Understanding Optional Forms of Payment

After you establish an employee's normal form of payment benefit, you typically offer the employee a set of alternate payment options. The optional forms of payment function enables you to create a set of optional forms of payment from which an employee may choose.

Each optional form set is associated with a particular benefit. That is, you set up one optional forms of payment function result for each benefit formula and benefit commencement date combination. Typically, this means one optional forms of payment function result per benefit formula.

Note: Use a single benefit formula and benefit commencement date (BCD) for all optional forms of payment definitions within a single function result. The one exception is that an optional form set including a lump sum can use a different BCD for the lump sum from the one used for the rest of the forms in the set.