14 Setting Up Allowed Dependent Relationships by Plan

This chapter contains the following topics:

14.1 Understanding Allowed Dependent Relationships by Plan

You can use the Allowed Dependent Relationship by Plan program (P085500) to define dependent relationship information for employee dependents that can be covered under a dependent benefit plan or benefit plan option. If you add only a single record, by entering a * in the Relation field for a benefit plan, then any dependent relationship is valid. If only a certain subset of relationships is valid, then you must define each of those valid relationships.

If all employee benefit plans are set up, and any dependent relationship is valid, then you can run the Automatically Setup SS Dependent Selection program (R085505) without defining allowed dependent relationships for each plan.

You might use this program to define allowed dependent relationships for benefit plans in an organization that covers domestic partners. Certain tax advantages that could apply to employee benefits do not apply to benefit plans that cover domestic partners. To track the DBAs for benefit plans that include a spouse and benefit plans that include a domestic partner, you might set up separate benefit plans that specify allowed dependent relationships by plan. For example, if an organization offers employee benefit plans that cover domestic partners, then the human capital management administrator might create a benefit plan with these benefit plan options and allowed dependent relationships:

Benefit Plan Option Dependent Relationship
Benefit Plan Option Valid Dependent Relationship
Employee Only (not a dependent plan) Not applicable
Employee + Spouse Spouse
Employee + Domestic Partner Domestic partner
Employee + Spouse + Family Spouse, child, step/foster child
Employee + Domestic Partner + Family Domestic partner, child, step/foster child
No Coverage (not a dependent plan) Not applicable

Your employee self-service software includes automatic selection of benefit plans that makes enrolling in benefits easier and faster for employees. The system automatically displays benefit plans and benefit plan options based on the number of dependents and their relationship to the employee.

14.2 Implementing the Settings

This section discusses how to implement allowed dependent relationships by plan.

14.2.1 Forms Used to Implement Allowed Dependent Relationships by Plan

Form Name FormID Navigation Usage
Work with Allowed Dependent Relationships W085500A Employee Self Service General Setup (G08BB413), Allowed Dependent Relationships by Plan Implement allowed dependent relationships.

14.2.2 Implement Allowed Dependent Relationships by Plan

Access the Allowed Dependent Relationships by Plan form.

To set up allowed dependent relationships by plan:

  1. On Work With Allowed Dependent Relationships, complete the Plan ID field and then click Find:

  2. Select the Plan ID and Add Option that you would like to setup for dependent relationships.

  3. Specify the allowed dependent relationships for the plan by completing the Relation field.

    You can add values to the list of allowed relationships in UDC 08/RL. Review the entries in this table to ensure that the correct special handling codes exist. A value of *, allowing all relationships, is an allowed value, even though this character does not display in the UDC table. A UDC for dependent relationships must contain either a D or A in the Special Handling field. If the UDC contains a B in the Special Handling field, then the relationship is automatically excluded from being covered as a dependent.

  4. When all relationships are specified for the plan, click OK.

    • Additional Option

      Enter a code that identifies any additional options available for a benefit plan that have been defined in the Plan Additional Options table (F083202).

      Note:

      Additional options must have the same provider, policy number, and enrollment and eligibility rules as the benefit plan to which they are associated.
    • Relation

      Enter a user defined code (system 08/type RL) that defines the relationship of the dependent or beneficiary to the employee.