Funding Variable Compensation Plans
To set up funding for variable compensation plans, use the Plan Funding (VC_PLAN_FUNDING) component.
This section provides an overview of plan funding and discusses how to allocate funds to a variable compensation plan.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
VC_PLAN_FUNDING |
Allocate funds to a variable compensation plan. The system tracks these funds and adjusts the fund's available balance as you allocate awards. Plan funding is optional. Fund the plan at any time during the life of the plan. |
Plan funding is optional for all plan types except the five stock types.
You can allocate funds to the plan at any time in the life of the plan. After the initial allocation, you can use the Plan Funding setup page to increase or decrease funding to the plan. If the plan uses groups, you must first allocate funds to the plan before you allocate funding to the groups.
Funding Ad Hoc Plans
Ad Hoc plans do not use the Calculate Awards process, so no adjustment factor exists for these plans. The available balance of funding appears on the Allocate Awards page, and the system updates the balance as you allocate awards. The system warns you if you try to exceed the available balance. You can then allocate more funds to the plan or adjust the award to fall within the balance.
Funding Stock Plans
Plan funding is mandatory for stock-type plans. If your organization uses Stock Administration, the stock administrator allocates shares to variable compensation by stock plan and stock ID. From that allocation, the variable compensation administrator can fund multiple stock plans that have the same stock plan and stock ID.
Use the Plan Funding page (VC_PLAN_FUNDING) to allocate funds to a variable compensation plan.
The system tracks these funds and adjusts the fund's available balance as you allocate awards. Plan funding is optional. Fund the plan at any time during the life of the plan.
Navigation:
This example illustrates the fields and controls on the Plan Funding page.
This table lists the fields that are visible for the different plan types:
|
Monetary Plans |
Non-monetary Plans |
Stock Plans |
|---|---|---|
|
VC Plan ID |
VC Plan ID |
VC Plan ID |
|
Plan Funding |
Plan Funding (Units) |
Shares Available to Plan |
|
Funds Available |
Plan Balance |
Plan Balance |
|
Funding Date |
Funding Date |
Funding Date |
|
Amount Funded |
Funding Units |
Funding Units |
|
Currency |
Last Updated User Name |
Last Updated User Name |
|
Last Updated User Name |
Last Update Timestamp |
Last Update Timestamp |
|
Last Update Timestamp |
no entry |
no entry |
Field or Control |
Description |
|---|---|
Plan Funding |
(Monetary plans) The sum of all funding amounts for the plan. The system recalculates the Plan Funding amount each time you add or change an amount in the Amount Funded column. |
Plan Funding (Units) |
(Non-monetary plans) The sum of all funding units for the plan. The system recalculates the Plan Funding (units) amount each time that you add or change an amount in the Funding Units column. |
Funds Available |
(Monetary plans) For plans without groups: The amount of funds remaining for distribution that have not been allocated to awards, which is recalculated each time you access the page. For plans with groups: The amount of Plan Funding minus the amount of funding that has been allocated to the top group. |
Shares Available to Plan |
(Stock-type plans) The sum of all the shares allocated from Stock Administration to Variable Compensation for the stock plan and stock ID, minus any shares funded to other plans to date. |
Plan Balance |
(Non-monetary and stock-type plans) For plans without groups: The total of Funding Units allocated to this plan ID minus any awards allocated from the plan. For plans with groups: The total of Funding Units allocated to this plan ID minus the number of funding units that have been allocated to the top group. |
Funding Details
Field or Control |
Description |
|---|---|
Seq. Nbr. (sequence number) |
The system sequentially numbers the rows in the grid. The default for the first row is 1. You cannot delete a saved row. |
Funding Date |
Enter the date of the funding that you are allocating to the plan. Today's date is the system default. |
Amount Funded |
(Monetary plans) Enter the amount of funding that you want to add to the plan. Enter a negative amount if you want to decrease the plan funding. |
Funding Units |
(Non-monetary or stock-type plans) Enter the number of units that you want to add to the plan. Enter a negative amount if you want to decrease the plan funding. Stock funding units cannot exceed the value in the Shares Available to Plan field. |