Options to Define Accrual Plans
Configure the following rules when you create an absence accrual plan in accordance with the leave policy of your enterprise:
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Plan term
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Plan eligibility
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Enrollment and termination
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Transfer and rollover
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Prior balance reinstatement
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Vesting period
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Plan limits
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Balance Updates
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Payments
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Disbursement
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Donation
Plan Term
An accrual term is a period of time during which workers accrue time. You must specify the type of accrual term to use for the plan. For example, you can define one of these term types:
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An accrual term of one calendar year that restarts on January 1
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An accrual term that starts on the worker's annual hire date and restarts on every anniversary
Plan Eligibility
Associate an eligibility profile with the accrual plan to determine the set of workers who can enroll in that plan.
Enrollment and Termination
Decide when to enroll workers in the accrual plan. Indicate how to handle negative and positive balances where only plan enrollment ends, or both plan enrollment and employment ends.
Transfer, Rollover, and Carryover
Define the limits for transfer of some or all of the accrual balance to a new plan when the existing plan is terminated due to loss of eligibility. The Transfer Rules section is enabled only when you select Transfer positive balance in the Balance Disposition section.
Additionally, for year end processing, you can define:
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Rollover limits so that employees can transfer remaining balance to a new plan. Select Unlimited if you don't want to define a limit for rollover.
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Carryover limits to determine the maximum unused leave time that employees can take over to the next term for the same plan.
If the unused absence balance at the end of the term is above the defined rollover and carryover limit, you can choose to pay out the remaining balance. If you don't select the Disburse remaining balance check box, the unused accrual balance expires.
Prior Balance Reinstatement
Configure accrual plans so that when a worker is terminated or loses plan eligibility, the remaining balance can be optionally held for reinstatement upon rehire or return to plan eligibility.
Absence plan setup options allow you to define the balance amount eligible for reinstatement along with the time frame for which the withheld balance can be reinstated. You can configure this option in the Re-enrollment Rules section. You can find this section in the Plan Participation tab when you create or edit an absence plan.
If you select Allow Prior Balance Reinstatement, a new row in accruals called "Plan Balance close transaction" is created that deducts the remaining balance on the last day of the employee. This is the transaction that will act as a reference to calculate the reinstated balance if the employee is re-hired within the time frame limit configured in the plan setup.
However, if you select Allow Prior Balance Reinstatement, and leave the Balance Reinstatement Limit and Time Frame Limit fields blank, the entire closing balance can be reinstated any time.
Vesting Period
Define if you want newly enrolled workers to accrue time, but not use it until after a specific amount of time.
Plan Limits
Define rules for the maximum leave time that workers can accrue. For incremental plans, Absence Management applies the limit to each accrual period. When there are accrual transactions such as adjustments, balance transfers, and disbursements, which impact the ceiling or carryover value, then the periodic accrual balance calculation takes precedence and readjusts the balance accordingly.
Balance Updates
You can enable the following types of adjustments that HR specialists can make during maintenance of absence records and entitlements:
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Balance transfer across plans
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Other adjustments
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Elective disbursements
Payments
Decide how you want to calculate payment of accrual balances for the following scenarios:
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When workers must be paid a different rate during the absence period
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When a part of the accrual balance must be disbursed to workers as cash
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When the cost of accrual balance must be calculated to determine employer liability
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When the accrual balance must be paid to workers when their plan participation ends
Disbursement
Determine whether workers are eligible for cash disbursement requests. Decide who can initiate the disbursement. Additionally, define disbursement rules and the number of hours that can be disbursed.
Donation
Define whether workers are eligible to donate accrual balances to a coworker. Decide who can initiate the donation. Additionally, define donation rules and the number of hours that can be donated.