Understanding Flex Benefit Plans

You set up flex benefit plans in the same way that you set up other benefit plans, except that you select an option in the Plan Master program (P08320) to specify that the plan is a flex plan. When you select this option, assign the plan either an employee flex cost DBA or an employer flex credits DBA.

Flex plans are normally set up to use the employee flex cost and employer flex credit DBAs. However, the system enables you to enter an employee payroll deduction DBA for flex plans as well. You can also set up a plan to require entry of an amount or rate. When a plan requires an amount or rate entry, the system displays a column for amount or rate entries on self service forms. How the system applies the amount or rate depends on which DBAs are assigned to the plan.

Note: For each flex benefit plan that you set up, you must link the plan to the appropriate category within the flexible benefit group.

These rules apply to amount and rate entries for:

Flex plans with the employee flex cost DBA only, the system applies amount or rate entries to that DBA.
Flex plans with both the employee flex cost DBA and the employee payroll deduction DBA, the system applies amount or rate entries to the employee payroll deduction DBA.
Non-flex plans, the system applies amount or rate entries only to the employee payroll deduction DBA.
Important: On self service forms, amount or rate entries can never apply to the employer flex credit DBA.