdrawn amount. Also, some contributory plans allow employees to purchase service for certain eligible time periods.

See Also

Defining Employee Accounts

Setting Up Contributory Plans

Understanding Service Definition Types

Pension Administration provides pages for three types of service calculation: elapsed time, hours counting, and hours equivalence.

An elapsed time method calculates service by measuring the time between two dates—for example, the time between hire and termination dates. The timeline may be adjusted for leaves of absence and other statuses. The amount of service credited does not depend on the hours worked during a time period.

Alternatively, the hours methods determine service for each computation period based on the hours accumulated during that period. These methods require parameters for converting hours to service units. The hours counting methods use the number of hours worked in a computation period. They require hours data, which is provided by the hours consolidation process. An hours equivalence method credits employees with a predetermined number of hours per period.

Many of the service parameters are common to multiple definition types—for example, final adjustment parameters. Several pages, therefore, appear in multiple components.

See Also

Setting Up Elapsed Time Service

Setting Up Hours Counting Service

Setting Up Hours Equivalence Service

Using Service Results

A service function result returns an amount that you can reference:

In the benefit formula.
In a vesting definition.
In a participation definition.
In any other function with a service basis.

You can use service for many different purposes, so it's possible that you'll need more than one service function result. For example, it is common to set up one function result to calculate service for participation, another for vesting, and another for the service component of the benefit formula.

For any service function result involving multiple service definitions, the Definition and Final Handling pages must be coded identically within each effective date section of the Function Result page.

Note. There can be only one type of service definition within one effective-dated row of a service result.

Setting Up Service Function Results for Multiple Jobs

When you use multiple jobs processing, there are special considerations for setting up service function results. Service calculations depend on human resource (HR) actions and reasons, which indicate when to start, stop, and adjust service. In the multiple jobs environment, where each job has an independent action and reason history, there is added complexity.

To deal with this complexity, the system creates a "blended" actions-and-reasons timeline that includes each job's actions and reasons. Because information is lost during this process—that is, which job created which actions—the system does part of the computation before the blending process and other computations afterward.

When setting up service function results for multiple job processes, you must decide:

Which jobs to include in the service calculation.

If you want to include all jobs in the service calculation, on the Function Result page under Multiple Jobs, select Use All Jobs. If you want to include only jobs for which an employee is eligible, select Use Eligible Jobs Only.
When an employee is accruing service.

When you consider which pension status to give an employee, it is sometimes necessary to determine whether the employee is accruing service at a given point in time. This information is not saved unless you specifically tell the system to store it. To save this pension status information, select For Pension Status Codes.

See Also

Adding a Function Result

Setting Up Break Rules

To set up service break rules and waiting periods for service restoration, use the Service-Break Rules (BREAK) component.

This section provides an overview of break rules, lists the pages used for break rules, and discusses how to:

Set up break restore rules.
Set up break wait rules.

Understanding Break Rules

An employee accrues service continuously from the time of hire until retirement. Often, however, service is interrupted by breaks, due to termination and rehire, leave of absence, and other status changes. Break rules determine when an employee is charged with a break in service and how that status affects prior service accrual. Break rules comprise break restore and break wait rules.

Pages Used for Break Rules

Page Name	Definition Name	Navigation	Usage
Break Restore Rules	PA_BREAK_PNL3	Set Up HRMS, Product Related, Pension, Components, Service-Break Rules, Break Restore Rules	Set up the general service restoration rules.
Break Wait Rules	PA_BREAK_PNL2	Set Up HRMS, Product Related, Pension, Components, Service-Break Rules, Break Wait Rules	Set up a waiting period for service restoration.

Setting Up Break Restore Rules

Access the Break Restore Rules page (Set Up HRMS, Product Related, Pension, Components, Service-Break Rules, Break Restore Rules).

Copy

This is a shortcut you can use to copy a similar definition. Establish the first definition, click the Copy button, enter a new name and description, and the system clones the original definition using the new name. You can then make whatever minor adjustments you need to the new definition. If you have to make major adjustments, consider creating the new definition from scratch instead of copying an existing definition.

Service Restoration Rule

The service restoration rule establishes how you determine whether or not to restore service after break.

Count Breaks

Select this option when the number of consecutive one-year breaks determines whether service can be restored.

User Code

Select this option for any other break method.

Count Break

Breaks Allowed	Enter the minimum number of consecutive one-year breaks that disqualifies an employee from having previous service restored.
Restore Service if Vested	Select this option to make vested employees automatically eligible for service restoration, regardless of the number of one-year breaks. Vested employees are still subject to repayment and waiting period rules. Partially vested employees are considered vested. (The system can identify vested employees because periodic processing keeps employees' vesting histories.)
Use Rule of Parity	Select this option to make service restoration dependent on the length of the previous service and the length of the break. In this case, service is restored unless the break is longer than one of the following: The number of breaks allowed (typically five). The total years of service before the break. For example, an employee with three years of service does not lose that service after a two-year break, but does lose it after a four-year break.
Use Other Service FR for Restoration (use other service function result for restoration)	Select this option to make service restoration dependent on the length of the service obtained from an alternate function result. Enter the alternate function result in the text Function Result field. The break restore rules are applied to the service amount retrieved from the alternate function result. For example, your plan may require that vesting service be used to determine whether to restore prior benefit service after a break. In this case, you would enter the plan's vesting service function result in the text box.

Break Defined By

If you count breaks, you need to establish what constitutes a one-year break. Do this in the Break Defined By group box.

Break Type

Select one of these break types:

Hours Threshold: Select this option when the break rule is used with hours counting or hours equivalence service method. Enter the number of hours that constitute a full year, for the purpose of determining a break. For example, if you enter 1000, employees with at least 1000 hours in a year are not charged with a break, even if they do not have enough hours to accrue service. The break rule tracks hours using the consolidated hours specified in the associated service definition.

Note. Use hours based break definitions with hours based service definitions, and use elapsed time break definitions with elapsed time service definitions.
Elapsed Time: Select this option when the break rule is used with the elapsed time service method. In this case, the break time is measured by the calendar. Enter a duration option in the text box below.

The system uses the specified method to measure the length of the break. The break start and end points are based on an employee's action and reason history and the action and reason codes you defined as not included in your service definition.
User Code: Select this option to use your custom code to define the break rule.

See Also

Working With User Code

Setting Up Break Wait Rules

When employees leave and then return, you may require that they complete one year of service before you restore their previous service. You set this up on the Break Wait Rules page.

Access the Break Wait Rules page (Set Up HRMS, Product Related, Pension, Components, Service-Break Rules, Break Wait Rules).

One Year Wait

Select this option if you require that employees returning from a break wait a year before you restore service. Then select one of the following methods of determining the one-year wait period:

Elapsed Time: In the Elapsed Time Counting Period group box, select either Days per Year and enter the Number of Days, or select User Code and use one of the user code options to measure the wait.

User Code:

Select this option to use custom code to determine elapsed time.

Note. To measure a waiting period other than a year, select One year wait code (y/n). Then enter the length of the waiting period in Days per Year, or use a user code option.

See Also

Working With User Code

Using Function Results for Break Definitions

You implement break definitions using the same function results as for service definitions. When you create a service function result, the Function Result page automatically includes parameters for the break definition.

See Also

Setting Up Function Results