Savings Plan Processing

When processing savings plans, the system is designed to process:

  1. An eligibility check.

  2. 401k deductions.

Eligibility Check

To perform the eligibility check, the system:

  1. Processes BEN FM BASIC ELIG.

    This is the same eligibility check performed by the health plan process.

  2. If BEN FM BASIC ELIG equals one, the system will process the section SAVINGS INIT.

    SAVINGS INIT calls the array BEN AR SAV PLANS. BEN AR SAV PLANS uses the formula BEN FM SAV PLANS to retrieve the employee's savings plan enrollment information for plan type 40 from the Savings Plan Election page in PeopleSoft HR. SAVINGS INIT also calls the date element GP SEG END DT EXTR to extract the year, month, and day based on the segment end date.

401k Deductions

To calculate savings plan deductions, the system:

  1. Performs another eligibility check using the formula BEN FM SAV ELIG.

    If retroactive adjustments exist, and if the employee's plan type 40 election coverage is not blank, then one is assigned to the formula BEN FM SAV ELIG.

    If the employee's plan type 40 election coverage equals blank, T, or W, then zero is assigned to the formula BEN FM SAV ELIG.

    If the Primary Job and Include Deduction check boxes are selected, then one is assigned to the formula BEN FM SAV ELIG.

    If the Primary Job check box is selected, but the Include Deduction check box is not selected, and the Flat Amount field in the Before Tax Investment group box on the Saving Plan Elections page has a value greater than zero, then one is assigned to the formula BEN FM SAV ELIG.

    If the Primary Job check box is not selected, but the Include Deductions check box is selected, and the Percent of Earnings field in the Before Tax Investment group box on the Saving Plan Elections page has a value greater than zero, one is assigned to the formula BEN FM SAV ELIG.

  2. If BEN FM SAV ELIG equals one, the system processes the section 401K DED. 401K DED uses:

    1. The formula BEN FM PLN TYP 40 to set plan type 40-specific search criteria.

    2. The array BEN AR BEN PRG DEF to retrieve benefit option and cost information from the Benefit Program page in PeopleSoft HR.

    3. The array BEN AR SAV MGMT retrieves the 402G Ext Amt field from the Savings Mgt page in PeopleSoft HR.

    4. The array BEN AR SAV PLN PRM to retrieve the Before-Tax field in the Up-To-Limit group box on the Savings Plan Table - Employee Limit on Investments page in PeopleSoft HR.

    5. The array BEN AR LIMIT to retrieve limit information from the Limit Table page in PeopleSoft HR.

    6. The deduction 401K EE to calculate the employee's savings deduction.

      401K EE uses the formula BEN FM 401K EE. The 401K EE deduction uses the following accumulators:

      Accumulator Description

      401K GROSS N

      Segment accumulator that accumulates earnings that need to be considered in the 401k deduction calculation. This is a Not Maintained accumulator and is defined as As Contributinġ.

      401K GROSS YTD N

      YTD accumulator that accumulates YTD earnings that need to be considered in the 401k deduction calculation. The 401K GROSS N accumulator is a member of this accumulator. This is a Not Maintained accumulator and is defined as As Contributing.

      401K PRE CTB N

      Segment accumulator that accumulates the employee's 401k pre-tax contributions. The 401K EE deduction is a member of this accumulator. This is a Not Maintained accumulator and is defined as As Contributing.

      401K PRE CTB YTD N

      YTD accumulator that accumulates the employee's YTD 401k pre-tax contributions. The 401K PRE CTB N accumulator is a member of this accumulator. This is a Not Maintained accumulator and is defined as As Contributing.

      415C AMT

      Segment accumulator that accumulates the employee's 401k contributions that are subject to the 415c limits. The 401K PRE CTB N accumulator is a member of this accumulator. This accumulator is defined as As Contributing.

      415C AMT YTD

      YTD accumulator that accumulates the employee's 401k YTD contributions that are subject to the 415c limits. The 415C AMT accumulator is a member of this accumulator. This accumulator is defined as As Contributing.