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Base Benefits & Benefits

Administration

Amol Thatte

Action-Speed-
03/15/11
Agenda
 Introduction
 Setups
• Base Benefits

• Benefits Administration

 Enrollment Processes
• Open Enrollment

• Event Maintenance

• On Demand Event Maintenance

 Vacation Accrual
 FMLA Administration
 FSA
 COBRA Administration
PeopleSoft Benefits
• Peoplesoft’s provides different ways to
organizations to offer complete end-to-end
benefit solution for their employees.

Self Service
eBenefits

Benefits Base
Automated Enrollment Admin Benefits Enrollment Tracking

Suppliers
Provider Lookups, Plan Info
Carrier Reporting
Integration

B Deduction
N
E
Eligibility Rules Codes A
N
Event Rules Pay Calendar P
A A
Base Benefits Y
D
M Employee Retro Benefit R
Deduction
I
Elections O
N L
Benefit Program Leave Accruals L
Base Benefits Overview
Base Benefits provides the foundation for managing your employee
benefit plans:
 Create unlimited plans for every type of benefits (health, life,
AD&D, savings, leave, pension, retirement, FSA, Vacation Buy/Sell)
 Enter various rate types (flat amounts, age or service-based, etc.)
 Track information on benefit providers
 Enroll employees and dependents in benefit plans
 Identify and track coverage for dependents and beneficiaries
 Track and automatically update leave balances
 Combine benefit plans into programs for eligibility purposes
 Identify highly compensated employees and perform
nondiscrimination testing
Base Benefits Overview
• Base Benefits consists setup as well as employee data:
 Setup Data

• Program Details

• Plan Details

• Premium Costs

• Calculation Rules

 Employee Data

• Benefit Elections

• Dependent/ Beneficiaries data


Process Overview

Set up Benefit Plans Identify benefit plans


and Supporting Identify plan providers
Tables Define Available Coverages
Establish Rate Tables
Establish Calculations Rules
Define Payroll Deductions

Setup
Data
Include Benefit Plans
in Benefit Programs
Include benefit plans in one
or more benefit programs

Assign Employees to Enroll employees in benefit plans

Emp. Benefit Programs Specify employee coverage


elections
Designate dependents or

Data beneficiaries

Calculate Deductions using


Calculate Rates and PeopleSoft Payroll

Payroll
Benefit Deductions OR
Use a stand-alone deduction
calculation for other payroll
systems
Setup Data

Action-Speed-
03/15/11
Base Benefit Setup
Basic Setups

Plan Type Deduction Provider/ Benefit Rates of Calculation


Code Vendor Plan the Plan Rules

Plan Limit
Specific Table
Table
Provider/ Vendor Table
• Provider/ Vendors are set up in the Financial
System
• These Vendors are referenced in the Base
Benefits module
• The Vendor Table in Finance is kept in sync with
the Vendor Table in HRMS system
Provider/Vendor Table
Benefit Plan Table
• Benefit Plan Table is used to identify:
 Plan Type

• Plan type are numeric codes which is


used to control processing
 Provider

• Picks up the Vendor set up in the


System
 Default Deduction Code

• The deduction code attached in the


Benefit Plan Table gets defaulted in the
Benefit Program Table
Benefit Plan Table
Plan Specific Details
• Health Plans
 Medical Plan

 Dental Plan

 Vision Plan

• Life and AD/D Benefit Plans


• Disability Plans
• Savings Plans
 403 (b)

 457
• Leave Plans
 Sick Leave Plan
 Vacation Plan
 Optional Holiday Plan
• FMLA Plans
• FSA Plans
 Dependent Care – HUMC
 Dependent Care – Non HUMC
• Pension Plans
 Qualified
 Non-Qualified
Health Plan Table
Savings Plan Table
Rate Table
• Flat Rate Table
 This table is used to define flat amounts for the Benefit Plan
• Salary Rate Table
 The Salary Rate Table defines rates based on a percentage of
the employee's salary
• Age Graded Rate Table
 The Age-Graded Rate Table enables you to define rates based
on the age, sex, and smoker/nonsmoker status of an employee
• Service Rate Table
 Use the Service Rate Table to define rates based on length of
service
• Calculation Rules Table
 Calculation Rules allow you to define special rules that the
organization wants to establish for certain Benefit Plans
Benefit Program Table
• Benefit Program Table brings together the
following details that relates to the Benefit Plan
such as:
 Deduction Codes

 Coverage Codes

 Eligibility Rules

 Event Rules

 Rates

 Calculation rules

• Default Benefit Programs are assigned to the


employees on the Benefit Program Participation
Page of Job Data
Benefit Program Table
Benefit Program Table
Benefit Program Table
Employee Data

Action-Speed-
03/15/11
Assigning Benefit Program
• Only one benefit program is allowed per
employee.
• The benefit program needs to be verified
manually as employee will be eligible only for
the plans associated with their benefit program.
Assigning
Dependents/Beneficiaries

• Dependents can be of three types


 Dependents
 Benefiticiaries
 Both
• Dependents can be enrolled in all plans
• Beneficiaries can not be enrolled in Medical plans
• Number of maximum dependents allowed is defined at
Benefit Program level.
Dependent/Beneficiary
Assigning benefit plans
Benefits Administration

Action-Speed-
03/15/11
Ben Admin Overview
Benefits Administration allows you to:

• Automate Benefits Administration Business Processes


(Event Maintenance, Open Enrollment, FSA Administration)
• Calculate benefit costs and coverage amounts independent
of PeopleSoft Enterprise Payroll for North America.
• Establish the foundation for implementing self-service
enrollment using PeopleSoft Enterprise eBenefits.
• Define flexible spending account (FSA) information for
employees.
• Process healthcare and dependent care FSA claims.
• Track and view claim and payment data.
Ben Admin Overview
• Benefits Administration consists setup as well as
Processing of benefits data:
 Setup Data

• Program Details

• Eligibility Rules

• Event Rules

• OE Setup

 Processing of Benefits Data

• Event Maintenance

• Open Enrollment
Benefits Administration Setup

Action-Speed-
03/15/11
Eligibility Rules

•Based on eligibility, benefit program gets assigned during


event maintenance and Open Enrollment.
•The following criteria are provided by PeopleSoft:
 Age  Location
 Benefit Status  Officer Code
 Eligibility Config Field  Pay Group
1-9  Regular/ Temporary
 EmplId Override  Regulatory Region
 Employee Class  Salary Grade
 Employee Type  Service Months
 Standard Hours
 FLSA Status
 State
 FTE
 Union Code
 Full/Part Time
 Elig fields 1 - 9
Eligibility Rules
Event Classes
• Event classes group the types of events the Benefits
Administration system recognizes for event processing
• Event Class Table is used to define the types or
classes of events you want the Benefits Administration
system to recognize
• PeopleSoft provides a following list of Event Classes:
 Family Status Change
 Hire
 Miscellaneous
 Open Enrollment
 Snapshot
 Termination
Event Class
Event Rules
• Event Rules work at the Plan Type level and tell
the system
 The eligible options Employee X can actually
choose, based on the type of event that has
occurred
 The plan types it affects

 When new coverage will begin

• Each event rule you define typically includes a


different set of processing rules for each defined
event class
Open Enrollment
• Open Enrollment is for Annual and mid-year
benefits enrollment.
• During Open Enrollment, employee can choose
the benefits based on the eligibility.
• Employee can also continue with the elections
he/she has made last year.
Preparation of Open Enrollment

• Double Check the Base Benefit and Benefit


Administration Set Up in order to avoid errors at
a later stage
• Set up Pay Calendars
• Identify Group Ids
• Define Open Enrollment Id
• Define Schedules
Pay Calendars

• Setting up Pay Calendars


 Pay Calendars is a mandatory set up in North
American Payroll
 The Pay Calendars are required to be set up
for all the Pay Groups
 Used to calculate coverage and deduction
begin and end dates for the employees
Benefit Administration Group Id

• The Group Ids are defined to decentralize the


benefits population leading to more control over
managing the employees
• The Group Ids are attached to the employees on
the Job Data – Benefit Program Participation
Page
• Assign the Group Id to the Benefit Administration
processing schedule
Benefit Administration Group Id
Open Enrollment Id
• Open Enrollment Id
 The Open Enrollment Id is associated with the
Processing Schedule
 Defines the benefit programs to be processed
and Enrollment Begin Dt and Enrollment End
Dt.
Open Enrollment Id
Schedule Table
• Benefit Administration Processes are grouped
and identified by the schedules
• At least one schedule for Open Enrollment and
one for Event Maintenance has to be defined
• Identify the following on the Schedule Table:
 Company

 BAS Group Id

• Associate the Open Enrollment Id with the


Schedule
Schedule Table
Open Enrollment Process
• The Open Enrollment Process has been divided into
different stages
• The complete OE process takes about 8-10 weeks
depend on the number of bas group ids and OE ids
• The OE Process keeps track of each participant by
tracking the stage and status within each stage
• There are typically four stages:
 Assigned

 Prepared

 Elect

 Enrolled
Open Enrollment

Determine Eligibility and Assigned


Calculations

Assign Benefit Programs, Prepare


Plan Options, Costs and Credits

Produce Enrollment
Forms Prepared
to Employees

Notify Employees Confirmation Statements


are generated for the

Elect Enroll employees


Validate Elections
Generate Confirmation
And Load Employee
Enter Elections Forms
Benefits

The employee returns the Ben Admin validates the election


completed enrollment form and against appropriate tables and
their selections are entered into eligibility rules. On validation the
the system elections are loaded in the
PeopleSoft Tables
RUN Control
• The Schedule and Checkpoint Restart page
 It is used to identify the Open Enrollment, Event Maintenance for
which you're planning to run the Benefits Administration process
• The Participants Lists page
 It is used if you want to add a specific set of employees to the
schedule you're processing
• The OE/Snapshot page
 It is used to enter reprocessing information for Open Enrollment
or Snapshot schedules
 Also this page is used to tell the system to schedule new
participants for a specific Open Enrollment, or to finalize and/or
apply defaults for participants in the schedule who have been
processed with errors
• The Passive Event Processing page
 It is used to identify the passive events that have occurred
between a defined period of time and create an entry of that
event in the BAS_ACTIVITY table
Schedule Summary
• Schedule Summary
 After a run of the Benefits Administration
process, the Schedule Summary page is
referred to
• Review employee counts for all the
available status values
• To get a big picture of where the
schedule population is at in
processing terms
Event Summary
• Processing Controls Update Page
 This page is used to review the status of the
events
 The events can be searched either on the
Schedule Id or on both Schedule Id and
Employee Id
• Event Status Update
 The Event Status Update page is used to
reprocess individual participant events by
updating the event status
BAS Activity Table
• Used to:
 Review the unprocessed activities that are
currently triggered for the employees
 Insert manual events for Event Maintenance
processing
 Delete unprocessed activities
Event Maintenance
• Event Maintenance is similar to Open Enrollment Process,
the only difference is:
 Nature of the events

• Job related events

• Hire

• Promotion

• Non Job related events

• Address Change

• Marital Status

• Passive events

• Age Limit
Event Maintenance
 The way the events are triggered
• Through Employee Data Changes

• Manually inserting Events into BAS


Activity Table
On Demand Event Maintenance

• On-Demand Event Maintenance allows any end-


user to process an employee individually and
produce the appropriate statements immediately
• A single screen is provided to carry out all the tasks
for enrollment viz.
 Prepare Options

 Generating Enrollment Statement

 Election Entry

 Validating and Finalizing Elections

 Generating Confirmation Statements


Employee Benefits Summary

• The Employee Benefits Summary can be viewed


using the following page:
 Benefits Summary (Pay Dedns) Page

• It displays deduction information on


all benefit plans that an employee is
enrolled in.
Reprocessing
• Reprocessing becomes necessary in situations:
 Event is processed out of order

 Errors in the election entry

• The events can be reprocessed to any of the


stages of the Benefits Administration cycle
preceding the stage that the event is currently in
• The individual events as well as the entire
schedule can be reprocessed by updating the
event status on the Event Status Update Page or
the Run Control Page
Vacation Accrual
• Leave Accrual Process
 Purpose of the Leave Accrual Process is to
maintain employee leave balances
 The number of hours to be accrued is
specified on the Leave Plan Table
 The process is run a minimum of once per
award frequency defined on the Leave Plan
Table
• Leave Balances
 The Leave Balances can be seen on the Leave
Accrual Balances Page
FSA
• Flexible spending accounts (FSAs) are before-tax
employee savings plans that can be used for
certain approved expenses, such as health care
or dependent care.
• The following are pre-defined plans
 60 – FSA Health Care for US

 61 - FSA Dependent Care for US

 65 – FSA Health Care for Canada

 66 – FSA Dependent Care for Canada


FSA
• Employee will specify the annual contribution for
each plan during open enrollment.
• Payroll will deduct the amount in each payroll
based on annual contribution specified by
employee and number of pay cycles
• Employee then submit the bills for health
care/dependent care and amount will be
reimbursed by issuing separate check.
• At the end of the year, the unclaimed amount
will be lost.
FMLA Administration
• Request Page is used to request for FMLA Leave.
It consists of the following information:
 Begin Date

 Return Date

 Leave Reason

 Leave Type

• A workflow is triggered to notify the Benefits


Administrator for every new FMLA Leave request
FMLA Administration
• The Eligibility Page is used to determine
eligibility and entitlement for the Employees
 It displays the number of hours the employee
is eligible for along with the number of service
weeks the employee has worked for
FMLA Administration
• History page is used to schedule and track FMLA leave for
your employees.
• It provides with two scheduling options:
 If the employee will be taking leave on an irregular and
intermittent basis, you can manually enter the hours of
leave they'll be taking for each day and week of their
scheduled leave
 If, on the other hand, the employee will be taking leave
on a regular weekly schedule, you can use the Schedule
Leave button to schedule leave on a weekly basis
FMLA Administration
• Mark Paid Leave Page
 This page enables you to designate a specific
number of days at the start of the FMLA
protected leave period as covered by the
employee's own paid leave
 This option can be used if the organization's
policies require that paid leave be substituted
and exhausted before FMLA protected leave
begins
FMLA Administration
• Activity Page assists you in the task of tracking
FMLA leave plan activity
 This page is used to log significant events that
affect the FMLA plan such as
• Employee inquiries

• Requests for extensions

• Sending and receiving of notices and


medical documents
COBRA Administration
• For COBRA Administration to be enabled, check the
COBRA Administration box on the Installation Table
• Identify the Plan Types that are applicable for COBRA
coverage on the Benefit Program Table
• Define COBRA Events
• Attach COBRA Action to the Action Reason Codes
COBRA Event Rules
• On the COBRA Event Rules following things are
identified:
 COBRA Period Begin Date
 Months of Coverage
 Additional Coverage in terms of disability
 Maximum Days to notify of the event
 COBRA Qualified dependents
COBRA Administration
• There are two types of COBRA Events
 Initial Event
• A COBRA event is an initial event if no other active
COBRA events occurred previously to the person
affected by the event in question
 Secondary Event
• An event must meet the following requirements for
it to qualify as a secondary COBRA event:
• The employee and/or dependent must currently
be enrolled in COBRA coverage as a result of an
initial COBRA event
• The initial COBRA event must be one of the
COBRA event classifications associated with a
change to an employee's job status
• The secondary event must be one of the COBRA
event classifications that involves loss of
coverage for the employee's dependent
COBRA Administration
• Each time an event is triggered it gets added to the
COBRA Activity Table
COBRA Administration
• Once the event is triggered COBRA Process is run
using the COBRA Process Run Control Page
• Identify COBRA Beneficiaries
• Generate notification letters to the Beneficiaries
using the COBRA Initial Qualify Letter Page
Thank You

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