Overview of Benefits and Pensions 403 (b) and 457 (b) for the US

Considerations and Prerequisites

You must define your 403 (b) or 457 (b) elements, prior to assigning a calculation card to employees you want to enroll in the plans. This card defines the plan the employee is enrolled in and the process for withholding the deductions (percentage or flat amount).

The payroll process observes these maximum contribution limits, as they are defined by the Internal Revenue Service (IRS):

Deferred Compensation 403 (b) Annual Limit
Deferred Compensation 457 (b) Annual Limit
Deferred Compensation 403 (b) Catch-Up Annual Limit
Deferred Compensation 457 (b) Catch-Up Annual Limit

You can override eligible compensation annual limit at the organization level.

Note: When you create a 403 (b) or a 457 (b) deduction element, the payroll process doesn't take the deduction until you feed the eligible balance. The Elements task doesn't automatically establish this feed for tracking eligible earnings. You must feed these balances for your eligible earnings results element.

Benefits and Pensions 403 (b) and 457 (b) Record Types

Card components on the Benefits and Pensions calculation card are used to capture 403 (b) and 457 (b) data. The Benefits and Pensions calculation card is uploaded with HCM Data Loader using the Global Payroll Calculation Card business object. This generic object hierarchy provides record types to support the various localization requirements. The Benefits and Pensions calculation card utilizes these Calculation Card record types for 403 (b) and 457 (b):

Calculation Card Record Types for 403 (b) and 457 (b)

Component	Functional Description	File Discriminator
Calculation Card	Defines the calculation card type and the payroll relationship for which it captures information.	CalculationCard
Card Component	Used to group and segregate data required by the calculation card. The following sections describe the card components applicable to this calculation card and the child records that are required for each card component.	CardComponent
Calculation Value Definition	Allows the creation of value definitions so that overriding values can be specified on the card component. Details of the specific value definitions are provided in the following sections.	CalculationValueDefinition
Enterable Calculation Value	Used to specify an overriding value for each calculation value definition.	EnterableCalculationValue

Benefits and Pensions Calculation Card Hierarchy

The 403 (b) and 457 (b) card component names are defined by the element configuration.