Eligibility and Awards Processing

For all but Ad Hoc Award plans, use three calculation processes to administer variable compensation plans:

1. Determine Eligibility/Proration process (VC_ELIG_PRO).

   Calculates eligibility status and proration factors.

2. Determine Allocation process (VC_DET_ALLOC).

   • Calculates target awards.

   • Calculates organization and group level performance factors for weighted goal plans.

3. Calculate Awards by Plan process (VC_CALWRD) or Calculate Awards by Group process (VC_CALWRD_WG).

   • Calculates awards using the target payout formula, to which it applies performance factors (if goals are used), a proration factor (if the plan is prorated), and an adjustment factor (if the plan is funded).

   • If the worker was eligible for the entire period, the process adjusts the award if it is under the minimum payout or over the maximum payout.

   • Calculates the monetary value of non-monetary awards and applies rounding and decimal rules.

   • After running the calculation process, the system provides full details of all calculations on the Allocate Awards page, where you can manually adjust awards before approving them.