Selecting Other Plan Business Rules and Options

After determining plan membership and selecting the variable compensation plan type, you can select additional plan business rules and options. Some options are restricted or required according to the plan type and membership rule. Choose from these options:

• Plan Payouts:

  Assign target payouts at the individual or group level, depending on the plan member rule. Minimum and maximum payouts are optional.

• (Optional) Eligibility Proration:

  Calculate in daily, weekly, or monthly frequency. Select from three methods of calculating daily frequency.

• (Optional) Calculate a Budget:

  Run the Budget Report to estimate the total outlay under the plan, considering 100 percent eligibility and your estimated goal attainments.

• (Optional) Funding:

  • Allocate funds (currency or units) to a plan and monitor the balance while you distribute awards.

  • After funding the plan, managers allocate plan funding to the various groups on the tree if the plan uses groups.

  • If funds are insufficient to pay out awards as calculated, the system calculates and applies an adjustment factor to each worker's award that is above the minimum payout.

• (Optional) Reserves:

  Maintain a reserve balance from the funded amount by not allocating the full amount of available funds. You can maintain a reserve at any level of the tree, including the root level, if the plan uses groups.

• (Optional) Carryover Balances:

  • Use carryover balances at the individual worker level as a smoothing mechanism.

  • The balance can be carried over for the life of the plan.

  • Select carryover on the Plan Business Rules page.

  • Administer carryover on the Allocate Awards page.

  • Monitor carryover using the Carryover report.

• Award Approval (optional)

  Approve awards manually or use the batch approval process. For security purposes, identify the authorized approver at the plan or group level.