Effective-Dated Trees and Variable Compensation

PeopleSoft trees are effective-dated. When you add a group to a tree, PeopleSoft Tree Manager ensures that the effective date of the group is equal to or before the tree's effective date.

For VC award calculation, the system uses the tree that is effective as of the plan's payout period end date. Workers who are members of groups still residing on the tree receive an award allocation. If you modify a tree during the payout period, the new tree has a later effective date than the original tree. If you modified the tree by deleting any one or more workers or groups, the system does not calculate an award for the deleted workers or groups because they are not part of the tree that is effective as of the payout period end date.

Note:

If a new effective-dated tree causes workers or groups to "fall off" a tree during the payout period, the affected workers might still be eligible for an award if the plan is prorated. For prorated plans, the Consistency Report provides a list of workers who have fallen off a tree and the groups to which they belonged. The VC administrator or the workers' managers can use this information to ensure that these individuals get the appropriate awards.