Benefits User Guide

Benefits Administration User Guide
Version 8.0.3 May 2002

Document Number BNUG-803UW-01
Human Resources
Lawson Software, Inc., believes that the information described in this manual is accurate and reliable, and much care has been taken in its preparation. However, no responsibility, financial or otherwise, can be accepted for any consequences arising out of the use of this material, including loss of profit and indirect, special, or consequential damages. No warranties extend beyond the program specification. The customer should exercise care to assure that use of the software and related documentation is in full compliance with the laws, rules, and regulations of the jurisdictions in which it is used. These materials are confidential unpublished works of Lawson Software, Inc. Contents of this publication are copyrighted and cannot be reproduced in any form without the written permission of Lawson Software, Inc. The information contained herein is subject to change. Revisions may be issued from time to time, and Lawson Software, Inc., assumes no responsibility to advise customers of changes or additions. All brand or product names mentioned herein are trademarks or registered trademarks of Lawson Software, Inc., or the respective trademark owners. 2002 Lawson Software, Inc. All rights reserved Printed in the United States of America
Contents
List of Figures Chapter 1 Using This Guide 13 17
User Guide Conventions . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 17 Product Documentation .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 21 Global Support Center.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 21 Documentation Contact .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 21
Chapter 2
Benefits Administration Overview
23
Benefits Administration Process Flow .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 23 Benefits: The Big Picture. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 24 Benefits Administration Integration with other Applications. .. .. .. .. .. .. .. .. .. . 25
Chapter 3
Benefits Administration Setup Overview
27
Benefits Administration Setup Overview....................... 29

Benefits Administration Setup Step-by-Step . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 29
Chapter 4
Setup: BN Company
33
Concepts in this Chapter........................................... 35

What is a Benefit Company?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 35 What are COBRA Occurrence Types? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 35 What is Reportable Group Term Life Insurance? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 36
Procedures in this Chapter ........................................ 37

Defining BN Company .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 37 Defining COBRA Parameters .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 39 Defining COBRA Occurrence Types .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 41 Defining Excess Life Insurance Rates .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 42
Chapter 5
Setup: BN Preliminaries
45

What are Annual Limits? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 46 What is a Vesting Schedule? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 46 What is a Frequency Table? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 47 What is a Benefit Process Order? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 48
Contents

Defining Annual Limits.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 49 Defining Insurance Carriers .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 50 Defining Vesting Schedule . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 51 Defining Frequency Tables. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 52 Defining BN Process Order .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 52 Defining Postal Code Tables . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 53
Chapter 6
Setup: Flex Plan
55

What is a Lawson Flex Plan? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 56 What are Flex Credits and Flex Credit Records?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 57 When do I Define Flex Credit Records? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 58 How are Flex Credits Issued and Structured? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 58 What Happens to Unspent Flex Credits?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 59

Defining Spending Account Only Flex Plans . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 61 Defining Full Flex Plans .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 62 Defining Flex Credits . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 64 Defining Flex Salary Parameters .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 67 Defining Flex Credit Rate Tables .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 69 Defining Flex Credits Based on Age .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 72 Defining Flex Credits Based on Years of Service.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 74 Defining Flex Credits Based on Dependents. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 75 Defining Flex Credits Based on Lifestyle . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 76
Chapter 7
Setup: Benefits Plan
79

What is a Plan Type? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 81 What are Benefit Categories? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 81 What are Some Basic Plan Type Characteristics? .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 82 What are Coverage Types? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 84 What are Contribution Types? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 85 What Contribution and Coverage Types Work Together? .. .. .. .. .. .. .. .. .. .. . 87 How are Deductions used by Benefit Plans? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 88 What is a Default Plan? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 89 What Determines Eligibility? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 90 Why Use Employee Groups with Benefit Plans? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 90 What are Waive Plans? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 91 What are Flex Core Plans? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 92 What are Benefit Dates? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 92

Defining Benefit Categories .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 94
Contents
Defining a Primary Benefit Plan . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 95 Defining Vesting and Covered Compensation Information . .. .. .. .. .. .. .. .. ..104 Defining Investment Options . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..107 Overriding General Ledger Accounts . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..108
Chapter 8
Setup: Benefit Entry Rules
113
Concepts in this Chapter......................................... 115

What are Benefit Entry Rules? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..115 How are Entry and Re-entry Rules Defined? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..115 What are Entry Points? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..115
Procedures in this Chapter ...................................... 117

Defining Entry Rules .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..117
Chapter 9
Setup: BN Plan Coverage
121

What are Benefit Salaries?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..123 What is a Coverage Reduction Table?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..124 When would I use Coverage Options? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..124 When would I use Coverage Amounts? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..124

Defining Coverage Options .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..125 Defining Coverage Amounts . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..129 Defining Coverage Salary Parameters . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..135 Defining Coverage Reduction Table .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..138 Defining Coverage Limits .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..140
Chapter 10
Setup: BN Plan Contributions
147

How do I Define Benefit Contributions? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..149 What are the Differences between the Contribution Types? . .. .. .. .. .. .. .. ..150 How are Contributions Calculated? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..153 When Do I Use Rate Tables? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..155 How are Company Match Contributions Calculated? . .. .. .. .. .. .. .. .. .. .. .. ..155 What are Flex Plan Contributions?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..156

Defining Contribution Rate Tables. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..158 Defining Options Amount. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..165 Defining Options Amount Range .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..170 Defining Flat Contributions . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..173
Contents
Defining Salary or Coverage Rate Table . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..177 Defining Contribution Limits.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..180 Defining Match Limit Schedules . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..186 Defining Match Percent Schedules . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..190
Chapter 11
Setup: Automation Rules
195

What are Benefit Automation Rules? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..197 When Do I Use Add Rules?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..197 When Do I Use Change Rules? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..198 When Do I Use Termination Rules?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..199 What is a Nested Employee Group? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..200 How Do I Use Employee Groups with Automation Rules? . .. .. .. .. .. .. .. .. ..200

Defining Add Rules . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..202 Defining Change Rules . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..205 Defining Termination Rules .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..207
Chapter 12
BN Enrollment: Enrolling Employees in Flex Plans
211

What is a Flex Credit Record?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..213 What are Flex Periods? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..213 When is a Standard Time Record Created by a Flex Plan? .. .. .. .. .. .. .. .. ..214

Automatically Create EE Flex Credit Records . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..215 Manually Create EE Flex Credit Records .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..217
Chapter 13
BN Enrollment: Enrolling Employees in Benefit Plans
221

How do I Enroll Employees into Benefit Plans? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..223 What is an Eligibility Date?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..223 What is a Start Date? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..224 What Happens When I Override Salary? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..224

Generating Benefit Enrollment Forms .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..225 Enrolling Employees Automatically into Default Plans .. .. .. .. .. .. .. .. .. .. .. ..226 Manually Enrolling an Employee into Multiple Plans .. .. .. .. .. .. .. .. .. .. .. .. ..230 Enrolling Multiple Employees Manually. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..235
Contents
Enrolling Dependents. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..240 Assigning Beneficiaries to a Plan.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..241 Assigning Savings Bond Beneficiaries.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..241
Chapter 14
BN Enrollment: Maintain Employee Enrollments
243

What are Benefit Change Audit Records?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..245 What are Stop Dates? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..246 How does Lawson Process Benefits? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..246 What Must I Consider When Manually Changing a Flex Benefit? . .. .. .. .. ..247 How Do I Make Flex Mid-Year Changes? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..247 What Happens when I Stop Benefits Using Automation Rules? . .. .. .. .. .. ..248 What Happens when I Change Benefits Using Automation Rules? . .. .. .. ..249 What Happens When I Add Benefits Using Automation Rules? . .. .. .. .. .. ..250

Holding or Deleting Benefit Change Records .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..251 Updating Automatically Based on Benefit Automation Rules .. .. .. .. .. .. .. ..253 Updating Automatically for Age, Salary, or Years of Service . .. .. .. .. .. .. .. ..256 Stopping EE Benefits . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..259 Manually Changing EE Benefits . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..260 Changing Flexible Spending Accounts . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..262 Changing Flex Credits .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..264 Changing Dependent Benefits. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..266
Chapter 15
BN Enrollment: COBRA
267
Concept in this Chapter .......................................... 269

Who is a COBRA participant? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..269

Defining a COBRA Participant. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..270 Enrolling a COBRA Participant .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..272 Changing COBRA Participant Benefits . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..274 Adding a Second Occurrence or Tracking COBRA Dates .. .. .. .. .. .. .. .. .. ..275 Notifying or Terminating COBRA Rights .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..277 Generating COBRA Notification Letters .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..277 Canceling COBRA Coverage for Delinquent Payments .. .. .. .. .. .. .. .. .. .. ..278
Chapter 16
BN Enrollment: Retiree
281
Concept in this Chapter .......................................... 282

Who is a Retiree? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..282

Benefits Administration User Guide Contents 7
Enrolling Retirees . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..283 Changing Retiree Benefits . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..285 Canceling Coverage for Delinquent Payments .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..286
Chapter 17
Plan Maintenance: Benefit Plans
287

Why would I Change My Benefit Plans?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..288 How does Lawson Track Benefit Plan Changes? . .. .. .. .. .. .. .. .. .. .. .. .. .. ..288 What Statuses Does Lawson Track? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..290

Updating Coverage Information . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..291 Updating Contribution Information .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..292 Updating Frequency Table Information . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..293 Attaching a Different Frequency Table . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..294 Updating GL Overrides . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..294 Viewing Records Requiring Updating . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..295 Updating Enrollment for Plan Changes . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..296 Updating Enrollment for Frequency Table Changes. .. .. .. .. .. .. .. .. .. .. .. .. ..298 Terminating or Replacing a BN Plan .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..300 Deleting a Coverage Option from a Benefit Plan .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..302
Chapter 18
Plan Maintenance: Vacation Buy and Sell
303
Procedure in this Chapter ....................................... 304

Update Employee Vacation Balances. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..304
Chapter 19
Plan Maintenance: Spending Account Balances
307

Tracking Spending Account Reimbursements . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..308
Chapter 20
Plan Maintenance: Stock Purchase Update
311

Updating Stock Purchases . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..312
Chapter 21
Plan Maintenance: Savings Bond Update
313

Adding Savings Bond Beneficiaries . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..314
Contents
Defining Savings Bond Purchase Sequence. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..315 Updating Savings Bond Purchases . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..316
Chapter 22
Plan Maintenance: Benefit Plan Limits
319

Adjusting Defined Contribution or Defined Benefit Plan Balances. .. .. .. .. ..320 Adjusting Covered Compensation Balances . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..321 Adjusting Vesting Hours .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..322
Chapter 23
Benefit Processes: Reportable Excess Group Life Insurance 323

Creating Reportable Income Time Records .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..325
Chapter 24
Benefit Processes: Benefit Plan Testing
329

Listing Key Employees . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..330 Determining if Defined Contribution Plans are Top Heavy.. .. .. .. .. .. .. .. .. ..332 Listing Highly Compensated Employees . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..332 Performing the ADP and ACP Tests .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..334 Determining if Employees are Reaching an Elective Deferral Limit . .. .. .. ..335 Determining Percentage DC/DB Plan Participation . .. .. .. .. .. .. .. .. .. .. .. .. ..335
Chapter 25
Benefit Processes: Retiree or COBRA Invoicing and Tracking 337

Creating Manual Invoices .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..338 Creating Monthly Invoices.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..340 Printing Invoices. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..341 Entering and Automatically Applying Payments . .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..342 Entering and Manually Applying Payments .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..343 Updating Invoices and Payments to General Ledger . .. .. .. .. .. .. .. .. .. .. .. ..345
Chapter 26
Benefit Processes: Special Processing
347

Simulating Benefit Elections . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..348 Estimating Take Home Pay .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..350 Forecasting Defined Contribution Account Balances . .. .. .. .. .. .. .. .. .. .. .. ..352
Contents
Purging Benefit Enrollments . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..353 Purging Invoices and Payments . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..355
Appendix A
Report Samples
357
Employee Change Benefit Update (BN100) . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..357 Mass Benefit Add (BN101). .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..359 Plan Employee Update (BN102) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..361 Plan Update (BN105) . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..363 Life Insurance Reportable Income (BN150) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..365 Plan Parameter Listing (BN215). .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..367 Benefit Entry Rules Listing (BN216) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..370 Benefit Plan Status Report (BN220) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..372 Plan Participant Report (BN230) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..374 Employee Benefit Report (BN231) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..376 Benefits Statement (BN232) . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..378 Participation Report (BN236) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..380 One Page Benefit Statement (BN242) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..382 Benefit Election Form (BN245) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..384 Flex Missing Benefits Report (BN246) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..386 Monthly Premium Report (BN320) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..388 DC Plan Contributions (BN330) . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..392
Appendix B
Benefit System Logic Calculations
395
Calculating Annual and Hourly Pay Rates ................... 396

Calculating Annual Salary for an Hourly Employee . .. .. .. .. .. .. .. .. .. .. .. .. ..396 Calculating Hourly Rate for a Salaried Employee . .. .. .. .. .. .. .. .. .. .. .. .. .. ..396
Company Match Calculations................................... 398

Company Match Deduction Creation for Match Limit Schedules .. .. .. .. .. ..398 Payroll Calculation for Match Limit Deductions .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..399 Company Match Deduction Creation for Match Percent Schedules. .. .. .. ..400
Calculating the Cost of Excess Life Insurance ............. 404

Determining Which Plans Are Reportable .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..404 Determining Who Is Covered .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..404 Determining the Value of Excess Coverage.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..405 An Example of Calculating the Cost of Excess Life Insurance . .. .. .. .. .. .. ..408
Calculating COBRA Excess Premium Amounts ............ 410
Appendix C
Benefit System Logic Information
411
Tracking Flex Credits ............................................. 412

Standard Time Records .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..412 Deductions . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..413
10
Contents
Kinds of Flex Plans . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..413
Defined Contribution Flex Benefits ............................ 420 Using Flex Benefit Periods ...................................... 421 Processing Automatic Benefit Changes...................... 423
Creating Benefit Change Audit Records.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..423
Index
425
Contents
11
12
Contents
List of Figures
Chapter 3 Chapter 4 Benefits Administration Setup Overview Setup: BN Company
Figure 1. Procedure relationship:Benefits Administration setup overview . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 29
Figure 2. Form clip: Using BN00.1 to define benefit company .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 38 Figure 3. Form clip: Using BN00.2 to define COBRA parameters .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 39 Figure 4. Form clip: Using BN00.4 to define excess life insurance rates .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 43
Chapter 5
Figure 5. Form clip: Using BN12.1 to define annual limits . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 50 Figure 6. Form clip: Using BN03.1 to define vesting schedule .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 51 Figure 7. Form clip: Using BN30.1 to define benefit process order. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 53
Chapter 6
Setup: Flex Plan
Figure 8. Procedure relationship: Setup: Flex Plans . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 61 Figure 9. Form clip: Using BN06.1 to define spending accounts . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 62 Figure 10. Form clip: Using BN08.1 to define flex credits . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 64 Figure 11. Form clip: Using BN08.2 to define flex salary parameters .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 67 Figure 12. Form clip: Using BN08.3 to define flex credits based on age. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 72
Chapter 7
Figure 13. Figure 14. Figure 15. Figure 16. Figure 17. Figure 18. Figure 19.
Procedure relationship: Setup: Benefit Plans .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 94 Form clip: Using BN15.1 Main tab to define primary benefit plan .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 97 Form clip: Using BN15.1 Eligibility tab to define primary benefit plan . .. .. .. .. .. .. .. .. .. .. .. .. .. . 98 Form clip: Using BN15.1 Flex tab to define primary benefit plan. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 99 Form clip: Using BN15.1 Deduction tab to define primary benefit plan .. .. .. .. .. .. .. .. .. .. .. .. ..100 Form clip: Using BN15.1 Vest Tab to define vesting and covered compensation .. .. .. .. .. .. ..104 Form clip: Using BN15.1 Invest tab to define investment options .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..108
Chapter 8 Chapter 9
Figure 21. Figure 22. Figure 23. Figure 24. Figure 25. Figure 26. Figure 27. Figure 28.
Setup: Benefit Entry Rules Setup: BN Plan Coverage
Figure 20. Form clip: Using BN16.1 to define entry rules.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..118
Procedure flow: Define coverage options. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..126 Form clip: Using BN17.1 to define coverage options .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..127 Procedure flow: Define coverage amounts . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..131 Form clip: Using BN17.3 to define coverage amounts .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..132 Procedure flow: Define coverage salary parameters .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..136 Procedure flow: Define coverage reduction table .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..138 Procedure flow: Define coverage limits . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..142 Form clip: Using BN17.4 to define coverage limits .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..143
Chapter 10 Setup: BN Plan Contributions

Figure 29. Figure 30. Figure 31. Figure 32. Figure 33. Figure 34. Form clip: Form clip: Form clip: Form clip: Form clip: Form clip: Using BN02.1 define age rate table . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..159 Using BN18.1 to define options amount .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..166 Using BN18.2 to define options amount range .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..171 Using BN18.3 to define flat contributions . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..174 Using BN18.4 to define salary or coverage rate table. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..178 Using BN18.5 to define contribution limits.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..181
List of Figures
13
Figure 35. Form clip: Using BN18.6 to define match limits schedules . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..187 Figure 36. Form clip: Using BN18.7 to define match percent schedules. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..191
Chapter 11 Setup: Automation Rules

Figure 37. Figure 38. Figure 39. Figure 40. Figure 41. Figure 42. Procedure flow: Define Add Rules. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..203 Form clip: Using BN16.2 to define add rules . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..204 Procedure flow: Define Change Rules .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..206 Form clip: Using BN16.3 to define change rules . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..207 Procedure flow: Define Termination Rules.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..208 Form Clip: Using BN16.4 to define termination rules .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..209
Chapter 12 BN Enrollment: Enrolling Employees in Flex Plans

Figure 43. Form clip: Using BN45.1 to manually create employee flex credit records.. .. .. .. .. .. .. .. .. .. ..217
Chapter 13 BN Enrollment: Enrolling Employees in Benefit Plans

Figure 44. Figure 45. Figure 46. Figure 47. Figure 48. Figure 49. Form clip: Using BN245 to generate benefit enrollment forms . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..226 Form clip: Using BN101 to enroll employee into default plans . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..227 Procedure flow: Enrolling an Employee into Multiple Plans. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..231 Form clip: Using BN31.2 to enroll an employee into multiple plans .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..232 Procedure flow: Enrolling manually multiple employees .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..236 Form clip: Using HR13.2 to enroll dependents . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..240
Chapter 14 BN Enrollment: Maintain Employee Enrollments

Figure 50. Figure 51. Figure 52. Figure 53. Form clip: Form clip: Form clip: Form clip: Using BN35.1 to hold or delete benefit change records .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..252 Using BN100 to update benefit automation rules.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..254 Using BN102 to update employee plan. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..257 Using BN32.1 to stop an employees benefits . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..260
Chapter 15 BN Enrollment: COBRA

Figure 54. Form clip: Using BN70.1 to define a COBRA participant.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..271 Figure 55. Form clip: Using BN71.1 to enroll COBRA participants . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..273
Chapter 16 BN Enrollment: Retiree

Figure 56. Form clip: Using BN72.1 to enroll retirees .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..284
Chapter 17 Plan Maintenance: Benefit Plans

Figure 57. Form clip: Using BN105 to update plan changes for enrollment . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..296 Figure 58. Form clip: Using BN104 to update enrollment for frequency table changes .. .. .. .. .. .. .. .. .. ..298 Figure 59. Form clip: Using BN103 to terminate or replace a BN plan . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..300
Chapter 21 Plan Maintenance: Savings Bond Update

Figure 60. Procedure relationship:Savings Bond Update .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..314
Chapter 23 Benefit Processes: Reportable Excess Group Life Insurance

Figure 61. Form clip: Using BN150 to create reportable income time records .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..326
Chapter 25 Benefit Processes: Retiree or COBRA Invoicing and Tracking

Figure 62. Form clip: Using BN180 to create monthly invoices . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..340 Figure 63. Form clip: Using BN81.1 to automatically apply payments . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..342 Figure 64. Form clip: Using BN81.2 to manually apply payments .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..344
14
List of Figures
Chapter 26 Benefit Processes: Special Processing

Figure 65. Form clip: Using BN65.1 to simulate benefit elections .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..349
List of Figures
15
16
List of Figures
Chapter 1
Using This Guide

The purpose of this user guide is to provide reference material for your daily use of the product and for your needs in Lawson training. This user guide contains procedures on basic and advanced features of the product. In addition, it provides information to help you understand how to use each procedure for your business processes.
User Guide Conventions

This user guide uses specific text conventions, visual elements, and terminology.
Text Conventions
Lawson user guides use the following standard text conventions. This bold Represents A key name or a function key name. For example, Shift is a key name and Help (F1) is a function key name. A value or command that you must type exactly as it appears. A program name or a file name. italics A manual title or form name. An emphasized word or phrase.
A placeholder for a user-defined value or variable. Follow the capitalization pattern of the placeholder. For example, Type $LAWDIR/print/username/jobname/stepnumber/FOR prt instructs you to type the user name, job name, step number, and form ID as follows: $LAWDIR/print/jane/emplist/1/GL100.prt (F1)(F24) A function key number. Press Help (F1) instructs you to press the key mapped for the (F1) function.
Chapter 1
Using This Guide
17
This Key1+Key2
Represents A key combination. Press Shift+FndNxt (F3) instructs you to press and hold down the Shift key and then press the FndNxt (F3) function key. Release both keys to complete the action. Optional parameters. You can type none, one, or more of the parameters within the brackets. For example, the command qsubmit [-Un] [-jJobQueue -dDate -tTime] username jobname means that you can type a specific job queue, date, or time, or you can omit these parameters.
[]
[|]
Optional parameters. You can type only one of the parameters separated by a vertical line. For example, the command phraserpt[-n|t] BaseLanguage [Translation] means that you can type either the n or t parameter; you cannot type both.
...
A parameter that can be repeated. For example, the command scrgen [-scxvV] productline [systemcode [programcode...]] means that you can type any number of program codes.
Visual Elements
Lawson user guides use the following visual elements. STOP Information that must know before you attempt the procedure or process.
Need More Details? Check out the following concepts: Introduces a list of topics that provide additional or background information. Each item in the list includes a cross-reference to the information.
18
Chapter 1
Using This Guide
Application integration. Events, required actions, or other consequences that are related to other Lawson applications. IMPORTANT Important information that you must consider when you perform the procedure.
CAUTION Cautionary information about actions that involve a risk of possible damage to equipment, data, or software.
WARNING Warning information about actions that involve a risk of personal injury or irreversible destruction to the data or operating system. TIP Supplemental information about possible shortcuts to the procedure or your business process. NOTE Supplemental information that might be of interest to you as you complete the procedure.
Terminology
The following terms have precise meanings in Lawson documentation. Term access choose Meaning Open a Lawson application form or subform. Start a process. Choose Add instructs you to click a button or a link on a form to add a record to the Lawson system.
Chapter 1
Using This Guide
19
Term click
Meaning Place the cursor over an object (such as a button, link, or tab) and press the left mouse button. NOTE This description applies to a standard PC mouse with standard settings. You must translate the meaning of click to what is appropriate for your equipment.
define
Use a Lawson form to create a new record for a company, a vendor, a class, a code, or another entity used throughout the Lawson system. \_ or Specify configuration parameters, printers, security roles, data areas, and so on.
run select
Send data for processing. For example, run a report or batch job. Identify an item to process. Selecting an item does not start a process. To select an item, place the cursor over an item and then click. If you use character-based mode, highlight an item to select it. Sometimes, you must also press Mark or Next or choose OK.
type
Press keyboard keys to enter information in a field and move the cursor to the next field. At a command line, type the letters exactly as written in the procedure, and then choose OK.
OK
Choose OK to save or process the data that you entered on the current form. Choose OK instructs you to click a button or a link on a form. An OK button might be labeled Update or show a check mark. An OK link might be labeled OK. Choose OK instructs you to press the keyboard key mapped as Enter.
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Chapter 1
Using This Guide
Product Documentation
Lawson offers the following product documentation: Online help User guides and manuals Release notes and installation instructions Enhancement and patch documentation
To find Lawson documentation, see the user interface or http://support.lawson.com. To obtain a login password and ID for the Support site, see your organizations Lawson contact or your Lawson client manager.
Global Support Center

Lawson Global Support Center (GSC) services are available to all Lawson customers who are on maintenance support for Lawson products. See the Global Support Manual for the following information: What information to gather before you contact the GSC How to contact the GSC How the GSC processes your request How to receive enhancements and patches Which services are standard maintenance and which services are billable
To find the Global Support Manual, see http://support.lawson.com. To obtain a login password and ID for the support web site, see your organizations Lawson contact or your Lawson client manager.
Documentation Contact
We welcome your questions or suggestions about Lawson documentation. Please send comments to documentation@lawson.com.
Chapter 1
Using This Guide
21
22
Chapter 1
Using This Guide
Chapter 2

The Lawson Benefits Administration application offers flexible tracking of employee, retiree, and COBRA participant benefits. This chapter provides a high-level overview of Benefits Administration, including information on the applications major processes, and integration with other Lawson and non-Lawson products.
Benefits Administration Process Flow

The Benefits Administration application can be considered as four main processes: setup, benefit plan enrollment, plan maintenance, and benefit processes. Take a closer look at what the four processes involve.
Benefits Administration Setup

The Benefits Administration Setup section looks at the decisions needed to structure your organizations use of Lawson Benefits Administration. Define the company parameters and settings that are specific to the Benefits Administration application. Structure your benefit plans and set your plan entry rule requirements. Define coverage and plan contribution types, and decide on automation rules to automate processing.
Benefits Plan Enrollment

The Benefits Plan Enrollment section includes the processes and procedures needed to enroll your employees in your benefit plans. Included are flex benefit, COBRA participant, and retiree enrollments. Also discussed in this section is the process of maintaining your employees enrollments.
Benefits Plan Maintenance

The Benefits Plan Maintenance section considers a variety of maintenance processes and procedures to update and maintain your organizations benefit plans. Included are maintenance on flex vacation-type plans, spending account withdrawals for employees and COBRA participants, stock purchases, savings bond purchases, and maintaining benefit plan balances.
Benefits Administration Processes

The Benefits Administration Processes section considers assorted processes that fill out your benefit maintenance needs. Included are incorporating taxable income from excess life insurance, auditing benefit data, COBRA participant and retiree invoicing, simulations, and purging.
Chapter 2
23
Benefits: The Big Picture

You use the Benefits Administration application to administer and track your employee, COBRA participant, and retiree benefits. The Benefits Administration User Guide is divided into four major activity sections.
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
Maintaining BN Plans
BN Processes
Reportable Excess Life Insurance
Preliminaries
Employees
Vacation Buy/Sell Update
Benefit Plan Testing
Flex Plan
Maintain Employee Enrollments
Spending Account Balance
Invoice and Payment Tracking
BN-Plans
COBRA
Stock Purchase Update Savings Bond Update
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
Maintaining BN Limits
BN-Plan Contributions
BN Automation Rules
You Are Here
24
Chapter 2
Benefits Administration Integration with other Applications

This section explains how the Lawson Benefits Administration application integrates with other Lawson applications.
Payroll
Human Resources Benefits Administration
Personnel Administration
General Ledger
Time Management
Payroll
The Benefits Administration application creates deductions for payroll use. The Payroll application submits salary compensation and hours for tracking against limits. Closing the payroll cycle updates employee balances for covered compensation and contribution amounts for defined contribution and defined benefits plans.
Personnel Administration
The Personnel Administration application creates personnel actions for Benefits Administration automation rules and COBRA record creation.
Time Management
The Benefits Administration application updates the balances in the time accrual plan for vacation buy and sell plans.
Chapter 2
25
General Ledger
The Benefits Administration application updates the General Ledger application with COBRA and Retiree invoicing.
Employee and Manager Self-Service

The Employee and Manager Self-Service application gives employees and managers access to vital information over your organizations intranet. Employee and Manager Self-Service lets the HR and Payroll departments avoid excessive manual data entry by letting employees and managers update their own information. Your organization determines what information is available for employees and managers to view or update. Employees and managers access the information whenever and wherever it is needed. Employee and Manager Self-Service lets your organization establish specific benefit enrollment processes through which employees view and update their benefit elections. Employees have instant and direct access to their own benefit enrollment information, including current elections, other plans for which they are eligible, plan descriptions, and detailed coverage and premium information. Employees are led through the process based on rules you define, and an employee eligibility. Employees select their choices and upon completion and receive a summary of their benefit decisions. The employee elections update your Lawson database so that no data entry is necessary by your benefits administration staff.
26
Chapter 2
Chapter 3

Before you can start enrolling and maintaining your benefit plans, you must perform several setup tasks. By completing these setup tasks, you provide basic information that is vital for benefit processing. For example, the types of benefit plans you want to offer, type of coverage, how employees and your company will make contributions and deductions, whether you want to track beneficiaries and who are your insurance carriers.
Chapter 3
27
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
28
Chapter 3 Overview

You must complete required setup within the Benefits Administration application and in other specified Lawson applications. The following diagram shows the order in which you should perform the setup steps. Figure 1. Procedure relationship:Benefits Administration setup overview
BN Company
Preliminaries
-OptionalFlex Plan
BN-Plans
BN Entry Rules
BN-Plan Coverage
BN-Plan Contributions -OptionalBN Automation Rules
Benefits Administration Setup Step-by-Step

You can find details about concepts and procedures related to setup in the following chapter and in the additional noted resources.
Chapter 3
29
Setup Benefit Company
What is required? You need to define company parameters that are specific to the Lawson Benefits Administration application. This chapter covers information you need to define those parameters. You define those setting that all your benefit plans can use. Those settings are: Annual limits Insurance carriers Vesting schedule Frequency tables Benefit process order Postal code tables
For more information, see " Setup: BN Company" on page 33 in this user guide.
Benefit Preliminaries
" Setup: BN Preliminaries" on page 45.
Flex Plan
If your company provides flex benefits or reserved spending accounts, you need to define your Flex Plans before you define your companys overall benefits When defining benefit plan parameters, you are structuring the plan. Benefit plans use several different features in the Human Resources application. You use employee groups from the Human Resources application. You also use Deduction codes, Pay classes, and Pay codes from the Payroll application.
" Setup: Flex Plan" on page 55.
Benefit Plan
" Setup: Benefits Plan" on page 79.
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Chapter 3 Overview
Setup Benefit Entry Rules
What is required? The Benefit application requires plan entry rules for employee enrollment in benefit plans. Before you define entry rules, you want to define the pay class and employee groups you plan to use to calculate benefit eligibility.
For more information, see " Setup: Benefit Entry Rules" on page 113.
BN Plan Coverage
In each plan you can define unique coverage for different group of employees. You can also define default coverage option for a plan. If you defined your coverage option as No coverage, you do not need the information in this chapter. There are seven different contribution types. In each plan you can define unique coverage for different group of employees. Before you can set up benefit plan contributions, you must have a benefit plan, coverage, and deduction codes defined. You cannot successfully create plan contributions without the appropriate deductions attached to the plan
" Setup: BN Plan Coverage" on page 121.
BN Plan Contributions
" Setup: BN Plan Contributions" on page 147.
Chapter 3
31
Setup Automation Rules
What is required? Benefit automation rules let you automate Benefit processing. This chapter focuses on those procedures that define the add, change, and terminate automation rules
For more information, see " Setup: Automation Rules" on page 195.
Non-Lawson Payroll
32
Chapter 3 Overview
Chapter 4
Setup: BN Company
To use the Benefits Administration application, you must define company parameters that are specific to the Lawson Benefits Administration application. This chapter covers information you need to define those parameters. If you are upgrading your application from release 7.2.x to release 8.0.x, see the Upgrade Information Packet (UIP) for complete information about what tasks you need to complete before using this application. The UIP is available from your Lawson Client Manager.
Chapter 4
Setup: BN Company
33
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
34
Chapter 4
Setup: BN Company
Concepts in this Chapter

TIP To skip directly to the procedures, see "Procedures in this Chapter" on page 37 The following concepts provide background and conceptual information for the procedures within this chapter. Need More Details? Check out the following concepts: "What is a Benefit Company?" on page 35 " What are COBRA Occurrence Types?" on page 35 "What is Reportable Group Term Life Insurance?" on page 36
What is a Benefit Company?

Lawson uses a benefit company to hold the parameters that are specific to your plans. This benefit company is associated with the Human Resources company you previously set up.
Benefit Company Parameters

These defaults are specific to your benefit plans. The parameters include the following: General Ledger account you want to use for cash received from invoice payments Invoice billing dates for retirees and COBRA participants Whether health, dental and dependent life plans will track dependent coverage COBRA occurrence types Rates to calculate taxable amount for reportable group life insurance
What are COBRA Occurrence Types?

COBRA occurrence types are qualifying events that cause the loss of benefit coverage for an employee or dependent. Examples of occurrence types include divorce, separation, death, termination, reduction in working hours, or loss of dependent status based on plan definition. When you set up your benefit company and begin to define COBRA parameters, you define occurrence types as a code that represents an occurrence. For example, D represents divorce, or RE represents reduction in working hours. COBRA applies only to the United States.
Chapter 4
Setup: BN Company
35
What is Reportable Group Term Life Insurance?

If the company pays all or a portion of the premium for a group life insurance plan, then coverage amounts in excess of the Internal Revenue Service (IRS)-determined limit results in taxable or imputed income to the employee. Using rates set by the IRS, the value of the excess coverage is added to an employees taxable wages and is subject to payroll withholding taxes. For example: The IRS has determined that the first $50,000 of group term life insurance coverage is exempt from this calculation. An employee is enrolled in a plan where the company pays half of the cost of the coverage. The employees total coverage is $75,000, so the excess coverage is $25,000. (75,000 - 50,000). This amount must be multiplied by the rate associated with the employees age bracket to determine the value of this excess coverage, which then becomes reportable income for the employee. If the employee pays their portion of the premium with after-tax dollars; however, the premium paid can offset the calculated imputed income.
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Chapter 4
Setup: BN Company
Procedures in this Chapter

The only required procedure to set up a benefit company is defining a Benefits Administration (BN) company. Defining COBRA parameters, occurrence types, and excess life insurance are optional. Defining a BN Company You must define a BN company before you can use the Benefits Administration application. Optionally, you define the defaults for tracking COBRA participants and invoicing COBRA and retiree participants. Optionally, you define the occurrences and the number of months coverage extends for each occurrence. Optionally, you define the parameters for the application to calculate employee tax liability for the cost of excess life insurance.
Defining COBRA Parameters
Defining COBRA Occurrence Types
Defining Excess Life Insurance Rates
Defining BN Company
Before you can define benefit plans, you must define your companys benefit parameters. This procedure outlines the process for defining a benefit company. Need More Details? Check out the following concepts: "What is a Benefit Company?" on page 35 "Benefit Company Parameters" on page 35
Chapter 4
Setup: BN Company
37
STEPS
To define a benefits company

1. Access Benefits Company (BN00.1). Figure 2. Form clip: Using BN00.1 to define benefit company
2. Select Company in the Company field. 3. Enter the general ledger account you want to use in the Cash Account field. The application uses the cash account information when you receive COBRA and retiree benefit payments. 4. Enter Retiree information. Consider the following fields. Billing Period Leave blank on your initial setup. This field is automatically updated when you process invoices. If you leave this field blank, it is updated by Invoice Edit (BN180), then by Invoice Print (BN181). Type the number of days from an invoice date that retiree premiums are due. The application calculates due dates for invoices using this field. You can use BN180 to overwrite the due days. Type the number of days from an invoices due date that COBRA participants and retirees must pay their premium. NOTE Outstanding Invoice Listing (BN175) uses this value to determine which invoices are outstanding. 5. Select the dependent coverage you want to track in the Covered Dependents area. You can track Health, Dental and Dependent Life plans. 6. Choose the Add form function.
Due Days
Grace Period
38
Chapter 4
Setup: BN Company
Related Reports and Inquiries

To View company benefits Use Company Parameter Listing (BN200)
Defining COBRA Parameters

This procedure allows you to define the defaults for tracking and invoicing COBRA participants. STEPS
To define COBRA parameters

1. Access COBRA Parameters (BN00.2). Figure 3. Form clip: Using BN00.2 to define COBRA parameters
2. Select the Company in the Company field. 3. If you want the application to assign participant numbers, define the participant numbering information. Consider the following fields.
IMPORTANT If you use Employee Change Benefit Update (BN100) to automatically create COBRA participant records, you must select Yes in the Autonumbering field.
Auto numbering
Select Yes if you want the application to assign numbers to COBRA participants when they are added. If you selected YES in the Autonumbering field, enter the number you want to start numbering COBRA participants with. After COBRA participant records have been created, the last number used displays in this field.
Beginning Number
4. Define the Notification days. Consider the following fields.
Chapter 4
Setup: BN Company
39
Employee
Type the number of days a covered employee or dependent has to notify the employer of a qualifying event. If the employer is not notified in this number of days, the employee or dependent loses the right to extend coverage. Type the number of days after a qualifying event that the company has to notify employees and dependent of their right to extend coverage. Type the number of days employees and dependents have to notify the company of their election of coverage. If the employer is not notified in this number of days, the employee or dependent loses the right to extend coverage.
Company
Election
IMPORTANT If the difference between the Occurrence Date and Company Notified fields on COBRA Participant (BN70.1) is greater than the number of days in the Employee field on COBRA Parameters (BN00.2), the COBRA participants Termination Date becomes the same date as the COBRA participants occurrence date; the participant forfeits the right to extend coverage.
5. Define your COBRA billing information. Consider the following fields. Premium percent Type the percent of the total premium to charge COBRA participants. This value must be at least 100 percent. For example, if you want to increase an employees premium by 2% to cover COBRA administration costs, you type 102. If the premium percent is greater than 100 because of to the surcharge for administration costs, select the GL account where you want the surcharge to accumulate. If you leave the account field blank, the surcharge accumulates in the accrual account defined on each plan. Billing Period Leave this field blank for the initial set up. This field is automatically populated and updated as you complete the invoicing process each month.
Excess premium account
40
Chapter 4
Setup: BN Company
Due Days Initial Grace Period
Type the number of days from an invoice date that COBRA premiums are due. Type the number of days from the due date of the first invoice that COBRA participants have to pay their first premium. NOTE Outstanding Invoice Listing (BN175) uses this value to determine which invoices are outstanding.
6. Choose the Add form function.

To List the COBRA participants who have not been notified within the specified days Determine which participants did not pay their premiums in the grace period Use COBRA Notification Report (BN170)
Outstanding Invoice Listing (BN175)
Defining COBRA Occurrence Types

An occurrence is an event that allows an employee or the employees qualified beneficiaries to continue benefit coverage. Examples of an occurrence include divorce, separation, death, termination, reduction in working hours, or a dependent whose age exceeds the plan definition of a dependent. Define the occurrences and the number of months coverage extends for each occurrence. In addition, you can assign standard letters to occurrences. Need More Details? Check out the following concepts: " What are COBRA Occurrence Types?" on page 35
Chapter 4
Setup: BN Company
41
STEPS
To define COBRA occurrence types

1. Access COBRA Occurrence Types (BN00.3). 2. Select the Company. 3. Type the maximum number of months you want coverage to extend for multiple occurrences, in the Multiple Events Maximum field. 4. Consider the following fields. Type Description Months Type the code that represents the kind of occurrence. Type the occurrence description. For example, reduction in working hours. Type the number of months that COBRA participant coverage extends for this occurrence. For example, 18 months after a reduction in working hours. Select a standard letter if you want to send a standard letter to people with this occurrence. A standard letter can be defined using Standard Letter (BN05).
Letter

To Define standard letters Use Standard Letter (BN05.1)
Defining Excess Life Insurance Rates

You define parameters to calculate an employees tax liability for excess employee and dependent life insurance. The parameters include the excludable coverage amount and a monthly costs table. The IRS determines the monthly cost table which is subject to change. You must maintain the monthly cost table every year. The Benefits Administration application uses the values you define in conjunction with information in each life insurance plan to determine which employees and dependents have excess life insurance, and to calculate the cost of excess life insurance. Need More Details? Check out the following concepts: "What is Reportable Group Term Life Insurance?" on page 36
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Chapter 4
Setup: BN Company
STEPS
To define excess life insurance rates

1. Access Group Life W-2 Table (BN00.4). Figure 4. Form clip: Using BN00.4 to define excess life insurance rates
2. Select the Company in the Company field. 3. Type the current amount of excludable life insurance for employee and dependent life. The cost of group life insurance in excess of this exclusion must be reported as income to the employee. 4. Type the dollars of coverage on which the cost of insurance is based. 5. Consider the following fields. Age Cost For each premium rate, enter the starting age. The application will calculate the ending age. Enter the monthly cost of excess life insurance. The cost is for the increment of coverage defined in the Monthly Cost Per field, which is dictated by the IRS.
Chapter 4
Setup: BN Company
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44
Chapter 4
Setup: BN Company
Chapter 5
This chapter focuses on those procedures you need to perform before you define your benefit plans. All benefit plans can use the settings you define in these procedures.
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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TIP To skip directly to the procedures, see "Procedures in this Chapter" on page 49 The following concepts provide background and conceptual information for the procedures within this chapter. Need More Details? Check out the following concepts: "What are Annual Limits?" on page 46 "What is a Vesting Schedule?" on page 46 "What is a Frequency Table?" on page 47 "What is a Benefit Process Order?" on page 48
What are Annual Limits?

Annual limits are the maximum compensation and maximum annual additions for a calendar year. These limits are used by the Benefits Administration and Payroll applications. The Benefits Administration application uses these limits for discrimination testing. The Payroll application uses these limits to determine when contributions for defined contribution plans should stop.
What is a Vesting Schedule?

A vesting schedule is a table that determines when your companys contributions become non-forfeitable to an employee. You define the vesting schedule based on years of service. When you attach a vesting schedule for a benefit plan, you define the minimum number of hours that must be worked in a plan year, to have that year count toward vesting. You can also use a pay class to determine which hours are counted. For information on pay classes, see the Payroll User Guide. You use vesting schedules for defined benefit and defined contribution plans. You can assign the same vesting schedule to multiple plans, or if vesting is different for each plan, you can assign a different schedule to each plan. For example, the table below illustrates a vesting schedule. Number of years Less than 2 years 2 years 3 years 4 years 5 or more years Percent Vested 0% 40% 60% 80% 100%
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What is a Frequency Table?

This is a table the Benefits Administration application uses to establish employee benefit deductions. The Benefits Administration application also uses frequency tables in Flex Plans, to determine the amount for standard time records. You define annual contributions for benefit plans, and the table determines the amount of each deduction and when the deduction should be included in the payroll cycle for all employees, regardless of their pay frequency. This way you do not have to define separate contribution amounts for each of the possible pay frequencies.
Frequency Table Components

Frequency tables are made up of contribution divisors and deduction cycles by employee pay frequency. A frequency table is required for all plans that create a deduction or standard time record for an employee. The frequency table must be the same for all benefit plans under a flex plan.
Example
A frequency table consists of one Divisor and nine Deduction Cycle fields for each pay frequency. The following is an example of a frequency table. Table 1 Every Cycle Occurrences Deduction Cycles Pay Frequency Weekly Bi-Weekly Semi-Monthly Monthly Divisor 52 26 24 12 1 X X X X 2 X X X 3 X X 4 X 5 X 6 7 8 9
Table 2 Once a Month Occurrences Deduction Cycles Pay Frequency Weekly Bi-Weekly Semi-Monthly Monthly Divisor 12 12 12 12 1 X X X X 2 3 4 5 6 7 8 9
How the Divisor and Deduction Cycle Fields are Used

The Benefits Administration application uses the Divisor field to determine the amount for deductions and standard time records. For example, an employee has a benefit with a $300 annual contribution. The employees
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pay frequency is weekly. Using example 1, the Benefits Administration application determines the deduction amount by dividing the contribution by the Divisor of the employees pay frequency. The employees deduction for the benefit is $5.77 ($300/52). Using example 2, the deduction will only be taken once a month, the amount of the deduction would be $25 (300/12). The annual contribution is divided by 12 regardless of pay frequency, since the deduction will only be taken once a month, or 12 times each year. The Deduction Cycles fields determine when the Payroll application deducts the employee contribution from the employees payment, or when the Payroll application adds the standard time record. For a monthly frequency in the table shown above, the Payroll application takes deductions only during the first payroll cycle. For information on deductions and deduction cycles, see the Payroll User Guide.
How Do You Use the Table?

When you define a benefit plan, you assign a frequency table to the plan. You can assign the same frequency table to every plan. If either the divisor or the deduction cycles are different by plan, you can assign a different frequency table to each plan. IMPORTANT You need to update the employee deductions and standard time records before the next payroll cycle if you: - Assign a different frequency table to a benefit plan - Change a frequency table assigned to a benefit or a flex plan For more information, see " Plan Maintenance: Benefit Plans" on page 287.
What is a Benefit Process Order?

A Benefit Process Order is the order in which your plan types display on the benefit entry form or flex enrollment form. It is also the order enrollments are processed if you add multiple benefits at one time. You can define sequences for a company, a process level, or an employee. The following is the process order: employee, process level, company. For example, if a company-wide sequence is defined for Two Rivers company, and employee Ann Smith has an order different from Two Rivers order, the application uses the employees order.
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The following procedures set up those elements used by all benefit plans. Defining Annual Limits Tasks to determine the maximum compensation and annual limits for the calendar year. Tasks to define your companys insurance carriers. Tasks to define the table that determines when your companys contributions become non-forfeitable to an employee. Tasks to define the table used to calculate the pay period contributions of each employee. Tasks to indicate the order you want your plan types to appear on the benefit entry form. Tasks to define postal code table you can use as additional benefit eligibility criteria.
Defining Insurance Carriers Defining Vesting Schedule
Defining Frequency Tables
Defining BN Process Order
Defining Postal Code Tables
Defining Annual Limits

The Benefits Administration application uses the maximum compensation and maximum annual additions for discrimination testing and to determine when contributions for defined contribution plans should stop. IMPORTANT You must perform this procedure annually, even if the limits do not change.
STOP You need to define a deduction class for the maximum additions limit. For more information, see the Human Resources User Guide.
Need More Details? Check out the following concepts: "What are Annual Limits?" on page 46
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STEPS
To define annual limits

1. Access Benefits Annual Limits (BN12.1). Figure 5. Form clip: Using BN12.1 to define annual limits
NOTE The plan year may or may not coincide with the calendar year.
2. Type the plan year, maximum compensation, and maximum annual additions amounts. 3. Choose the Add form function. If you are adding a new year to an existing list, choose the Change form function.
Defining Insurance Carriers

To track and associate insurance carriers with a plan, you must define your companys insurance carriers. STEPS
To define insurance carriers

1. Access Insurance Carrier (BN01.1). 2. Consider the following fields. Insurer Insurer ID Type the code you want to represent the insurer. Type the insurers identification number.
3. Fill out the remaining fields. 4. Choose the Add form function.

To View a specific insurance carrier Use Insurance Carrier Listing (BN201)
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Defining Vesting Schedule

The vesting schedule determines when a companys contributions become non-forfeitable to an employee based on years of service. Need More Details? Check out the following concepts: STEPS "What is a Vesting Schedule?" on page 46
To define vesting schedule

1. Access Vesting Schedule (BN03.1). Figure 6. Form clip: Using BN03.1 to define vesting schedule
2. Type the code and a description that represent the vesting schedule in the Schedule field. 3. Consider the following fields. Years of Service Type the number of years of service required for each level of vesting. At least one year must be defined. Vesting can be based on plan year, calendar year or employment year as defined in the Vest Comp form tab of Benefit Plan (BN15.1). See "Defining Vesting and Covered Compensation Information " on page 104, for more information. Vested Percent Type the employees vested percentage for this year of service.
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To View vesting schedules Use Vesting Schedule Listing (BN203)
Defining Frequency Tables

The Benefits Administration application uses frequency tables so you do not have to define a contribution amount for every pay frequency. Instead, you define one contribution record with the annual amount of the premium. The application then uses the table to determine the individual deduction amount for each employee. Need More Details? Check out the following concepts: STEPS "What is a Frequency Table?" on page 47
To define frequency tables

1. Access Frequency Table (BN04.1). 2. Select Company in the Company field. 3. Type the code and the description that represents the frequency table in the Table field. 4. Type the contribution divisor for your employees. 5. Select the deduction cycle.
NOTE The number of pay periods in a year will default into this field for each pay frequency. If you need a different value, type that value in the field.
IMPORTANT To add the frequency table, at least one cycle must be marked for each pay frequency, even if your company does not use that frequency.

To View frequency tables Update benefits for frequency table changes Use Frequency Table Listing (BN204) Frequency Table Update (BN104)
Defining BN Process Order

This procedure allows you to define the order in which you want benefit plans to appear on the benefit form. You can define the process order for the company level, the process level or the employee level.
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Need More Details? Check out the following concepts: STEPS "What is a Benefit Process Order?" on page 48
To define BN process order

1. Access Benefit Process Order (BN30.1). Figure 7. Form clip: Using BN30.1 to define benefit process order
2. Select the Company from the Company field. 3. Type a number beside each plan type to indicate the sequence. 4. Choose the Add form function.
Option for defining a BN process order

If you want to define the order for a specific process level, then select the process level in the Process Level field and type a number beside each plan type to indicate the sequence. If you want to define the order for a specific employee, then select an employee in the Employee field and type a number beside each plan type to indicate the sequence.
Defining Postal Code Tables

You use postal code tables to further define benefit eligibility criteria. When you assign a postal code table to a plan, you limit the plans eligibility to employees with benefit postal codes assigned to the table. Benefit postal codes for an employee are defined on the Ben Dates form tab of HR11.1.
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STEPS NOTE To load the Postal code tables into the Benefits Administration application you use the Universe utilities importdb.
To define postal code tables

1. Access Eligibility Postal Codes (BN11). 2. Select the Postal Code table you want to use in the Postal Code Table field. 3. Type the postal code you want to define. 4. Choose the Add form function.

To View an employees benefit postal code Use Employee (HR11) Ben Dates tab
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Chapter 5
Chapter 6
Setup: Flex Plan

This chapter focuses on procedures you use to set up flex plans. If your company provides flex benefits, you must define your flex plans before you define your companys overall benefits.
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
Chapter 6
Setup: Flex Plan
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TIP To skip directly to the procedures, see "Procedures in this Chapter" on page 60 The following concepts provide background and conceptual information for the procedures within this chapter Need More Details? Check out the following concepts: "What is a Lawson Flex Plan?" on page 56 "What are Flex Credits and Flex Credit Records?" on page 57 "How are Flex Credits Issued and Structured?" on page 58 "What Happens to Unspent Flex Credits?" on page 59 "When do I Define Flex Credit Records?" on page 58
What is a Lawson Flex Plan?

In Lawson, a flex plan can either be a spending account only, or a full flex plan. The major characteristic of a flex plan is the 12-month enrollment period. You define the plans start date (month and day) which determines the flex plan year. All enrollments in the flex plan will be stopped automatically at the end of each plan year. Coverage or contribution levels must then be re-elected for the new plan year, even if the same coverage or contribution level is desired. When you define flex plans, you determine if your flex plan is a spending account only or a full flex plan. You need to consider the following when you define a flex plan: Spending account only or full flex plan Who is eligible for plan participation How you want to issue flex credits How you want to manage unspent flex credits
Spending Account Only

A spending account only flex plan is defined when the only benefit which will be attached to the flex plan is reserve spending accounts. (i.e. the type of plans that allows pre-tax contributions to be used for reimbursement of qualified medical or dependent care expenses.) This type of flex plan involves minimal set-up, and enables the application to enforce the 12 month enrollment period that is normally a feature of spending account plans.
Full Flex Plans

There are two major characteristics to a full flex plan: flex credits and the 12 month enrollment period. For all employees associated with a full flex plan the following is true: At least one flex credit record must be defined for each flex plan year
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An employe must have a flex credit record for the flex plan year to enroll in any benefits An employee may receive or spend flex credits by enrolling in benefits The stop date for all benefits will default to the last day of the flex plan year
For the application to determine when to allocate flex credits, a frequency table must be associated to flex plans. All benefit plans within the Flex Plan must use the same frequency table as the flex plan. The frequency table determines both the amount of standard time records and the pay cycles when flex credits are added.
What are Flex Credits and Flex Credit Records?

Flex credits are the amounts you give to your employees to purchase benefits. Employees then use these credits to purchase benefits. When you define flex credits, the application creates a flex credit record that determines how flex credits are calculated. In addition flex credit records determine the percentage (if any) of unspent flex credits that is paid to employees as taxable wages, and the amount (if any) of regular pre-tax income that can be used to purchase benefits after all flex credits have been used. Flex credits may be calculated based on many variables, including salary, years of service, age, or number of dependents. A flex record is defined for the benefit plan, so you can generate a record for each employee. Any employee enrolled in the plan will have an individual flex credit record.
Examples
Scenario Flex credits (given before enrollment) that can be used to purchase other benefits with 80 percent of any unused dollars taken as taxable income. Example John receives $1,500 flex credits before he chooses his benefits. He spends $1,200 to purchase benefits. Of the $300 remaining, he receives 80% or $240, as taxable wages.
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Scenario Flex credits (given by election of benefit) that can be used to purchase other benefits with 100 percent of any unused dollars taken as taxable income.
Example Tom is covered under his wifes health plan. Based on his election to waive coverage, he gets $500 flex credits to spend. He spends $400 of the flex credits to purchase family dental coverage and receives $100 as taxable wages. Based on Sues election to take single health coverage, she receives $100 flex credits. Sue also elects to take a supplemental life benefit that costs $200. Since she cannot apply her $100 in flex credits to the cost of the supplemental life, the $100 is added to her taxable wages and the $200 cost of supplemental life is deducted from her wages.
Flex credits (given by election) that cannot be used to purchase other benefits with 100 percent going directly to taxable income.
When do I Define Flex Credit Records?

Before the beginning of each flex plan year, you define how flex credits are determined. You must define a flex credit record with a new effective date every plan year, since each flex credit record is only valid for 12 months.
How are Flex Credits Issued and Structured?

There are three options you can use to issue flex credits to your employees: Issue credits before employees choose their benefits Associate credits to specific benefit plans, then issue credits based on the employees benefit choice Issue credits based on a combination of the first two options
If you issue credits before your employees choose their benefits, you can structure the flex credits in any of the following combinations: A base amount to every eligible employee. For example, all employees in a flex plan receive $1,000. A percentage of each employees salary. You can define a minimum and maximum salary amount for calculating flex credits. For example, each employee in the flex plan receives flex credits equal to 10% of his or her salary. An employee earning a $30,000 salary receives flex credits worth $3,000. An amount for each employees age, years of service, number of dependents, or lifestyle points.
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If you base credits on age, years of service, dependents, or lifestyle, you need to define rate tables to vary the credits. For age and years of service you can give credit based on an employees annual salary or as a flat amount.
What Happens to Unspent Flex Credits?

You can allow employees to add unspent credits to their gross pay as taxable income. For example, you let your employees keep 80% of their unspent credits. Jane Doe has $1,000 of unspent flex credits. She will now have $800 added to her taxable wages for this flex year. If you do not indicate an amount for unspent taxable credits, when you define your flex credits, employees will lose all their credits.
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Setup: Flex Plan
59

In Lawson, a flex plan can either be a spending account only, or a full flex plan. The procedures below detail how to set up Flex plans for your company. Defining Spending Account Only Flex Plan Tasks to define a spending account only flex plan. You define the plan year and select the plans frequency table for the spending account. Tasks to define a full flex plan. You must define a flex credit if you define a full flex plan. Tasks to define the flex credits you want to give employees before they enroll in benefit plans, and the percentage of unused flex credits they can add to their taxable wages. Tasks to define the parameters the application uses to determine each employees salary for flex credit calculations. Tasks to define the age, years of service, lifestyle and dependent rate tables. You can assign flex credits based on any of these tables. Tasks to assign flex credits based on age. Tasks to assign flex credits based on the number of years an employee is employed with your company. Tasks to assign flex credits based on the number of employee dependents. Tasks to assigned flex credits based on the number of an employees lifestyle credits.
Defining Full Flex Plan
Defining Flex Credits
Defining Flex Salary Parameters
Defining Flex Credit Tables
Defining Flex Credits based on Age Defining Flex Credits based on Service Defining Flex Credits based on Dependents Defining Flex Credits based on Lifestyle
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Figure 8. Procedure relationship: Setup: Flex Plans

Define full flex plan
Or
Define spending only flex plan
Define flex credits
Define flex credit tables
Define flex credit salary parameters
Define flex age credits
Define flex service credits
Define flex dependent credits
Define flex lifestyle credits
Defining Spending Account Only Flex Plans

Use this procedure to define a spending account only flex plan. When you define a spending account only flex plan, you can identify an employee group to further define employee eligibility. Need More Details? Check out the following concepts: "What is a Lawson Flex Plan?" on page 56
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STEPS
To define spending account only flex plans

1. Access Flex Plan (BN06.1). Figure 9. Form clip: Using BN06.1 to define spending accounts
2. Select the Company from the Company field. 3. Type the code and the description that represents the flex plan. 4. Optional: If you want to identify a specific employee group for the plan, select the group you want from the Employee Group field. If you leave Employee Group field blank, all employees become eligible. 5. Select Yes in the Spending Account Only field. 6. Select the frequency table from the Frequency Table field. If you havent defined a frequency table see "Defining Frequency Tables" on page 52 for more information. 7. Select the currency you want to assign to the flex plan in the Currency field. 8. Choose the Add form function.

To List all flex plans Use Flex Plan Listing (BN206)
Defining Full Flex Plans

Use this procedure to define a full flex plan. You can define different amounts of flex and pretax credits based on employee groups so employees in different employee groups can participate in the same flex plan but receive different amounts of flex credits. Need More Details? Check out the following concepts: "What is a Lawson Flex Plan?" on page 56
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STOP Before you can define a full flex plan you must define Flex Pay Codes. For further information see the Payroll User Guide.
STEPS NOTE During initial setup the display fields in the core plans part of the form are blank. After you define your core plans on Benefit Plan (BN15.1), and the core benefit plans associate with the flex plan, information will appear on the form.
To define full flex plans

1. Access Flex Plan (BN06.1). 2. Select the Company from the Company field. 3. Type the code and the description that represents the flex plan. 4. Complete the Flex Parameters. Consider the following fields. Start Date Employee Group Type the month and day you want the plan to begin. Flex plans are based on 12-month periods. If you want to identify a specific employee group for the plan, select the group. If you leave this field blank, all employees become eligible for this flex plan. Spending Account Only Frequency Table Flex Pay Code Select No. Select the frequency table that you want associated with the flex plan. Select the flex pay code to use when unspent flex credits are paid out as taxable income. This field is required even if unspent flex credits are forfeited. Select the currency you want to assign to the flex plan. If the company is not multi currency you can leave the field blank. The company currency defaults.
Currency
IMPORTANT A currency must be associated to a plan. The default currency is the currency defined for your company. If your company does not use multi-currency, then the flex plan currency must match the company currency. 5. Choose the Add form function.

To List flex plans Use Flex Plan Listing (BN206)
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Defining Flex Credits

This procedure defines the basis on which employees receive flex credits in a flex plan that issues credits before the employees make their benefit elections. A flex credit record must be defined for all full flex plans in order to enroll employees, even if employees receive some or all of their flex credits by enrolling in benefit plans. For more information, see " Setup: Benefits Plan" on page 79 and " Setup: BN Plan Contributions" on page 147. Need More Details? Check out the following concepts: STEPS "What are Flex Credits and Flex Credit Records?" on page 57 "How are Flex Credits Issued and Structured?" on page 58 "What Happens to Unspent Flex Credits?" on page 59
To define flex credits

STOP Before you can define flex credits, you must define the full flex plan. See "Defining Full Flex Plans" on page 62 for more information.
1. Access Flex Credits (BN08.1). Figure 10. Form clip: Using BN08.1 to define flex credits
2. Select the Company in the Company Field. 3. Select the Flex plan in the Flex Plan field. This is the same flex plan you defined on Flex Plan (BN06.1). 4. Type the start date for the flex credit. You type day, month and year. The month and day must be the same as the flex plans start date in Flex Plan (BN06.1). 5. Fill out the Flex Credits parameters. You can give flex credits as both a base amount and percent of salary. Consider the following fields.
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Base Amount
If the plan gives a base amount of flex credits to employees in a group, type the amount you want to give as credit. Also select the employee group name in the Employee Group field. Leave this field blank if you type 100 in the Base Percent of Salary field.
Base Percent of Salary
If the plan gives a base percent of salary of flex credits to employees in a group, type the percent of an employees salary you want to give as credit. Also select the employee group name in the Employee Group field. NOTE To base credit only on an employees salary leave Base Amount blank.
IMPORTANT If you enter a value here you must define the flex salary parameters, see "Defining Flex Salary Parameters" on page 67. Unspent Taxable Credits Type the percent of unspent flex credits that employees can add to their gross pay as taxable income.
IMPORTANT If you leave this field blank, employees lose all unspent flex credits. Minimum Total Credits This field is optional and you can leave it blank. Type the minimum flex credits an employee can receive. If the total flex credits calculated for an employee is less than this amount, the employee receives this amount. This field is optional and you can leave it blank. Type the maximum flex credits an employee can receive. If the total credits calculated for an employee are greater than this amount, the employee receives this amount.
Maximum Total Credits
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TIP Enter pre-tax amount large enough to cover at least two times the maximum amount any employee could spend on benefits. If the employee has spent all his or her dollars and had a benefit change, the application assumes the credits have been spent.
6. Fill out the Pretax Credits parameters. Consider the following fields. Amount Type the maximum amount an employee can spend from their regular pretax earnings to purchase benefits. If there is no limit, leave this field blank. Percent of Salary Type the maximum percent of regular pre-tax earnings an employee may spend to purchase benefits. If employees can spend a percent of their salary on a pretax basis to purchase benefits, type that percent. If there is no limit, type 100. 7. Choose the Add form function.
Options for defining flex credits

The following options are available from Flex Credits (BN08.1). Choose the Comments button to access Comments (BN90.1). Use this form to type comments about the flex plan, flex credits, or an employees benefit. Choose the Salary button to access Flex Salary Parameters (BN08.2). Use this form to determine how the application calculates an employees salary. See "Defining Flex Salary Parameters" on page 67. Choose the Age button to access Age Credits (BN08.3). Use this form to give flex credits based on employees age. See "Defining Flex Credits Based on Age" on page 72. Choose the Service button to access Service Credits (BN08.4). Use this form to give employees flex credits based on the number of years they have worked at your company. See "Defining Flex Credits Based on Years of Service" on page 74. Choose the Dependents button to access Dependents Credits (BN08.5). Use this form to define the number of credits employees receive based on their number of dependents. See "Defining Flex Credits Based on Dependents" on page 75. Choose the Lifestyle button to access Lifestyle Credits (BN08.6). Use this form to assign employees flex credits based on lifestyle. See "Defining Flex Credits Based on Lifestyle" on page 76.

To List Flex Plans Use Flex Plan Listing (BN206)
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Defining Flex Salary Parameters

This procedure defines the parameters the application uses to calculate an employees salary. If you entered a value in the Base Percent of Salary field in the Flex Credits form, then complete this form. STOP Before you define the salary tables, define the basic flex credit information. See "Defining Flex Credits" on page 64.
Need More Details? Check out the following concepts: STEPS "What are Flex Credits and Flex Credit Records?" on page 57 "How are Flex Credits Issued and Structured?" on page 58
To define flex salary parameters

1. Choose the Salary button, on Flex Credits (BN08.1), to open Flex Salary Parameters (BN08.2).
TIP If you enter a value in the Base Percent of Salary field on Flex Credits (BN08.1), a window automatically opens, with this form, when you add the Flex Credit record.
Figure 11. Form clip: Using BN08.2 to define flex salary parameters
2. Select the salary type you want to use for the flex credit calculation in the Type field. The following table explains the different salary options. Select Employee Salary To use The employees annualized rate of pay from HR11.1 (Employee) or, if applicable, the employees step and grade schedule. The benefit salaries from the Benefit form tab of HR11.1. The employees annualized rate of pay from HR11.1 plus a benefit salary. You use this option if only some of your employees in this plan will need to have a benefit salary amount maintained, such as employees paid on commission.
Benefit Salary Emp and Ben Sal
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3. Select the date you want to use to determine employee salaries in the Date field. The table below explains the date options. Select Current First of Month As of Date To determine an employees salary on the system date flex credits are calculated. on the first of the month flex credits are calculated. on a particular month and day. The application uses the month and day that you specify in the AS of MMDD field.
4. Complete the form. Consider the following fields. As of MMDD and Year Type the date you want to use to determine an employees salary for coverage calculations. If you selected As of Date in the Date field, type the month and day. If you leave the Year field blank when you use the As of Date, the application calculates an employees salary on the latest month and day specified. If you type a Year, the employees salary is determined on the exact month, day, and year you specify. If an employee does not have a salary history for the date specified, the application uses the current salary.
Minimum and Maximum
Type the minimum and maximum salary amounts for calculating flex credits. If an employees salary is either less or greater than these amounts, the application uses these amounts to calculate flex credits for the employee. This is a required field. If you do not want the application to use any rounding methods, such as rounding numbers up and down, select No Rounding.
Method
5. Choose the OK button. 6. Choose the Add form function or select another credit table to fill out.
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Defining Flex Credit Rate Tables

NOTE Age and service rate tables are also used to define company and employee costs for a benefit plan. For more information, see "Defining Contribution Rate Tables" on page 158 STEPS You use rate tables to define flex credit amounts based on age, service, number of dependents, and lifestyle credits. The application calculates the flex credits using either an amount or percent. When you assign a rate table to a benefit plans flex credit record, the rate tables start date must match the start date of the flex credit record.
To define flex credit rate tables

1. Access Rate Table Menu (BN02.1). 2. If you want to base flex credits on age, select Age Rate Table. 3. Define the age rate table. Consider the following fields. Company Table Select the company. Type a code and description that represents the rate table in the Table field. Rate table codes must be unique among rate table types. For example, if the code for an age rate table is 2A, another type of rate table cannot also use the code 2A. Start Date Type the start date of the rate table. The same rate table can have many start dates to accommodate rate changes. When you assign a rate table to a flex credit record, the rate tables start date must match the start date of the flex credit record. If you add a new rate table with a new start date, you must also add a new flex credit record. Currency Select the currency you want to assign to this rate table. If you leave this field blank, the company currency defaults, only if the company is not multi currency.
IMPORTANT Any rate table associated with a flex plan must have the same currency as the flex plan.
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Beg Age
Type the starting age for the flex credits you are defining. The application calculates the ending age for the age range. At least one age range is required. NOTE Leave this field blank to begin the first range with zero.
Flex Credits
Type the amount you want to give as flex credits next to the corresponding age range.
4. Choose the Add form function 5. If you want to base flex credits on service, select Service Rate Table. 6. Define the service rate table. Consider the following fields. Company Table Select the company. Type a code and description that represents the rate table in the Table field. Rate table codes must be unique among rate table types. For example, if the code for an age rate table is 2A, another type of rate table cannot also use the code 2A. Start Date Type the start date of the rate table. The same rate table can have many start dates to accommodate rate changes. When you assign a rate table to a flex credit record, the rate tables start date must match the start date of the flex credit record. If you add a new rate table with a new start date, you must also add a new flex credit record. Currency Select the currency you want to assign to this rate table. If you leave this field blank, the company currency defaults, only if the company is not multi currency.
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Beg Year
Type the lower value of the years-of-service range for the flex credits you are defining. The application calculates the ending year of service for each range. At least one years-of-service range is required. NOTE Leave this field blank for the first range to begin with zero.
Flex Credits
Type the amount you want to give as flex credits next to the corresponding year of service range.
7. Choose the Add form function. 8. If you want to base flex credits on dependents or lifestyle credits, select Credits Rate Table. 9. Define the credit rate table. Consider the following fields. Company Table Select the company. Type a code and description that represents the rate table in the Table field. Rate table codes must be unique among rate table types. For example, if the code for an age rate table is 2A, another type of rate table cannot also use the code 2A. Start Date Type the start date of the rate table. The same rate table can have many start dates to accommodate rate changes. When you assign a rate table to a flex credit record, the rate tables start date must match the start date of the flex credit record. If you add a new rate table with a new start date, you must also add a new flex credit record. Currency Select the currency you want to assign to this rate table. If you leave this field blank, the company currency defaults, only if the company is not multi currency.
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Beg Nbr Flex Credits
Type number of dependents or lifestyle credits for this range. Type the number of flex credits employees receive for the number of dependents or lifestyle credits indicated on this detail line. The lifestyle credits are entered and maintained on HR11.
Defining Flex Credits Based on Age

You can define flex credits based on the following credit tables: Age, service, dependents and lifestyle. This procedure outlines the tasks to define your flex credits based on age. STOP Before you define flex credits based on age, define the basic flex credit information. See "Defining Flex Credits" on page 64.
To define flex credits based on age

1. Choose the Age button, on Flex Credits (BN08.1), to open Age Credits (BN08.3). Figure 12. Form clip: Using BN08.3 to define flex credits based on age
2. Select the date you want to use to determine employee age in the Date field. The table below explains the date options.
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Select Current First of Month As of Date
To determine an employees age on the system date flex credits are calculated. on the first of the month flex credits are calculated. on a particular month and day. The application uses the month and day that you specify in the AS of MMDD field.
3. Complete the form. Consider the following fields. As of MMDD and Year Type the date you want to use to determine an employees age for flex credit calculation. If you selected As of Date in the Date field, type the month and day. If you leave the Year field blank when you use the As of Date, the application calculates an employees age on the latest month and day specified. If you type a Year, the employees age is determined on the exact month, day, and year you specify.
Rate Table Credit Per
Select the table you want the application to use to calculate flex credits. To give flex credits using the employees annual salary rather than a flat amount, type the salary amount for each credit. The application calculates credits as follows: employees salary/Credits Per * Credits. If you leave this field blank, age credits are a flat amount.
Method Minimum and Maximum
If you dont want the application to use any rounding methods, select No. Type the minimum and maximum credits an employee can receive based on age. Minimum and maximum credits apply only when credits are calculated based on the salary amount entered in the Credit Per field.
4. Choose the OK button. 5. Choose the Change form function for Flex Credits (BN08.1).
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Defining Flex Credits Based on Years of Service

You can define flex credits based on the following credit tables: Age, service, dependents and lifestyle. This procedure outlines the tasks to define your flex credits based on years of service. STOP Before you define flex credits based on years of service, define the basic flex credit information. See "Defining Flex Credits" on page 64.
To define flex credits based on years of service

1. Choose the Service button, on Flex Credits (BN08.1), to open Service Credits (BN08.4). 2. In the Date field, select the date you want to use to determine employee years of service. The table below explains the date options. Select Current First of Month As of Date To determine an employees years of service on the system date flex credits are calculated. on the first of the month flex credits are calculated. on a particular month and day. The application uses the month and day that you specify in the AS of MMDD field.
3. Complete the form. Consider the following fields.
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As of MMDD and Year
Type the date you want to use to determine an employees years of service for coverage calculations. If you selected As of Date in the Date field, type the month and day. If you leave the Year field blank when you use the As of Date, the application calculates an employees years of service on the latest month and day specified. If you type a Year, the employees years of service is determined on the exact month, day, and year you specify.
Rate Table Credit Per
Select the table you want the application to use to calculate flex credits. To give flex credits using the employees annual salary rather than a flat amount, type the salary amount for each credit. The application calculates credits as follows: employees salary/Credits Per * Credits. If you leave this field blank, years of service credits are a flat amount.
Minimum and Maximum
Type the minimum and maximum credits an employee can receive based on their years of service. If the calculated credits are less or greater than these amounts the application gives this amount of credits to the employee.
4. Choose the OK button. 5. Choose the Change form function on Flex Credits (BN08.1).
Defining Flex Credits Based on Dependents

You can define flex credits based on the following credit tables: Age, service, dependents and lifestyle. This procedure outlines the tasks to define your flex credits based on the number of dependents. STOP Before you define flex credits based on dependents, define the basic flex credit information. See "Defining Flex Credits" on page 64.
Need More Details? Check out the following concepts: "What are Flex Credits and Flex Credit Records?" on page 57 "How are Flex Credits Issued and Structured?" on page 58
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STEPS
To define flex credits based on dependents

1. Choose the Dependents button, on Flex Credits (BN08.1), to open Dependents Credits (BN08.5). 2. Select the date, you want to use to determine number of dependents in the Date field. The table below explains the date options. Select Current First of Month As of Date To determine an employees number of dependents on the system date flex credits are calculated. on the first of the month flex credits are calculated. on a particular month and day. The application uses the month and day that you specify in the AS of MMDD field.
3. Complete the form. Consider the following fields. As of MMDD and Year Type the date you want to use to determine an employees number of dependents. If you selected As of Date in the Date field, type the month and day. If you leave the Year field blank when you use the As of Date, the application calculates an employees number of dependents on the latest month and day specified. If you type a Year, the employees number of dependents is determined on the exact month, day, and year you specify.
Rate Table
Select the table you want the application to use to calculate flex credits.
Defining Flex Credits Based on Lifestyle

You can define flex credits based on the following credit tables: Age, service, dependents and lifestyle. This procedure outlines the tasks to define your flex credits based on lifestyle.
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STOP Before you define the flex credits based on lifestyle credits, define the basic flex credit information. See "Defining Flex Credits" on page 64. You also need to define the employees lifestyle credits on the Employee Benefits form tab (HR11.1). See the Human Resources User Guide for more information.
Need More Details? Check out the following concepts: "What are Flex Credits and Flex Credit Records?" on page 57 "How are Flex Credits Issued and Structured?" on page 58
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STEPS
To define flex credits based on lifestyle

1. Choose the Lifestyle button on Flex Credits (BN08.1), to open Lifestyle Credits (BN08.5). 2. Select the date in the Date field, you want to use to determine employee lifestyle credits. The table below explains the date options. Select Current First of Month As of Date To determine an employees lifestyle credits on the system date flex credits are calculated. on the first of the month flex credits are calculated. on a particular month and day. The application uses the month and day that you specify in the AS of MMDD field.
3. Complete the form. Consider the following fields. As of MMDD and Year Type the date you want to use to determine the number of lifestyle credits. If you selected As of Date in the Date field, type the month and day. If you leave the Year field blank when you use the As of Date, the application calculates an employees number of lifestyle credits on the latest month and day specified. If you type a Year, the employees number of lifestyle credits are determined on the exact month, day, and year you specify.
Rate Table
Select the table you want the application to use to calculate flex credits.
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Chapter 7

This chapter focuses on procedures to set up your benefits plans. When defining benefits plan parameters, you are structuring the plan. Benefits plans use several different features in the Human Resources application. If you are upgrading your application from release 7.2.x to release 8.0.x, see the Upgrade Information Packet (UIP) for complete information about what tasks you need to complete before using this application. The UIP is available from your Lawson Client Manager. Employee groups, defined in the Human Resources application, are used to identify eligibility, entry rules, coverage, contributions, and general ledger overrides. Deduction codes, pay classes, and pay codes are used from the Payroll application: to track employee and company expenses to track hours for eligibility, vesting, compensation and dollars for contributions allocation of flex credits and computed income amounts that are added to employees taxable wages
STOP Before you set up you must define the employee groups on Employee Group Definition (HR55) and Eligibility Postal Codes (BN11) postal codes. The Benefits Administration application uses the information entered on HR55 and BN11 as part of employee benefit eligibility.
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Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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TIP To skip directly to the procedures, see "Procedures in this Chapter" on page 93 The following concepts provide background and conceptual information for the procedures within this chapter. Need More Details? Check out the following concepts: "What is a Plan Type?" on page 81 "What are Benefit Categories?" on page 81 "What are Some Basic Plan Type Characteristics?" on page 82 "What are Coverage Types?" on page 84 "What are Contribution Types?" on page 85 "What Contribution and Coverage Types Work Together?" on page 87 "How are Deductions used by Benefit Plans?" on page 88 "What is a Default Plan?" on page 89 "What Determines Eligibility?" on page 90 "Why Use Employee Groups with Benefit Plans?" on page 90 "What are Waive Plans?" on page 91 "What are Flex Core Plans?" on page 92 "What are Benefit Dates?" on page 92
What is a Plan Type?

Plan types in the Lawson application determine how a plan is set up and the features and reporting available for the plan. The table below lists the plan types available in the Benefits Administration application. Health Dental Disability Employee Life Dependent Life Defined Benefit Savings Bond Stock Purchase Spending Accounts Vacation Defined Contribution
What are Benefit Categories?

Use benefit categories to further define plans. Categories enable the application to default benefits. Categories are also used for reporting. For
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example, you can further define employee life plans with the categories life or Accidental Death and Dismemberment (AD&D). You can define a default life plan and a default AD&D plan. The table below lists the predefined categories. Profit sharing Money purchase ESOP 401(k) 403(b) 457 Thrift or Savings Registered retirement savings plans Deferred profit sharing Legal account Accidental life and dismemberment (AD&D) In addition to the predefined categories available in the Benefits Administration application, you can define your own categories. Short term disability (STD) Long term disability (LTD) Life Sell vacation Medical Long term care Vision Medical reimbursement Dependent care Buy vacation
What are Some Basic Plan Type Characteristics?

The table below lists important plan attributes and available categories. See "What are Coverage Types?" on page 84 for more information. Plan Type Defined Benefit Pre-defined Categories Attributes Participation hours Covered compensation by plan year Vesting Beneficiaries
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Plan Type Defined Contribution
Pre-defined Categories Profit sharing Money purchase ESOP 401(k) 403(b) 457 Thrift or Savings Registered Retirement Savings Plans Deferred Profit Sharing
Attributes Participation hours Covered compensation by plan year Vesting Beneficiaries Investment accounts Discrimination testing
Dental Dependent Life
Dependents benefits Dependent benefits Beneficiaries Used to calculate imputed income
Disability
STD (short term disability) LTD (long term disability)
Beneficiaries
Employee Life
Life AD&D (Accidental Life and Dismemberment)
Used to calculate imputed income Dependents benefits
Health
Medical Long term care Vision
Spending Account
Medical reimbursement Dependent care Legal account
Payroll updates plan year contributions Allows reimbursement Transactions Payroll updates contributions by plan Purchases bonds Tracks owners, co-owners and beneficiaries Maintains bond history
Savings Bond
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Plan Type Stock Purchase
Pre-defined Categories
Attributes Payroll updates contributions by plan Purchases stock Maintains stock purchase history
Vacation
Buy vacation Sell vacation
Buy or sell hours in a time accrual plan
What are Coverage Types?

When you set up your benefit plan, you identify what kinds of coverage you want to offer your employees. Lawson enables you to use three types of coverage to set up your plan. The list below describes the three coverage types. Type No Coverage (0) Description No coverage is offered under the benefit plan. You would use No Coverage for benefit plans like defined contribution and spending accounts that have employee contributions but no coverage. You define the specific options that an employee may choose upon enrollment. For example, a health plan might offer options such as single, employee + 1 and family. Coverage Amounts A coverage amount is determined in one of several ways. You can define a coverage amount as a specific flat amount, a chosen amount based on set increments, or a calculation using a percent or multiple of an employees salary. For example, you can define an employee life plan in which an employee can elect a coverage amount of one to five times his or her salary. Or, a disability plan that offers coverage as a percent of an employees salary.
Coverage Options
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NOTE You have the option of using a custom calculation for determining coverage. Custom calculations use the User Exits functionality. For more information, see the Application Development Workbench Standards.
The coverage type is then used in conjunction with contribution types to further define a benefit plan.
No Coverage Example
River Bend Hospitals 401(k) plan is based on employee contributions. To define this plan, River Bend would select No Coverage to be entered in the Coverage Type field.
Coverage Option Example

River Bend Hospital has a health plan that has the following coverage options: Employee Employee plus one Employee plus two Employee plus three Full family Medicare supplement
To define this plan, River Bend would select Coverage Options to be entered in the Coverage Type Field.
Coverage Amount Example

River Bend Hospitals Supplemental Life plan allows employees to select coverage in $5,000 increments up to a maximum coverage of $75,000 up to the age of 60. After age 60, the coverage is reduced by 50 percent. To define this plan, River Bend would select Coverage Amounts to be entered in the Coverage Type field.
What are Contribution Types?

For each plan, you can define unique contributions. Lawson offers six different contribution types. Contributions can be flat amount premiums, amounts calculated by the application, or amounts determined by the employee. See "Contribution Type Examples" on page 86 for more information. The following are the types of contributions you can define. Type Options Amount (1) Description The cost for each coverage option is a flat amount and is the same for all employees in a group.
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Type Options Amount Range (2)
Description The cost for each coverage option varies based on salary, age or years-of-service ranges for employees in a group. The cost is a flat amount for all employees in a group. The cost may be based on employees salary, age, years of service. The cost is calculated by multiplying a rate times the employees amount of coverage or salary. The rate may be based on age, salary, or years of service. Contributions are designated by the employee, up to a specified limit. Used for benefit plans that specify employee contribution limits that are matched by a company contribution. Used for benefit plans that specify employee contribution limits that are matched by the company based on the percent of the employees contribution. Use for benefit plans that will not track any contributions, neither by the employee, or company paid.
Flat Contributions (3)
Salary or Coverage Rate Table (4)
Contribution Limits (5) Match Limit Schedule (6)
Match Percent Schedule (7)
No Contribution (0)
Contribution Type Examples

NOTE You have the option of using a custom calculation for determining coverage. Custom calculations use the User Exits functionality. For more information, see the Application Development Workbench Standards. Options Amount - For example, employees pay $400 for single coverage or $1100 for family coverage under a health plan. Options Amount Range - For example, a company may reward years of service by paying a larger share of the cost of health insurance. Employees with less than five years of service pay $450 for single coverage, while employees with more than five years of service pay only $325, with the difference being added to the companys share of the cost. Flat Contributions - The cost is a flat amount for all covered employees in a group. Cost may be based on age, salary, or years of service, but does not vary with level of coverage. For example, a company-provided Employee Assistance Plan has a flat cost to the company of $100 for each covered employee. Salary or Coverage Rate Table - The cost is calculated by multiplying a rate times either an employees salary or the amount of coverage in the plan. The rate used in the calculation may be based on age, salary, or years of service. For example, the cost of a disability plan is $.75 per $1,000 of coverage in the plan, where coverage is 60% of an employees base salary.
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Contribution Limits - For example, a medical reimbursement account allows employees to contribute any amount they choose up to $2,000 per year. Match Limit Schedule - Used for benefit plans where employee contributions are matched by the company up to a specific limit. The match is determined as a percentage, and may vary based on years of service. For example, a 401(k) plan where an employee may contribute up to 15% of their eligible earnings and the company match is 50% of the employees contributions up to 8%. Match Percent Schedule - Used for benefit plans where employee contributions are matched by the company, and the amount of the match varies over the range of possible contribution levels. For example, a 403(b) plan where an employee may contribute up to 12% of their eligible earnings, and the company match is 100% on the first 1%, an additional 60% on the next 4%, and an additional 40% on the next 2% of contribution. No Contributions (0) - Used for benefit plans that will not track any company or employee expense associated with the plan. For example, a vision discount plan for which the company pays a flat annual fee. Cost will not be tracked based on enrollment in the plan, only coverage.
What Contribution and Coverage Types Work Together?

The table below lists contribution and coverage types that you can combine when you set up you benefit plan. The coverage type you select determines which contribution type you can select. Coverage Type Contribution 0 No Coverage 0 No Contribution 1 Options Amount 2 Options Amount Range 3 Flat Contribution 4 Salary or Coverage Rate Table 5 Contribution Limits 6 Match Limit Schedule 7 Match Percent Schedule X X X X X X X X X 1 Coverage Options 2 Coverage Amounts X
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How are Deductions used by Benefit Plans?

The Benefits Administration application uses deductions to: track employee and company contributions on a pay period basis
NOTE If you want transactions for particular employees posted to different general ledger accounts, you can override (by employee group) the general ledger accounts that are defined on deductions. See "Overriding General Ledger Accounts" on page 108
determine to which general ledger accounts the plans cost should be posted You assign deductions to benefit plans; each deduction can be assigned to only one benefit plan. The following list explains the use of each type of deduction. You can define each type of deduction as an amount or a percent. The deductions you use for a plan depends on the contribution type you select for a plan and how you define the contribution. The list below describes the deductions. Pretax After limit Tracks employee pretax contributions. Tracks employee after-tax contributions for 401(k) and 403(b) plans when the employee has met the pretax limit. If the Use AT Limit Deductions field in the Options form tab of HR00.1 (Company) is No, after limit deductions are not valid; the application continues to use pretax deductions on an after-tax basis. After-tax Company Tracks employee after-tax contributions. Tracks the company contribution when the company contribution is not a match of the employee contribution. Tracks the company contribution calculated as a match of the employee pretax deduction. Tracks the company contribution calculated as a match of the employee after-limit deduction. Tracks the company contribution calculated as a match of the employee after-tax deduction. Tracks the companys cost when an employee uses flex dollars to pay for a benefit.
Company Match Pretax
Company Match After-limit
Company Match After-tax
Flex company (for flex plans only)
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What is a Default Plan?

A default plan lets the Benefits Administration application automatically enroll employees when they become eligible. There are four default types you can use to define a default plan. The table below describes the four types. Type Always default Description Benefit update programs enroll an employee when the employee becomes eligible. Benefit update programs enroll an eligible employee if the employee has no other benefits of the same plan type (for example, no other health plan). Benefit update programs enroll an eligible employee if the employee has no other benefits of the same plan type and category (for example, no other spending account plan with the category medical reimbursement). Benefit update programs do not automatically enroll an employee. A mass enrollment program will list, but not enroll, employees who are eligible for the plan.
By plan type
By plan category
Do not default
Example of Always Default

The B & B Clothing Company gives all eligible employees $10,000 of life insurance coverage in the basic life plan regardless of any coverage the employee elects in the supplemental life plan.
Example of Default by Plan Category

Under the benefit plan type for employee life insurance, the Johnson Book Store offers their employees two life plans and one AD&D plan identified by plan categories. An employee can chose from within the life plans to receive either a $15,000 flat amount of coverage or a multiple of their salary. The flat amount life plan is defined to default by plan category. If the employee does not choose the multiple of life plan, the update program will automatically enroll them in the flat amount plan.
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What Determines Eligibility?

Employee groups and postal code tables allow you to indicate employee eligibility. An employee must meet all of a plans eligibility requirements to enroll in the plan. Also, the employees currency and country must match the plans currency and country. The following list explains the use of each type of eligibility criteria. Employee group Assigning an employee group to a plan limits the plans eligibility to employees in the employee group. You can associate retirees to an employee group. Assigning a postal code table to a plan limits the plans eligibility to employees with a benefit postal code that matches one in the plans postal code table. Benefit postal codes are maintained on the employee master record in the Human Resources application.
Benefit postal codes
Why Use Employee Groups with Benefit Plans?

An employee group is a user-defined group of employees based on specific criteria, or employees grouped manually by employee number. You can use employee groups in the Benefits Administration application for the following: Eligibility criteria for flex plans. For example, only full-time employees are eligible for a flex plan. Eligibility criteria for benefit plans. For example, only nonunion employees are eligible for participation in a self-funded short-term disability plan. Criteria for the calculation of flex credits. For example, employees in the Midwest receive $1,000 flex credits to purchase benefits while employees on the West Coast receive $1,500. Waiting periods. For example, there is a 60-day waiting period for part-time employees and no waiting period for full-time employees. Coverage. For example, union employees can choose life insurance coverage at one, two, or three times their salary, while nonunion employees can choose between one to five times their salary in coverage. Contributions. For example, contributions are $1,000 for employees in the Midwest and $2,000 for employees on the West Coast. General ledger overrides. For example, benefit transactions for executive employees are posted to unique general ledger accounts.
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Benefit automation rules. For example, a full-time employee at ABC Foods switches to part-time, thereby making him ineligible for benefit coverage. The Benefits Administration application stops his benefits based on the automation rules defined for the personnel action that changes him from a full-time to a part-time employee.
You will normally want to include an employee group on the Eligible tab of Benefit Plan (BN15.1). This is considered the main eligible group, and if you are using benefit automation rules, this group is required on the plan. At a minimum, terminated employees are usually not eligible for benefit plans; in this case, you would use an employee group to identify only active employees as being eligible for the plan. Aside from eligibility, employee groups may be used many places within the Benefits Administration application to define different parts of a given plan uniquely for different groups. If the different parts of the plan, such as coverage or contributions, do not vary by group, you do not need to attach a group to these records. A record defined with no employee group attached will apply to all employees in the main eligible group for the plan. To prevent unnecessary setup and maintenance, Lawson Software recommends that you only attach a group when needed. When varying parts of a benefit plan by employee group, make certain that you define mutually exclusive groups for each of the records, so that only one record will apply to each employee in the plan. For example, if you define waiting periods for a group of salaried employees and for a group of part time employees, define the employee groups as salaried full-time and salaried part-time. This ensures that an employee will not qualify for more than one waiting period. If more than one waiting period applies to an employee, the Benefits Administration application displays an error message at benefit entry.
What are Waive Plans?

A waive plan tracks employees who decline coverage in a plan or plans. It can be a default plan for employees who do not elect a benefit plan at the time of enrollment. Under a flex plan, you can give an employee flex credits for waiving coverage. IMPORTANT For benefit enrollment on the web, waive plans are necessary anytime an employee may choose to decline coverage within a group of plans.
Examples
International Technical Services Inc., (ITS) has set up health and dental waive plans. All employees at ITS who choose not to enroll in health and dental benefits are enrolled in the waive plan so ITS can track these employees.
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The Perex Company has a flex benefit plan. They enroll employees who do not chose health and dental plans in a waive plan to allocate flex credits for waiving coverage.
What are Flex Core Plans?

This is the minimum coverage an employee must elect under a flex plan. If a core plan exists, an employee cannot waive coverage. However, for flex health and dental plans, you can let an employee waive a core health or dental flex benefit in favor of the spouses health or dental plan.
What are Benefit Dates?

You can use various dates to determine when an employee can enroll in a plan. Waiting periods and enrollment requirements on benefits plans can be based on the following employee dates. Hire Adjusted hire Anniversary Seniority Five user-defined benefit dates
Example
River Bend Hospital uses the hire date field on Employee to store the original hire date of the employee. The adjusted hire date is used in a re-hire situation as the date the employee is re-hired at River Bend. The seniority date is a date calculated to reflect the employees combined time of service. The eligibility date for the 401(k) plan at River Bend for a new hire is calculated from the employees hire date. If an employee leaves River Bend and is subsequently re-hired, the adjusted hire date is used to calculate the waiting period for that re-hired employee in the 401(k) plan. The seniority date is used to calculate years of service for determining the company match.
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The procedures in this chapter provide instructions to define your benefit plan parameters. When you define a benefit plan, you identify the benefit type and then define specific parameters for that benefit type. For each plan, you define coverage and contribution types. Entry rules, coverage, contributions, and general ledger overrides of the deduction accounts can be unique by employee groups. Defining Benefit Categories Defining Primary Benefit Plan Defining Vesting and Covered Compensation Tasks to define categories for benefit plans. Tasks to define the primary information every benefit plan uses. Tasks to define compensation, vesting and reporting requirements for defined contribution and defined benefit plans. Tasks to define investment accounts for defined contribution plans that offer employees a choice of accounts in which they can invest contributions. Tasks to override the general ledger accounts on deductions an pay codes for an employee group.
Defining Investment Options
Overriding General Ledger Accounts
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Figure 13. Procedure relationship: Setup: Benefit Plans
Define benefit categories
Define primary benefit information
Define Vesting and Covered Compensation
Define general ledger overrides Define Investment Options
Defining Benefit Categories

Categories enable you to further define your benefit plans. Categories are associated with a plan type, and the application uses categories for creating default benefits and for reporting. The Benefits Administration application is delivered with several pre-defined categories. This procedure outlines the tasks to define additional benefit categories. Need More Details? Check out the following concepts: STEPS "What are Coverage Types?" on page 84
To define benefit categories

1. Access Benefit Plan Categories (BN13.1). 2. Select the plan type from the Plan Type field. 3. Type the code you want to represent the category in the Category field. 4. Type the category description in the Description field. 5. Choose the Change form function.
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Defining a Primary Benefit Plan

This procedure outlines those tasks to define the primary benefit plan.You can define plans for employees, dependents, retirees, and COBRA participants. You use Benefit Plan (BN15.1) to define the primary benefit plan. There are eight tabs containing essential benefit plan information. When you define the primary benefit plan, you define the information for either a Flex or a Non-Flex plan. For a Flex plan you enter information on the Main, Eligible, Deduct, and Flex tabs. For a Non-Flex plan you enter information on the Main, Eligible, and Deduct tabs. Depending on the information you entered on the four main tabs, you might also need to enter information on the Vest Comp, Bill Acct, Misc or Invest. The table below describes those tabs. Tab Main Purpose Indicates the type of benefit plan you are defining. Indicates who is eligible for the benefit plan. Indicates if the benefit plan is under a flex plan. If employees receive flex credits for electing the benefit plan, you can select a pay code to track those credits. Defines compensation, vesting and reporting requirements for defined contribution and defined benefit plans. Select the benefit plans frequency table and deductions. Select general ledger accounts for invoicing COBRA participant and retiree contributions. Use this form tab only if the Retirees Covered or the COBRA Participants Covered field on the Eligibility form tab is Yes. Yes Flex Only
Eligible Flex
Vest Comp
Deduct
Bill Acct
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Tab Misc
Purpose Indicate whether a life insurance plan is included in the calculation of imputed income, to indicate the value and cost of savings bonds, to define spending account transaction limits, or to associate a vacation plan with a time accrual plan. You can also associate a Canadian plan registration number from this tab. Define investment accounts for defined contribution plans that offer employees a choice of accounts in which they can invest contributions.
Flex Only
Invest
Need More Details? Check out the following concepts: STEPS "What is a Frequency Table?" on page 47 "What is a Plan Type?" on page 81 "What are Coverage Types?" on page 84 "How are Deductions used by Benefit Plans?" on page 88 "What are Waive Plans?" on page 91
To define primary benefit plan

1. Access Benefit Plan (BN15.1). 2. Select the company from the Company field. 3. Select the plan type from the Plan Type field. If the plan is Reserve spending Saving Bond Then Choose the Misc tab and select Reimbursement. Choose the Misc tab and type the value and cost of the saving bond.
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If the plan is EL or DL For Canadian Plans T4-RPP or DPSP TIP The application identifies benefit plans by plan type and plan code. You can use the same plan code for the different plan types you define.
Then Choose the Misc tab and select Yes if imputed income. Choose Misc tab and type the plan registration number.
4. Type the code that represents the benefit plan. 5. Enter the plans basic information on the Main tab. Figure 14. Form clip: Using BN15.1 Main tab to define primary benefit plan
Consider the following fields. Category Select a category for the benefit plan. If you define the plan to default by plan category, this field is required. Start Date Type the starting date for the plan. This is the earliest date any enrollment in the plan can occur. For defined contribution and defined benefit plans, the month and day of the start date define the beginning date for each plan year. Compensation, DC/DB account balances, and vesting, are tracked based on the plan year. Stop Date If there is a date after which employees are no longer able to enroll in the plan, type the stop date for the plan. Select the coverage type for the plan. Select the plans contribution type. The contribution type you can select depends on the value you selected in the Coverage Type field.
Coverage Type Contribution Type
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Default Waive International
Select the type of default plan. If you do not want the plan to be a default plan, select N. Select if the plan is a waive plan. Select the country code and the currency you want to associate with this plan. If you leave currency field blank, the application will use currency defined for the company. If your company uses multiple work countries, this field is required. If your company does not use multiple work countries, this field must match the company work country. You define whether or not a company uses multiple work countries on Company (HR00.1).
IMPORTANT A benefit plan can only apply to one country and have only one currency. 6. Choose the Eligibility tab to define employee eligibility. Figure 15. Form clip: Using BN15.1 Eligibility tab to define primary benefit plan
Consider the following fields.
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Covered Employee Group
Select if employees are eligible to enroll in this plan. Select an employee group to limit the plans eligibility to employees in the employee group.
IMPORTANT If you plan to use automation rules, you must select an employee group.
If you leave this field blank, all employees who meet the plans other eligibility requirements are eligible to enroll in the plan. If you select both an employee group and a postal code table, employees must meet both eligibility criteria to be eligible for the plan. Retirees Indicate if retirees are eligible to enroll in this plan and if you want to use an employee group to determine retiree eligibility. Indicate if COBRA participants are eligible to enroll in this plan.
COBRA Participants
7. If you want to cover retirees or COBRA participants in this plan, choose the Bill Acct tab and select the general ledger accounts for tracking COBRA participant and retiree contribution information. 8. If this plan is a Flex Plan, choose the Flex Tab. Figure 16. Form clip: Using BN15.1 Flex tab to define primary benefit plan
Consider the following fields. Flex Plan Flex Core Select the Flex plan for this benefit plan. Select Yes if the plan is a core benefit plan.
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Reduces Flex Credits Increases Employee Pay
Select a flex company deduction. If you leave this field blank, the application does not use flex credits to pay for the benefit. Select the pay code for the application to use to create a standard time record for the employee using the plans frequency table. If you leave this blank, the application creates or updates the employees standard time record with the flex pay code entered on Flex Plan (BN06.1). Pay codes, refer to Payroll User Guide for information about pay codes.
Vacation
If you are defining a flex vacation plan and you are using the Lawson Time Management application, select the vacation plan that you want updated with the number of hours bought or sold with the Benefits Administration application.
9. Choose the Deduction tab to attach the benefit plans frequency table and deductions. If the plan is defined with a contribution of No Contribution, leave the fields on this tab blank. STOP If you have not defined the necessary deduction codes, you must define them now. Save the plan after attaching the frequency table by choosing the Add function at this point in the procedure. After you define the deduction, enter the codes on BN15 and choose the Change function when you are done defining the plan.
Figure 17. Form clip: Using BN15.1 Deduction tab to define primary benefit plan
1. If the plans contributions are calculated as a flat amount or a percent of salary, select the Amount subtab. Consider the following fields.
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Pretax
If you are selecting a pretax deduction for a defined contribution plan, the deduction you select must have a tax status as follows. For 401(k) plans, the tax status must be 401(k). For 403(b) plans, the tax status must be 403(b). For 457 plans, the tax status must be 457. If employees contribute a flat amount for this benefit on an after-tax basis, select an after-tax deduction. If the plan contribution type is 1 to 5, select a company deduction to track company contributions that are a flat amount. If the plan contribution type is 6 or 7 and the company matches employee pretax contributions that are a flat amount, select a company matching deduction. The tax status of the company match must equal the tax status of the corresponding employee deduction.
After-Tax
Company
Company Match After-Tax
If the plan contribution type is 6 or 7 and the company matches employee after-tax contributions that are a flat amount, select a company matching deduction. If this is a defined contribution plan and an employees flat amount contributions switch from pretax to after-tax after the employee has met the 401(k) and 403(b) pretax limits, select the deduction used for the employees after limit contribution. If the Use AT Limit Deductions field in the Options form tab of HR00.1 is No, leave this field blank.
Employee
IMPORTANT Deductions used for after limit contributions must be linked to the corresponding pre-tax deductions on Deductions (PR05.1).
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TIP To base a percent contribution on specific types of pay rather than all pay, assign a pay class to the deduction when you define the deduction in Deduction (PR05.1).
2.
If the plans contributions are calculated as a flat percent, select the Percent subtab. Consider the following fields. Pretax Select the pretax. If you are selecting a pretax deduction for a defined contribution plan, the deduction you select must have a tax status as follows. For 401(k) plans, the tax status must be 401(k). For 403(b) plans, the tax status must be 403(b). For 457 plans, the tax status must be 457. If employees make percent contributions on an after-tax basis, select an employee after-tax deduction. Leave this field blank for benefit plans under a flex plan. Company If the plan contribution type is 1 to 5, select a company deduction to track company contributions that are a percentage of each employees compensation. Leave this field blank for benefit plans under a flex plan. If the plan contribution type is 6 or 7 and the company matches employee percent contributions made on a pretax basis, select a company matching deduction. The tax status of the company match must equal the tax status of the corresponding employee deduction.
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Company Match After-Tax
If the plan contribution type is 6 or 7 and the company matches employee after-tax contributions that are a percent, select a company matching deduction. The tax status of the company match must equal the tax status of the corresponding employee deduction.
Employee
If this is a defined contribution plan and an employees percent contributions switch from pretax to after-tax after the employee has met the 401(k) and 403(b) pretax limits, select the deduction used for the employees after limit contribution. If the Use AT Rollover Deductions field in the Options form tab of HR00.1 (Company) is No, leave this field blank.
IMPORTANT Deductions used for after limit contributions must be linked to the corresponding pre-tax deductions on Deductions (PR05.1). 3. Choose one of the following tabs. If the plan is Reserve spending Saving Bond EL or DL Then Choose the Misc tab and select Reimbursement Choose the Misc tab and type the value and cost of the saving bond. Choose the Misc tab and select yes for Reportable Life if this plan should be included in the imputed income calculations (US Only). Choose Misc tab and type the plan registration number.
For Canadian Plans T4-RPP or DPSP
4. Choose the Add function. If you need to define covered compensation, vesting, or investment options for defined contribution or defined benefit plans, see Additional options for defining benefit plans.
Additional options for defining benefit plans

The following options are available from the Benefit Plan (BN15.1). Choose the Vest Comp tab to define vesting and covered compensation information for defined benefit and defined contribution plans. See "Defining Vesting and Covered Compensation Information " on page 104.
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Choose the Invest tab to define investment accounts for defined contribution plans that offer employees a choice of accounts in which they can invest contributions. See "Defining Investment Options" on page 107.

To List all benefit plan information Use Plan Parameter Listing (BN215)
Defining Vesting and Covered Compensation Information

This procedure outlines the tasks to define compensation, vesting and reporting requirements for defined contribution and defined benefit plans. The Benefits Administration application maintains vesting hours using the plan year, calendar year, or employment year. Vesting hours are tracked for all eligible employees even if the employee is not currently enrolled in a defined contribution or defined benefit plan. This allows the application to track vesting hours for employees before they enroll in a plan. Need More Details? Check out the following concepts: STEPS "What are Contribution Types?" on page 85 "Contribution Type Examples" on page 86
To define vesting and covered compensation information

1. Choose the Vest tab on Benefit Plan (BN15.1). Figure 18. Form clip: Using BN15.1 Vest Tab to define vesting and covered compensation
2. Consider the following fields.
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Pay Class
Select the pay class that determines each employees covered compensation for the plan year. The application tracks covered compensation for comparison against the annual limits defined on Benefits Annual Limits (BN12.1). Covered compensation is not used to calculate contribution amounts. If you leave this field blank, all compensation is included as an employees covered compensation for the plan year.
Apply Maximum Limit
If this is a 401(k) or 403(b) plan, select the value that indicates whether you want the Lawson Payroll application to stop each employees contributions when the employees covered compensation for the plan year exceeds the maximum compensation limit. If you select Yes and an employee participating in the plan has compensation that meets or exceeds the limit, the Payroll application reduces the employees compensation used to calculate contributions to the limit. If the Payroll application reduces the compensation used to calculate contributions to zero, the Payroll application does not calculate a contribution for the employee. You can override this field for individual employees in the Benefits form tab of Employee (HR11.1). If you select No, the Payroll application continues to take contributions regardless of the maximum compensation limit. TIP Select the Annual Limits button to change the maximum compensation limit. This limit is defined in Benefits Annual Limits (BN12.1) by plan year.
Schedule
Select a vesting schedule for the plan. A vesting schedule is a table that determines when a companys contributions become non-forfeitable to an employee.
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Computation Year
Select the type of year that is used to determine the vesting computation period. If you select Calendar Year, the vesting computation period begins on the January 1 and ends on December 31. If you select Employment Year, the vesting computation period is based on the employment date defined in the Vesting From Date. The From Date can be defined as an employees hire date, adjusted hire date, anniversary date, and so on. If you select Plan Year, the vesting contribution period is based on the month and day of the plan start date. Closing the payroll cycle Payroll Close (PR197) updates vesting based on this field.
From Date
If this is a defined contribution or defined benefit plan, select the date on which vesting begins for each employee enrolled in the plan. Select the value that indicates whether the vesting calculation includes the years an employee has worked before the plan start date. For example, an employee was hired in 1962 and the defined contribution plan began in 1982. If you select Yes, the application includes the 20 years from 1962 to 1982 in vesting. If you select No, the application begins vesting calculations from 1982.
Count Prior Years
Pay Class
Select the pay class that determines each employees vesting hours for the plan year. If you leave this field blank, all hours are included for vesting calculations.
Active Last Day
Select the value that indicates whether an eligible employee must be active on the last day of the plan year to receive a company plan contribution.

To List vesting schedule Use Vesting Schedule Listing (BN203)
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Defining Investment Options

This procedure outlines those tasks to define investment accounts for defined contribution plans that offer employees a choice of accounts in which they can invest contributions. Defining investment options enables you to track the investment choices made by employees. This information however does not flow through to the contribution amounts. Need More Details? Check out the following concepts: "What are Contribution Types?" on page 85
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STEPS
To define investment options

1. Choose the Invest tab on Benefit Plan (BN15.1). Figure 19. Form clip: Using BN15.1 Invest tab to define investment options
2. Complete the form. Consider the following fields. Investment Elections Distribution Increments Select the value that indicates whether an employee can choose the distribution of plan contributions. Type the minimum percent increments employees can distribute into an account when splitting investments into multiple accounts. For example, if you type 25, employees can invest 25.0 percent, 50.0 percent, 75.0 percent or 100.0 percent of their contributions in an account. TIP Set one of the investment accounts as the default. If an employee does not make an investment election upon enrollment, all contributions are invested in the default account. 3. Type the Investment account information. 4. Choose the Add form function.
Overriding General Ledger Accounts

This procedure outlines those tasks to override the general ledger accounts on deductions and pay codes for an employee group.
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IMPORTANT Lawson recommends that you review Payroll general ledger defaulting before using this feature. The application uses the deductions and pay codes assigned to a plan to determine which general ledger accounts are used to post transactions for the plan. You can override the general ledger accounts for the plan. If you override general ledger accounts, the Payroll application uses the general ledger accounts from this form when deductions are created in Employee Deduction (PR14.1) or standard time records are created in Standard Time Record (PR30.1).
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STEPS TIP If you access General Ledger Overrides (BN20.1) through the Override button on BN15.1 after inquiring on the plan, the company, plan type, and plan fields are populated and the plans deduction and pay codes are listed.
To override general ledger accounts

1. Access General Ledger Overrides (BN20.1). 2. Select the company from the company field. 3. Complete the form. Consider the following fields. Plan Type Select the type of plan for which you want to override general ledger accounts. For example, if you want to override general ledger accounts for the deductions and pay codes of an employee life plan, select EL. Plan Start Date Select the plan you want. Type the start date of this general ledger override table. You can vary general ledger override tables by start date. This allows you to define unique general ledger overrides for different periods. If the general ledger overrides change, add a new record for the new general ledger overrides. Employee Group Select the employee group for which you want to override general ledger accounts. If you are defining general ledger overrides that are unique to a particular group of employees, select this employee group for which this override record applies. If you leave this field blank, the application uses this override record for employees who do not meet the criteria for a specific employee group override record.
IMPORTANT If you define general ledger overrides by employee group, make sure employee groups are defined such that an employee can be a member of only one group at a time. If an employee belongs to more than one group for which overrides have been defined, benefit entry programs and benefit update reports show the situation as an error. 4. Inquire to display the deduction and pay codes relative to this plan. 5. Select the distribution company, expense, and accrual accounts that should override the default values for the desired deduction or pay code. If you leave Exp CO or Exp Account Unit blank and select only an expense account, the Payroll application uses the normal defaulting defined for distribution company accounting units. 6. Choose the Add form function.
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To List all BN plan information Use Plan Parameter Listing (BN215)
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Chapter 8

This chapter focuses on the procedure to define benefit entry rules. The Benefits Administration application requires plan entry rules for employee enrollment in benefit plans. STOP Entry rules use pay class and employee groups to calculate benefit eligibility. For information on defining pay classes, see the Payroll User Guide. For information on employee groups, see HR User Guide.
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Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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TIP To skip directly to the procedures, see "Procedures in this Chapter" on page 117 The following concepts provide background and conceptual information for the procedures within this chapter "What are Benefit Entry Rules?" on page 115 "How are Entry and Re-entry Rules Defined?" on page 115 "What are Entry Points?" on page 115
What are Benefit Entry Rules?

Entry rules are the criteria to calculate when an employee can enroll in a plan. You define a plans entry rules to specify the waiting period requirement, if any, that an employee must satisfy to enroll in a plan. All plans must have at least one entry rule defined.
How are Entry and Re-entry Rules Defined?

You define entry rules for initial enrollments and re-enrollments. An initial enrollment is the first time a benefit is added for an employee in a benefit type. A re-enrollment is any time an employee is enrolled in a plan type for which the employee has already had a benefit. NOTE If a plans entry rules change, Lawson recommends that you add a new entry rule record for the plan. This method lets you define new rules with future dates and provides an online audit trail of changes. When you define initial entry or re-entry rules, you indicate the beginning date (such as the hire date or anniversary date) on which the employee is eligible to enroll in the benefit. You can add to this date a number of months, days, or hours of service an employee must work to be eligible. For example, an employee must work 1000 hours after the hire date, before they are eligible to enroll. To define a particular type of hours for eligibility, you use a pay class. You can define entry rules by employee group. For example, a union employee must be employed 30 days before being eligible; a non-union employee is eligible on the hire date. For information on employee groups, see the HR User Guide.
What are Entry Points?

Entry points determine the exact date on which an employee can enroll in a plan. If you specify entry points, an employees benefit start date must exactly match an plan entry point. Entry points may be used with or without a waiting period, and can include one of the following: Up to 12 specific entry points. This method can be used to limit enrollments to the first of each month, or the first of the year.
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The start date of a pay period, based on the employees pay plan. This may be the pay period prior to or after the beginning date, or (if applicable) prior to or after the waiting period is satisfied. The start date of a work period, based on the employees pay plan. This may be the work period prior to or after the beginning date, or (if applicable) prior to or after the waiting period is satisfied.
For example, entry dates are on the first of each month and an employees eligibility date is calculated to be January 15. If you select a Prior value (such as Prior Entry Point), the application adds benefit for the employee with a start date of January 1. If you select a Next value (such as Next Entry Point), the application adds the benefit for the employee with a start date of February 2. For information on work and pay periods, see the Payroll User Guide.
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In the Lawson application, entry rules enable you to establish eligibility criteria. The procedure below details how to set up Benefit Entry Rules for your benefit plans. Defining Entry Rules Tasks to define the waiting period, if applicable, for your employees to enroll in a plan.You can define initial entry and re-entry rules using the same procedure.
Defining Entry Rules

This procedure defines the entry rules the application uses to determine benefit eligibility. If a plans entry rules change, Lawson recommends that you add a new entry rule record for the plan. This method lets you define new rules with future dates and provides an audit trail of changes. You can add a benefit for an eligible employee at any time as long as the benefit start date equals or is greater than the employees eligibility date. This date is determined by the plans entry rules. STOP Before an employee can enroll in a plan with rules based on pay periods or work periods, the employee must be associated with a pay plan on Employee (HR11.1).
Need More Details? Check out the following concepts: "What are Benefit Entry Rules?" on page 115 "How are Entry and Re-entry Rules Defined?" on page 115 "What are Entry Points?" on page 115
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STEPS TIP You can access BN16.1 from BN15.1. The button Ent Rule appears after you inquire on the Company, Plan Type, and Plan fields. Once you access BN16.1, using the Ent Rule button, the same fields are populated on BN16.1.
To define entry rules

1. Access Benefit Entry Rules (BN16.1). Figure 20. Form clip: Using BN16.1 to define entry rules
2. Select the Company from the Company field. 3. Select the Plan Type and Plan from the Plan Type and Plan field. 4. Complete the basic benefit entry rule parameters. Consider the following fields.
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Start Date
Type the start date you want the entry rules to become effective. You can vary rules by start date. This allows you to define unique rules for different enrollment periods. If entry rules change, add a new record for the new rules.
Employee Group
To define entry rules that are unique to a particular group of employees, select the employee group for which these entry rules apply. If you only define one entry that applies to all employees that are eligible for the plan, leave this field blank. If you have multiple records and you leave this field blank, the application uses these entry rules for employees who do not meet the criteria for specific employee group entry rules.
IMPORTANT If you define multiple rules based on an employee group, make certain the groups are mutually exclusive. Minimum Age Type the minimum age for entry into the plan. When an employee enrolls in the plan, the employees age on the benefit start date must be equal to or greater than this minimum age.
5. Complete Initial Enrollment parameters. Consider the following fields. From Date For initial enrollments, select the beginning date an employee is eligible to enroll in the benefit. If you use the Months, Days, or Hours fields, the date in this field is the date the waiting period begins. If you leave this field blank, Adjusted Hire Date defaults. Pay Class If the initial waiting period for the plan is measured in hours, select the pay class that defines eligible hours. The application uses payroll records to determine the hours an employee has worked. If you leave this field blank, all hours are included as eligible hours of service. If you do not use the Lawson Payroll application, leave this field blank. Entry Type Select the point at which employees can enroll in the plan.
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TIP BN16.5 opens automatically if you select prior or next Entry point and add the entry rule record.
6. Choose the Init Points button. The Initial Entry Point (BN16.5) opens. Define the plan entry point dates. 7. Choose the OK button. 8. Complete Re-Enrollment parameters. Consider the following fields. From Date For re-enrollments, select the date an employee is eligible to enroll in the benefit. (A re-enrollment is any time an employee is enrolled in a plan type for which the employee has already had a benefit.) If you use the Months, Days, or Hours fields, the date in this field is the date the waiting period begins. If you leave this field blank, Adjusted Hire Date defaults. Pay Class If the re-enrollment waiting period for the plan is measured in hours, select the pay class that defines eligible hours. If you leave this field blank, all hours are included as eligible hours of service. If you do not use the Lawson Payroll application, leave this field blank. Entry Type Select the point at which employees who have met the re-enrollment waiting period requirement can enroll in the plan.
CAUTION Using re-enrollment points may limit your ability to change benefit enrollments for employees. TIP BN16.5 opens automatically if you select prior or next Entry point and add the entry rule record. 9. Choose the Re-En Points button to define the plan entry point dates. 10. Choose the OK button. 11. Choose the Add form function.

To List waiting periods Use Benefit Plan Rules Listing (BN216)
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Chapter 9

This chapter focuses on those procedures that further define your benefit coverage. In each plan you can define unique coverage for different group of employees. You can also define default coverage for a plan. If you defined your coverage type as No coverage, you do not need to complete the procedures in this chapter. STOP If you plan to base coverage on several salary sources, be sure you have entered the salary information on HR11.
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Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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TIP To skip directly to the procedures, see "Procedures in this Chapter" on page 125 The following concepts provide background and conceptual information for the procedures within this chapter. Need More Details? Check out the following concepts: "What are Benefit Salaries?" on page 123 "What is a Coverage Reduction Table?" on page 124 "When would I use Coverage Options?" on page 124 "When would I use Coverage Amounts?" on page 124
What are Benefit Salaries?

Benefit salary is the salary amount the Benefits Administration application uses to calculate the benefit and the deductions. The benefit plans can use the following salaries: The employees salary from his or her record in the Human Resources application One of the five benefit salaries entered on the employee form A combination of the employees salary and one of the five salaries from the employees record The salary from the employee flex credit form A user exit to define a custom formula calculation for the benefit salary, if none of the above options is sufficient
Example
River Bend Hospital life insurance coverage is based on commission employees earnings from the previous year of employment. The company is using one of the benefit salary fields to hold the total wages earned from a prior year. Johnson Shoes includes the employees bonuses paid in their coverage calculation for life and disability plans. The company is using one of the benefit salary fields to hold the amounts of employee bonuses. This benefit salary field is then used along with the employee salary from the Pay form to calculate life or disability coverage.
Example 2
You have a disability plan in which coverage is calculated based on the previous calendar years actual earnings. This must to include overtime pay, bonuses, and any other supplemental wages. At the start of each year you populate the Benefit Salary 2 field for all your employees with their actual
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earning from the previous year. On the disability plan, you select the option of Benefit Salary 2 as the basis for the coverage calculation.
What is a Coverage Reduction Table?

You can indicate how coverage reduces based on age. For example, coverage under an employee life plan: Can reduce to 75 percent when an employee reaches 60 years of age Can reduce to $10,000 for employees 75 years and older
If you want both a percent and an amount reduction for the same age range, the application uses the greater of the two calculations.
When would I use Coverage Options?

In each plan, you define the specific coverage choices that are available. You can define unique coverage options for different groups of employees, COBRA participants, and retirees. For example, a plan may have three options: single, two-party, and full family coverage. Full time employees and COBRA participants can elect any of the three options, part time employees may only elect single coverage, and retirees may elect single or two-party coverage.
When would I use Coverage Amounts?

A coverage amount is a flat or calculated amount of coverage. For example: A life insurance plan offers coverage as a multiple of employee salary, a flat amount, or supplemental A disability plan offers coverage as a percent of an employees salary
In a benefit plan, you can define unique coverage amounts for different groups of employees. For example, the plan could offer union employees life coverage as one, two, or three times their salary, while non-union employees can choose between one to five times their salary in coverage.
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The following procedures set up the coverage used in benefit plans. Defining Coverage Options Tasks to define the coverage options for a benefit plan, to indicate whether dependents are eligible for coverage under each option. Tasks to define the method for determining coverage amounts, limits, and defaults. Tasks to define how coverage reduces as the plans participants get older. Tasks to define coverage amount limits, default coverage amount and reduction amounts.
Defining Coverage Amounts
Defining Coverage Reduction Table Defining Coverage Limits
Defining Coverage Options

This procedure allows you to define a plans coverage options. You use two forms: Coverage Options by Plan (BN17.1) and Coverage Option Defaults (BN17.2). BN17.1 enables you to define all the possible coverage options available for the plan. You also indicate the number of dependents eligible for coverage under each option. BN17.2 enables you to define who is eligible for the coverage option and when the options, become active. Need More Details? Check out the following concepts: "When would I use Coverage Options?" on page 124 "What are Benefit Salaries?" on page 123
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Figure 21. Procedure flow: Define coverage options

1 Access Benefit Plan (BN15.1)
2 Select company, plan type and plan
3 Choose Inquire function
4 Choose Coverage button
5 Define coverage information
6 Choose Add form action
7 Define coverage option defaults
STEPS
To define coverage options

1. Access Benefit Plan (BN15.1). 2. Select the company, plan type, and plan you want to define coverage options for. 3. Choose Inquire function. 4. Choose the Coverage button.The Company, Plan Type and Plan are already filled in when Coverage Options (BN17.1) opens.
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TIP You may access Coverage Options (BN17.1) directly, then select the company, plan type, and plan you want to define coverage options.
Figure 22. Form clip: Using BN17.1 to define coverage options
NOTE You indicate if a dependent is disabled on Dependent (HR13.1).
5. Define coverage options. Consider the following fields. Student and Dependents Type the age at which students or dependents are no longer eligible for coverage under the plan. The application uses this age to calculate the stop date for dependent benefits. If a dependent is defined as not disabled on Dependent (HR13.1), the dependents coverage stops the day before the dependent reaches this age. If you leave this field blank, it defaults to 99. Option Description Dep Type the coverage option number. Type the coverage option description. Select either Spouse, Dependents, Spouse and Deps or None to indicate whether spouses, dependents or both can enroll when an employee elects this option. NOTE You need to define records on Dependent (HR13.1) as either a spouse or dependent for benefit enrollment purposes. Nbr Deps Type the number of dependents including spouse that can enroll when an employee elects this option. If you typed None in the Dep field, do not type any information in this field. Status Select the status for this coverage. If you select Inactive, you cannot select this coverage option at benefit entry. 6. Choose the Add function. Coverage Option Defaults (BN17.2) opens automatically. You can deactivate an option even if enrollments exist. Existing enrollments are not affected.
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7. Define coverage option defaults. Complete the form. Consider the following fields. Cover Type Select the plan participants for this coverage record. If the plan covers employees, COBRA participants, and retirees, you need at least three separate records, for each cover type. Start Date Type the date this coverage option default record is effective. You can vary coverage by start date. This allows you to define unique coverage for different periods. If coverage changes, add a new record for the new coverage. Employee Group If you define only one coverage option default record for a particular cover type, leave this field blank. NOTE Employees who do not meet the criteria for the employee group(s) on the other coverage record(s) use this coverage. This is only true if there are group-specific records for this plan, cover type, and date, and if you leave this field blank. If you want to define coverage that is unique to a particular group of employees, select the employee group. If you are defining coverage for COBRA participants, leave this field blank.
IMPORTANT If you define coverage by employee group, make sure employee groups are defined so that an employee can be a member of only one group at a time. If an employee belongs to more than one group for which coverage options have been defined, benefit entry forms and benefit update reports display an error.
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Default
Select if you want this option as a default. You can only have one default coverage option per coverage option record. If you define a default option, benefit entry forms enroll eligible employees with the default option if no option is selected; if benefit update reports automatically enroll an employee in the plan, the employee is enrolled with the default coverage option. If you leave this field blank, No defaults and the benefit update programs list the plan for an eligible employee but not enroll the employee in the plan.
Status
Select the status of this coverage option. If you select Inactive, you cannot select this coverage option for employees for whom this coverage option will apply. TIP This field is where you can deactivate options for COBRA participants and retirees.
Defining Coverage Amounts

This procedure outlines those tasks that define the method for determining coverage amounts, coverage limits, and coverage defaults.
Calculating Coverage Amounts

You can define coverage amounts four ways: a flat amount of coverage, coverage equal to a multiple of salary, a percent of salary, or supplemental. Flat amount All employees get the same amount of coverage. For example, all employees get $50,000 of coverage, or their spouse and dependents each get $2,000 of coverage. Multiple of salary Coverage is calculated as a multiple of salary, as the following equation shows: Annual salary * Multiple of salary = Coverage amount For example, employees can elect coverage equal to two or three times their salary. The Benefits Administration application uses the parameters defined on the Salary Parameters subform in Coverage Amounts (BN17.3) to determine the salary used for coverage calculations. Supplemental Coverage is elected in specified increments.
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For example, if the Increments field is 1000, employees can purchase coverage in increments of $1,000 within the limits defined for the plan. Percent Coverage is calculated as a percent of salary, as shown in the equation below: Annual salary * Percent = Coverage amount For example, coverage is 60 percent of salary. The Benefits Administration application uses the parameters defined on the Salary Parameters subform BN17.3 to determine the salary used for coverage calculations. Custom Calculations User defines a custom calculation if the above options do not meet the needed requirements and places the calculation in the source code. Custom calculations use User Exits functionality. For more information on User Exits, see the Application Development Workbench Standards. Need More Details? Check out the following concepts: "When would I use Coverage Amounts?" on page 124
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Figure 23. Procedure flow: Define coverage amounts

1 Access Benefit Plan (BN15.1)
2 Select company, plan type and plan
3 Choose Inquire function
4 Choose Coverage button
5 Define covered participants
6 Select calculation type
7 Define coverage amounts
8 Define calcution type
- Conditional See Define Salary Parameters procedure
STEPS
To define coverage amounts

1. Access Benefit Plan (BN15.1). 2. Select the company, plan type, and plan you want to define the coverage amounts. 3. Choose the Inquire function. 4. Choose the Coverage button. Coverage Amounts (BN17.3) opens and the company, plan type, and plan fields are filled.
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Figure 24. Form clip: Using BN17.3 to define coverage amounts
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TIP You may access Coverage Amounts (BN17.3) directly, then select the company, plan type, and plan for which you want to define coverage options.
5. Define the coverage participants and the coverage start date. Consider the following fields. Cover Type Select the plan participants for this coverage record. If the plan covers employees, COBRA participants, and retirees, you need at least three separate records, one for each cover type. Start Date Type the date this coverage amount record is effective. You can vary coverage by start date. This allows you to define unique coverage for different periods. If coverage changes, add a new record for the new coverage. Employee Group If you define only one coverage option default record for a particular cover type, leave this field blank. NOTE Employees who do not meet the criteria for the employee group(s) on the other coverage record(s) use this coverage. This is only true if there are group-specific records for this plan, cover type, and date, and if you leave this field blank. If you want to define coverage that is unique to a particular group of employees, select the employee group. If you are defining coverage for COBRA participants, leave this field blank.
IMPORTANT If you define coverage by employee group, make sure employee groups are defined so that an employee can be a member of only one group at a time. If an employee belongs to more than one group for which coverage options have been defined, benefit entry forms and benefit update reports display an error. 6. Select the calculation type that indicates how you want coverage calculated. If all employees in a group receive the same amount of coverage, select Flat Amount. For example, all employees receive $50,000 of life insurance coverage, and their spouse and dependents each get $2,000 of coverage. If coverage is calculated as a multiple of salary, select Multiple of Salary. For example, employees can elect life insurance coverage equal to two or three times their salary.
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If coverage is calculated as a percent of salary, select Percent. For example, disability coverage is 60 percent of salary. If coverage can be elected in specified increments, select Supplemental. For example, increments of $5,000 of life insurance coverage up to $100,000 maximum. 7. Define dependent coverage. Consider the following fields. Covered Select whether spouse, dependents, or both are covered by the plan. If dependents, or both spouse and dependents are selected, type the age dependents (student or non-student) are no longer eligible for coverage under the plan. Student Age If the plan covers dependents, enter the age students are no longer eligible for coverage. If a dependent is defined as a student and not disabled on Dependent (HR13.1), the dependents coverage is automatically stopped the day before the dependent reaches this age. If you leave this field blank, 99 defaults. Dependent Age If the plan covers dependents, enter the age dependents (who are not students) are no longer eligible for coverage. If a dependent is not defined as a student and not disabled on Dependent (HR13.1), the dependents coverage is automatically stopped the day before the dependent reaches this age. If you leave this field blank, 99 defaults. 8. Complete the information needed to for calculation. Consider the following fields. Flat Amount If the plans calculation type is Flat Amount, type the coverage amount. This amount cannot be overridden on benefit entry forms. If the plan covers both spouses and dependents, type the spouse coverage amount in the first field and the dependent coverage amount in the second field. Increments If the plans calculation type is supplemental, type the increments of coverage that can be purchased. For example, if employees can purchase coverage in increments of $5000, type 5000.
NOTE You indicate if a dependent is disabled on Dependent (HR13.1).
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Multiple
If the plans calculation type is Multiple (of an employees salary), type the multiple in which coverage can be purchased. For example, if you type 0.5, valid coverage multiples are 0.5, 1.0, 1.5, and so on. Optional: To further define coverage, see "Defining Coverage Salary Parameters" on page 135. After you choose the Add function, Salary Parameters (BN02.5) opens.
Percent
If the calculation type is Percent (of an employees salary), type the percent of an employees salary that is used to calculate the employees coverage amount. For example, if the coverage amount is based on 60 percent of an employees salary, type 60. This amount cannot be overridden on benefit entry forms. Optional: To further define coverage, see "Defining Coverage Salary Parameters" on page 135. After you choose the Add function, Salary Parameters (BN02.5) opens.
9. Choose Add function. If you defined Calculation type as Percent or Multiple of Salary, the Salary Parameters (BN17.5) form opens, you must define the salary parameters for these calculation types. See "Defining Coverage Salary Parameters" on page 135.
Options for defining coverage amounts

Choose the Limits button if you want to define coverage limits. See "Defining Coverage Limits" on page 140.

To View salary parameters Use Salary button on Coverage Amounts (BN17.3)
Defining Coverage Salary Parameters

This procedure outlines the tasks to define coverage salary parameters. If you entered percent or multiple of salary in the Calculation Type on BN17.3, Salary Parameters (BN17.5) automatically opens after you choose Add. You must define the salary parameters to use percent and multiple of salary calculations.
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Need More Details? Check out the following concepts: "When would I use Coverage Amounts?" on page 124
Figure 25. Procedure flow: Define coverage salary parameters

1 Access Salary Parameters (BN17.5)
2 Select salary type
3 Select date
4 Complete salary parameters
STEPS
To define coverage salary parameters

1. Access Salary Parameters (BN17.5). If you defined Calculation type on BN17.3 as Percent or Multiple of Salary and choose the Add function, Salary Parameters (BN17.5) automatically opens. If BN17.5 did not automatically open, choose the Salary button on BN17.3. 2. Select the salary type you want to use for the calculation in the Type field. The following table explains the different salary options. Select Employee Salary To use the employees annualized rate of pay from Employee (HR11.1) or, if applicable, the employees step and grade schedule. the employees salary on the Employee Flex Credit (BN45.1) record.
Flex Salary
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Select Benefit Salary Emp and Ben Sal
To use the benefit salaries from the Ben Date form tab of HR11.1. the employees annualized rate of pay from HR11.1 plus a benefit salary. You use this option if only some of your employees in this plan will need to have a benefit salary amount maintained, such as, employees paid on commission.
3. Select the date you want to use to determine employee salaries in the Date field. The table below explains the date options. Select Current First of Month As of Date To determine an employees salary on the application date employee enrolls in the benefit. on the first of the month the benefit begins. on a particular month and day. The application uses the month and day that you specify in the AS of MMDD field. on the same date used to calculate the employees flex credits.
Flex Calc Date
4. Complete the form. Consider the following fields. As of MMDD and Year Type the date you want to use to determine an employees salary for coverage calculations. If you selected As of Date in the Date field, type the month and day. If you leave the Year field blank when you use the As of Date, the application calculates an employees salary on the latest month and day specified. If you type a Year, the employees salary is determined on the exact month, day, and year you specify. If you use an AS of Date, and the employee has no salary history on that date, the current salary is used.
Method
This is a required field. If you dont want the application to use any rounding methods, select No Rounding.
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5. Choose OK. BN17.5 closes. 6. Choose the Add form function on Coverage Amounts (BN17.3). If you are changing salary parameters, choose the Change form function on BN17.3.
Defining Coverage Reduction Table

This procedure outlines the tasks to define the table you use to reduce coverage according to the participants age. If the plan specifies both a percent and an amount reduction, the application uses the greater resulting coverage of the two. When you assign a rate table to a benefit plans coverage record, the rate tables start date must match the start date of the coverage record. For more information see, "Defining Coverage Limits" on page 140.
Calculating Coverage Reduction

You can reduce coverage amounts by a percent, or to a flat amount based on an employees age by assigning a coverage reduction table to the benefit plan. To calculate coverage reduction, the application: determines the coverage amount multiplies the coverage amount by the Percent field compares the result with the Amount field
The reduced coverage amount is the greater amount. Need More Details? Check out the following concepts: "What is a Coverage Reduction Table?" on page 124
Figure 26. Procedure flow: Define coverage reduction table

1 Access Coverage Reduction Table (BN02.5)
2 Select company
3 Define coverage reduction table
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STEPS
To define coverage reduction table

1. Access Coverage Reduction Table (BN02.5). 2. Select the Company from the Company field. 3. Complete the form. Consider the following fields. Start Date Type the start date for the rate table. NOTE Type the code and description that represents the coverage reduction table in the Table field.The same rate table can have many start dates to accommodate coverage reduction changes. When you assign a rate table to a benefit plans coverage record, the rate tables start date must match the start date of the coverage record. If you add a new rate table with a new start date, you must also add a new coverage record. Currency Select the currency you want to assign to the rate table. If you leave this field blank, the company currency is the default. Type the starting age for the range. The application calculates the ending age for the range. At least one age range is required and the initial range should begin with zero to make sure you include all possible ages.
Beg Age
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Percent
If you want the coverage amount reduced to a specified percent for plan participants of a particular age, type the percent of coverage used for this age range, For example, if coverage under an employee life plan reduces to 75% of original coverage when an employee reaches 60 years of age, type 75. If you also type an amount of coverage for this age range, the application uses the greater of the two calculations.
IMPORTANT If you do not want to reduce coverage at lower ages, type 100% instead of zero for lower age range. Amount If the coverage amount is reduced to a specified amount for plan participants of a particular age, type the benefit coverage amount used for this age range. For example, if coverage under an employee life plan reduces to $10,000 for employees 75 years and older, type 10000. If you also type a percent of reduction, the application uses the greater of the two calculations. 4. Choose the Add function.

To List information about the plan. Use Plan Parameter Listing (BN215)
Defining Coverage Limits

This procedure outlines the tasks to define coverage amount limits, the default coverage amount and coverage reduction amounts. You can define the following: Limits on the amount of coverage as either flat maximum or minimum amounts, maximum or minimum multiples (for multiple of salary calculations), or based on coverage in another benefit plan Coverage reduction rules based on an employees age. Coverage may be reduced by a flat amount, or to a percentage of the original coverage amount
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Default coverage amounts for supplemental and multiple of salary plans. Employees will be enrolled with the default coverage amount if no amount is entered on the benefit entry form when enrollment occurs. If benefit update reports automatically enroll employees in the plan, the employees are enrolled with the default coverage amount.
STOP You must define the coverage amount using Coverage Amounts before defining coverage limits. See "Defining Coverage Amounts" on page 129
STOP If the plan specifies a reduction at different ages, you must define a coverage reduction table. "Defining Coverage Reduction Table" on page 138.
Calculating Coverage Amount Limits

The Benefits Administration application uses three types of coverage amount limits. You can combine these limits for each plan. Minimum and maximum coverage amount An employees coverage cannot be less than the plans minimum or greater than the plans maximum coverage limits. For example, employees must elect between $20,000 and $100,000 of coverage. Minimum and maximum multiple of salary For multiple of salary plans, the multiple an employee elects cannot be less than the minimum or more than the maximum multiple limit. For example, employees can elect one to three times their salary. For other types of coverage, the application calculates the coverage limit as follows. Annual salary * Multiple limit = Coverage limit For example, an employees coverage amount cannot be greater than two times the employees salary. Percentage of another benefit For multiple of salary or supplemental plans, you can limit one plans coverage to a percentage of another plans coverage. For example, coverage in a spouse life plan cannot exceed 75 percent of the employees coverage in another plan. Need More Details? Check out the following concepts: "When would I use Coverage Amounts?" on page 124
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Figure 27. Procedure flow: Define coverage limits

1 Choose Limits button on Coverage Amounts (BN17.4)
2 Complete the amounts limits
3 Complete the multiple of salary
4 Complete the limit of another benefit
5 Complete coverage reduction rules
6 Complete default rules
7 Choose OK
8 Choose Change form action
STEPS
To define coverage limits

1. Choose the Limits button on Coverage Amounts (BN17.3).
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Figure 28. Form clip: Using BN17.4 to define coverage limits
TIP You cannot form transfer to BN17.4. You must choose the Limits button on BN17.3.
2. Complete the Amount Limits section. Consider the following fields. Minimum If the plan has a minimum coverage amount, type the minimum coverage amount. If the plan is a percent or multiple of salary and the calculated coverage amount is less than the minimum, the application uses the minimum coverage for an employee. If the plan is a supplemental plan and the elected amount is less than the minimum, the application displays an error message. Leave this field blank for flat amount plans. Maximum If the plan has a maximum coverage amount, type the maximum coverage amount. If the plan is a percent or multiple of salary and the calculated coverage amount is greater than the maximum, the application uses the maximum coverage amount for an employee. If the plan is a supplemental plan and the employee elects more than the maximum, the application displays an error message. Leave this field blank for flat amount plans. 3. Complete the Multiple of Salary Limits section. Consider the following fields.
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Minimum
If the plan has a minimum coverage amount defined as a multiple of salary, type the minimum multiple. For example, if the minimum multiple is 1, type 1. If the plan has a maximum coverage amount defined as a multiple of salary, type the maximum multiple. For example, if the maximum multiple is 5, type 5.
Maximum
4. Complete the Limit of Another Benefit section. Consider the following fields. Percent If coverage in this benefit plan is based on the coverage of another benefit, type the percent of coverage that is allowed. For example, if this is a dependent life plan and an employees spouse may elect coverage up to 75 percent of the employees coverage for an employee life plan, type 75. To add a benefit with this type of limit, the employee must have a benefit in effect for the plan on which coverage is based. NOTE When you base a benefit plan on the coverage of another benefit, the order the benefits are processed is important. You can define the benefit process order. See "What is a Benefit Process Order?" on page 48 for more information. Plan Type, Plan Select the plan type and plan on which the coverage is based. For example, if coverage under the plan you are defining is based on an employee life plan, select EL. Select the benefit plan on which coverage of the plan you are defining is based. For example, if coverage under the plan you are defining is based on an employee life plan, select the employee life plan. 5. Complete the Coverage Reduction Rules section. Consider the following fields.
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Rate Table
If the plan specifies a reduction of coverage at different ages, select a coverage reduction rate table. The rate table you select must have a start date equal to the start date of this coverage record.
Age Date
If the plan specifies a reduction of coverage at different ages, select the date on which age of the employee or the employees spouse is determined. Select the method of rounding the reduced coverage amount.
Round Method
6. Complete the Default Rules section. Consider the following fields. Default Coverage Select the value that indicates whether there is default coverage for the employees covered by this plan. If you define default coverage, benefit entry forms enroll eligible employees with the default coverage if no coverage is entered; if benefit update reports automatically enroll an employee in the plan, the employee is enrolled with the default coverage. If the plan offers coverage as a flat amount or percent, the application calculates the default coverage amount. If the plan offers supplemental coverage or coverage as a multiple of salary, you indicate the default amount or multiple in the Supplemental Amount or Multiple fields. If you leave this field blank, No defaults. If you do not define default coverage for this plan, you must specify the coverage amount for all benefits on the benefit entry programs. The benefit update programs will list the plan for an eligible employee but will not enroll the employee in the plan. Supplemental Amount If the Default Coverage field is Yes and the plan offers supplemental coverage, type the default coverage for employees who do not elect a coverage amount. If the Default Coverage field is Yes and the plans coverage is a multiple of salary, type the multiple that you want to default if an employee does not choose a multiple.
Multiple
7. Choose OK. You return to Coverage Amounts (BN17.3). 8. Choose the Change form function on Coverage Amounts (BN17.3).
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Chapter 10

This chapter focuses on those procedures that further define your benefit contributions. There are seven different contribution types. In each plan you can define unique coverage for different group of employees. STOP You must have a benefit plan, coverage and deduction codes defined before you set up benefit plan contributions. You cannot successfully create plan contributions without the appropriate deductions attached to the plan.
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Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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TIP To skip directly to the procedures, see "Procedures in this Chapter" on page 157 The following concepts provide background and conceptual information for the procedures within this chapter Need More Details? Check out the following concepts: "How do I Define Benefit Contributions?" on page 149 "What are the Differences between the Contribution Types?" on page 150 "How are Contributions Calculated?" on page 153 "When Do I Use Rate Tables?" on page 155 "How are Company Match Contributions Calculated?" on page 155 "What are Flex Plan Contributions?" on page 156
How do I Define Benefit Contributions?

After you define the coverage, using the procedures in Chapter 9, you define the contribution. The contribution type depends on the value you chose for the Coverage and how you want to calculate contributions. Contributions can be flat amount premiums, amounts calculated by the application, or amounts determined by the employee. The Benefits Administration application stores a benefit plans contributions by date. Each plan can have multiple contributions records. When you receive new contributions, you want to add the contributions using a new start date. This process provides an online audit trail of changes. In each plan, you can define unique contributions for different groups of employees. For example, contributions for a plan could be $1,000 for employees in the Midwest and $2,000 for employees on the West Coast. You can define the following types of contributions. No contribution Options amount For plans where no costs to the employee or the company is tracked. The cost for a coverage option is the same for all employees in a group. Valid only with a coverage type of Coverage Options. The cost for a coverage option varies based on salary, age, or years of service ranges for employees in a group. Valid only with a coverage type of Coverage Options.
Options amount range
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Flat contributions
The cost for the benefit is not related to coverage. You can vary contributions by salary, age, or years of service. Valid only with a coverage type of Coverage Amount or No Coverage. The cost for the benefit is based on the benefits covered salary or coverage amount. You can vary contributions by salary, age, or years of service. Valid only with a coverage type of Coverage Amount. Employees specify contributions within defined limits. Valid only with a coverage type of No Coverage. Employees specify contributions within defined limits that are matched by the company. Valid only with a coverage type of No Coverage. Employees specify contributions that are matched by the company based on the percent of the employees contribution. Valid only with a coverage type of No Coverage. A custom defined method of determining contributions.
Salary or coverage rate table
Contribution limits
Match limit schedule
Match percent schedule
Custom calculations
What are the Differences between the Contribution Types?

The table below outlines the major differences between the contribution types. You can also use the table to help decide which types best fit your plan. See "Contribution Type Examples" on page 86 for more information. Contribution Type Options Amount Attributes Who is eligible EE, Cobra, Retirees Calculate as Flat amount,% of Salary, Flat%, Custom Calculations Use with Flex plans, define amount When to Use Coverage defined as coverage options Cost of coverage options is same for all employees in a group Example Health plan with a different rate for each option under the plan.
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Contribution Type Options Amount Range
Attributes Who is eligible: EE, Cobra, Retirees Calculate as Flat amount,% of Sal., Flat%, Custom Calculations Use with Flex plans, define amount Can use rate tables to vary contributions by Salary, Age, Years of service within each of those 3 types of rate tables, you can also define different rates depending on whether the plan participant is a smoker or not.
When to Use Coverage defined as coverage options Cost of coverage options varies based on salary, age or years of service for employees in a group
Example An example is a health plan in which employees who earn up to $50,000 pay a different rate for each option than employees who earn more than $50,000.
Flat Contributions
Who is eligible EE, Cobra, Retirees Calculate as Flat amount,% of Sal., Flat%, Rate Table, Custom Calculations Use with Flex plans, define amount Can use rate tables to vary contributions by Salary, Age, Years of service within each of those 3 types of rate tables, you can also define different rates depending on whether the plan participant is a smoker or not.
Coverage defined as coverage amount or no coverage Cost for the benefit is not based on the benefits coverage amount
A dependent life plan in which all employees pay the same amount.
Salary or Coverage Rate Table
Who is eligible EE, Cobra, Retirees Use with Flex plans, define amount Can use rate tables to vary contributions by Salary, Age, Years of service within each of those 3 types of rate tables, you can also define different rates depending on whether the plan participant is a smoker or not.
Coverage defined as coverage amount Annual contributions are based on benefits coverage salary or coverage amount
An employee life plan in which rates are based on each employees amount of coverage.
Contribution Limits
Who is eligible EE, Cobra Min and Max limits, Amount each pay period, Annual amount,% of Sal. Use with Flex plans, define amount
Coverage defined as no coverage Employees specify contributions
A spending account in which the company limits an employees contribution. A vacation plan to define the maximum number of hours employees can buy or sell and the cost of those hours.
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Contribution Type Match Limit Schedule
Attributes Who is eligible EE Limit employee pretax, after-tax and total contribution as a percent of salary Limit the matched contribution by% Use Years of service to vary contributions
When to Use Coverage defined as no coverage Employees specify percent or amount contributions that are matched by the company Coverage defined as no coverage Employees specify percent or amount contributions that are matched by the company
Example The company matches 50% of an employees contribution up to 4%. If an employee contributes 3%, the company match is 1.5% (0.50*3). If the employee contributes 6%, the company match is 2% (0.50*4). A plan matches 50% of employee contributions from 1% up to 4% and 25% of employee contributions from 5% up to 10%. If the match calculation is fixed and an employee contributes 3%, the company match is 1.50 (0.5 * 3). 7%, the company match is 1.75 (0.25 * 7). If the match calculation is cumulative and an employee contributes 3%, the company match is 1.5 (0.5 * 3). 7%, the company match is 50% of the first 4% and 25% of the next 3%, or 2.75% (0.5 * 4 + 0.25 * 3).
Match Percent Schedule
Who is eligible EE The company match is calculated as a percentage of the employees contribution and can be fixed or cumulative. If the match calculation is fixed, the company match directly corresponds to the percent of the employees contribution. If the match is cumulative, the company match includes all contribution levels up to the level the employee elected.
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How are Contributions Calculated?

When you define contributions you need to determine how you want those contributions calculated. When you use the contribution types options amount, options amount range, or flat contributions these can be calculated as a flat amount, percent of salary, or a flat percent. The following explains each type of contribution calculation. Flat amount Every employee in a group pays the same amount for a coverage option. For example, single coverage costs $300 annually and family coverage costs $500 annually. An annual contribution is defined as a percent of the employees salary. You specify the salary for the calculation on the contribution form. For example, single coverage is 5 percent of salary; family coverage is 7 percent of salary. Salary is defined as each employees annualized rate of pay from the Human Resources application. If an employees annual salary is $20,000 and the employee chooses single coverage, the employees annual contribution is $1,000 (0.05 * $20,000). If the employee chooses family coverage, the employees annual contribution is $1,400 (0.07 * $20,000). The Benefits Administration application calculates the employees annual contribution at benefit entry. Flat amount deductions are created for the benefit.
Percent of salary
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Flat percent
A contribution defined as a percent of the employees pay period wages. You define the wages on which the contribution is based by assigning a pay class to the plans deductions. The Payroll application calculates the actual deduction amount each pay period. Percent deductions are created for the benefit. Because pay is calculated each pay period, the wages on which contributions are based could change each pay cycle. For example, an employees wage includes regular and overtime pay. The employee elects single coverage, which is 5 percent of pay. On one week, an employee makes $1,000. The employees contribution is $50 ($1,000 * 0.05). The next week, the employee makes $1,100, which includes $100 in overtime. The employees contribution is $55 ($1,100 * 0.05).
Rate Table
A contribution defined using a rate table where cost varies based on salary, age, or years of service. You can enter rates as an amount or percent of salary. For example, in contributions based on salary, employees making $10,000 to $19,999 pay a different rate than employees making $20,000 to $29,999. In contributions based on age, employees 20 to 29 years of age pay a different rate than employees 30 to 39 years of age. In contributions based on years of service, employees with less than five years of service pay a different rate than employees with more than five years of service.
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When Do I Use Rate Tables?

In the Benefits Administration application you use rate tables to vary contributions by age, salary, or years of service. The rate tables can also vary by smoker status. Rate table contributions are either an amount or a percent. You can use an amount or percent with the Contribution Types; Options Amount Range, Flat Contributions, Salary, or Coverage Rate Table. Only rate tables based on age are valid for COBRA participant and retiree contributions. The same rate table can have many start dates to accommodate rate changes. When you assign a rate table to a benefit plans contribution record, the rate tables start date must match the start date of the contribution record. If you add a new rate table with a new start date, you must also add a new contribution record.
How are Company Match Contributions Calculated?

There are two contribution types that allow company match deductions: match limit schedule and match percent schedule. Each contribution type calculates deductions differently. Each contribution type works differently.
Match Limit Schedule

For the match limit schedule, the Benefits Administration application creates the deduction without any special calculations, taking the values directly from the schedule. The Payroll application performs calculations that are unique to these benefits deductions to determine the amount of the deduction in each payroll cycle. For example, the company matches 50 percent of an employees contribution up to four percent. If an employee contributes three percent, the company match is 1.5 percent (0.50 * 0.03). If an employee contributes six percent, the company match is two percent (0.50 * 0.04). You can further define limits to be based on years of service.You can vary the match limit schedule based on years of service. If you do not want the match limit schedule varied by years of service, define only one range.
Match Percent Schedule

For the match percent schedule, the Benefits Administration application performs unique calculations to determine the values to be used when the deduction is created. The Payroll application handles the deduction like all other payroll deductions. For example, a plan matches 50% of employee contributions from one percent up to four percent and 25% of employee contributions from five percent up to ten percent. If the match calculation is fixed and an employee contributes three percent, the company match is 1.5 (0.5 * 3). If the employee contributes seven percent, the company match is 1.75 (0.25 * 7). If the match calculation is cumulative and an employee contributes three percent, the company match is 1.5 (0.5 * 3). If the employee contributes seven percent, Benefits Administration User Guide Chapter 10 Setup: BN Plan Contributions 155
the company match is five percent of the first four percent and 25% of the next three percent, or 2.75% (0.5 * 4 + 0.25 * 3). For more information, see " Benefit System Logic Calculations" on page 395.
What are Flex Plan Contributions?

You have multiple ways of defining contributions for a flex benefit plan that may result in negative, zero, or positive employee costs. How you define contributions depends on how you want to set up the costs of the plan, how you want the cost of a plan to print on election forms, and how you want costs to appear on employee paychecks. Below are two ways of defining contributions: credits offset by an employee cost the net effect of the contribution
Regardless of how you define contributions, the result at benefit entry is the same. You can define contributions in a similar way on rate tables.
Example of Credits Offset by Employee Cost and Net Effect

The examples illustrate how you can offset flex credits by an employee cost to result in a negative, zero, or positive employee cost. If an employee elects single coverage, he or she receives $1,000 flex credits and pays $500, so he or she receives a net $500 flex credits. This example shows a negative employee cost. If an employee elects single + spouse coverage, he or she receives $1,000 flex credits and pays $1,000. This examples shows a zero employee cost. If an employee elects family coverage, he or she receives $1,000 flex credits, and pays $1,500, so he or she pays a net $500. This example shows a positive employee cost.
When you enroll an employee in a plan with a negative contribution, the entry form displays the plans pretax contribution as a negative number.
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The following procedures enable you to setup the contributions you want to use in benefit plans. Defining Contribution Rate Tables Defining Options Amounts Define the rate tables you want to use for contributions. Use when coverage is defined as coverage options and the cost of coverage options is the same for all employees in a group. Use when coverage is defined as coverage options and the cost for coverage options varies based on salary, age, or years of service for employees in a group. Use when coverage is defined as coverage amount or no coverage, and the cost for the benefit is not based on the benefits coverage amount. Use when coverage is defined as coverage amount and annual contributions are based on the benefits covered salary. Use when coverage is defined as no coverage, and employees specify contributions. Use when coverage is defined as no coverage, and employees specify percent or amount contributions that are matched by the company. Use when coverage is defined as no coverage, employees specify percent or amount contributions that are matched by the company. Also if you want to limit the employees pretax, after-tax and total contribution as a percent of salary, or you want to limit the percent of the employees contribution that is matched.
Defining Options Amount Range
Defining Flat Contributions
Defining Salary or Coverage Rate Table
Defining Contribution Limits
Defining Match Limit Schedule
Defining Match Percent Schedules
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Defining Contribution Rate Tables

You use rate tables to define contribution amounts based on age, salary, service, and lifestyle credits. The application calculates the contributions using either an amount or percent. When you assign a rate table to a benefit plans contribution, the rate tables start date must match the start date of the contribution record. There are four rate table forms you can use to define contributions based on rate tables. You access these forms from the Access Rate Table Menu (BN02). If you want to define Age rate table Then Salary rate table Service rate table Credit rate table Select Age Rate Table Define the table Choose the Add function Select Salary Rate Table Define the table Choose the Add function Select Service Rate Table Define the table Choose the Add function Select Credit Rate Table Define the table Choose the Add function
STEPS
To define contribution rate tables

1. Access Rate Table Menu (BN02). 2. If you want to base contributions on age, select Age Rate Table.
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Figure 29. Form clip: Using BN02.1 define age rate table
3. Define the age rate table. Consider the following fields. Company Table Select the company. Type a code and description that represents the rate table in the Table field. Rate table codes must be unique among rate table types. For example, if the code for an age rate table is 2A, another type of rate table cannot also use the code 2A. Start Date Type the start date of the rate table. The same rate table can have many start dates to accommodate rate changes. When you assign a rate table to a contribution record, the rate tables start date must match the start date of the contribution record. If you add a new rate table with a new start date, you must also add a new contribution record. Amount or Percent If this rate table is for a contribution record calculated as a flat amount, select amount. If this rate table is for a contribution record calculated as a flat percent or percent of salary, select Percent. Currency Select the currency you want to assign to this rate table. If you leave this field blank, the company currency defaults.
IMPORTANT Any rate table associated with a benefit plan must have the same currency as the benefit plan.
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Beg Age
Type the starting age for the contributions you are defining. The application calculates the ending age for the age range. At least one age range is required. NOTE Leave this field blank to begin the first range with zero.
Employee
Type the plan participants contribution. NOTE A plan participant can be an employee, a retiree, or a COBRA participant. Contributions for employees can be a negative amount if the rate table is for a benefit plan under a flex plan. If the employee contribution is negative, an employee receives flex credits when he or she elects the benefit. If the contribution is positive, the application creates employee deductions. If the contribution is negative, the application creates or updates a standard time record for the employee. For COBRA participant contributions, include the administrative fee, if any. The application uses this field to determine invoice billing amounts for COBRA participant and retiree contributions.
Company
Type the companys contribution. For employee benefits, the application uses this amount to create company deductions. For retiree benefits, the application uses this amount to create company expense transactions. This field is not valid for COBRA participant contributions.
Flex Credits
If the rate table is for a benefit plan included in a flex plan in which employees receive flex credits for choosing the benefit plan, type the flex credits an employee receives for choosing the benefit. If the plan gives flex credits to employees and there is no employee cost, the application creates or updates a standard time record for the employee with this amount. If the plan gives flex credits and there is a cost to the employee, the application subtracts the employee cost from the flex credits. This field is not valid for COBRA participant and retiree contributions.
4. Choose the Add function. 5. If you want to base contributions on salary, select Salary Rate Table.
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6. Define the salary rate table. Consider the following fields. Company Table Select the company. Type a code and description that represents the rate table in the Table field. Rate table codes must be unique among rate table types. For example, if the code for an age rate table is 2A, another type of rate table cannot also use the code 2A. Start Date Type the start date of the rate table. The same rate table can have many start dates to accommodate rate changes. When you assign a rate table to a contribution record, the rate tables start date must match the start date of the contribution record. If you add a new rate table with a new start date, you must also add a new contribution record. Amount or Percent If this rate table is for a contribution record calculated as a flat amount, select amount. If this rate table is for a contribution record calculated as a flat percent or percent of salary, select Percent. Currency Select the currency you want to assign to this rate table. If you leave this field blank, the company currency defaults.
IMPORTANT Any rate table associated with a benefit plan must have the same currency as the benefit plan. Beg Salary Type the starting salary for the contribution you are defining. The application calculates the ending age for the age range. At least one age range is required. NOTE Leave this field blank to begin the first range with zero.
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Employee
Company
Flex Credits
7. Choose the Add function. 8. If you want to base contributions on service, select Service Rate Table.e 9. Define the service rate table. Consider the following fields.
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Company Table
Select the company. Type a code and description that represents the rate table in the Table field. Rate table codes must be unique among rate table types. For example, if the code for an age rate table is 2A, another type of rate table cannot also use the code 2A.
Start Date
Type the start date of the rate table. The same rate table can have many start dates to accommodate rate changes. When you assign a rate table to a contribution record, the rate tables start date must match the start date of the contribution record. If you add a new rate table with a new start date, you must also add a new contribution record.
Amount or Percent
If this rate table is for a contribution record calculated as a flat amount, select amount. If this rate table is for a contribution record calculated as a flat percent or percent of salary, select Percent.
Currency
Select the currency you want to assign to this rate table. If you leave this field blank, the company currency defaults.
IMPORTANT Any rate table associated with a plan must have the same currency as the plan. Beg Year Type the lower value of the years of service range for the contribution you are defining. The application calculates the ending year of service for each range. At least one years of service range is required. NOTE Leave this field blank for the first range to begin with zero.
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Employee
Company
Flex Credits
10. Choose the Add function 11. If you want to base contributions on dependents or lifestyle credits, select Credits Rate Table. 12. Define the credit rate table. Consider the following fields.
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Company Table
Select the company. Type a code and description that represents the rate table in the Table field. Rate table codes must be unique among rate table types. For example, if the code for an age rate table is 2A, another type of rate table cannot also use the code 2A.
Start Date
Type the start date of the rate table. The same rate table can have many start dates to accommodate rate changes. When you assign a rate table to a flex credit record, the rate tables start date must match the start date of the flex credit record. If you add a new rate table with a new start date, you must also add a new flex credit record.
Amount or Percent
If this rate table is for a contribution record calculated as a flat amount, select amount. If this rate table is for a contribution record calculated as a flat percent or percent of salary, select Percent.
Currency
Select the currency you want to assign to this rate table. If you leave this field blank, the company currency defaults.
IMPORTANT Any rate table associated with a flex plan must have the same currency as the flex plan. Beg Nbr Flex Credits Type number of dependents or lifestyle credits for this range. Type the number of flex credits employees receive for the number of dependents or lifestyle credits indicated on this detail line. The lifestyle credits are entered and maintained on HR11. 13. Choose the Add function
Defining Options Amount

You can use the contribution type of options amount for employee, COBRA participant, and retiree contributions. For flex plans, you can define the amount of flex credits the company gives to employees for electing each benefit coverage option. Benefits Administration User Guide Chapter 10 Setup: BN Plan Contributions 165
The contribution amount can be calculated as a flat amount, percent of salary, or a flat percent. IMPORTANT If the plan does not have unique contributions for specific employee groups, you only need to define this form once for a plan by leaving the Employee Group field blank. If the plan has different contributions for different groups of employees, complete this form for each employee group with unique contributions. When you define the form for a plan leaving the Employee Group field blank, the application uses the contribution record for employees who do not meet the criteria for a specific employee group contribution record.
Need More Details? Check out the following concepts: STEPS "How do I Define Benefit Contributions?" on page 149 "What are the Differences between the Contribution Types?" on page 150 "How are Contributions Calculated?" on page 153 "What are Flex Plan Contributions?" on page 156
To define options amount

1. Access Benefit Plan (BN15.1). 2. Select the company, plan type, and plan for which you want to define options amount. 3. Choose Inquire function. 4. Choose the Contrib button. The Company, Plan type and Plan are already filled in when Options Amount (BN18.1) opens. Figure 30. Form clip: Using BN18.1 to define options amount
5. Select the plan participants for the contribution record from the Cover Type field. 6. Type the start date for the contribution.
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NOTE If you leave this field blank, the application uses this contribution record for employees who do not meet the criteria for a specific employee group contribution record.
7. If you are defining contributions that are unique to a particular group of employees, select the employee group for which this contribution applies. If you are defining contributions for COBRA participants, leave this field blank.
IMPORTANT If you define contributions by employee group, make sure employee groups are defined so that an employee can be a member of only one group at a time. If an employee belongs to more than one group for which contributions have been defined, benefit entry programs and benefit update reports show an error.
8. Define calculation attributes for this contribution. Consider the following fields.
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Calculation Type
Select the method in which the contribution is calculated. If every employee in a group pays the same amount for a coverage option, select Flat Amount. If you are defining contributions for COBRA participants and retirees, select Flat Amount. If the annual contribution is a percent of the employees annual salary, select Percent of Salary. If the contribution is a percent of the employees pay period wages, select Flat Percent.
IMPORTANT The calculation type selected must match the calculation type defined on the deduction codes that are attached to the plan. Contribution Tax Type Select whether the employee contributions are pretax, after-tax or both. If the plan does not allow for employee contributions, select No Employee Contribution. If you are defining contributions for COBRA participants and retirees, select After-Tax.
IMPORTANT This field must match with the deductions attached to the plan. Default Tax Type If employees can choose between pretax and after-tax contributions and you want a tax type to default on benefit entry forms, select the contribution tax type that you want as the default. You can override the default contribution tax type on benefit entry forms. If you selected Pretax or After-Tax in the Contrib Tax Type field and you leave this field blank, this field defaults to the value in the Contrib Tax Type field. 9. If calculation type is percent of salary, select the salary type you want to use for the options amount calculation in the Type field. The following table explains the different salary options.
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Select Employee Salary
To use the employees annualized rate of pay from Employee (HR11.1) or, if applicable, the employees step and grade schedule. the benefit salaries from the Benefit form tab of HR11.1. the employees salary from Employee Flex Credits (BN45.1). the employees annualized rate of pay from HR11.1 plus a benefit salary. You use this option if only some of your employees in this plan will need to have a benefit salary amount maintained. For example, commissioned employees.
Benefit Salary Flex Salary Emp and Ben Sal
10. If you selected a salary type, select the date you want to use to determine employee salaries in the Date field. The table below explains the date options. Select Current First of Month As of Date To determine an employees salary on the date the benefit begins. on the first of the month in which benefit begins. on a particular month and day. The application uses the month and day that you specify in the AS of MMDD field.
11. Complete the form. Consider the following fields.
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As of MMDD and Year
Type the date you want to use to determine an employees salary. If you selected As of Date in the Date field, type the month and day. If you leave the Year field blank when you use the As of Date, the application calculates an employees salary on the latest month and day specified. If you type a Year, the employees salary is determined on the exact month, day, and year you specify. If an employee does not have a salary history for the date specified, the application uses the current salary.
Minimum and Maximum
Type the minimum and maximum salary amounts for calculating contributions. If an employees salary is either less or greater than these amounts, the application uses these amounts to calculate flex credits for the employee. This is a required field. If you dont want the application to use any rounding methods, select No Rounding.
Method
12. Choose the Options button. The Options Rates (BN19.1) form opens. Define the annual employee, Cobra, retiree, and company contribution for the plan. The coverage options you defined for the plan on Coverage Options (BN17.1) display on the form. TIP Choosing the add function on Options Amount (BN18.1) automatically opens Options Rates (BN19.1) just like choosing the Options button. 13. Choose the Add function.

To List benefit plan information Use Plan Parameter Listing (BN215)
Defining Options Amount Range

This procedure outlines tasks that enable you to set up contributions. Use this procedure to define contributions for plans in which contributions are associated with coverage options and are based on salary, age, or years-of-service ranges. Each coverage option is associated with a different rate table which contains the rates for the option. Any amounts on this form use the currency associated with the plan on Benefit Plan (BN15.1).
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IMPORTANT If the plan does not have unique contributions for specific employee groups, you only need to define this form once for a plan by leaving the Employee Group field blank. If the plan has different contributions for different groups of employees, complete this form for each employee group with unique contributions. If you define multiple contribution records for one plan, you may choose to leave the employee group field blank on one of the records. The application applies the record with no employee group to all eligible employees who do not belong to the group(s) attached to the other record(s).
To define options amount range

1. Access Benefit Plan (BN15.1). 2. Select the company, plan type, and plan for which you want to define options amount range. 3. Choose Inquire function. 4. Choose the Contrib button. The Company, Plan type and Plan are already filled in once Options Amount Range (BN18.2) opens. Figure 31. Form clip: Using BN18.2 to define options amount range
5. Select the plan participants for the contribution record from the Cover Type field. 6. Type the start date for the contribution. 7. If you are defining contributions that are unique to a particular group of employees, select the employee group for which this contributions applies. Benefits Administration User Guide Chapter 10 Setup: BN Plan Contributions 171
NOTE If you choose to leave the group field blank, the application applies the record with no employee group to all eligible employees who do not belong to the group(s) attached to the other record(s).
If you are defining contributions for COBRA participants, leave this field blank.
IMPORTANT If you define contributions by employee group, make sure employee groups are defined so that an employee can be a member of only one group at a time. If an employee belongs to more than one group for which contributions have been defined, benefit entry programs and benefit update reports show an error.
8. Define calculation attributes for this contribution. Consider the following fields. Calculation Type Select the method the contribution is calculated. If every employee in a group pays the same amount for a coverage option, select Flat Amount. If you are defining contributions for COBRA participants and retirees, select Flat Amount. If the annual contribution is a percent of the employees annual salary, select Percent of Salary. If the contribution is a percent of the employees pay period wages, select Flat Percent
IMPORTANT The calculation type selected must match the calculation type defined on the deduction codes that are attached to the plan. Contribution Tax Type Select whether the employee contributions are pretax, after-tax or both pretax and after-tax. If the plan does not allow for employee contributions, select No Employee Contribution. If you are defining contributions for COBRA participants and retirees, select After-Tax.
IMPORTANT This must match with the deductions attached to the plan.
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Default Tax Type
If employees can choose between pretax and after-tax contributions and you want a tax type to default on benefit entry forms, select the contribution tax type that you want as the default. You can override the default contribution tax type on benefit entry forms. If you selected Pretax or After-Tax in the Contrib Tax Type field and you leave this field blank, this field defaults to the value in the Contrib Tax Type field.
Rate Table Type
If you want to use a rate table to calculate contributions, select the rate table.
TIP If you add on BN18.2 and a rate table is attached BN18.8 opens automatically.
9. If you selected a rate table, choose the Criteria button. The Salary Age Service (BN18.8) form opens. Define how you want the application to determine an employees salary, age, and years of service. Fill in the appropriate fields for the rate table you selected on the Options Amount Range (BN18.2). 10. Choose Ok. The application returns you to the Options Amount Range form. 11. Choose the Options button. The Options Rates Table (BN19.2) form opens. Select those rate tables you want associated with the coverage options. The coverage options you defined for the plan on Coverage Options (BN17.1) display on the form. 12. Choose the Add function. The BN19.2 closes and returns you to BN18.2. 13. Choose the Add function.

Defining Flat Contributions

This procedure enables you to define contributions for plans in which every employee in a group pays the same flat amount, flat percent, or percent of salary. Use this procedure only for plans with either coverage amounts or no coverage.
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IMPORTANT If the plan does not have unique contributions for specific employee groups, you only need to define this form once for a plan by leaving the Employee Group field blank. If the plan has different contributions for different groups of employees, complete this form for each employee group for with unique contributions. If you define multiple contribution records for one plan, you may choose to leave the employee group field blank on one of the records. The application applies the record with no employee group to all eligible employees who do not belong to the group(s) attached to the other record(s).
To define flat contributions

1. Access Benefit Plan (BN15.1). 2. Select the company, plan type and plan for which you want to define flat contributions. 3. Choose Inquire function. 4. Choose the Contrib button. The Company, Plan type and Plan are already filled in when Flat Contributions (BN18.3) opens. Figure 32. Form clip: Using BN18.3 to define flat contributions
5. Select the plan participants for the contribution record from the Cover Type field. 6. Type the start date for the contribution. 7. If you are defining contributions that are unique to a particular group of employees, select the employee group for which this contributions applies.
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If you are defining contributions for COBRA participants, leave this field blank.
IMPORTANT If you define contributions by employee group, make sure employee groups are defined such that an employee can be a member of only one group at a time. If an employee belongs to more than one group for which contributions have been defined, benefit entry programs and benefit update reports show the situation as an error.
8. Define calculation attributes for this contribution. Consider the following fields.
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Calculation Type
Select the method the contribution is calculated. If every employee in a group pays the same amount for a coverage option, select Flat Amount. If you are defining contributions for COBRA participants and retirees, select Flat Amount. If the annual contribution is a percent of the employees annual salary, select Percent of Salary. If the contribution is a percent of the employees pay period wages, select Flat Percent.
IMPORTANT This must match with the deductions attached to the plan. Default Tax Type If employees can choose between pretax and after-tax contributions and you want a tax type to default on benefit entry forms, select the contribution tax type that you want as the default. You can override the default contribution tax type on benefit entry forms. If you selected Pretax or After-Tax in the Contrib Tax Type field and you leave this field blank, this field defaults to the value in the Contrib Tax Type field. 9. Define calculation attributes for this contribution. Consider the following fields.
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Employee
If the plan participant contributes to the plan and the calculation type is not Rate Table, type the annual participant contribution. For COBRA participant contributions, include the administrative fee, if any. The application uses this amount to create either deductions for employees or the billing amount for COBRA participants and retirees. If this is a flex benefit plan, the employee contribution can be a negative amount. If the employee contribution is negative, employees receive flex credits when they elect this benefit. NOTE If the contribution is positive, the application creates employee deductions. If the contribution is negative, the application creates or updates a standard time record for the employee.
Flex Credits
For flex plans, type the annual amount of flex credits the company gives to employees who elect this benefit.
10. If the calculation type is not Rate Table, type the companys annual contribution in the Company field. 11. If the Calculation Type field is Rate Table, select the rate table that you want used to calculate contributions for plan participants affected by this contribution record. For COBRA participant or retiree contributions, select an age rate table. TIP If you add on BN18.2 and a rate table is attached, BN18.8 opens automatically. 12. If you selected a rate table, choose the Criteria button. The Salary Age Service (BN18.8) opens. Define how you want the application to determine an employees salary, age, and years of service. Fill in the appropriate fields for the rate table you selected on the BN18.3. 13. Choose Ok. The application returns you to the Options Amount Range. 14. Choose the Add function.

Defining Salary or Coverage Rate Table

This procedure enables you to have the application calculate flat annual contributions based on the participants annual salary or coverage amount. You can vary contributions by age, salary, or years-of-service. Any amounts used in this procedure use the currency associated with the plan you defined on Benefit Plan (BN15.1).
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IMPORTANT If the plan does not have unique contributions for specific employee groups, you only need to define this form once for a plan by leaving the Employee Group field blank. If the plan has different contributions for different groups of employees, complete this form for each employee group with unique contributions. If you define multiple contribution records for one plan, you may choose to leave the employee group field blank on one of the records. The application applies the record with no employee group to all eligible employees who do not belong to the group(s) attached to the other record(s).
Need More Details? Check out the following concepts: STEPS "How do I Define Benefit Contributions?" on page 149 "What are the Differences between the Contribution Types?" on page 150 "How are Contributions Calculated?" on page 153 "What are Flex Plan Contributions?" on page 156 "How do I Define Benefit Contributions?" on page 149
To define salary or coverage rate table

1. Access Benefit Plan (BN15.1). 2. Select the company, plan type and plan for which you want to define salary or coverage rate table. 3. Choose Inquire function. 4. Choose the Contrib button. The Company, Plan type, and Plan are already filled in when Salary or Coverage Rate Table (BN18.4) opens. Figure 33. Form clip: Using BN18.4 to define salary or coverage rate table
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7. If you are defining contributions that are unique to a particular group of employees, select the employee group for which this contributions applies. If you are defining contributions for COBRA participants, leave this field blank.
8. Define the contribution attributes for this contribution. Consider the following fields. Contribution Tax Type Select whether the employee contributions are pretax, after-tax or both. If the plan does not allow for employee contributions, select No Employee Contribution. If you are defining contributions for COBRA participants and retirees, select After-Tax.
IMPORTANT This must match with the deductions attached to the plan. Default Tax Type If employees can choose between pretax and after-tax contributions and you want a tax type to default on benefit entry forms, select the contribution tax type that you want as the default. You can override the default contribution tax type on benefit entry forms. If you selected Pretax or After-Tax in the Contrib Tax Type field and you leave this field blank, this field defaults to the value in the Contrib Tax Type field. 9. Define calculation attributes for this contribution. Consider the following fields.
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Rate Table
Select the age, salary or years of service rate table you want to use to calculate contributions. For COBRA participant or retiree contributions, select an age rate table. NOTE The rate table you select must have a start date equal to the start date of this contribution record.
Coverage or Salary
Select whether contributions are calculated using covered salary or the coverage amount defined for the benefit. NOTE COBRA participant and retiree contributions must be based on coverage.
Cost Per
If contributions are calculated based on increments of salary or coverage, type the increment used to determine the contribution. (For example, contributions are $1.00 for each $1,000 of coverage.) Leave this field blank if the contribution is a flat annual amount or a flat percent.
10. Choose the Criteria button. The Salary Age Service (BN18.8) form opens. Define how you want the application to determine an employees salary, age, and years of service. Fill in the appropriate fields for the rate table you selected on the Salary or Coverage Rate Table. 11. Choose Ok. The application returns you to the Salary or Coverage Rate Table. 12. Choose the Add function

Defining Contribution Limits

This procedure enables you to define contribution limits and company contributions for a plan in which employees elect contributions levels within limits. The typical plan is a spending account where the company limits the amount an employee can contribute. You also use this procedure for vacation plans to define the maximum number of hours employees can buy or sell and the cost of those hours.
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IMPORTANT If the plan does not have unique contributions for specific employee groups, you only need to define this form once for a plan by leaving the Employee Group field blank. If you define multiple contribution records for one plan, you may choose to leave the employee group field blank on one of the records. The application applies the record with no employee group to all eligible employees who do not belong to the group(s) attached to the other record(s). To base a percent contribution on specific kinds of pay rather than all pay, assign a pay class to the deduction when you define the deduction in Deduction (PR05.1). Need More Details? Check out the following concepts: STEPS "How do I Define Benefit Contributions?" on page 149 "What are the Differences between the Contribution Types?" on page 150 "How are Contributions Calculated?" on page 153 "What are Flex Plan Contributions?" on page 156
To define contribution limits

1. Access Benefit Plan (BN15.1). 2. Select the company, plan type and plan for which you want to define contribution limits. 3. Choose Inquire function. 4. Choose the Contrib button. The Company, Plan type, and Plan are already filled in once Contribution Limits (BN18.5) opens. Figure 34. Form clip: Using BN18.5 to define contribution limits
5. Select the plan participants for the contribution record from the Cover Type field. 6. Type the start date for the contribution. Benefits Administration User Guide Chapter 10 Setup: BN Plan Contributions 181
7. If you are defining contributions that are unique to a particular group of employees, select the employee group for which this contributions applies. If you are defining contributions for COBRA participants, leave this field blank.
8. Define the contribution attributes for this contribution. Consider the following fields.
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Contribution Type
Select whether employees can contribute as a percent, an amount, or either a percent or an amount. If the plan does not allow employee contributions, select No Employee Contrib. If you are defining contributions for COBRA participants, select Amount.
IMPORTANT This must match with the deductions attached to the plan. Default Tax Type If employees can choose between pretax and after-tax contributions and you want a tax type to default on benefit entry forms, select the contribution tax type that you want as the default. You can override the default contribution tax type on benefit entry forms. If you selected Pretax or After-Tax in the Contrib Tax Type field and you leave this field blank, this field defaults to the value in the Contrib Tax Type field. 9. If the plan specifies a minimum contribution for employees or COBRA participants, complete the Minimum Contributions section. Consider the following fields.
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Pay Period Annual Percent
Type the minimum pay period amount. Type the maximum annual amount. Type the minimum percent contribution. You can use the minimum percent limit for employee percent or amount contributions. If the employee contributes an amount, the application calculates the percent based on the salary specified in the Salary subform to test minimum and maximum percents. NOTE This field is not valid for COBRA participant contributions.
10. If the plan specifies a maximum contribution for employees or COBRA participants, complete the Maximum Contributions section. Consider the following fields. Pay Period Annual Percent Type the maximum pay period amount. Type the maximum annual amount. Type the maximum percent contribution. You can use the minimum percent limit for employee percent or amount contributions. If the employee contributes an amount, the application calculates the percent based on the salary specified in the Salary subform to test minimum and maximum percents. NOTE This field is not valid for COBRA participant contributions. 11. If the company contributes a flat amount for this benefit, complete the Company Contribution section. Consider the following fields.
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Amount
If the company contributes a flat amount for this benefit, type the amount. If employees make only percent contributions for this benefit, leave this field blank. If the company contributes a percent, leave this field blank. This contribution creates a flat amount deduction. NOTE This field is not valid for COBRA participant contributions.
Percent
If the company contributes a percent, type the percent. If you type a percent company contribution, leave the Amount field blank. If employees make only amount contributions for this benefit, leave this field blank. If the company contributes an amount, leave this field blank. This contribution creates a percent deduction; when you define the deduction, you can indicate the type of pay on which the deduction is based. NOTE This field is not valid for COBRA participant contributions.
12. If you are defining a flex vacation plan, complete the Vacation section. Consider the following fields. Maximum hours Cost Type the maximum number of vacation hours an employee can buy or sell each flex year. To calculate the cost of buying or selling vacation hours for a flex vacation plan, type the percent by which employee hourly rates are multiplied. For example, if employees can purchase vacation hours for the same rate as they are paid, type 100. If employees can sell vacation at half their hourly rate of pay, type 50. 13. If employees can contribute an amount and there are percent contribution limits, choose the Salary button. The Salary (BN18.9) form opens. Define how you want the application to determine employee salaries for contribution calculations. 14. Choose the Add function.

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Defining Match Limit Schedules

This procedure enables you to define contribution limits for a plan in which employees contribute a percent or an amount that the company matches. You can limit the employees pre-tax, after-tax, and total employee contribution as a percent of salary. The company match is calculated as a percentage of the employees contribution. You can limit the percent of the employees contribution that is matched. You can vary the match limit schedule based on years of service. If you do not want the match limit schedule varied by years of service, define only one range. IMPORTANT If the plan does not have unique contributions for specific employee groups, you only need to define this form once for a plan by leaving the Employee Group field blank. If the plan has different contributions for different groups of employees, complete this form for each employee group for which contributions are unique. If you define multiple contribution records for one plan, you may choose to leave the employee group field blank on one of the records. The application applies the record with no employee group to all eligible employees who do not belong to the group(s) attached to the other record(s).
Need More Details? Check out the following concepts: "How do I Define Benefit Contributions?" on page 149 "What are the Differences between the Contribution Types?" on page 150 "How are Contributions Calculated?" on page 153 "What are Flex Plan Contributions?" on page 156 "How are Company Match Contributions Calculated?" on page 155
STEPS
To define match limits schedules

1. Access Benefit Plan (BN15.1). 2. Select the company, plan type and plan for which you want to define a match limit schedule. 3. Choose Inquire function. 4. Choose the Contrib button. The Company, Plan type, and Plan are already filled in once Match Limits Schedules (BN18.6) opens.
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Figure 35. Form clip: Using BN18.6 to define match limits schedules
5. Select the plan participants for the contribution record from the Cover Type field. 6. Type the start date for the contribution. 7. If you are defining contributions that are unique to a particular group of employees, select the employee group for which this contribution applies. If you are defining contributions for COBRA participants, leave this field blank.
8. Define the Calculations section for this contribution. Consider the following fields.
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Contribution Type
Select whether employees can contribute as a percent, an amount, or either a percent or an amount. If the plan does not allow employee contributions, select No Employee Contrib. If you are defining contributions for COBRA participants, select Amount.
IMPORTANT The calculation type selected must match the calculation type defined on the deduction codes that are attached to the plan. Contribution Tax Type Select whether the employee contributions are pretax, after-tax or both. If the plan does not allow for employee contributions, select No Employee Contribution. If you are defining contributions for COBRA participants and retirees, select After-Tax.
IMPORTANT This must match with the deductions attached to the plan. Default Tax Type If employees can choose between pretax and after-tax contributions and you want a tax type to default on benefit entry forms, select the contribution tax type that you want as the default. You can override the default contribution tax type on benefit entry forms. If you selected Pretax or After-Tax in the Contrib Tax Type field and you leave this field blank, this field defaults to the value in the Contrib Tax Type field. Increments Type the percent increment employees can contribute to the plan. For example, if you type one, employees can make contributions of one percent, two percent, three percent and so on, within the other limits of the schedule. If you type 0.5, employees can make contributions of 0.5%, one percent, 1.5% and so on. Select if you want your company to match contributions as pretax, after-tax or both.
Match Option
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From Date
Select the date from which you want the application to begin calculating each employees years of service. If your schedule does not vary based on years of service, select Hire Date or Adjusted Hire Date. The values of this field are from Employee (HR11.1).
Service Date As of MMDD and Year
Select the date you want the application to determine each employees years of service. Type the date you want to use to determine an employees years of service for coverage calculations. If you selected As of Date in the Date field, type the month and day. If you leave the Year field blank when you use the As of Date, the application calculates an employees years of service on the latest month and day specified. If you type a Year, the employees years of service are determined on the exact month, day, and year you specify.
9. If the Contribution Type is Amount, define the salary section for this contribution. Consider the following fields. Type Select the type of salary you want to use for the contribution calculation. Leave this field blank if the contribution type is percent. Select the date you want the application to calculate each employees salary. Type the date you want to use to determine an employees salary for contribution calculations. If you selected As of Date in the Date field, type the month and day. If you leave the Year field blank when you use the As of Date, the application calculates an employees salary on the latest month and day specified. If you type a Year, the employees salary is determined on the exact month, day, and year you specify. If an employee does not have a salary history for the date specified, the application uses the current salary.
Date As MMDD and Year
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Minimum and Maximum
Type the minimum and maximum salary amounts for calculating contributions. If an employees salary is either less or greater than these amounts, the application uses these amounts to calculate the contribution for the employee. This is a required field. If you dont want the application to use any rounding methods, select No Rounding.
Method
10. Choose the Schedule button. The Match Limits (BN19.3) form opens. Define the employee, company, and company match contributions with limits based on a service schedule. 11. Choose the Add function.

Defining Match Percent Schedules

This procedure enables you to define contributions for a plan where employees contribute a percent or an amount that your company matches. The company match is calculated as a percentage of the employees contribution and can be fixed or cumulative. If the match calculation is fixed, the company match directly corresponds to the percent of the employees contribution. If the match is cumulative, the company match varies by incremental percents. The company match varies as the employees contribution percent increases. IMPORTANT If the plan does not have unique contributions for specific employee groups, you only need to define this form once for a plan by leaving the Employee Group field blank. If the plan has different contributions for different groups of employees, complete this form for each employee group for which contributions are unique. If you define multiple contribution records for one plan, you may choose to leave the employee group field blank on one of the records. The application applies the record with no employee group to all eligible employees who do not belong to the group(s) attached to the other record(s).
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Need More Details? Check out the following concepts: "How do I Define Benefit Contributions?" on page 149 "What are the Differences between the Contribution Types?" on page 150 "How are Contributions Calculated?" on page 153 "What are Flex Plan Contributions?" on page 156 "How are Company Match Contributions Calculated?" on page 155
STEPS
To define match percent schedules

1. Access Benefit Plan (BN15.1). 2. Select the company, plan type and plan for which you want to define a match percent schedule. 3. Choose Inquire function. 4. Choose the Contrib button. The Company, Plan type, and Plan are already filled in once Match Percent Schedules (BN18.7) opens. Figure 36. Form clip: Using BN18.7 to define match percent schedules
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7. If you are defining contributions that are unique to a particular group of employees, select the employee group for which this contribution applies. If you are defining contributions for COBRA participants, leave this field blank.
8. Define the Calculations section for this contribution. Consider the following fields. Contribution Type Select whether employees can contribute as a percent, an amount, or either a percent or an amount.
IMPORTANT The calculation type selected must match the calculation type defined on the deduction codes that are attached to the plan. Contribution Tax Type Select whether the employee contributions are pretax, after-tax or both pretax and after-tax.
IMPORTANT This must match with the deductions attached to the plan. Default Tax Type If employees can choose between pretax and after-tax contributions and you want a tax type to default on benefit entry forms, select the contribution tax type that you want as the default. You can override the default contribution tax type on benefit entry forms. If you selected Pretax or After-Tax in the Contrib Tax Type field and you leave this field blank, this field defaults to the value in the Contrib Tax Type field.
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Increments
Type the percent increment employees can contribute to the plan. For example, if you type one, employees can make contributions of one percent, two percent, three percent and so on, within the other limits of the schedule. If you type 0.5, employees can make contributions of 0.5%, one percent, 1.5% and so on. Select if you want your company to match contributions as pretax, after-tax or both pretax and after-tax.
Match Option
IMPORTANT This field must match with the deductions attached to the plan. Emp Max Percent Type the maximum total percent employees can contribute to the plan with pretax and after-tax contributions. Select either Fixed or Culumative to define how your companys match is calculated. If the company matches only the contribution level the employee elected, select Fixed. If the company match includes all contribution levels up to the level the employee elected, select Cumulative. 9. If the Conribution Type is Amount, complete the salary section for this contribution. Consider the following fields. Type Select the type of salary you want to use for the contribution calculation. Leave this field blank if the contribution type is percent. Select the date you want the application to calculate each employees salary.
Match Calc
Date
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As MMDD and Year
Type the date you want to use to determine an employees salary for contribution calculations. If you selected As of Date in the Date field, type the month and day. If you leave the Year field blank when you use the As of Date, the application calculates an employees salary on the latest month and day specified. If you type a Year, the employees salary is determined on the exact month, day, and year you specify. If an employee does not have a salary history for the date specified, the application uses the current salary.
Minimum and Maximum
Type the minimum and maximum salary amounts for calculating contributions. If an employees salary is either less or greater than these amounts, the application uses these amounts to calculate flex credits for the employee. This is a required field. If you dont want the application to use any rounding methods, select No Rounding.
Method
10. Choose the Schedule button. The Match Percent Schedule (BN19.4) opens. Define the employee, company, and company match contributions with limits based on a service schedule 11. Choose the Add function. The application returns you to BN19.4.

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Chapter 11

Benefit automation rules enable you to automate Benefit processing. This chapter focuses on those procedures that define the add, change and termination automation rules. STOP Before you can use automation rules, personnel actions must exist.
See the Personnel Administration User Guide for information on personnel actions. See the Human Resources User Guide for information on employee groups.
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Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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TIP To skip directly to the procedures, see "Procedures in this Chapter" on page 202 The following concepts provide background and conceptual information for the procedures within this chapter. Need More Details? Check out the following concepts: "What are Benefit Automation Rules?" on page 197 "When Do I Use Add Rules?" on page 197 "When Do I Use Change Rules?" on page 198 "When Do I Use Termination Rules?" on page 199 "How Do I Use Employee Groups with Automation Rules?" on page 200
What are Benefit Automation Rules?

The Benefits Administration application automates benefit processing by stopping, changing, and adding benefits and flex credits based on employee changes made by personnel actions. You define automation rules that identify the personnel actions, including changes that impact benefits and the plans for which employee benefits are updated. In addition, you define when these rules will take effect. There are three automation rules: Add, Change and Termination. Add rules determine the waiting period for employees who, as a result of a personnel action, become eligible to enroll in a benefit or a flex plan. Change rules determine the date used to update benefits for employees whose benefits change due to a personnel action. Termination rules determine the stop date for employees whose benefits should stop as a result of a personnel action. You can define rules for a flex plan, plan type, or a benefit plan. Using the rules defined for a flex plan, when an employee becomes ineligible due to a personnel action, the employees flex credit record is stopped along with all the employees benefits under the flex plan.
When Do I Use Add Rules?

You define add rules for personnel actions that cause an employee to become eligible for a benefit plan. An employee becomes eligible for a plan if: The employee is added to an employee group used to qualify an employee for the plan The employees benefit postal code changes to match one in the plans postal code table
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Add rules are useful when you want specific entry rules for situations other than an employees initial enrollment. For example: Hire Actions for New Employees: If you update benefits, you need to have an add rule for the new hire. Re-hires: A waiting period you apply to new hires can be reduced or waived for employees being rehired. You can define an add rule that is used with a Rehire personnel action to establish rules separate from the plans main Entry rules. Return from Leave: If benefits are stopped when an employee goes on certain type of unpaid leave (other than medical leave), they may need to be re-added when the employee returns to active employment status. Add rules can be used to automatically reinstate the enrollment if a personnel action is used to change the employees status upon their return. Different Plans for Different Groups: If you have separate plans for different groups of employees (Executive vs. Regular staff; Union vs. NonUnion), an add rule may be used to add the new benefit when an employee moves between the groups, an example is a promotion to an executive position that qualifies an employee for a plan open only to executives.
Example
Maxco Oil Corporation has different rules for all health coverage on employees that are rehired within a year of termination and employees that are rehired after a year. Employees who are re-hired within a year have no waiting period and can have coverage as of the first of the next month after their adjusted hire date. Employees rehired after a year can have coverage the first of the month after waiting 60 days from their adjusted hired date. Maxco Oil does employee maintenance through personnel actions. They have defined two different rehire personnel actions. One called REHIRE-YR for less than a year and one called REHIRE for greater than a year. Each personnel action is associated with an add rule defining the appropriate waiting period.
When Do I Use Change Rules?

You define change rules for personnel actions that affect an employees current benefits. An employees current benefits are affected by the following changes: The employees membership in an employee group changes, making him or her eligible for different coverage, contributions or general ledger overrides The employees salary changes. Salary changes include changes made to the employees job code, FTE (Full-Time Equivalent), rate of pay, step, grade, schedule, salary class, or benefit salaries The employees pay frequency changes
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Example 1
The Perox Oil Companys health plan HL1 has different contribution amounts for salaried and hourly employees. Perox Oil maintains employee information through personnel actions. Only a JOBCHG personnel action can change the employee from hourly to salaried. The benefit change date and the personnel action date should be the same date. A change rule is defined for the JOBCHG action and the HL1 benefit plan using the personnel action date as the effective date for benefits automatically updated.
Example 2
The Perox Oil Company offers only two employee Life plans, both are a multiple of salary plan. The employees coverage amount increases when an employee receives an increase in pay. Both a PROMOTION and SALINC personnel action can increase the employees pay. The Benefit change should be effective the following pay period. Two change rules are defined, one for each action, identifying the next pay period as the effective date used for benefit changes.
When Do I Use Termination Rules?

You define termination rules only for personnel actions that cause an employee to be ineligible for a benefit. An employee is no longer eligible for a plan if: The employee is removed from an employee group used to qualify an employee for the plan. The employees postal code changes so that it no longer matches one in the postal code table for the plan.
Example
All full-time employees are eligible for all health plans at Sampson Lumber Company. When an employee is terminated, the date the employees health benefit terminates depends on whether an employee belongs to the union. Union employees are covered for 60 days after termination and all other employees are covered for 30 days. All employees should have COBRA participant records created for the COBRA occurrence type that represents termination in the application. Sampson Lumber must establish two different termination rules, for the differences in the benefit stop dates to be created. One rule will use an employee group for union employees and the other rule will leave the employee group field blank to include the non-union employees. When an employee group is used on a rule, the eligible employee group on the health plan needs to contain the union employee group as part of the selection criteria.
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What is a Nested Employee Group?

Nested groups are employee groups that use other employee groups as part of their definition. For example, your company has two unions. Depending on which union the employee belongs to, certain benefit options could vary. To address those differences you create an employee group for each union. Then you define an overall group to include the two groups. These two groups become nested in the overall group. The diagram below illustrates the example.
Group C consists of the full time employees Group A consists of the full time employees from Union X Those employees are drawn from Group A and Group B
Group B consists of the full time employees from Union Z
How Do I Use Employee Groups with Automation Rules?

You can use employee groups for Add or Termination rules. If the rules are different based on employee groups, attach a specific group to the rules you define. Groups attached to automation rules for a given plan must be mutually exclusive, so that no employee is a member of more than one group and only one rule applies to any given employee.
Example
Your company has a health plan that covers all full-time union employees. The company has two unions, Union A and Union B. When a termination occurs, coverage in the plan ends at the end of the month for employees in Union A, but extends for 45 days beyond the termination date for employees in Union B. Two separate termination rules are defined, each with an employee group attached (Group A and Group B). The group of all full-time union employees (Group C) which is used to define eligibility on the benefit plan, must be defined with criteria that identifies Group A and Group B.
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IMPORTANT For the Benefits Administration application update program to process the rules correctly, the employee group you identified when you defined eligibility for a plan must use a nested group approach for the group criteria. When you use group-specific automation rules, the groups attached to the rules must literally make up the criteria for the group used as the plans main eligible group.
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The procedures in this chapter provide instructions to define automation rules for your benefit plans. Defining Add Rules Tasks to define a waiting period for employees who, as a result of a personnel action, become eligible to enroll in a benefit or flex plans. Tasks to define the data used to update benefits for employees whose benefits change due to a personnel action. Tasks to define a benefit stop date for employees whose benefits should stop as a result of a personnel action.
Defining Change Rules
Defining Termination Rules
Defining Add Rules

Add rules determine the eligibility date for employees who, as a result of a change made by a personnel action, become eligible for a flex plan or benefit plan. The Add rules are used by Employee Change Benefit Update (BN100) to calculate each employees eligibility date and, if appropriate, to enroll an employee in a plan or flex plan. BN100 enrolls an employee in default benefit plans only. If a change makes an employee eligible for a plan for which add rules exist but the plan is not a default plan, the employees new eligibility date is calculated and listed on the report, but the employee is not enrolled. If no add rule exists, BN100 lists the employees without a new eligibility date. IMPORTANT Add rules do not enroll employees into benefit plans unless some benefit history exists. If the employee has become eligible for benefits for the first time, use Mass Benefit Add (BN101) to enroll the employee into default plans.
Need More Details? Check out the following concepts: "What are Benefit Automation Rules?" on page 197 "When Do I Use Add Rules?" on page 197 "How Do I Use Employee Groups with Automation Rules?" on page 200
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Figure 37. Procedure flow: Define Add Rules

1 Access Add Rules (BN16.2)
2 Select company, plan type
3 Select the plan
4 Type add rules effective date
5 - Optional Select employee group
6 Select personnel action
7 Define eligibility rules
8 - Optional Define entry points
9 Choose OK
STEPS
To define add rules

1. Access Add Rules (BN16.2).
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Figure 38. Form clip: Using BN16.2 to define add rules
2. Select the company and the plan type from the Company and Plan Type fields. 3. Select the plan for which you want to define add rules. If you leave this field blank the rule will apply to all plans within the plan type selected. 4. Type the date the add rules are effective. You can vary rules by start date. This allows you to define unique rules for different periods. If rules change, add a new record for the new rules. 5. If you are defining add rules that are unique to a particular group of employees, select the employee group for which these add rules apply.
IMPORTANT If you define add rules by employee group, make sure employee groups are defined such that an employee can be a member of only one group at a time. If an employee belongs to more than one group for which rules have been defined, benefit update reports list the situation as an error.
6. Select the personnel action that triggers an employees eligibility for the plan. 7. Define the eligibility rules. Consider the following fields. From Date Months, Days and Hours Select the date the waiting period begins. Type the number of months, days or hours an employee must work before becoming eligible to enroll in the plan. To calculate the employees eligibility date, the application adds these numbers to the date in the From Date field.
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Pay Class
If the waiting period is measured in hours, select the pay class that defines eligible hours. If you leave this field blank, all hours are included as eligible hours of service.
Entry Type
Select the date you want benefit update programs to use, to enroll eligible employees. For example, entry dates are on the first of each month and an employees eligibility date is calculated to be January 15. If you select a Prior (such as Prior Entry Point), the application adds the benefit for the employee with a start date of January 1. If you select a Next (such as Next Entry Point), the application adds the benefit for the employee with a start date of February 2. NOTE If you do not use the Lawson Payroll application, values including pay periods or work periods are not valid. See the Payroll User Guide for information about pay and work periods.
TIP If you select prior or next entry point as the entry type and choose the Add form function, Plan Entry Points (BN16.5) opens.
8. If you select prior or next entry points for Entry Type, choose the Points button. The Plan Entry Points (BN16.5) form opens. Define the dates on which employees can enroll in the plan. 9. Choose OK button. The application returns you to Add Rules.

To List the add rules Use Benefit Plan Rules Listing (BN216)
Defining Change Rules

Change rules determine when a change made by a personnel action affects an employees benefits or flex credits but not his or her eligibility for the plan. Employee Change Benefit Update (BN100) uses change rules to determine the date when the affected benefits are changed. NOTE You cannot define Change rules for an employee group. BN100 stops the affected benefits the day before the calculated change date and adds benefits effective on the change date. For flex benefits, if an employee switches between groups used as eligibility criteria for flex credits calculations on Flex Credits (BN08.1), the Benefits Administration application stops all the employees benefits under the flex plan. It also stops the employees flex dollar record on Employee Flex Credits (BN45.1), adds a new flex credits record for the employee based on the employees new employee group, and re-adds the employees flex benefits with the same elections.
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If a personnel action affects an employees benefits but no change rules exist, BN100 lists, but does not update, the employees affected benefits. If the employee is deleted from a group but is not added to another group for which coverage contributions or general ledger overrides exist, BN100 will list an error. Need More Details? Check out the following concepts: "What are Benefit Automation Rules?" on page 197 "When Do I Use Change Rules?" on page 198
Figure 39. Procedure flow: Define Change Rules

1 Access Change Rules (BN16.3)
3 -OptionalSelect the plan
4 Type change rules effective date
6 Select benefit change date
7 Choose Add function
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STEPS
To define change rules

1. Access Change Rules (BN16.3). Figure 40. Form clip: Using BN16.3 to define change rules
2. Select the company and the plan type from the Company and Plan Type fields. 3. Select the plan you want to define change rules. If you leave this field blank the rule will apply to all plans within the plan type selected. 4. Type the date the change rules are effective. You can vary rules by start date. This allows you to define unique rules for different periods. If rules change, add a new record for the new rules. 5. Select the personnel action that triggers the benefit change. 6. Select the date benefits change. The benefit application stops benefits the day before this date and re-adds benefits for this date. 7. Choose the Add function.

To List the change rules Use Benefit Plan Rules Listing (BN216)
Defining Termination Rules

Termination rules determine when a benefit stops for an employee who becomes ineligible for the plan or flex plan because of changes made by personnel actions. Employee Change Benefit Update (BN100) uses the termination rules to automatically terminate the affected benefits and flex credit records. If termination rules have been defined for the flex plan and a change causes an employee to be ineligible for a flex plan, BN100 stops the employees flex dollar record and all benefits under the flex plan according to the flex plans termination rules.
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Need More Details? Check out the following concepts: "What are Benefit Automation Rules?" on page 197 "When Do I Use Termination Rules?" on page 199 "How Do I Use Employee Groups with Automation Rules?" on page 200
Figure 41. Procedure flow: Define Termination Rules

1 Access Termination Rules (BN16.4)
3 -OptionalSelect the plan
4 Type termination rules effective date
5 - Optional Select employee group
7 Define stop rules
8 - Optional Define COBRA attributes
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STEPS
To define termination rules

1. Access Add Rules (BN16.4). Figure 42. Form Clip: Using BN16.4 to define termination rules
2. Select the company and the plan type from the Company and Plan Type fields. 3. Select the plan for which you want to define termination rules. If you leave this field blank the rule will apply to all plans within the plan type selected. 4. Type the date the termination rules are effective. You can vary rules by start date. This allows you to define unique rules for different periods. If rules change, add a new record for the new rules. 5. If you are defining termination rules that are unique to a particular group of employees, select the employee group for which these add rules apply.
IMPORTANT If you define termination rules by employee group, make sure employee groups are defined such that an employee can be a member of only one group at a time. If an employee belongs to more than one group for which rules have been defined, benefit update reports list the situation as an error.
6. Select the personnel action that triggers an employees ineligibility for the plan. 7. Define the stop rules. Consider the following fields.
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Stop Date
Select the date used to determine the benefit stop date. If no months or days are entered in the fields that follow, this is the date the benefits stop. Type the number of months after the Stop Date benefits should stop. For example, if you want benefits to stop three months after the stop date, type 3. NOTE If you enter a value in the Days field, do not enter anything in this field.
Months
Days
Type the number of days after the Stop Date benefits should stop. For example, if you want benefits to stop 60 days after the stop date, type 60. NOTE If you enter a value in the Months field, do not enter anything in this field.
8. If the termination rules apply to COBRA participants, define the COBRA attributes. Consider the following fields. COBRA Occurrence Select the value that indicates whether the termination of this benefit is a qualifying COBRA event and you want the employee to be notified of COBRA rights. If you selected Yes in the COBRA Occurrence field, select an occurrence type. If you select an occurrence type, the application creates a COBRA participant in COBRA Participant (BN70.1) for employees affected by these termination rules if the employee does not already have a COBRA record in BN70.1 for the same period. 9. Choose the Add function.
Occurrence Type

To List the change rules Use Benefit Plan Rules Listing (BN216)
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Chapter 12

Before you enroll your employees into benefit plans, you need to enroll the employees into Flex plans. This chapter outlines procedures and concepts you need to enroll employees into flex plans.
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Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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TIP To skip directly to the procedures, see "Procedures in this Chapter" on page 215 The following concepts provide background and conceptual information for the procedures within this chapter. Need More Details? Check out the following concepts: "What is a Flex Credit Record?" on page 213 "What are Flex Periods?" on page 213 "When is a Standard Time Record Created by a Flex Plan?" on page 214
What is a Flex Credit Record?

To add flex benefits for a flex plan year, you need to create a flex credit record for each employee. An employee flex credit record indicates The dates the employee is in the flex plan The annual salary used for benefit calculations The amount of flex credits an employee receives before electing benefits The amount of an employees salary that can be spent on a pretax basis to purchase benefits
You can create flex credit records automatically for all employees in a flex plan for an entire flex plan year, or manually for one employee. An employee can only have one flex credit record in effect for any given date. You can however, stop and start a flex credit if you need to change an employees flex credit record information.
What are Flex Periods?

A flex benefit period is a time during which a particular combination of an employees flex benefits are in effect during a flex plan year. Upon initial enrollment into the flex year, the application creates one flex benefit period for the entire flex plan year for an employee. Each time you add or stop benefits for an employee during the flex year, another flex benefit period is created.
Example
Employee Lynn Johnson is enrolled in the current flex plan with a flex benefit period of January 1, 2000 to December 31, 2000. On April 1, 2000, her health coverage changes because of a family status change. Her flex benefit period dates after the change would now be as follows: Benefits Administration User Guide Chapter 12 BN Enrollment: Enrolling Employees in Flex Plans 213
Start Date January 1, 2000 April 1, 2000
Stop Date March 31, 2000 December 31, 2000
Further into the flex year, Lynn Johnsons dental benefit has a change effective July 1, 2000. The dental benefit was not stopped and restarted when the health benefit was, so the application requires a change on the dental benefit to reflect the flex benefit period of 04/01/00 - 12/31/00. Then the new start date of 07/01/96 for the dental benefit can be entered creating another flex benefit period of 07/01/00 - 12/31/00.
When is a Standard Time Record Created by a Flex Plan?

A time record is created for unused flex credits taken as taxable income. When an employee is enrolled into a flex plan that allows unused flex credits to be taken as taxable income, the time record is created and is considered a flex standard time record. The flex standard time record is included with the employees other time records in payroll processing. If the flex plan lets employees keep a percentage of their unspent flex credits, when the benefit application creates flex credits, the application will also create a standard time record for each employee. You should enroll employees in their benefits before the first payroll run of the flex plan year to offset the standard time record. See the Payroll User Guide for information on processing standard time records.
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Before an employee can enroll in any benefits under a full flex benefit plan, the employe must have a flex credit record. The following procedures explain how to automatically or manually create employee flex credit records. Automatically Create EE Flex Credit Records Manually Create EE Flex Credit Records Use this procedure to automatically create employee flex credit records. Use this procedure if a flex plan gives flex credits based on benefit election. You can also use this procedure to override automatically generated employee flex credit records.
Automatically Create EE Flex Credit Records

This procedure creates flex credits so that each eligible employee becomes a participant in the flex plan. For flex plans where flex credits are issued prior to benefit enrollment, this procedure will automatically calculate flex credits and create a flex credit record for each employee in a flex plan for the entire flex year. If the employee becomes eligible for the flex plan after the start of the flex year, such as a new hire, this procedure will calculate credits and create a flex credit record from the employees eligibility date to the end of the flex year. For flex plans where flex credits are issued based on benefit elections, this procedure is still used to create flex credit records prior to enrolling eligible employees in benefits. NOTE You can use this procedure to recalculate flex credits until you enroll employees in benefits. NOTE If your company has more than one flex plan, an employee can only be enrolled in only one of those plans. Once you run Employee Flex Credits (BN145) in update mode, flex credit records are created for those eligible employees. If the flex plan lets employees keep a percentage of their unspent flex credits, also when the application creates flex credits, it creates a standard time record, which represents an employees flex credits that are added to his or her taxable wages. Need More Details? Check out the following concepts: "What is a Flex Credit Record?" on page 213 "What are Flex Periods?" on page 213 "When is a Standard Time Record Created by a Flex Plan?" on page 214
STEPS
To automatically create EE flex credit records

1. Access Flex Credits Calculations (BN145).
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TIP Before you update, review the flex credit setup by selecting Report Only in the Update field.
2. Type the name of the job in the Job Name field. 3. Type a job description in the Job Description field. The job description helps you identify a batch job by providing additional information. 4. Complete the information in the Parameters section. Consider the following fields. Company Name Flex Plan Start Date Select the company for the flex plan. Select a flex plan. Type the flex plan year start date. This start date determines which plan parameters on Flex Credits (BN08.1) are used to create flex credits. To calculate flex credits for employees in a particular group, select the employee group.
Employee Group
IMPORTANT The employee group you select must match the employee group for which flex credit parameters were defined on BN08.1. All Groups Type X to run the update or report for all employee groups for which the flex credits parameters were defined on BN08.1. Select how you want to sort the report by group, user level, supervisor or employee. If you want to override the defined print order, select either alphanumeric (employee name) or numeric (employee number). If you leave this field blank, the application uses the order defined on Company (HR00.1). Update Select either Update or Report Only. If you select Update, BN145 creates a flex create record for each eligible employee. If you change flex credit parameters and re-run BN145 to Update. The application recalculates flex credits. You can recalculate flex credits using BN145 until you enroll employees in benefits.
Report Sequence Employee Sequence
CAUTION Run this form in Report Only first to review employee flex credits. Then run this report as Update. 5. Choose the Add function. 6. Submit the report.
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To View the flex credits an employee received for electing a benefit View the flex benefit periods for an employee Use Flex Benefits Inquiry (BN46.2) Flex Benefit Periods (BN46.1)
Manually Create EE Flex Credit Records

This procedure enables you to manually add flex credit records for an employee.You can also use this procedure to override automatically generated employee flex credit records. NOTE If your company has more than one flex plan, an employee can only be enrolled in only one of those plans. For each employee, the following appears on the form: annual salary, base dollars, number of flex credits given before benefit election, pre-tax dollar limits, and the total flex and pre-tax dollars. Base dollars are the flex credits given to every eligible employee in the flex plan. If the flex credits calculated for an employee are greater than the plans maximum or less than the plans minimum, the min./max adjustments increase or decrease the flex credits based on those parameters. Need More Details? Check out the following concepts: "What is a Flex Credit Record?" on page 213 "What are Flex Periods?" on page 213 "When is a Standard Time Record Created by a Flex Plan?" on page 214
STEPS
To manually create EE flex credit records

1. Access Employee Flex Credits (BN45.1). Figure 43. Form clip: Using BN45.1 to manually create employee flex credit records
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2. Enter information for employee inquiry. Consider the following fields. Company Employee Start Date Select the company. Select an employee. Type the employees flex credit record start date. An employee can have more than one flex credit record for the flex plan year. If an employee has multiple flex credit records the start dates cannot overlap. Flex Plan Select a flex plan. The flex plan of this field determines the flex credit the employee receives and the benefit plans for which the employee is eligible. 3. Choose the Add function 4. Enter additional employee information. Consider the following fields. Stop Date Type the stop date for this flex credit record. If you leave this field blank, the stop date defaults to the last day of the flex plan year. If you want to override the employees annual salary on which flex credits are based, type a new annual salary. The Benefits Administration application determines the salary used for flex calculations using the parameters defined in the Salary subform of Flex Credits (BN08.1). 5. Choose the Recalculate form function. This generates the fields that hold flex credit amount and pre-tax amounts. 6. Complete the Flex Credits section. Consider the following fields. Base Dollars This field displays the base dollar amount the company gives to the employee to buy benefits for the plan year. This value is the total of the base amount plus a percentage of the employees salary, as defined in Flex Credits (BN08.1). The number of credits an employee receives based on years of service displays; you can override this amount. Credits for years of service are added to the total flex credits available for the employee to buy benefits. The Benefits Administration application determines the years of service credits using the parameters defined in the Service Credits subform of Flex Credits (BN08.1).
Annual Salary
Service Credits
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Age Credits
The number of credits an employee receives based on age displays; you can override this amount. Credits for age are added to the total flex credits available for the employee to buy benefits. The Benefits Administration application determines age credits using the parameters defined in the Age Credits subform of Flex Credits (BN08.1).
Dependent Credits
The number of dependent credits an employee receives displays; you can override this amount. Credits for dependents are added to the total flex credits available for the employee to buy benefits. The Benefits Administration application determines the number of dependents using the Health Dependents field in the Benefits form tab of Employee (HR11.1). The Benefits Administration application determines dependent credits using the Dependents Credits subform of Flex Credits (BN08.1).
Lifestyle Credits
The number of credits an employee receives based on lifestyle points displays; you can override this amount. Credits for lifestyle are added to the total flex credits available for the employee to buy benefits. An employees lifestyle credits are defined in the Benefits form tab of Employee (HR11.1). The Benefits Administration application determines lifestyle credits using the parameters defined in Lifestyle Credits defined in Flex Credits (BN08.1).
7. If you want to override the total pretax dollars that an employee can use to buy benefits, type the new amount. 8. Choose the Change form function.
IMPORTANT If you override any field on BN 45.1, Flex Credit Calculation (BN145) will not calculate the employees flex or pretax dollars for the remainder of the flex plan year.
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To View the flex credits an employee received for electing a benefit View the flex benefit periods for an employee Use Flex Benefits Inquiry (BN46.2) Flex Benefit Periods (BN46.1)
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Chapter 13

This chapter focuses on those procedures you need to initially enroll your employees into benefit plans. STOP If you are enrolling employees into benefits under a flex plan, the employee must have a flex credit record. See " BN Enrollment: Enrolling Employees in Flex Plans" on page 211.
STOP If you want vacation benefits to update a time accrual plan, the employee must have a time accrual record. See the Time Management User Guide.
STOP If you want to enroll dependents verify that the following is done: dependents are defined in the HR application, dependents are flagged as Yes on BN00.1, and the plan is defined to allow dependents. See " Setup: BN Company" on page 33 and " Setup: Benefits Plan" on page 79.
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Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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TIP To skip directly to the procedures, see "Procedures in this Chapter" on page 225 The following concepts provide background and conceptual information for the procedures within this chapter. "How do I Enroll Employees into Benefit Plans?" on page 223 "What is an Eligibility Date?" on page 223 "What is a Start Date?" on page 224 "What Happens When I Override Salary?" on page 224
How do I Enroll Employees into Benefit Plans?

An employee is eligible for a plan if he or she has met the plans employee group and or benefit postal code eligibility criteria. You enroll eligible employees by creating employee benefit records. Each employee benefit record includes specific information about an employees enrollment in a particular benefit plan, including effective dates, coverage level, and contribution amount. After you have set up your benefit plans and established employee flex credit records for those employees who may enroll in flex benefits, you are now ready to perform an initial enrollment of employees. You can enroll employees into benefit plans using the following methods: Automatically enroll eligible employees in default plans with the appropriate default coverage and default contribution Manually enroll multiple employees in plans or enroll one employee in multiple plans Using Employee Self-Service via the web, where the employees can enroll themselves
When you enroll an employee into a benefit plan, employee and company deductions are created. The benefits start and stop dates are used to control the deductions. For flex benefit plans, the application creates or updates an employees standard time record. For more information on employee standard time records, see the Payroll User Guide.
What is an Eligibility Date?

This date determines when an employee is qualified to enroll into the benefit plan. There are two major considerations concerning eligibility dates: The eligible date for the employee is calculated from the entry rules defined for the plan. See " Setup: Benefit Entry Rules" on page 113 for more information. Chapter 13 BN Enrollment: Enrolling Employees in Benefit Plans 223
An employee cannot enroll in a benefit plan with a start date prior to their eligible date. They can enroll with a later date, provided the date complies with entry points on the plans entry rules.
Example
If the employees eligible date for the benefit is June 1, 2000, the start date for the benefit can be June 1, 2000 or any later date that qualifies with the entry rules.
What is a Start Date?

All employee benefit records have a start date to signify when the enrollment (or participation) begins. This date becomes the effective date for the deductions created by the enrollment. You can enter the date at the time you enroll employees into benefit plans. If you decide not to specify a start date at the time of enrollment, the employees eligible date will default (according to the plan entry rules). The start date can never be before the employee is eligible for the benefit. It can be after the employee is eligible if the date qualifies with the entry rules on the plan.
Example
The start date for your health insurance is May 1, 2000. You are entering an employee who is not eligible until June 1, 2000, the application will display a message that the employee is not eligible until June 1, 2000. To enroll the employee you must use a start date of June 1, 2000 or later.
What Happens When I Override Salary?

You may have special situations you need to override an employees salary for benefit purposes. For example, your life insurance policy has coverage based on employee salary. You have a newly-hired, commissioned employee, and you want to base the insurance benefit on a higher salary than what the plan will use to calculate coverage. When you enroll this employee, you can override their salary by entering a specific salary amount. When you override an employees salary there are consequences that affect future benefit updates. The salary amount is stored as an overridden value, and the benefit update programs will not recalculate coverage for any future salary changes unless the override is removed. If you find you are overriding salary for a large number of employees, you may want to reconsider the set up of your benefit plan to determine if there is a more efficient way for the application to determine covered salary.
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The following procedures enable you to initially enroll employees into benefit plans. Generating Benefit Enrollment Forms Enrolling Employees Automatically into Default Plans Manually Enrolling an Employee into Multiple Plans Enrolling Dependents Enrolling Multiple Employees into Plans Manually Assigning Beneficiaries to a Plan Tasks to create benefit election or confirmation forms for your employees. Tasks to enroll many eligible employees into benefit plans and into default plans. Tasks to enroll an employee into benefit plans by plan type. Tasks to enroll employee dependents into benefit plans. Tasks to add multiple employees into benefit plans. Tasks to assign beneficiaries for an employees disability, employee life, defined benefit and defined conribution benefits. Tasks to define each saving bonds possible owner, co-owner and beneficiary purchase by an employee.
Assigning Savings Bond Beneficiaries
Generating Benefit Enrollment Forms

This procedure enables you to run a report to create benefit election and confirmation forms. This report displays the plans in which an employee is eligible, the plans which an employee is enrolled in or both.
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STEPS
To generate benefit enrollment forms

1. Access Benefit Election Form (BN245). Figure 44. Form clip: Using BN245 to generate benefit enrollment forms
2. Complete the information in the Parameters section. 3. If you want to create a data file so you can use to export this information into an external software product, select either Both Report and CSV or CSV Only in the Report Option field. 4. Choose the Add function. 5. Submit the report.
Enrolling Employees Automatically into Default Plans

Use this procedure to enroll employees in default plans with default coverage and contributions. You can also use this procedure to list the employees eligible for benefit plans. You can use the report to display all employees in a company or for employees in a process level, a processing group, or an employee group. In this procedure you can indicate the date you want the application to use to determine the appropriate plans and eligibility criteria. For a plan with years-of-service measured in hours, the application uses each employees pay history to determine whether the employee has met the plans years of service requirement on this date. IMPORTANT If you enroll an employee during a payroll cycle after Earnings and Deduction Calculation (PR140) runs, and you want to include the deductions from the new benefits in the current payroll run, change the employees time records to error status and re-run PR140.
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Need More Details? Check out the following concepts: STEPS "How do I Enroll Employees into Benefit Plans?" on page 223 "What is an Eligibility Date?" on page 223 "What Happens When I Override Salary?" on page 224
To automatically enroll employees into default plans

1. Access Mass Benefit Add (BN101). Figure 45. Form clip: Using BN101 to enroll employee into default plans
2. Type the name of the job in the Job Name field. 3. Type a job description in the Job Description field. The job description helps you identify a batch job by providing additional information. 4. Complete the information in the Parameters section. Consider the following fields. Company Name Plan Type Select the company for the plan. Select the plan type you want to include in the report or update. You must select at least one plan type. Select the specific benefit plan you want to include in the report or update. If you leave this field blank, the report or update includes all plans of the benefit plan type(s) you selected. Processing Group If you want to include benefits for only those employees in a particular processing group, select the processing group. NOTE If you select a processing group, leave the Process Level and Employee Group fields blank.
NOTE If an employee benefit already exists with a future effective date, the application will add another benefit record with a stop date one day prior to the start date on the record that already exists.
Plan
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Process Level
If you want to include benefits for only those employees in a particular processing level, select the process level. NOTE If you select a process level, leave the Processing Group and Employee Group fields blank.
Employee Group
If you want to include benefits for only those employees in a particular employee group, select the employee group. NOTE If you select a processing group, leave the Process Level and Processing Group fields blank.
As of Date
Type the date you want the application to use to determine the appropriate plans and eligibility criteria. If you select No for the Use Eligibility Date field, the application uses this date as the benefit start date for all employees eligible for the benefit as of this date. All employees updated will have the same benefit start date (enrollment date).
Use Eligibility Date
Select Y(Yes) if you want each employee enrolled on his or her own eligibility date. Select N(No) if you want all your employees enrolled on the As of Date.
Create Dependents
Select either Y(Yes) or N(No) to indicate if you want to add coverage for each of an employees eligible dependents. If a dependents age exceeds the dependent or student ages defined for the plan, coverage for the dependent is not added.
Create Investment
Select either Y(Yes) or N(No) to indicate if you want to add a investment account distribution for defined contribution benefits. If you select Yes, the application will use the default investment option defined on the plan.
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Date Range
Type the beginning and or the ending date of a date range to include only employees who are eligible in the date range. If you type only a beginning date, employees with eligibility dates equal to or later than the beginning date will be included. If you type only an ending date, employees with eligible dates equal to or earlier than the ending date are included. If you select Yes for Use Eligibility Date and you also type a date range, the application will only add benefits for employees with eligibility dates within the date range. This is used to control the addition of future-dated benefits. You may only want to add those benefits for which the employee is eligible during the next month. If you select Yes for Use Eligibility Date and you leave the date range blank, benefits are added for all employees on their calculated eligibility date.
Select if you want the report sorted by employee, or process level/department. If you select employee in the Report Sequence field, select how you want employees sorted either alphanumeric (employee name) or numeric (employee number). Select either Update or Report Only. If you select Report Only the application lists employees with their eligibility dates. If you select Update, the application creates benefits for eligible employees and lists the new benefits.
Update
CAUTION Run in Report Only to review the accuracy of the employee enrollments. Then run this report in Update mode. 5. Choose the Add function. 6. Submit the report.
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To Enroll employees based on add rules Use Employee Plan Update (BN100) See "What Happens When I Add Benefits Using Automation Rules?" on page 250 for more information.
Manually Enrolling an Employee into Multiple Plans

This procedure outlines tasks to enroll an employee in benefit plans by plan type. The plans for which an employee is eligible display on the form. Plans display according to the benefit process order that applies to the employee. If no benefit process order applies to the employee, plans appear in alphabetical order by plan type. See " Setup: BN Preliminaries" on page 45 for more information. You can only add employee benefit with using the Enrolling an Employee Manually into Multiple Plans, procedure. To change or stop benefits, see "Stopping EE Benefits" on page 259 or "Manually Changing EE Benefits" on page 260. IMPORTANT If you enroll an employee during a payroll cycle after Earnings and Deduction Calculation (PR140) runs and you want to include the deductions from the new benefits in the current payroll run, change the employees time records to error status and rerun PR140.
Need More Details? Check out the following concepts: "How do I Enroll Employees into Benefit Plans?" on page 223 "What is an Eligibility Date?" on page 223 "What is a Start Date?" on page 224 "What Happens When I Override Salary?" on page 224
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Figure 46. Procedure flow: Enrolling an Employee into Multiple Plans

1 Access Employee Benefit Entry (BN31.2)
2 Select company
3 Select the employee
4 Type the date
5 - Optional Select plans 6 Choose Inquire function 7 - Optional Type start date 8 Enter plan information
9 - Optional Complete the More tab
10 - Conditional Identify investment accounts
STEPS
To enroll an employee into multiple plans

1. Access Employee Benefit Entry (BN31.2).
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Figure 47. Form clip: Using BN31.2 to enroll an employee into multiple plans
2. Select the company from the Company field. 3. Select the employee you want to enroll from the Employee field. 4. Type the date you want to use to determine the appropriate plans and eligibility criteria for employees, in the As of date field. Plans that have a stop date before this date do not appear. If you leave this field blank, the current system date defaults. 5. If you want to limit which plans appear on the form, select the desired types in the Plan Type fields. TIP Plans in which the employee is already enrolled will have an asterisk (*) beside them. TIP Drill around on any field in a line for a given plan to view the coverage options available. 6. Choose the Inquire function. The plans for which an employee is eligible appear on the display. 7. If you want a different start date than what the application uses, type the new date. 8. Enter the information for those plans in which you want to enroll an employee. Enter information in the fields according to the table below. You will enter information only in one field per plan. If the Plan Type is Coverage Options (1) (Medical/Dental) Then Select the coverage option in the Opt field. If the plan is defined with a default coverage level, you may leave this field blank and the coverage will default. Leave the remaining fields blank, unless you want to use another start date.
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If the Plan Type is Coverage Amounts (2) and calculation type Multiple of Salary (LIfe/Disability)
Then Type the multiple of salary in the Multi field. If the plan is defined with a default coverage level, you may leave this field blank and the coverage will default. Leave the remaining fields blank, unless you want to use another start date. You can also enter a different salary in the Sal, Annual field.
Coverage Amounts (2) and calculation type Supplemental
Type the coverage amount in the Cov, PayPer field. If the plan is defined with a default coverage level, you may leave this field blank and the coverage will default. Leave the remaining fields blank, unless you want to use another start date.
No Coverage and the contribution amount is a percentage or amount
Type the employees annual contribution or percentage contribution, in the Sal, Annual field. Leave the remaining fields blank, except if you want to use another start date.
No Coverage and the contribution amount is an amount
Type the employees per pay period contribution, in the Cov, PayPer field. Leave the remaining fields blank, unless you want to use another start date. If the benefit is under a flex plan (contribution limits) and this is a partial year enrollment, enter the number of times the deduction should be taken in the Opt field.
9. If you want to specify if the contribution entered should be an amount or percent, taken on a pre-tax or after-tax basis; to identify if the employee is a smoker; or that you require evidence of insurability, complete the More section. Consider the following fields.
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Pct,Amt
Select either amount or percent. If the plan specifies only an amount or only a percent contribution, when you add the benefit it will default to that option. Select the value that indicates whether the employee wants to contribute on a pretax basis, an after-tax basis, or both. The value of this field determines how the employees contribution is split in the Pretax and After-Tax fields in the More detail tab. If you select Both, you must enter the pretax and after-tax amounts on the More Detail tab. If you leave this field blank, the default tax type defaults. The default tax type is defined in the Default Tax Type field of the contribution form for this plan.
Pre,Aft
10. To identify those investment accounts for a defined contribution, select the Inv button. This button only appears for those plans that allow investment choices. 11. Choose the Add function.
Options for enrolling employees into multiple plans

The following options are available from Employee Benefit Entry (BN31.2). Choose the Dep button to access Dependents (HR13.2). Use this form to enroll employee dependents. See "Enrolling Dependents" on page 240. Choose the Benef button to access Beneficiaries (BN47.1). Use this form to assign beneficiaries to a plan. See "Assigning Beneficiaries to a Plan" on page 241. Choose the SB Benef button to access Saving Bond Beneficiaries (BN48.1). Use this form to assign saving bond beneficiaries. See "Assigning Savings Bond Beneficiaries" on page 241. Choose the Comment button to enter any comments. Choose the Added Ben button to verify that all the employees information was created when a new benefit was added.

To List employees enrolled in a benefit plan List all benefits in which employees are enrolled Create personalized benefit statements for employees 234 Chapter 13 BN Enrollment: Enrolling Employees in Benefit Plans Use Plan Participant Report (BN230) Employee Benefit Report (BN231) Benefits Statement (BN232)
To List plan participants for Defined Benefit and Defined Contribution plans Create benefit statements to estimate the cost of employee benefits List employees whose benefits have not been completely added for the flex plan year List employees who have not selected benefits or those who have not completed flex benefit selections for the flex plan year Display plans an employee is enrolled Display an employees annual contributions and deductions in a benefit plan Display participants of a plan as of a specific date. Display an employees flex periods Display an employees use of flex and pretax dollars for a flex benefit period
Use Participation Report (BN236)
One Page Benefit Statement (BN242) Flex Missing Benefits Reports (BN246) Benefit Exception Report (BN325)
Employee Benefit Summary (BN51.1) Employee Benefit Detail (BN51.2)
Current Plan Participants (BN50.1) Flex Benefit Periods (BN46.1) Flex Benefits Inquiry (BN46.2)
Enrolling Multiple Employees Manually

This procedure outlines tasks to add multiple employees into benefit plans. You can only add employees to benefit plans using this procedure. If you want to change or stop benefits for employees, see " BN Enrollment: Maintain Employee Enrollments" on page 243. IMPORTANT If you enroll an employee during a payroll cycle after Earnings and Deduction Calculation (PR140) runs and you want to include the deductions from the new benefits in the current payroll run, change the employees time records to error status and rerun PR140.
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Need More Details? Check out the following concepts: "How do I Enroll Employees into Benefit Plans?" on page 223 "What is an Eligibility Date?" on page 223 "What is a Start Date?" on page 224 "What Happens When I Override Salary?" on page 224
Figure 48. Procedure flow: Enrolling manually multiple employees

1 Access Employee Benefit Entry (BN31.2)
2 Select company
3 - Optional Type start date
4 Select Employee, Benefit Plan Type and Benefit Plan
5 Enter plan information
6 - Optional Complete the More section
7 Choose the Add function
STEPS
To enrolling manually multiple employees

1. Access Speed Benefit Entry (BN31.1). 2. Select the company from the Company field. 3. If you want all added benefits to have the same start date, type the default start date in the Start Date field. If you leave this field blank, each employees eligibility date becomes the default.
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4. Select the Employee, Benefit Plan Type, and Benefit Plan for the enrollment you want to add, in fields Employee, PL TP, and Plan Code. 5. Enter information in the fields according to the table below. You will enter information only in one field per plan. If the Plan Type is Coverage Options (1) (Medical/Dental) Then Select the coverage option in the Opt field. Leave the remaining fields blank, except if you want to use another start date. Coverage Amounts (2) and calculation type Multiple of Salary (Life/Disability) Type the multiple of salary in the Multi field. Leave the remaining fields blank, except if you want to use another start date. You can also enter a different salary in the Sal, Annual field. Type the coverage amount in the Cov, PayPer field. Leave the remaining fields blank, except if you want to use another start date. You can also enter a different salary in the Sal, Annual field. No Coverage and the contribution amount is a percentage or amount Type the employees annual contribution or percentage contribution, in the Sal, Annual field. Leave the remaining fields blank, except if you want to use another start date. No Coverage and the contribution amount is an amount Type the employees per pay period contribution, in the Cov, PayPer field. Leave the remaining fields blank, except if you want to use another start date. If the benefit is under a flex plan (contribution limits) and this is a partial year enrollment, enter the number of times the deduction should be taken in the Opt field. 6. In the PreAft (Pretax or After-tax) field, select the value that indicates whether the employee wants to contribute on a pretax basis, an after-tax Benefits Administration User Guide Chapter 13 BN Enrollment: Enrolling Employees in Benefit Plans 237
Coverage Amounts (2) and calculation type Supplemental
basis, or both. The value of this field determines how the employees contribution is split in the Pretax and After-Tax fields on the More detail tab. If you leave this field blank, the default tax type defaults. The default tax type is defined in the Default Tax Type field of the contribution form for this plan. 7. In the SM (Smoker) field, indicate the smoker status. 8. From the More tab, consider the following fields. If you selected Both in the PreAft field, you must enter the pre-tax and after-tax amounts. PreTax If the employee elected both a pretax and after-tax contribution, type the employees pretax contribution. The application uses the Pretax field to determine the next amount for the employees pretax deduction. If the employees contribution is only pretax, leave this field blank. The total annual contribution defaults to the Pretax field based on the Pre Aft field. After-Tax If the employee elected both a pretax and after-tax contribution, type the employees after-tax contribution. If the employees contribution is only after-tax, leave this field blank. The total annual contribution defaults to the After-Tax field based on the Pre Aft field. Stop Date Type a date to terminate the employees coverage. The stop date defaults as the end date of deductions created in Employee Deduction (PR14.1) for this plan. If the benefit plan is tied to a flex plan, the flex plan year stop date will default. You can stop a benefit with a future date. That is, you can type a future stop date on the benefit at any time. The employees benefit and deductions will stop on that date. 9. Choose the Add function.
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Options for manually enrolling multiple employees

The following options are available from Employee Benefit Entry (BN31.2). Choose the Benef button to access Beneficiaries (BN47.1). Use this form to assign beneficiaries to a plan. See "Assigning Beneficiaries to a Plan" on page 241. Choose the SB Benef button to access Savings Bond Beneficiaries (BN48.1). Use this form to assign saving bond beneficiaries. See "Assigning Savings Bond Beneficiaries" on page 241.

To List employees enrolled in a benefit plan List all benefits in which employees are enrolled Create personalized benefit statements for employees List plan participants for Defined Benefit and Defined Contribution plans Create benefit statements to estimate the cost of employee benefits List employees whose benefits have not been completely added for the flex plan year List employees who have not selected benefits or those who have not completed flex benefit selections for the flex plan year Display plans an employee is enrolled Display an employees annual contributions and deductions in a benefit plan Display participants of a plan as of a specific date. Display an employees flex periods Display an employees use of flex and pretax dollars for a flex benefit period Use Plan Participant Report (BN230) Employee Benefit Report (BN231) Benefits Statement (BN232) Participation Report (BN236)
One Page Benefit Statement (BN242) Flex Missing Benefits Reports (BN246) Benefit Exception Report (BN325)
Employee Benefit Summary (BN51.1) Employee Benefit Detail (BN51.2)
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Enrolling Dependents
This procedure enables you to enroll dependents into benefit plans after you have enrolled employees. The application will generate possible start and stop dates for dependents based on the employees start date and the maximum dependent and student ages defined on the plan. You can override the system-generated dates with later start dates if desired. STOP Before you can enroll dependents, you need to enroll the employee into the benefit plan and choose a benefit option that covers dependents.
STEPS
To enroll dependents
1. Choose the Dep button on Employee Benefit Entry (BN31.2), to open Dependents (HR13.2). Figure 49. Form clip: Using HR13.2 to enroll dependents
2. Select the Add line function for those dependents you want to enroll. TIP If you want to enroll dependents at a later date, use Dependent (HR13.1), Coverage tab, and choose the Benefits button. NOTE An asterisk (*) appears next to the detail line, indicating the dependent is enrolled. 3. If you want a different start date than what the application uses, type the new date. You cannot enroll a dependent with a date earlier than the employees start date.
4. Choose the Add function.

To List dependents Use Dependent Benefit Listing (BN321)
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Assigning Beneficiaries to a Plan

This procedure enables you to assign beneficiaries for an employees disability, employee life, defined benefit and defined contribution benefits. STOP Before you can add beneficiaries, you need to enroll the employee into the benefit plan.
STEPS
To assign beneficiaries
1. Choose the Benef button, Employee Benefit Entry (BN31.2), to open Beneficiaries (BN47.1).
TIP There is no field level security asigned to the beneficiarys Social Number. You carefully consider security access to this form to protest the beneficiary social numbers.
2. Select the benefit type you want to assign beneficiaries. 3. Select the benefit plan. 4. Type the beneficiarys name in the Last Name, First Name and MI fields. 5. Enter the beneficiary information. Consider the following fields. Percent Amount Amount Select if benefits are assigned as a percent of the total benefit or as a flat dollar amount. Type the percent or dollar amount you want paid to the beneficiary. NOTE The total percent cannot exceed 100. Type Primary or Contingent Select if the beneficiary is an individual or a trust. Select if the beneficiary is a primary or contingent.
6. Choose the Add button.

To List employee beneficiaries for disability, employee life, defined contribution, and defined benefit plans Use Beneficiary Listing (BN247)
Assigning Savings Bond Beneficiaries

This procedure defines each possible owner, co-owner and beneficiary for savings bonds purchased by an employee.
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STEPS
To assign investment choices

1. Choose the SB Benef button, on Employee Benefit Entry (BN31.2), to open Savings Bond Beneficiaries (BN48.1). 2. Type the code that represents the savings bond owner, co-owner, or beneficiary. 3. Complete the form. Consider the following fields. Dependent If the owner or beneficiary is the employees dependent with a record in Dependent (HR13.1), select the dependent. If the person is not an employee or a dependent from HR13.1, type the persons social number. If you leave this field blank, information will default from Employee (HR11.1) or Dependent (HR13.1). 4. Type the owner or beneficiarys last name, first name and initial in the Name field. 5. Type the owner or beneficiarys address in the provided fields. If the dependent has a record in Dependent (HR13.1), you can override the address on HR13.1. 6. Choose the Add function.
Social Nbr

To List the sequence savings bonds are purchased for owner, co-owners and beneficiaries of savings bonds Purchase savings bonds Use Savings Bond Sequence Listing (BN248) Savings Bond Update (BN140) See "Updating Stock Purchases" on page 312.
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Chapter 14

This chapter focuses on the procedures that enable you to maintain your employees enrollments. If you use personnel actions and employee groups, you need to verify that on the Individual Action (PA52.1-5), the Update Benefits indicator is set to Yes. If the indicator is set to No, change records are not created. See the Personnel Administration User Guide for more information.
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Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
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Chapter 14 Enrollments
BN Enrollment: Maintain Employee

TIP To skip directly to the procedures, see "Procedures in this Chapter" on page 251 The following concepts provide background and conceptual information for the procedures within this chapter. Need More Details? Check out the following concepts: "What are Benefit Change Audit Records?" on page 245 "How does Lawson Process Benefits?" on page 246 "What are Stop Dates?" on page 246 "What Must I Consider When Manually Changing a Flex Benefit?" on page 247 "How Do I Make Flex Mid-Year Changes?" on page 247 "What Happens when I Stop Benefits Using Automation Rules?" on page 248 "What Happens when I Change Benefits Using Automation Rules?" on page 249 "What Happens When I Add Benefits Using Automation Rules?" on page 250
What are Benefit Change Audit Records?

When certain types of changes occur for an employee, the Benefits Administration application creates a record called a benefit change audit record. The application will create this record when a personnel action defined to update benefits changes employee data that may affect benefits. The record created determines which benefits are updated in Lawson. If you do not want benefits to be updated, you can hold or delete the benefit change audit record that is created. See the Personnel Administration User Guide for more information on personnel actions. The following changes will cause the application to create a benefit change audit record: Adding or removing an employee from an employee group used for benefits Changing the employees postal code Changing an employees salary. Changes to all of the following information is considered a change to an employees salary: job code, FTE (Full-Time Equivalent), rate of pay, step, grade, schedule, salary class or benefit salaries 1 through 5 Changing the employees pay frequency Changing one of the following: employees birthdate, age, years of service or smoking status Chapter 14 BN Enrollment: Maintain Employee Enrollments 245
To create a benefit change audit record, employee changes must be made using personnel actions. If the membership criteria for an employee group used for benefits is changed, benefit change audit records will be created for employees who are added or removed from the group when you update the group. Changes made directly to employee master records will not create benefit change audit records. Changes to benefit enrollments are entered into Lawson as a stop and start of the benefit record. If a benefit plan has entry rules defined with specific re-enrollment points, the date used to re-add the benefit must comply with the rules.
What are Stop Dates?

The stop date entered on an employees enrollment is the date a benefit ends. This date also becomes the end date on the benefits deductions. For changes to employees benefits that you know ahead of time, a future stop date can be entered for the benefit. If an employees benefit changes, Lawson recommends that you do not change the employees current benefit. Instead, stop the current benefit and re-add the employee in the same plan with the new coverage or contributions. Re-adding the benefit provides an online audit trail of changes.
Example of future stop date

In the beginning of May 2000, an employee who currently has health coverage notifies the benefits department that she will be going on to her spouses health plan effective the first of July 2000. The stop date of June 30, 2000 would be entered upon notification and the employees benefit and deductions would not stop until that date.
Example of changing a current benefit

All benefit changes at River Bend Hospital need to be effective by the first of the month. When an employee notifies the benefits department in mid-July 2000 that with the birth of her first child she wants to change from single + one to full family coverage. The benefits department will input a stop date of July 31, 2000 on her current health benefit and add another benefit for the same plan with the full family option for August 1, 2000. This will leave an audit trail of when the employee changed coverage from single + one to full family.
How does Lawson Process Benefits?

When you update benefits automatically, Lawson updates benefits in the following sequence:
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1. Stop benefits for which an employee is no longer eligible. 2. Change benefits in which an employee is enrolled, but who now qualifies for different coverage, contributions, or general ledger overrides. To change a benefit, the application stops and re-adds the benefit. 3. Add the employee into plans for which the employee has become eligible. The application enrolls employees into default plans with the applicable default coverage, default contribution, and default contribution tax type defined for each plan. If an employee has dependents, you can create dependent benefit coverage for default plans that cover dependents.
What Must I Consider When Manually Changing a Flex Benefit?

How you stop or change benefits under a flex plan depends on how the benefit plans are set up. If your benefit plans with negative contributions are treated separately, or your benefit plans with positive contributions do not spend flex credits, each benefit plan under the flex plan is independent. Therefore, stopping one benefit does not affect other benefits. If, however, benefits with negative contributions are combined as one total or benefits with positive contributions spend flex and pretax dollars, the order in which you stop flex benefits is important. After you free flex credits by stopping a benefit that spends flex credits, or by changing a benefit so it spends fewer flex credits, you can change other benefits to spend flex credits rather than pretax dollars. If your flex plan lets an employee change his or her benefits multiple-times during a flex plan year, Lawson recommends that you stop and reenter all of an employees benefits each time an employees benefit changes. By doing so, you can easily see which benefits are in effect during each flex benefit period and how flex credits were spent.
Example
Carol, an ABC Foods employee, has a dental benefit that gave her $200 in flex credits and a health benefit that cost her $200 in flex credits. ABC Foods defined the benefits so that the Benefits Administration application uses the flex credits from the dental benefit to pay for the health benefit. Carol elects to stop the dental benefit; to do so, she must have $200 in flex credits. ABC Foods frees the flex credits by stopping the health benefit before stopping the dental benefit.
How Do I Make Flex Mid-Year Changes?

There are two approaches to making flex mid-year changes. You can stop and re-add all benefits, or stop and re-add only the affected benefits. Benefits Administration User Guide Chapter 14 BN Enrollment: Maintain Employee Enrollments 247
The decision to stop and re-add all benefits tied to the same Flex plan or stop and re-add only those affected benefits depend on the following: The number of changes per employee during the plan year The number of benefits tied to each employee The automation programs used during the plan year
Advantages and Disadvantages for stopping and adding all benefits

The following are the advantages: Flex periods remain in sync No Flex period edit Re-spend flex credits if stopping benefits frees flex credits
The following are the disadvantages: Possible numerous stops and re-adds for one employee Insurance carrier report possibly affected by unnecessary stops and adds
Advantages and Disadvantages for stopping and adding only affected benefits
The following are the advantages: Less manual maintenance Fewer unnecessary stops and adds in reports
The following are the disadvantages: A Flex period edit will occur when other changes are made to flex benefits tied to an employee
See "What are Flex Periods?" on page 213, for more information.
What Happens when I Stop Benefits Using Automation Rules?

Benefits are stopped based on termination rules, if a personnel action causes an employee to be ineligible for the benefit. An employee is no longer eligible for a benefit if either of the following is true: The employee is deleted from an employee group used to qualify an employee for the plan The employees postal code changes so that it no longer matches one in the postal code table for the plan
If an employee is deleted from the employee group assigned to a flex plan, the employees flex credit record and all the employees benefits under the flex plan stop.
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The application calculates the stop date for a benefit using the Stop Date, Months, and Days information defined in the rule. If no termination rule exists, the affected employee benefits are listed by the update program but not terminated. A COBRA record is created if the termination rule is defined as a COBRA occurrence. The employees occurrence date is the day after the employees calculated benefit stop date. The Benefits Administration application uses the occurrence date and termination date to define a COBRA period. If the benefit stop date falls within an existing COBRA period, a new COBRA record is not created. See "What are Benefit Automation Rules?" on page 197 for more information.
What Happens when I Change Benefits Using Automation Rules?

The Benefits Administration application uses Change Rules to update employee benefits for the following: The employees membership in an employee group changes, qualifying him or her for different coverage, contributions, or general ledger overrides in the same plan. The employees salary changes and the employee is still eligible for the plan. The salary used for the calculations is the employees current salary. Salary changes are changes made to the employees job code, FTE (Full-Time Equivalent), rate of pay, step, grade, schedule, salary class, or benefit salaries 1 through 5. The employees pay frequency changes.
NOTE In the Benefit application there is a program that updates benefits for salary changes without using change rules. Use this program when coverage or contributions are determined by an employees salary as of the first of a month or a specified date. For more information, see "Updating Automatically for Age, Salary, or Years of Service" on page 256
To determine the date the change affects an employees benefits, the application uses the date defined in the change rules. The application stops the employees benefit the day before the date defined in the change rules, and re-adds the benefit with a start date equal to the calculated effective date. For flex benefits, if an employee switches between groups used as eligibility criteria for flex credit calculations, or if the salary used for flex credit calculation changes, the Benefits Administration application does the following: Stops the employees benefits under the flex plan Stops the employees flex credit record Adds a new flex credit record for the employee based on the employees new employee group or new salary Re-adds the employees flex benefits with the same elections
See "What are Benefit Automation Rules?" on page 197 for more information.
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What Happens When I Add Benefits Using Automation Rules?

The Benefits Administration application uses Add Rules to calculate each employees eligibility date and, if appropriate, to enroll employees in a plan or flex plan. Employees are enrolled in default benefit plans only in the following situations: The employee is added to an employee group used for eligibility criteria when you defined the plan
NOTE You can use Add Rules for new hires.
The employees benefit postal code changes to match one in the plans postal code table If an add rule exists for the personnel action, the application calculates the start date for a benefit using the From Date, Months, Days, Hours, Pay Class, and Entry Type information defined in the add rules. If no add rule exists, the application lists, but does not enroll, employees who have become eligible to enroll in the benefit. The Benefits Administration application uses the benefit process orders defined to determine the order in which an employee is enrolled in benefit plans. Benefits are added for default plans based on the rules defined for each plan. Those rules are: Always default By plan type An employee is enrolled in the plan if he or she is eligible An employee is enrolled in the plan if the employee has no other benefits of this type (for example, no other health plan) An employee is enrolled in the plan if the employee has no other benefits from this category (for example, no other medical health plan) An employee is not enrolled in the plan but is listed as being eligible for the plan
By plan category
Do not default
For flex benefits, if an employee is added to the employee group used for a flex plans eligibility, the application Adds a flex credit record for the employee based on the employees new employee group -and Adds default benefits under the flex plan for the employee
See "What are Benefit Automation Rules?" on page 197 for more information.
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You use the following procedures to change, add, or delete employee benefits plans. Holding or Deleting Benefit Change Records This procedure displays those changes that the Employee Benefit Update uses to determine which benefits are updated. You can identify those employees for whom you do not want to process the change. Use this procedure to add, change, and terminate employee benefits based on changes made by personnel actions. This procedure updates employee benefits for a plan that has coverage or contributions based on age, salary, or years of service. Use to stop an employees benefit. Use to manually change employees coverage or contribution in a benefit plan. Use to change flexible spending account information. Use to add flex credits for an employee. You can also use this procedure to override application-calculated flex credits or annual salary. Use to change an employees dependent benefits.
Updating Automatically Based on Benefit Automation Rules
Updating Automatically for Age, Salary, or Years of Service
Stopping EE Benefits Changing Manually EE Benefits
Changing Flexible Spending Account Changing Flex Credits
Changing Dependent Benefits
Holding or Deleting Benefit Change Records

This procedure displays changes that the Employee Benefit Update (BN100) form uses to determine which benefits are updated. You can prevent BN100 from processing a change by holding or deleting the benefit change audit record. If you place a change on hold, BN100 will not process that record until you release it from hold. Deleting a benefit audit record will not impact the original change to the employee. It prevents the employees benefits from being updated for that change.
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Need More Details? Check out the following concepts: STEPS "What are Benefit Change Audit Records?" on page 245
To hold or delete benefit change records

1. Access Benefit Change Audit (BN35.1). Figure 50. Form clip: Using BN35.1 to hold or delete benefit change records
2. Select the company from the Company field. 3. Select the employee from the Employee field. 4. If you want to view only those changes on hold, select Yes on the Hold Flag field. If you want to display only changes not on hold, select No. Leave this field blank to display all records. 5. If you want to display changes on or after a specific date, type that date. The application will display on those changes based on the effective date of the personnel actions. 6. Choose the Inquire function. 7. Select the line action needed on the appropriate line. If Placing a change on hold Then Select the Change line function and select Yes in the Hold field. If you leave the Hold field blank, it defaults to No. If you select Yes, BN100 will not process this change until it is release from hold status. Removing a change from hold Deleting a change 8. Choose the Change function. Select the Change line function and select No in the hold field. Select the Delete line function.
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Updating Automatically Based on Benefit Automation Rules

This procedure outlines the tasks to automatically add, change, and terminate employee benefits based on changes made by personnel actions. Employee Change Benefit Update (BN100) uses the benefit change audit records from Benefit Change Audit (BN35.1) and the automation rules defined to determine which benefits to update. If a change affects a benefit but no automation rules are defined, the update program lists the benefit with an error message and will not update the benefit. Some employee changes appear on BN35.1 but will not trigger an update to the employees benefits. Those changes include changes to an employees birthdate, age, date used to calculate years of service (such as hire date or adjusted hire date), or smoker status. In addition, the application will not update employee benefits if the salary used for the coverage calculation was overridden on benefit entry. NOTE When you use personnel actions and employee groups, you need to set the update benefits indicator to Yes. If the indicator is set to No, change records are not created. Individual Action (PA52.1-5) and Action Update (PA100) from the Personnel Administration application are used when you use the Employee Change Benefit Update (BN100). IMPORTANT An employee must have benefits history for BN100 to consider changes to the employee. BN100 will not update new employees or employees newly eligible for benefits.
Need More Details? Check out the following concepts: "What are Benefit Change Audit Records?" on page 245 "What are Stop Dates?" on page 246 "How does Lawson Process Benefits?" on page 246 "What Happens when I Stop Benefits Using Automation Rules?" on page 248 "What Happens when I Change Benefits Using Automation Rules?" on page 249 "What Happens When I Add Benefits Using Automation Rules?" on page 250
STEPS
To update automatically based on benefit automation rules

1. Access Employee Change Benefit Update (BN100).
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Figure 51. Form clip: Using BN100 to update benefit automation rules
2. Type the name of the job in the Job Name field. 3. Type a job description in the Job Description field. The job description helps you identify a batch job by providing additional information. 4. Complete the form. Consider the following fields. Thru Date If you want to select those benefit change audit records with effective dates equal to or earlier than a specific date, type the specified date. If you want to update only a particular processing group, select the processing group. NOTE If you select a processing group, leave the Process Level and Employee Group fields blank. Process Level If you want to update only a particular process level, select the process level. NOTE If you select a process level, leave the Processing Group and Employee Group fields blank. Employee Group If you want to update only a particular employee group, select the employee group. NOTE If you select an employee group, leave the Processing Group and Process Level fields blank.
Processing Group
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Create Dependents
Select either Yes or No to indicate whether you want to add dependent benefits for benefits that are automatically added. BN100 calculates stop dates for non-spouse dependents when it adds the benefit based on the student and dependent ages defined for the plan. If a dependents age exceeds the dependent or student ages defined for the benefit plan, BN100 does not add coverage for the dependent.
Create Investment
Select either Yes or No to indicate whether you want to add investment account distributions for automatically added defined contribution benefits. All of the investment distribution will go into the default investment account defined on Benefit Plan (BN15.1).
Select if you want the report sorted by employee, process level and department. If you select employee in the Report Sequence field, select how you want employees sorted: either alphanumeric (employee name) or numeric (employee number). Select either Update or Report Only. If you select Report Only, the application lists the benefits that are impacted by the benefit audit change records being processed. Error messages will display by any benefits that will not be updated so you can review them and make corrections as needed. If you select Update, the application updates employee benefits based on the benefit change audit records and the benefit automation rules defined. The report includes all updated benefits and deductions, as well as benefits affected by benefit change audit records that are not updated because no automation rule exists. Benefit change audit records used by the program are deleted. Lawson recommends that you run the report as Report Only, review for accuracy, and then run in Update mode.
Update
5. Choose the Add function. 6. Submit the report.
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To Display plans an employee is enrolled Display an employees annual contributions and deductions in a benefit plan Display participants of a plan as of a specific date. Display an employees flex periods Display an employees use of flex and pretax dollars for a flex benefit period List employees current benefits Run a statement of an employees current benefits Use Employee Benefit Summary (BN51.1) Employee Benefit Detail (BN51.2)
Employee Benefit Report (BN231) Benefits Statement (BN232)
Updating Automatically for Age, Salary, or Years of Service

This procedure updates employee benefits for a plan that has coverage or contributions based on age or years of service. This procedure also updates benefits for benefit plans that use As of Date or First of Month to determine salary or update salary changes. You can update employee, COBRA participant, and retiree benefits. IMPORTANT If you are updating COBRA participants, update their benefits before the invoice period in which the changes are effective.
TIP If a benefit is based on an As of Date, update employee benefits before that date. If a benefit is based on the first of the month, update employee benefits before the first of each month. STEPS
Need More Details? Check out the following concepts: "How does Lawson Process Benefits?" on page 246 "What are Stop Dates?" on page 246
To update automatically for age, salary, or years of service

1. Access Plan Employee Update (BN102).
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Figure 52. Form clip: Using BN102 to update employee plan
2. Type the name of the job in the Job Name field. 3. Type a job description in the Job Description field. The job description provides additional information to help you identify the job. 4. Complete the information in the Parameters section. Consider the following fields. Company Name Flex Plan Plan Type Plan Select the company for the plan. If you want to update benefits under a flex plan select the flex plan. Select the plan type for which you want to update benefits. Select the benefit plan you want to update and associate with the plan type you selected in the previous field. If you leave this field blank, the report or update includes all plans of the plan type you selected. Processing Group If you want to update only employees in a particular processing group, select the processing group. NOTE If you select a processing group, leave the Process Level and Employee Group fields blank. Process Level If you want to update only employees in a particular process level, select the process level. NOTE If you select a process level, leave the Processing Group and Employee Group fields blank.
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Employee Group
If you want to update only employees in a particular employee group, select the employee group. NOTE If you select an employee group, leave the Processing Group and Process Level fields blank.
Thru Date Age, YOS, Salary
Type the date through which you want to update benefits. Select either Yes or No to indicate if you want to update benefits based on age, years of service (YOS), or salary, in the Age, YOS, Salary fields. You can select Yes for only one of these at a time.
Print deduction
Select either Yes or No to indicate if you want to print the updated deductions on the report. If you leave the field blank it defaults to Yes. NOTE If you run the job as Report Only, new deductions will not be printed since benefit are not actually updated.
Select if you want the report sorted by employee or process level and department. If you select employee in the Report Sequence field, select how you want employees sorted: either alphanumeric (employee name) or numeric (employee number). Select either Update or Report Only. If you select Report Only the application lists those benefits needing updating. If you select Update, the application updates benefits and lists the updated benefits and deductions if designated.
Update
IMPORTANT First run this form in Report Only to review employee flex credits. Then run this report in Update. 5. Choose the Add function. 6. Submit the report.
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Stopping EE Benefits
This procedure outlines the tasks to stop an employees benefit. To stop an employees benefit, you must enter a stop date for the benefit. This leaves an audit trail of past benefit enrollments. If you need to delete a benefit instead of stopping it, you dont need to enter a date. Deleting a benefit leaves no audit trail that an employee was ever enrolled. A situation where you would want to delete, rather than stopping an employees benefit, is if the employee was enrolled in the wrong benefit. IMPORTANT You cannot delete an employee benefit if payroll history exists for the benefits deductions. If deduction history exists you need to stop, rather than delete, the benefit. You can determine which benefits display by specifying a date. Plans do not display that have a stop date before the specified date. When you stop an employees benefit, the Benefits Administration application stops deductions for the employee in Employee Deduction (PR14.1). If you stop a benefit plan under a flex plan, the application creates or updates the standard time record if one exists for the employee in Standard Time Record (PR30.1). If you re-add the benefit, the application creates new deductions for the employee in PR14.1, and creates a standard time record in PR30.1, if applicable.
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Need More Details? Check out the following concepts: STEPS "What are Benefit Change Audit Records?" on page 245 "What are Stop Dates?" on page 246 "How does Lawson Process Benefits?" on page 246
To stop an EE benefits
1. Access Employee Benefit Changes (BN32.1). Figure 53. Form clip: Using BN32.1 to stop an employees benefits
2. Select the company from the Company field. 3. Select the employee from the Employee field. 4. Type the date you want to use to determine which benefits you want to display in the As of date field. Plans do not appear that have a stop date before this date. If you leave this field blank, the current system date defaults. 5. If you want to limit which plans appear on the form, select the plan type in the Plan Type field. Leave Plan Type blank to display all plans. NOTE You can select Delete in the line action to delete a benefit. However, if the employee benefit has any payroll history for the benefits deductions, you cannot delete the benefit. 6. Choose the Inquire function. 7. Select Stop in the line action on the appropriate line. 8. Enter the stop date for the benefit. You can enter a future date if you want to. 9. Select the Change button.
Manually Changing EE Benefits

This procedure outlines the tasks to manually change an employees benefit. You can determine which benefits display by specifying a date. Plans do not display that have a stop date before the specified date. 260 Chapter 14 Enrollments BN Enrollment: Maintain Employee Benefits Administration User Guide
If an employees coverage or contributions change, you do not need to change the employees current benefit. Instead, stop the current benefit and re-enter the employee in the same plan with the new coverage and contributions. This provides an online audit trail of changes and maintains historical information.
WARNING Do not attempt to add, change, or stop a benefit deduction using Employee Deduction (PR14.1). You update all benefit deductions by updating the associated benefit enrollment. Need More Details? Check out the following concepts: "What are Benefit Change Audit Records?" on page 245 "What are Stop Dates?" on page 246 "How does Lawson Process Benefits?" on page 246 "How Do I Make Flex Mid-Year Changes?" on page 247 "What Must I Consider When Manually Changing a Flex Benefit?" on page 247
STEPS
To manually change EE benefits

1. Access Employee Benefit Changes (BN32.1). 2. Select the company from the Company field. 3. Select the employee from the Employee field. 4. Type the date you want to use to determine which benefits you want to display in the As of date field. Plans do not appear that have a stop date before this date. 5. If you want to limit the plans that appear on the form, select the plans in the Plan Type fields. Leave these fields blank to display all benefits. 6. Choose the Inquire function. 7. Choose the Add button at the end of the appropriate detail line for the benefit you are changing. Benefit Add (BN32.3) opens. 8. Type the new start date in the Start Date field. 9. Type the new coverage and contribution information for the plan. 10. Choose the Ok function. BN32.3 closes and the prior benefit is stopped on the day before the start date of the new benefit. If you want to view your recent changes, choose the Inquire function. If the As of Date is equal to or later than the start date of the new benefit, the stopped benefit will not display.
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Options for Changing Manually EE Benefits

If you want to override what the application calculates, use Employee Benefit Detail Changes (BN32.2) The following options are available from the Employee Benefit Changes (BN32.1). Choose the Dept button to access Dependents (HR13.2). Use this form to change employee dependent information. See "Enrolling Dependents" on page 240 for more information. Choose the Inv button to access Investment (BN36.1). Use this form to assign investment distributions for an employees contributions to a defined contribution plan. If you re-enroll an employee in a defined contribution plan because the employees contributions change, you need to re-assign investment distributions. Choose the Benef button to access Beneficiaries (BN47.1). Use this form to assign beneficiaries to a plan. See "Assigning Beneficiaries to a Plan" on page 241 for more information. Choose the SB Benef button to access Saving Bond Beneficiaries (BN48.1). Use this form to assign saving bond beneficiaries. See "Assigning Savings Bond Beneficiaries" on page 241 for more information.

Changing Flexible Spending Accounts

This procedure outlines those tasks to change a flexible spending account.
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Need More Details? Check out the following concepts: STEPS "What Must I Consider When Manually Changing a Flex Benefit?" on page 247 "How Do I Make Flex Mid-Year Changes?" on page 247
To change flexible spending account

1. Access Employee Benefit Changes (BN32.1). 2. Select the company from the Company field. 3. Select the employee from the Employee field. 4. Type the date you want to use to determine which benefits you want to display in the As of date field. Plans do not appear that have a stop date before this date. 5. If you want to limit which plans appear on the form, select the plan types in the Plan Type fields. 6. Choose the Inquire function. 7. Select the Change line function 8. Delete the information in fields Opt, Sal Annual and PT. 9. Choose the Change function. The application populates the Opt, Sal Annual and PT fields based on the contribution history. 10. Select Stop in the line action on the appropriate line. 11. Type the Stop date. 12. Choose Change function. 13. Choose the Add button. Benefit Add (BN32.3) opens. 14. Complete the form. Type the number of times the new deduction amount will be taken for the remaining plan year in the Opt field and enter the new per pay period or prorated annual amount 15. Choose Ok.

To Display plans an employee is enrolled Display an employees annual contributions and deductions in a benefit plan Display participants of a plan as of a specific date. Display an employees flex periods Display an employees use of flex and pretax dollars for a flex benefit period Use Employee Benefit Summary (BN51.1) Employee Benefit Detail (BN51.2)
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To List employees current benefits Run a statement of an employees current benefits
Use Employee Benefit Report (BN231) Benefits Statement (BN232)
Changing Flex Credits

This procedure outlines the tasks to change flex credits for an employee. If you used Flex Credit Calculations (BN145) to create flex credits, you can use this procedure to override the application-calculated flex credits or annual salary. Lawson recommends that you process changes to flex credits by stopping the current flex credit record and adding a new record with a new effective date. This maintains your audit trail of changes. You can change the information on an existing flex credit record if you do not reduce the employees total flex credits below what they are spending on benefits. STOP Before you stop a flex credit record for an employee, you must first stop all the benefits associated with the flex plan.
Need More Details? Check out the following concepts: "What Must I Consider When Manually Changing a Flex Benefit?" on page 247 " BN Enrollment: Enrolling Employees in Flex Plans" on page 211 "What are Flex Credits and Flex Credit Records?" on page 57
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STEPS
To change flex credits

1. Access Employee Flex Credits (BN45.1). 2. Select a company from the Company field. 3. Select the employee form the Employee field. 4. Type the employees flex credit record start date in the Start Date field. An employee can have more than one flex credit record for a flex plan year. If an employees has more than one flex credit record, the dates cannot overlap. 5. Select a flex plan in the Flex Plan field. The plan you select determines the credits the employee receives and the benefit plans for which the employee is eligible. 6. If you are stopping the flex credit record, type the new stop date. If you will be adding a new record with new information, the stop date should be one day prior to the start date to be used on the new record. 7. If you want to override the annual salary flex credits are based on, type the new salary in the Annual Salary field. 8. If you want to override any of the credits an employee receives based on either years of service, age, dependents, or lifestyle, type the new number in the appropriate field. Credits are added to the total flex credits available for the employee to buy benefits. 9. If you want to override the pretax dollars as defined on Flex Credits (BN08.1), type the new pretax dollars amount. 10. Choose the Change function.

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Changing Dependent Benefits

This procedure outlines those tasks to change an employees dependent benefits. STEPS
To change dependent benefits

1. Access Employee Benefit Changes (BN32.1). 2. Select the company from the Company field. 3. Select the employee from the Employee field. 4. Type the date you want to use to determine which benefits you want to display in the As of date field. Plans do not appear that have a stop date before this date. 5. If you want to limit which plans appear on the form, select the plans in the Plan Type field. 6. Choose the Inquire function. 7. Choose the Dep button on the line for the benefit plan for which you want to make the change. 8. For plans in which a dependent is already enrolled, two detail lines will display. If you are stopping the benefit, type the stop date on the line for the current enrollment. If you need to re-add the benefit at a later date, use the second detail line for the plan to maintain historical data. 9. Choose Change function.

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Chapter 15
This chapter focuses on the procedures needed to process COBRA benefits. STOP You must set up occurrence types, notification days, and invoice billing periods for COBRA Participants in Benefits Company (BN00) before processing COBRA participants. For more information, see " Setup: BN Company" on page 33.
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Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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Concept in this Chapter

Who is a COBRA participant?
A COBRA participant is an employee or an employees dependent that is continuing the group health and welfare coverage under the provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA) after divorce, separation, death, termination, reduction in working hours, or failure of the dependent to meet the plan definition of dependent. This type of participant is only valid in the United States.
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The following procedures enable you to process COBRA benefits. Defining a COBRA participant Enrolling a COBRA Participant Changing COBRA Participant Benefits Adding a Second Occurrence or Tracking COBRA Dates Notifying or Terminating COBRA Rights Generating COBRA Notification Letters Canceling COBRA Coverage for Delinquent Payments Use this procedure to create the participant record. Use this procedure to enroll a COBRA participant. Use this procedure to change COBRA participant benefits. Use this procedure to add a second occurrence or track COBRA dates. Use this procedure to notify or terminate COBRA rights. Use this procedure to generate COBRA letters. Use this procedure to cancel COBRA coverage for delinquent payments.
Defining a COBRA Participant

You can create a COBRA participant record or add an employee or dependent as a COBRA participant. If you add an employee or dependent as a COBRA participant, you only need to define the participants occurrence and occurrence date. The other information (address, social number, birth date, and so on) defaults from the Human Resources application. If you want to automatically define a COBRA participant record through automation rules, see " Setup: Automation Rules" on page 195. You can also create COBRA participant records through personnel actions. For more information on personnel actions, see the Personnel Administration User Guide. Need More Details? Check out the following concepts: STEPS "Who is a COBRA participant?" on page 269
To define a COBRA participant

1. Access COBRA Participant (BN70.1).
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Figure 54. Form clip: Using BN70.1 to define a COBRA participant
2. Consider the following fields. Participant Type the COBRA participants number if adding a participant. Select a COBRA participant number if inquiring. NOTE Assign COBRA participant numbers or let the application assign them based on parameters in COBRA Parameters (BN00.2). If the Auto Numbering field is Yes, leave this field blank. Employee If you are adding an employee or an employees dependent as a COBRA participant, select the employee. If you want to add an employee as a COBRA participant, you only need to define the employees occurrence and occurrence date. The other information (including address, social number, birthdate, and so on) defaults from Employee (HR11.1). NOTE A COBRA participant must have an employee number to add a spending account benefit. Dependent If the COBRA participant you are adding is a dependent with a record in Dependent (HR13.1), select the dependent. If you want to add a dependent as a COBRA participant, you only need to define the dependents occurrence and occurrence date. The other information (including address, social number, birthdate, and so on) defaults from Dependent (HR13.1).
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Occurrence Type
Select the occurrence that resulted in the persons COBRA eligibility. This is a required field. Occurrence types determine the maximum length of time a participant may extend coverage based on the data defined on COBRA Occurrence Types (BN00.3).
Occurrence Date
Type the date of the occurrence. This is a required field. The date becomes the default start date for the COBRA participants benefits; the application uses this date to calculate the COBRA participants Termination Date. If you used a personnel action to create the participants record, this date is the effective date of the personnel action. If you used Employee Benefit Change (BN100), this date is the benefit stop date.
Company Notified
Type the date the COBRA participant notified the company of a qualifying event.
IMPORTANT If the difference between the Occurrence Date and the Company Notified Date is more than the number of Notification Days defined on COBRA Parameters (BN00.2), the participant cannot enroll in the benefits. 3. Choose the Add form function.

To List COBRA participants Use COBRA Participant Listing (BN270)
Enrolling a COBRA Participant

The COBRA participant benefit entry form displays all plans for which a COBRA participant is eligible. If the COBRA participant is currently enrolled in benefits, those benefits display first, followed by all plans. STOP The COBRA Participants Covered field in the Eligible form tab of Benefit Plan (BN15.1) must be Yes for COBRA participants to enroll in a plan. For more information, see "Defining a Primary Benefit Plan" on page 95.
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STEPS
To enroll COBRA participants

1. Access COBRA Benefit Entry (BN71.1). Figure 55. Form clip: Using BN71.1 to enroll COBRA participants
TIP Use the Drill Around feature to see which plans the employee was enrolled.
2. After selecting the Company, Participant, and typing the As of Date, choose the Inquire form function. The form displays all plans for which the COBRA participant is eligible. If the COBRA participant is currently enrolled in a benefit, that benefit displays first, followed by all plans according to plan code. Consider the following fields. Start Type the date that benefit coverage begins for the COBRA participant. If you leave this field blank, the As of Date defaults. NOTE The benefit start date determines when premium invoicing begins for the COBRA participant. When Invoice Edit (BN180) is run for a period which includes this date, an invoice is created for the COBRA participant. Stop Type a stop date to stop the COBRA participants coverage. Premium invoicing stops after this date. If you leave this field blank, the stop date defaults from the Termination Date field in COBRA Participant (BN70.1). If the Coverage Type field in Benefit Plan (BN15.1) is Coverage Options for this plan, select the coverage option the COBRA participant elected.
Opt
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Monthly
If the plans Contribution Type in BN15.1 is Contribution Limits and the COBRA participant specifies a monthly contribution, type the monthly amount. The application calculates the total annual contribution by multiplying the monthly amount by the number in the Opt field. If the plans Contribution Type in Benefit Plan (BN15.1) is Contribution Limits and the COBRA participant specifies an annual contribution, type the COBRA participants total annual amount contribution. Use this field for plans that offer coverage as an amount.
Annual
Coverage
3. Choose the Change form function.
Options from COBRA Benefit Entry

The following options are available from COBRA Benefit Entry (BN71.1). Choose the Comments button to open the Comments subform. Choose the Dep button to open the dependent Benefits subform and track a COBRA participants dependents covered under the COBRA participants benefits. The subform is not available when: the COBRA participants record on COBRA Participant (BN70.1) is not associated with an employee record the Covered Dependent fields on Benefits Company (BN00.1) is No for this type of plan the plan or the participants coverage option does not cover dependents the participant has no dependents on Dependents (HR13.1).

To Display COBRA participant benefits List COBRA participant benefits Use COBRA, Retiree Benefit Inquiry (BN77.1) COBRA and Retiree Benefit Report (BN233)
Changing COBRA Participant Benefits

If a COBRA participants coverage or contributions change, Lawson recommends that you do not change the COBRA participants benefit. Rather, stop the current benefit and re-add the COBRA participant in the same plan with the new coverage or contributions. Re-adding the benefit provides an online audit trail of changes.
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The COBRA participants benefit and invoicing will stop on the stop date entered. If you are entering a past date and invoices have already been created, enter any needed adjustments on Cash Entry (BN81.1). For more information, see "Entering and Manually Applying Payments" on page 343. IMPORTANT You automatically update COBRA participant benefits when a plan changes. For more information, see " Plan Maintenance: Benefit Plans" on page 287. You automatically update COBRA participant benefits for benefits based on age. For more information, see " BN Enrollment: Maintain Employee Enrollments" on page 243.
STEPS
To change COBRA participant benefits

1. Access COBRA Benefit Entry (BN71.1). 2. After selecting the Company, Participant, and typing the As of Date, choose the Inquire form function. Plans in which the COBRA participant is enrolled will display on two separate lines. One is denoted with an asterisk (*) to indicate enrollment. The other line is there to enter changes. 3. In the Stop field, change the date to stop the COBRA participants coverage. The COBRA participants benefit and invoicing will stop on that date. If the participant has dependents covered under the benefit, the Benefits Administration application stops the dependent benefits. 4. Choose the Change form function. 5. Add the benefit with new coverage and contribution for the COBRA participant and the COBRA participants dependents. 6. Choose the Change form function.
NOTE Stop dates are automatically calculated for participants based on Occurrence Type and Occurrence Date on COBRA Participant (BN70.1). You cannot enter a stop date later than the systemcalculated date.

To Display COBRA participant benefits List COBRA participant benefits Use COBRA, Retiree Benefit Inquiry (BN77.1) COBRA and Retiree Benefit Report (BN233)
Adding a Second Occurrence or Tracking COBRA Dates

If a COBRA participant who is already defined on COBRA Participant (BN70.1), has benefits, and experiences another qualifying event, define the second occurrence and change the stop date of each of the COBRA participants benefits. Or use BN70.1 to view and update COBRA-related dates.
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STEPS
To add a second occurrence or track COBRA dates

1. Access Participant Dates (BN70.2). 2. Select the Company and Participant and choose the Inquire form function. 3. In the Notification Dates section, consider the following fields. Participant Notified When you Add, leave this field blank. If this field is blank, COBRA Letters (BN171) creates an initial notification letter for the COBRA participant and updates this field with the date of the letter. Type the last date the company notified the COBRA participant of delinquent premium payments. If COBRA Letters (BN171) creates a delinquent premium letter for the COBRA participant, BN171 updates this field with the letter date.
Delinquent Premium
4. From the Coverage Terminated section, consider the following fields. Premium Default Type the date coverage was canceled because the COBRA participant defaulted on premium payments. Type the date the COBRA participant declined an extension of coverage. If you type a date in this field, this date defaults as the Termination date field in COBRA Participant (BN70.1). Type the date the COBRA participant is covered under Medicare. This date defaults as the Termination date field in COBRA Participant (BN70.1).
Declined Coverage
Medicare Coverage
5. From the Occurrence 2 section, Consider the following fields. Occurrence Type Date Date Notified If the COBRA participant has a second occurrence, select the second occurrence. Type the date of the second occurrence. Type the date that the COBRA participant gave notice of the second occurrence.
6. Choose the Change form function. If you have added a second occurrence, the Benefits Administration application recalculates the Cobra Participants termination date to include the maximum months allowed for multiple occurrences. 7. Access COBRA Benefit Entry (BN71.1) and inquire on the COBRA participants benefits. 8. Clear the Stop Date field and choose the Change form function. The termination date is recalculated.
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Notifying or Terminating COBRA Rights

List COBRA participants who have not been notified of their right to extend coverage or terminate an individuals rights to COBRA coverage if the individual has not responded to his or her notification letter. If you run the report to list COBRA participants who have not been notified of their rights, the report lists COBRA participants whose Participant Notified field in Participant Dates (BN70.2) is blank. If you run the report to terminate rights to COBRA coverage, the Benefits Administration application uses the Company Notified field in Participant Dates (BN70.2) to determine if the individual has exceeded the maximum number of allowed notification days, which is defined in the Election field in COBRA Parameters (BN00.2). If the difference between the Occurrence Date and Company Notified fields in COBRA Participant (BN70.1) is greater than the maximum number of allowed notification days, the COBRA participants Termination Date becomes the same date as the COBRA participants occurrence date. STEPS
To determine notification or terminate COBRA rights

1. Access COBRA Notification Report (BN170). 2. In the Parameters section, select the company. This is a required field. 3. In the Report Option field, select the COBRA participants for whom the report is being run. This is a required field. 4. In the Update field, select the action you want to perform. This is a required field. The Update option is valid only when the Report Option is No Response. If you select Update, the application cancels the right to extend coverage for any COBRA participant who has not notified the company of their benefit election. The COBRA participants termination date becomes the same date as the COBRA participants occurrence date.
Generating COBRA Notification Letters

You can create letters to notify new COBRA participants of their right to extend benefit coverage, or create letters for COBRA participants with late payments. Cobra Letter Print (BN171) creates initial notification letters for COBRA participants whose Participant Notified field on Participant Dates (BN70.2) is blank. BN171 uses the letter corresponding to each participants Occurrence type as defined on COBRA Occurrence Types (BN00.3) and updates the field with the date of the letter. If you run the report to create letters for COBRA participants with late payments, BN171 uses the delinquent premium letter selected in COBRA Parameters (BN00.2). When the report creates delinquent premium letters, the Letter Date field updates to the Delinquent Premium field in Participant Dates (BN70.2).
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STEPS
To generate COBRA notification letters

1. Access COBRA Letter Print (BN171). 2. From the Parameters section, Consider the following fields. Report Selection Select the kind of letter you want to print. This is a required field. If you select All Notification Letters, BN171 creates notification letters for COBRA participants with occurrences. If you select Specified Letter, BN171 creates the letter you select in the Letter field for COBRA participants who have the occurrence associated with the letter in COBRA Occurrence Types (BN00.3). If you select Delinquent Premium Letters, BN171 creates letters for COBRA participants with delinquent premium letters. Report Option Select the value that indicates whether you want to print letters, labels, both letters and labels, or labels and a letter form. This is a required field. Type the date of the letter. This is a required field. This date defaults to the Company Notified field in Participant Dates (BN70.2) for initial notification letters. For delinquent premium letters, this date defaults to the Delinquent Premium field in Participant Dates (BN70.2). Select the report you want. This is a required field. Lawson recommends that you select Report Only to review the letters before selecting Update.
Letter Date
Update
3. Choose the Add form function. 4. Submit the report.
Options for Creating Letters

The following options are available for generating COBRA notification letters. To create a free-form or custom letter for a participant, use Free Form Letter (BN85.1). To print a free-form letter, use Standard Letter Print (BN285). Change notification dates manually on Participant Dates (BN70.2) when you use this option.
Canceling COBRA Coverage for Delinquent Payments

Cancel coverage for COBRA participants who have not remitted payments for their premiums in the grace period defined on Benefits Company (BN00.1) or the initial grace period defined on COBRA Parameters (BN00.2).
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STEPS
To cancel COBRA coverage for delinquent payments

1. Access Outstanding Invoice Listing (BN175). 2. From the Parameters section, Consider the following fields. Report Option Update Select the group for which the report is being run. This is a required field. Select the action you want to perform. Lawson recommends that you select Report Only to review the report before selecting Update.
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Chapter 16
This chapter focuses on procedures needed to handle Retiree benefits..
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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Concept in this Chapter

Who is a Retiree?
A retiree is a former employee who no longer has deductions taken for benefits but does receive an invoice for premiums or is tracked for company-provided benefits to accrue the company liability. If your organization is going to continue paying a retiree using Lawson Payroll, there is no need to define retirees or retiree coverage. Retirees would enroll in the same manner as regular employees but with different coverage or contribution information defined as needed for the plan.
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The following procedures enable you to process Retiree benefits. Enrolling Retirees Changing Retiree Benefits Canceling Coverage for Delinquent Payments Use this procedure to enroll a retiree in your benefit plans. Use this procedure to change a retirees benefits. Use this procedure to cancel coverage for delinquent payments.
Enrolling Retirees
NOTE Retiree benefits are entered and maintained on one form. Enroll a retiree in benefit plans. The Retiree Benefit Entry form displays all plans for which the retiree is eligible. If the retiree is currently enrolled in a benefit, that benefit displays first, followed by all plans. STOP For retirees to enroll in a plan, the Retirees Covered field in the Eligible form tab of Benefit Plan (BN15.1) must be Yes. In addition, retirees must be in the Retirees Employee Group, if one was selected, in Benefit Plan (BN15.1) to be eligible for a plan. For more information, see "Defining a Primary Benefit Plan" on page 95.
Need More Details? Check out the following concepts: "Who is a Retiree?" on page 282
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STEPS
To enroll retirees
1. Access Retiree Benefit Entry (BN72.1). Figure 56. Form clip: Using BN72.1 to enroll retirees
NOTE The select list for the Retiree field includes all employees because retiree records are in Employee (HR11). Defining an employee group for retirees and entering it on the Eligible tab of Benefit Plan (BN15) prevents an active employee from being enrolled in error as a retiree.
2. After selecting the Company, Retiree, and typing the As of Date, choose the Inquire form function. The form displays all plans for which the retiree is eligible. If the retiree is currently enrolled in a benefit, that benefit displays first, followed by all plans according to plan code. 3. Consider the following fields. Start Type the date that benefit coverage begins for the retiree. If you leave this field blank, the As of date defaults. NOTE The benefit start date determines when premium invoicing begins for the retiree. When Invoice Edit (BN180) is run for a period which includes this date, an invoice is created for the retiree. Stop Opt Type a stop date to stop the retirees coverage. Premium invoicing stops after this date. If the Coverage Type field in Benefit Plan (BN15.1) is Coverage Options for this plan, select the coverage option the retiree wants. Use this field for plans that offer coverage as an amount.
Coverage
Options from Retiree Benefit Entry

The following options are available from Retiree Benefit Entry (BN72.1). Choose the Comments button to open the Comments subform.
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Choose the Dependents button to open the Dependent Benefits subform. Use the subform to track coverage dates for the retirees dependents. The subform is not available when: The Covered Dependents field in Company (BN00.1) is No for this type of plan The plan or the retirees coverage does not cover dependents The retiree has no dependents in Dependents (HR13.1)

To List retiree benefits Display enrolled retiree benefits Use COBRA and Retiree Benefit Report (BN233) COBRA, Retiree Benefit Inquiry (BN77.1)
Changing Retiree Benefits

NOTE Retiree benefits are entered and maintained on one form. If a retirees coverage changes, Lawson recommends that you do not change the retirees benefit. Rather, stop the current benefit and re-add the retiree in the same plan with the new coverage. Re-adding the benefit provides an online audit trail of changes. The retirees benefit and invoicing will stop on the stop date entered. If you are entering a past date and invoices have already been created, enter any needed adjustment in Cash Entry (BN81.1). For more information, see "Entering and Manually Applying Payments" on page 343. IMPORTANT You automatically update retiree benefits when a plans coverage or contributions change. For more information, see " Plan Maintenance: Benefit Plans" on page 287. Automatically update retirees benefits for benefits based on age. For more information, see " BN Enrollment: Maintain Employee Enrollments" on page 243.
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STEPS TIP Use the Drill Around feature from the Retiree field to see a retirees benefits.
To change a retirees benefits

1. Access Retiree Benefit Entry (BN72.1). 2. After selecting the Company, Retiree, and typing the As of Date, choose the Inquire form function. The form displays all plans for which the retiree is eligible. Plans in which the retiree is enrolled will display on two separate lines. One line is denoted with an asterisk (*) to indicate enrollment; the other line is there to enter changes. 3. In the Stop field, type the date to stop the retirees coverage. The retirees benefit and invoicing will stop on that date. If the retiree has dependents covered under the benefit, the Benefits Administration application stops the dependent benefits. 4. Choose the Change form function. 5. Add the benefit with new coverage and contribution for the retiree and the retirees dependents. 6. Choose the Change form function.

To Display retiree benefits List retiree benefits Use COBRA, Retiree Benefit Inquiry (BN77.1) COBRA and Retiree Benefit Report (BN233)
Canceling Coverage for Delinquent Payments

Cancel coverage for retirees who have not remitted payments for their premiums in the grace period defined on Benefits Company (BN00.1). STEPS
To cancel coverage for delinquent payments

1. Access Outstanding Invoice Listing (BN175). 2. From the Parameters section, Consider the following fields. Report Option Update Select the group for which the report is being run. This is a required field. Select the action you want to perform. Lawson recommends that you select Report Only to review the report before selecting Update.
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Chapter 17

This chapter focuses on procedures to update and maintain your companys benefit plans.
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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TIP To skip directly to the procedures, see "Procedures in this Chapter" on page 291 The following concepts provide background and conceptual information for the procedures within this chapter "Why would I Change My Benefit Plans?" on page 288 "How does Lawson Track Benefit Plan Changes?" on page 288 "What Statuses Does Lawson Track?" on page 290
Why would I Change My Benefit Plans?

Changes to employee benefit plans result from one of three kinds of changes. Changes that originate directly from an employee, such as a change in family status or due to an increase in the employees age or years of service. Changes that result from changes in the employees work environment and frequently originate from the company, including transfers or promotions. Changes that result from a change to the benefit plan.
The first two kinds of changes involve making changes to employee benefit information. The last change involves making changes to the plan, such as adding new coverage, contribution, company match percent, or general ledger override.
How does Lawson Track Benefit Plan Changes?

The changes you can make to existing benefit plans include changes to entry rules, coverage, contributions, and general ledger overrides. You enter these changes by defining a new record with a new start date. This maintains historical information on the plan. If you change the current entry rule, coverage, contribution, or general ledger override record, rather than defining a new record, you lose the information that was originally defined. Whether you add a new record or change an existing record, all employees currently enrolled in the plan must be updated for changes to coverage, contribution, and general ledger override information. Changing or adding a new entry rule to a plan will only impact future enrollment and re-enrollments for the plan. To make a change to a benefit plan, add a new record or change the existing record. Update employees enrolled in the plan by running an update program. You can change the frequency table for a benefit plan by attaching a new table or by changing the table that is already attached. This type of change does not involve a new effective date, but employee benefit deductions need to be updated for the change. A benefit plan can also be discontinued and all employee enrollments stopped. Through a mass termination you can create a data file that can be used to
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mass enroll employees in a new plan. This is useful when you are replacing an existing benefit plan and all enrollment should be transferred over. When a benefit enrollment is updated for a new or changed coverage, contribution, or general ledger override, the application does the following: 1. Stops the original benefit and deductions the day before the change is effective. 2. Re-adds the benefit with the new amounts, deductions, and with a start date equal to the effective date of the change. 3. For benefits under a flex plan, the application will create or update standard time records. When a benefit enrollment is affected by a new frequency table, the application does the following: 1. Changes the current benefit deduction amount and updates the deduction cycles. 2. For benefits under a flex plan, the application will update standard time records.
Example 1
Alden Tire Company has received a premium increase from their insurance carrier for their group health plan. The new premiums take effect January 1, 2000, so a new contribution record is defined for the plan dated January 1, 2000 with the new rates. When employee enrollments are updated, the current benefits are stopped on December 31, 1999 and a new benefit is added with a start date of January 1, 2000.
Example 2
Jones Piano has discovered that their disability plan was defined incorrectly. The coverage calculation was defined as 65% of an employees salary, when the correct calculation should be 70%. The current coverage record is changed to reflect the correct percent. Employee enrollments are updated and all current benefits are recalculated using the new percentage rate, but the start date on the benefits remains unchanged.
Example 3
RJs Shoes, Inc. has decided to change the way their benefit contributions are deducted from payroll. Currently, benefit deductions are taken only once each mont. Starting June 1, 2000, RJs Shoes want deductions to be taken every biweekly pay period. Before the first payroll of June, RJs Shoes define a new frequency table and attach the new table to all the benefit plans. Employee enrollments are updated prior to running the payroll cycle so that all the benefit deductions are recalculated to the new biweekly amounts with the new deduction cycle designations. Benefits are not stopped and re-added with a new effective date, since only the benefit deductions are impacted by the change.
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What Statuses Does Lawson Track?

The Benefits Administration application associates a status with each coverage, contribution, and general ledger override record. This status is maintained behind the scenes in Lawson, and tells the application when records need to be updated to employee enrollments. The different statuses are described in the table below. Status New Group, New Date Description Tells the application that a new record for an employee group not previously associated with a record has been defined. Tells the application that a new record for an employee group with a previous record has been defined. Tells the application that an original record has been changed. This is the desired status, telling the application that employee enrollments have been updated. Records defined while there are no employee enrollments in a plan will be assigned this status.
Existing Group, New Date
Change Existing Record Updated
Drill around to view these statuses or run a report. The Lawson Payroll application will not allow the earnings and deductions calculation program to run if there is a record dated on or before the payment date for the current payroll cycle that has a status other than Updated. This helps ensure that the benefit deductions included in the payroll cycle are current and correct. Frequency tables have one of two statuses, Updated or Not Updated, but are processed in a similar manner.
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The following procedures you use to update your benefit plans. Updating Coverage Information Updating Contribution Information Updating Frequency Table Information Attaching a Different Frequency Table Updating GL Overrides Viewing Records Requiring Updating Updating Enrollment for Plan Changes Make changes to coverage information in a benefit plan. Change a benefit plans contribution. Update a frequency table attached to a benefit. Attach a different frequency table to a benefit plan. Update general ledger overrides. Verify statuses of benefit plans. Update all benefits for plans in which coverage, contributions, or general ledger overrides have been added or changed. Update employee deductions when a frequency table changes or when a different frequency table is assigned to a benefit plan. Terminate benefits under a benefit plan or a flex plan. Deletes a coverage option from a benefit plan.
Updating Enrollment for Frequency Table Changes
Terminating or Replacing a Benefit Plan Deleting a Coverage Option from a Benefit Plan
Updating Coverage Information

Use this procedure when you want to make changes to coverage data in a benefit plan. For example, you have renewed a policy and you need to only change the coverage level.
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STEPS
To update coverage information

1. Access Benefit Plan (BN15.1). 2. Select the company, plan type and plan for which you want to change the coverage information. 3. Choose the Inquire function. 4. Choose the Coverage button. For more information on Coverage Options (BN17.1) Coverage Amounts (BN17.3) See "Defining Coverage Amounts" on page 129 "Defining Coverage Amounts" on page 129
5. If the coverage you want to change is Coverage Options, choose the Coverage button on Coverage Options by Plan (BN17.1). 6. Type the date of the coverage record you want to change in the Start Date field. 7. Choose the Inquire function. 8. Type a new start date in the Start Date field. If you are correcting information that was entered my mistake, do not type a new start date.
IMPORTANT If you have already gone through a pay period, type a new start date.
NOTE Depending on the how the coverage was defined, the application will prompt you to enter either new salary or coverage limits. See "Defining Coverage Salary Parameters" on page 135"Defining Coverage Limits" on page 140
9. Enter your new information into the appropriate fields. 10. Choose the Add function. If you did not enter a new start date choose Change function.
Options for updating coverage information

Choose the Limits button if you want to update coverage limits. See "Defining Coverage Limits" on page 140.
Updating Contribution Information

Use this procedure to change a plans contribution; for example, when there are new premiums for the plans coming year.
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STEPS
To update contribution information

1. Access Benefit Plan (BN15.1). 2. Select the company, plan type and plan for which you want to change the coverage information. 3. Choose the Inquire function. 4. Choose the Contribution button. For more information on Options Amount Options Amount Range Flat Contributions Salary or Coverage Rate Tables Contribution Limits Match Limits Schedules Match Percent Schedules See "Defining Options Amount" on page 165 "Defining Options Amount Range" on page 170 "Defining Flat Contributions" on page 173 "Defining Salary or Coverage Rate Table" on page 177 "Defining Contribution Limits" on page 180 "Defining Match Limit Schedules" on page 186 "Defining Match Percent Schedules" on page 190
5. Type the date of the contribution record you want to change in the Start Date field. 6. Choose the Inquire function. 7. If benefit deductions have already been taken through payroll, type a new start date in the Start Date field. If you are only correcting information that was entered by mistake, you do not need to type a new start date. 8. Enter your new information into the appropriate fields. 9. Choose the Add function. If you did not enter a new start date choose the Change function.
Updating Frequency Table Information

This procedure outlines the tasks to change a frequency tables information.
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STEPS
To update frequency table information

1. Access Frequency Table (BN04.1). 2. Select Company in the Company field. 3. Select the code and the description that represents the frequency table in the Table field.
NOTE The number of pay periods in a year will default in to this field for each pay frequency. If you need a different value, type that value in the field.
4. Choose the Inquire function 5. Type the contribution divisor for your employees and select the deduction cycle.
IMPORTANT To add the frequency table, at least one cycle must be marked for each pay frequency, even if that frequency does not apply to your company.
Attaching a Different Frequency Table

This procedure outlines the tasks to attach a different frequency table to a benefit plan. STEPS
To update frequency table information

1. Access Benefit Plan (BN15.1) 2. Select company, plan type, and plan. 3. Choose the Inquire function. 4. Select a different frequency table. 5. Choose the Change function.
Updating GL Overrides
This procedure outlines the tasks to update general ledger overrides. IMPORTANT Lawson recommends that you review Payroll general ledger defaulting before using this program. The application uses the deductions and pay codes assigned to a plan to determine which general ledger accounts are used to post transactions for the plan. You can override the general ledger accounts for the plan. If you override general ledger accounts, the Lawson Payroll application uses the general ledger accounts from this form when deductions are created in Employee Deduction (PR14.1) or when standard time records are created in Standard Time Record (PR30.1).
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STEPS
To update GL overrides
1. Access General Ledger Overrides (BN20.1). 2. Select the company, plan type, and plan. 3. Type the start date for the general ledger table. 4. Choose the Inquire form function. 5. Type the new start date. If you are correcting information that was entered by mistake, do not type a new start date. 6. Change the distribution company, expense, and accrual accounts you want to override. If you leave Exp CO or Exp Account Unit blank and select only an expense account, the Payroll application uses the normal defaulting defined for distribution company accounting units. 7. Choose the Add form function. If you did not enter a new start date, Choose the Change Function.
Viewing Records Requiring Updating

This procedure outlines the tasks to verify benefit plan statuses. You can run this report for all records or only those needing updating. When the report is run, the application checks for those plans needing updates because of changes in coverage, contribution, general ledger overrides, or frequency table information. This report helps you determine if you need to update enrollments for frequency table changes or update enrollments for plan changes. STEPS TIP You can view this information by drilling around on the company number.
To view records requiring updating

1. Access Benefit Plan Status Report (BN220). 2. Complete the form. Consider the following fields. Company Date Range Report Option Select a company. Enter the start and end date for the date range. Select either T to display only those records in need of updating or A to display all records.
3. Choose the Add function. 4. Choose the Submit function.

To Update benefit plans Update benefit plans due to frequency table changes Use Plan Update (BN105) Frequency Table Update (BN104)
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Updating Enrollment for Plan Changes

This procedure outlines the tasks to update all benefits for plans in which coverage, contributions, or general ledger overrides have been added or changed. You can update employee, retiree benefits, and COBRA participant, though these must be updated separately. The update program can only update one plan change at a time. If you have made multiple changes to a plan, you will need to run the update multiple times. IMPORTANT Use this procedure before the payroll cycle in which the new coverage, contribution, or general ledger override records become effective. If you entered plan changes, the payroll earnings and deduction calculation program prompts you to update benefit enrollments and identifies the plan and the record date in need of updating.
Need More Details? Check out the following concepts: STEPS "How does Lawson Track Benefit Plan Changes?" on page 288 "What Statuses Does Lawson Track?" on page 290
To update enrollment for plan changes

1. Access Plan Update (BN105). Figure 57. Form clip: Using BN105 to update plan changes for enrollment
2. Type the name of the job in the Job Name field. 3. Type a job description in the Job Description field. The job description helps you identify a batch job by providing additional information.
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TIP To determine which premium needs to be updated, drill around on the Company field and select Employee Premium Status. Benefit plans with a status indicating a change has been made should be included in the plan update parameters.
4. Complete the form. Consider the following fields. Report Option Thru Date Select whether you want to report on employees, COBRA participants, or retirees. Type the date you want to process plan changes through. If you need to update benefits for multiple changes to a plan, enter the date of the earliest change first. After the update is complete, run the program again using a thru date equal to the date of the next effective change. Print deduction Select either Yes or No to indicate whether you want to print updated deductions on the report. If you leave this field blank, it defaults to Yes. Report Sequence Select how you want to sort the report, either by employee and retiree or by process level and department. If you select employee in the Report Sequence field, select how you want employees sorted; either alphanumeric (employee name) or numeric (employee number). Select either Update or Report Only. If you select Report Only, the application lists employees with their eligibility dates. If you select Update, the application creates benefits for eligible employees and lists the new benefits. First run this form in Report Only to review the updated benefits. Then run this report as Update. 5. Choose the Add function. 6. Choose the Submit function.
Employee Sequence
Update
WARNING Do not enter or change benefit enrollments while this update program is running.
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To View records requiring updating Use Benefit Status Report (BN220)
Updating Enrollment for Frequency Table Changes

This procedure outlines the tasks to update employee deductions when a frequency table assigned to a benefit plan or flex plan changes. You can also use this procedure if you assign a different frequency table to a benefit plan. IMPORTANT Update employee deductions and standard time records before you run the next payroll cycle. If changes have occurred, Earnings and Deductions Calculation (PR140) prompts you to update employee benefits.
STEPS
To update enrollment for frequency table changes

1. Access Frequency Table Update (BN104). Figure 58. Form clip: Using BN104 to update enrollment for frequency table changes
2. Type the name of the job in the Job Name field. 3. Type a job description in the Job Description field. The job description helps you identify a batch job by providing additional information. 4. Complete the Parameters section. Consider the following fields. Company Flex Plan Select the company. If you want to update a flex plan, select the flex plan.
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Plan Type
Type an X next to the type of benefits you want to update. If you did not select a flex plan, you must select at least one benefit type. If you selected a flex plan, do not select a plan type. Benefit types are: HL = Health DN = Dental DI = Disability EL = Employee Life DL = Dependent Life DC = Defined Contribution DB = Defined Benefit VA = Vacation Buy or Sell RS = Spending Account SB = Savings Bond SP = Stock Purchase
Plan
Select a benefit plan for which you want to update employee deductions. If you leave all the Plan fields blank, the report includes all plans of the benefit types that you selected in the Benefit Type fields.
As of Date
Type the date the application will use to determine which benefits to update. Only enrollments in effect on this date will be updated. If a benefit has a stop date equal to or earlier than this date, it will not be updated. If you select employee in the Report Sequence field, select how you want employees sorted; either alphanumeric (employee name) or numeric (employee number). Select either Update or Report Only. If you select Report Only, the application lists employee benefits to be updated. If you select Update, the application updates employee deductions and time records and lists all updated benefits. First run this form in Report Only to review the updated benefits. Then run this report as Update.
Employee Sequence
Update
5. Choose the Add function. 6. Submit the report.
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To View records requiring updating Use Benefit Status Report (BN220)
Terminating or Replacing a BN Plan

This procedure outlines those tasks to terminate benefits under a benefit plan or a flex plan. You can terminate benefits for all employees in a process level, a processing group, an employee group or a plan option. If you are terminating flex benefits, this procedures stops the employees flex dollar record and all benefits under the flex plan. Flex benefits are stopped in reverse order; that is, the last benefit added is stopped first and the first benefit added is stopped last. This procedure stops an employees benefit, deductions and, if applicable, standard time record. You can also create a CSV (Comma Separated Value) file to transfer benefits from one plan to another, using this procedure. STEPS
To terminate or replace a BN plan

1. Access Mass Benefit Termination (BN103). Figure 59. Form clip: Using BN103 to terminate or replace a BN plan
2. Type the name of the job in the Job Name field. 3. Type a job description in the Job Description field. The job description provides additional information to help you identify a batch job. 4. Change the information in the Parameters section. Consider the following fields. Company Name Plan Type Plan Select the company for the plan. Select the plan type for the plan you want to end. Select the benefit plan you want to end.
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Processing Group
If you want to terminate benefits for only those employees in a particular processing group, select the processing group. NOTE If you select a processing group, leave the Process Level and Employee Group fields blank.
Process Level
If you want to terminate benefits for only those employees in a particular process level, select the process level. NOTE If you select a process level, leave the Process Group and Employee Group fields blank.
Employee Group
If you want to terminate benefits for only those employees in a particular employee group, select the employee group. NOTE If you select a processing group, leave the Process Level and Processing Group fields blank.
Coverage Options
To terminate benefits for employees for a particular coverage option, select the coverage option. This is used if a coverage option is discontinued. NOTE This field is valid only if the plans Coverage Type field in Benefit Plan (BN15.1) is Coverage Options.
Stop Date
Type the date on which you want to terminate benefits. This date becomes the stop date of the employees benefits, deductions, and standard time records. Select if you want the report sorted by employee or process level and department. If you select employee in the Report Sequence field, select how you want employees sorted; either alphanumeric (employee name) or numeric (employee number). Select either Update or Report Only. If you select Report Only, the application lists employee with their eligibility dates. If you select Update, the application creates benefits for eligible employees and lists the new benefits. First run this form in Report Only to review the updated benefits edits. Then run this report as Update.
Update
5. Choose the Add function. 6. Submit the report. Benefits Administration User Guide Chapter 17 Plan Maintenance: Benefit Plans 301
Options for Terminating or Replacing a BN Plan

A CSV file created on Mass Benefit Termination (BN103) can be manipulated and used to load benefit enrollments into a new plan using Batch Benefit Enrollment (BN531).
Deleting a Coverage Option from a Benefit Plan

This procedure outlines the tasks to delete a coverage option from a benefit plan. You must remove the option from three separate forms; BN18.1, BN19.1 and BN17.1. STEPS
To delete a coverage option from a benefit plan

1. Access Benefit Plan (BN15.1). 2. Select the company, plan type, and plan from which you want to delete the coverage option. 3. Choose the Inquire form function. 4. Choose the Contribution button. Options Amounts (BN18.1) opens. The fields Company, Plan Type, and Plan are populated. 5. Select the coverage type from the Cover Type field. 6. Type the start date in the Start Date field. 7. If appropriate, select the employee group from which you want to delete the coverage option. 8. Choose the Inquire form function. 9. Choose the Options button to access Options Rates (BN19.1). 10. Select the delete line action needed on the appropriate line. 11. Choose the Change form function. 12. Close BN19.1. Repeat steps 5 - 11 for all affected records. 13. After you have deleted all affected records close BN19.1 and BN18.1. BN15.1 is still open. 14. Choose the Coverage button to access Coverage Options by Plan (BN17.1). 15. Choose the Coverage button on BN17.1 to access Coverage Options Defaults (BN17.2). The company, plan type, and plan fields are populated. 16. Select the Cover Type, type the start date and select the employee group, if appropriate, for the record from which you want to delete the coverage option. 17. Choose the Inquire form function. 18. Select the delete line action for the coverage you deleted in step 10. 19. Choose the Change form function. 20. Repeat steps 16 - 19 for all affected records. Close BN17.2. 21. Select the delete line action for the coverage option deleted in steps 10 19. 22. Choose the Change form function.
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Chapter 18

When a flex vacation-type plan is associated with a plan in the Time Management application, you update employee vacation balances with the hours employees purchase or sell.
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
Chapter 18
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Procedure in this Chapter

Update Employee Vacation Balances
The update transactions (records) created by Vacation Hours Update (BN138) are processed by the Lawson Time Management application. For more information, see the Time Management User Guide. STOP To use this report, you must have the Time Management application. Ensure that the employee is enrolled in a vacation plan on Employee Plan Inquiry (TA60) before updating the employees vacation balance with Vacation Hours Update (BN138). When a flex vacation-type plan is associated with a plan in the Time Management application, update your employee vacation balances with the hours employees purchase or sell. Vacation Hours Update (BN138) creates manual transactions for eligible hours, and these transaction records are viewed on Plan Adjustments (TA70.1) or Employee Plan Adjustments (TA70.2). Need More Details? Check out the following concepts: "What is a Plan Type?" on page 81
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Chapter 18 Plan Maintenance: Vacation Buy and Sell
STEPS
To update employee vacation balances

1. Access Vacation Hours Update (BN138). 2. Consider the following fields. Flex Plan Select the flex plan for which the report is being run. This is a required field. This is the flex plan that the vacation-type benefit plan is linked with on Benefit Plan (BN15.1). Select the start date of the flex plan year. This is a required field. Type the date of the time accrual transactions. This is a required field. Select a vacation-type benefit plan that you want on the report. If you leave the Plan fields blank, the report creates transactions for all vacation plans in the selected flex plan. Select Update or Report Only. This is a required field. Lawson recommends that you select Report Only to review the report before selecting Update.
Flex Year Start Date Time Accrual Date Plan
Update
3. Choose the Add form function. TIP If mid-year enrollment changes are allowed, manual time accrual plan adjustments are needed. For more information, see the Time Management User Guide. 4. Submit the report.

To List the vacation hours purchased or sold by employees View the time accrual transactions created by Vacation Hours Update (BN138) after running in Update mode Use Vacation Hours History (BN238) Plan Adjustments (TA70.1) Employee Plan Adjustments (TA70.2) Open Manual Transactions (TA270)
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Chapter 18 Plan Maintenance: Vacation Buy and Sell
Chapter 19
Plan Maintenance: Spending Account Balances

This chapter focuses on tracking spending account withdrawals for employees and COBRA participants.
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
Chapter 19 Plan Maintenance: Spending Account Balances
307

Tracking Spending Account Reimbursements
Track spending account withdrawals for employees and COBRA participants using Spending Account Transactions (BN59.1). Need More Details? Check out the following concepts: STEPS "What is a Lawson Flex Plan?" on page 56
To track spending account reimbursements

1. Access Spending Account Transactions (BN59.1). 2. In the Employee field, select an employee. This is a required field. A COBRA participant must have an employee number to add a spending account benefit. For more information, see "Defining a COBRA Participant" on page 270. 3. Consider the following required fields. Date Payment Amount Type the date of the expense reimbursement. Type the payment number for the employee reimbursement of expenses. Type the amount the employee received for reimbursement of eligible expenses from the spending account. Type a description of the transaction.
Description
Options for Spending Account Transactions

The following options are available from Spending Account Transactions (BN59.1). Choose the Benefit Totals button to open the Enrollment Period Totals subform, which shows the employees annual contribution, contributions to date, reimbursements, and account balance during an enrollment period. Choose the Plan Year Totals button to open the Plan Year Spending Account Totals subform, which shows the employees year-to-date annual contribution, contributions to date, reimbursements, and account balance.
308

To List spending account balances List spending account transactions Use Spending Account Balance (BN258) Spending Account Payment Report (BN259)
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310
Chapter 20

This chapter focuses on updating an employees stock account balance in order to purchase stocks for the employee.
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
Chapter 20
311

Updating Stock Purchases
Run the Stock Purchase Update (BN141) report to determine the amount of stocks to purchase for a particular plan at a specified stock price. STEPS
To update stock purchases

1. Access Stock Purchase Update (BN141). 2. Consider the following fields. Price Per Share Type the price per share of stock. This price per share determines the total number of shares an employee can purchase with his or her current account balance. This is a required field. Type the date you want to purchase the stock. If you leave this field blank, the report uses the system date. NOTE This field updates the Date Purchased field in Stock Purchase History (BN61.1). Plan Select a stock purchase plan. If you leave all the Plan fields blank, the report updates all stock purchase plans. Select Update or Report Only. This is a required field. Lawson recommends that you select Report Only to review the report before selecting Update.
Date Purchased
Update

To Display the shares of stock an employee has purchased Use Stock Purchase History (BN61.1)
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Plan Maintenance: Stock Purchase
Chapter 21

Once a savings bond plan is defined, you must designate beneficiaries, define a purchase sequence, and update the account balance.
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
Chapter 21
313

After the saving bonds plan is defined on Benefit Plan (15.1), you can purchase saving bonds for an employee through the following process. This chapter focuses on the procedures that make up this process. Figure 60. Procedure relationship:Savings Bond Update
Adding Savings Bond Beneficiaries
Defining Savings Bond Purchase Sequence
Updating Savings Bond Purchase
Adding Savings Bond Beneficiaries

Define each possible owner, co-owner and beneficiary for savings bonds purchased by an employee. For more information, see "Defining Savings Bond Purchase Sequence" on page 315.
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Chapter 21 Update
Plan Maintenance: Savings Bond
STEPS
To add savings bond beneficiaries

1. Access Savings Bond Beneficiaries (BN48.1). 2. Consider the following fields. Code Type a code that represents the owner, co-owner, or beneficiary of a savings bond. This code is used to define the owner, co-owner, or beneficiary sequence on Savings Bond Purchase Sequence (BN48.2). This is a required field. If the owner or beneficiary is the employees dependent with a record in Dependent (HR13.1), select the dependent. The dependents name and Social number default from Dependent (HR13.1). NOTE When you purchase bonds using Savings Bond Update (BN140), the application uses the dependents current address from HR13.1. For this reason, the dependents address does not default to BN48. Override the address using BN48 if necessary. 3. Choose the Add form function.
Dependent
Defining Savings Bond Purchase Sequence

Define a sequence of owners, co-owners, and up to 12 beneficiaries for whom bonds are purchased. Bonds cannot be purchased for an employee until at least one sequence is defined for the employee. For example, an employee wants to purchase bonds for herself, her spouse, and her two children, in that sequence. To do this, define the sequence records, one for each person beginning with the employee.
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315
STEPS
To define savings bond purchase sequence

1. Access Savings Bond Purchase Sequence (BN48.2). 2. Consider the following fields. Plan Start Date Select the bond purchase plan. This is a required field. Type the start date of the bond sequence record. This is a required field. Bonds purchased after this date use this sequence record. Type the sequence number for this owner or co-owner. This field determines the order in which Savings Bond Purchase (BN140) buys bonds. Select the bonds owner. This is a required field. Select the bonds co-owner. Select a beneficiary for the bond.
Sequence
Owner Co-owner Beneficiaries

To Display the savings bonds an employee has purchased List the saving bonds an employee has purchased List the sequence in which savings bonds are purchased for owners, co-owners, and beneficiaries of savings bonds Use Savings Bond History (BN60.1) Savings Bond Balance Report (BN240) Savings Bond Sequence Listing (BN248)
Updating Savings Bond Purchases

STOP Bonds are not purchased for an employee until at least one sequence is defined. For more information, see "Defining Savings Bond Purchase Sequence" on page 315. Run the Savings Bond Update (BN140) report to determine an employees account balance for the purchase of savings bonds. It is recommended that you run Savings Bond Update (BN140) after each payroll is closed with Payroll Close (PR197) or when the contribution data has been interfaced from a non-Lawson payroll application into the Lawson Benefits Administration application with Payroll Interface (BN500). The payroll close looks at each bond plan participants contribution deductions, and adds them to the 316 Chapter 21 Update Plan Maintenance: Savings Bond Benefits Administration User Guide
participants account balance. Once the balance is updated, Savings Bond Update (BN140) looks at the participants balance and determines if there is enough money to purchase a bond. The report is sorted by savings bond plan and employee. For each employee, the report shows the bonds purchased, the bond owner, the owners address, and the owners social number. If a co-owner and beneficiary have been assigned, their names, addresses, and social numbers also list. BN140 uses the employees or dependents current address from Employee (HR11.1) and Dependent (HR13.1) unless the address has been overridden in Savings Bond Beneficiary (BN48.1). STEPS
To update savings bond purchase

1. Access Savings Bond Update (BN140). 2. Consider the following fields. Company Plan Select a company. This is a required field. Select a savings bond plan that you want on the report. If you leave all the Plan fields blank, all savings bond plans are updated. Date Type an As of date for the bond update. The date you type corresponds to the sequence in Savings Bond Purchase Sequence (BN48.2). The Benefits Administration application uses the latest sequence record as of this date. Select the action you want to perform. Lawson recommends that you select Report Only to review the report before selecting Update.
Update

To List the saving bonds an employee has purchased List the sequence in which savings bonds are purchased for owners, co-owners, and beneficiaries of savings bonds Display the savings bonds an employee has purchased Use Savings Bond Balance Report (BN240) Savings Bond Sequence Listing (BN248)
Savings Bond History (BN60.1)
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318
Chapter 21 Update
Plan Maintenance: Savings Bond
Chapter 22

This chapter focuses on maintaining benefit plan balances. Make adjustments to contribution balances, covered compensation, or vesting hours for defined compensation and defined benefit plans.
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
Chapter 22
319

Make adjustments to your defined benefit or defined contribution plans. Adjusting Defined Contribution or Defined Benefit Plan Balances Adjusting Covered Compensation Balance Adjusting Vesting Hours Use this procedure to track account balances and make adjustments where necessary. Use this procedure to adjust covered compensation balances. Use this procedure to adjust vesting hours.
Adjusting Defined Contribution or Defined Benefit Plan Balances

Track account balances for each employee in a defined contribution (DC) plan or a defined benefit (DB) plan. Make adjustments where necessary. Use DC/DB Balance (BN55.1) for making individual adjustments. If you need to make a large number of adjustments, import the adjustments from a csv file using DC/DB Balance Conversion (BN555). STEPS
To adjust defined contribution or defined benefit plans

1. Access DC/DB Balance (BN55.1). 2. Select the Company, Employee, Plan Type, Plan, and type the Plan Year. 3. Choose the Inquire form function. 4. Type the adjustment figure in the appropriate enterable field to make appropriate adjustments.
IMPORTANT The amount entered must be the amount to change the balance, not the new amount balance. If subtracting an amount, type the minus sign at the end of the amount to change.
Options for Defined Benefit or Defined Contribution Adjustments

The following options are available. Choose the Totals button from DC/DB Balance (BN55) to access the Vested Amounts subform. The Vested Amounts subform displays employee vesting information including the numbers of years vested, the vested percent,
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Chapter 22 Limits
Plan Maintenance: Benefit Plan
and the total to date vested amount. For more information, see "Adjusting Vesting Hours" on page 322.

To Import a csv file with defined contribution or defined benefit plan balance adjustments List total contributions by investment accounts for DC plans Use DC/DB Balance Conversion (BN555)
DC Plan Contributions (BN 330)
Adjusting Covered Compensation Balances

You can adjust employee compensation amounts and participation hours for defined contribution and defined benefit plans for each plan year. Record history for the years before you started using the Benefits Administration application. STEPS
To adjust covered compensation balances

1. Access Compensation History (BN56.1). 2. Select the Company, Employee, Benefit Type, and Plan, and choose the Inquire form function. 3. Consider the following fields when making adjustments or recording history. Year To track on earlier years, type the plan year for which compensation and participation hours are being recorded. This field displays the total hours of service for the plan year. The total hours are based on the compensation pay class on the Vest Comp tab on Benefit Plan (BN15). To adjust the hours or to track hours of service for earlier years, type the total hours of service for that year. This field displays the total employee compensation for the plan year. The total employee compensation is based on the compensation pay class on the Vest Comp tab on Benefit Plan (BN15). To adjust compensation or track compensation for earlier years, type an amount of compensation for that year.
NOTE The maximum compensation displayed in each row is defined on Benefit Annual Limits (BN12.1). When an employees covered compensation reaches this limit, the application stops the employees contributions to the plan.
Hours
Compensation
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321

To List the plan participants of defined contribution and defined benefit plans Use Participation Report (BN236)
Adjusting Vesting Hours

View or adjust employee vesting hours for defined contribution and defined benefit plans. The Benefits Administration application tracks vesting hours based on the vesting pay class selected on the Vest Comp tab of Benefit Plan (BN15.1). Vesting Hours (BN57.1) tracks vesting hours for all employees, even if the employee is not enrolled in a defined contribution or defined benefit plan. If the plan counts vesting for years before the plan start date, the Benefit application assumes that the employee met the minimum vesting requirements for each of those years. If an employee did not meet minimum vesting requirements for a year, define the actual number of vesting hours for that year. If you define an amount of hours for a year that is less than the minimum vesting requirement, the application does not count that year. STEPS
To adjust vesting hours

1. Access Vesting Hours (BN57.1). 2. Select the Company, Employee, Benefit, and Plan, and choose the Inquire form function. 3. Type the adjustment figures in the appropriate enterable field. 4. Choose the Change form function.

To List each plan participants vested percent Use Vesting Report (BN237)
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Chapter 23
Benefit Processes: Reportable Excess Group Life Insurance

This chapter focuses on incorporating the taxable income resulting from excess life insurance into the employees taxable wages. The procedure in this chapter generates time records that are processed by the Payroll application. For more information, see the Payroll User Guide.
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Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
324

Creating Reportable Income Time Records
When a company pays all or a portion of the premiums for an employee on Group Term Life Insurance, the employee must pay taxes on the value of the amount of coverage over $50,000. The coverage over $50,000 is referred to as excess coverage. Life Insurance Reportable Income (BN150) calculates, for each employee, the taxable amount associated with excess employee and dependent life insurance coverage. The taxable amount is called imputed income. Perform the update every pay cycle, monthly, or once at the end of the year. Create a time record to add the imputed income to the employees taxable wages. For information on how the application determines the value of excess employee coverage, see "Calculating the Cost of Excess Life Insurance" on page 404. STOP A life benefit plan must have a Yes in the Reportable Life field on the Misc tab on Benefit Plan (BN15.1) to be included in the Life Insurance Reportable Income calculation. For more information, see "Defining a Primary Benefit Plan" on page 95.
STOP You must define parameters to calculate an employees tax liability for excess employee and dependent life insurance. The Internal Revenue Service (IRS) determines the monthly cost table. For more information, see "Defining Excess Life Insurance Rates" on page 42.
Need More Details? Check out the following concepts: STEPS "What is Reportable Group Term Life Insurance?" on page 36
To create reportable income time records

1. Access Life Insurance Reportable Income (BN150).
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Figure 61. Form clip: Using BN150 to create reportable income time records
2. From the Parameters section, Consider the following fields. As of Date Type the date of the benefits you want to use for the report. This is a required field. The Benefits Administration application performs calculations based on the benefits in effect on the date specified. NOTE To be included, the benefit start date must be less than or equal to this date and the stop date must be equal to or greater than the date. Report Option Use Pre-Tax Amount Select the kind of benefits you want in the report. This is a required field. If employees pay for life insurance on a pre-tax basis, select the value that indicates whether the application should use the calculated value of excess life insurance and disregard the employees pretax contributions. This is a required field. If you select Yes, the system uses the greater amount of the calculated value of excess life insurance or the employees pretax contribution as the basis for the W2 reportable income. If you select No, the system uses the calculated value of excess life insurance and disregards the employees pretax contributions.
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Frequency
Select the period for which you want to run the report. This is a required field and impacts the calculation.
IMPORTANT Imputed income is calculated as an annual amount then divided by a number corresponding to the frequency selected. Time Records Select the value that indicates whether you want the report to create time records. The Lawson Payroll application uses the time records to update an employees taxable wages for the value of excess life insurance. Time Record Date Update To create time records, type the date for the time record. Select the function you want to perform. This is a required field. Lawson recommends that you select Report Only to review the report before selecting Update.
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328
Chapter 24

This chapter focuses on procedures you must perform periodically to audit your benefits data.
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
Chapter 24
329

The following procedures are used to audit your benefit plan data. Perform these procedures whenever you need to test your benefit plans for compliance or participation. Listing Key Employees Use this procedure to identify key employees to update the Key field on Employee (HR11.1). Use this procedure to list DC account balances for key and non-key employees. Use this procedure to identify highly compensated employees to update the Highly Compensated field on Employee (HR11.1). Use this procedure to determine whether a defined contribution plan satisfies the Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) tests. Use this procedure to determine whether employees contributions are reaching an elective deferral limit. Use this procedure to determine whether defined contribution or defined benefit plans satisfy the percentage test.
Determining if Defined Contribution Plans are Top Heavy Listing Highly Compensated Employees
Performing the ADP and ACP Test
Determining if Employees are Reaching an Elective Deferral Limit Determining Percentage DC/DB Plan Participation
Listing Key Employees

Define the criteria that the report uses to determine which employees are key, and then run the report to list employees who meet those criteria. Once you have identified the key employees, set the Key field on the Plan Test form tab of Employee (HR11.1). This information is used when you run the Top Heavy Report (BN310). For more information, see "Determining if Defined Contribution Plans are Top Heavy" on page 332. STOP Before running this report, identify all officers and owners of the company by setting the appropriate fields on the Plan Test form tab of Employee (HR11.1). Only employees with officer or owner designation will be considered for this report.
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Chapter 24 Benefit Processes: Benefit Plan Testing
STEPS
To list key employees

1. Access Key Employees (BN300).
IMPORTANT The application does not use the annual salary from the Pay subform on Employee (HR11.1) to determine compensation. Rather the application uses payroll history for the dates designated.
2. From the Parameters section, Consider the following fields. Plan Start Date Type the plans start date. The application uses payroll records for the twelve month period beginning on this date to determine actual employee compensation. This is a required field. Type the minimum compensation an officer must have received to be included as a key employee. Only officers whose compensation is equal to or greater than this amount for the period identified are included on the report. If you leave this field blank, all employees designated as officers will be included. Type a compensation amount to identify owners as key employees who own the largest interest in the company. All employees identified as owners are included on the report, but only owners whose compensation is equal to or greater than this amount for the period identified are listed as owning the largest interest in the company. Type the minimum compensation an owner must have received to be included as a key employee. All employees identified as owners are included on the report, but owners whose compensation is equal to or greater than this amount are identified as key employees.
Officer: Compensation
Owner: Compensation 1
Owner: Compensation 2
3. Choose the Add form function. 4. Submit the report. 5. Access Employee (HR11.1) and set the Key field flag on the Plan Test form tab for each key employee identified from the report.
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331
Determining if Defined Contribution Plans are Top Heavy

NOTE This report only runs for employees who have a work country of US. To determine if your defined contribution (DC) plan is top heavy, the report lists DC account balances from DC/DB Account Balance (BN55.1) for key employees as well as non-key employees within the plan year specified. STOP Verify that your key employees are flagged on Employee (HR11.1). For more information, see "Listing Key Employees" on page 330.
STEPS
To determine if defined contribution plans are top heavy

1. Access Top Heavy Report (BN310). 2. From the Parameters section, Consider the following fields. Plan Year Type the plan year for which the report is being run. Use the format YYYY (for example, 1999). This is a required field. The month and day of the start date entered on Benefit Plan (BN15.1) are used to determine when this plan year begins. If the report contains multiple plans with different start dates, the report will print balances for each plan based on this plan year. Plan Select a plan that you want on the report. If you select more than one plan, the report combines employee account balances for all plans with the same plan year. If you leave the fields blank, all defined contribution plans list with a total for each employee.
Listing Highly Compensated Employees

Define the criteria that the report uses to determine which employees are highly compensated and then run the report to list employees who meet that criteria. Once you have the highly compensated employees identified, set the Highly Compensated field on the Plan Test form tab of Employee (HR11.1). This information is used when you run the ADP and ACP Tests (BN340). For more information, see "Performing the ADP and ACP Tests" on page 334. IMPORTANT The application does not use the annual salary from the Pay subform on Employee (HR11.1) to determine compensation. Rather the application uses payroll history for the dates designated.
332
STEPS
To list highly compensated employees

1. Access Highly Compensated Employees (BN305). 2. From the Parameters section, consider the following field. Plan Start Date Type the plans start date. This is a required field. The application uses payroll records for the year beginning on this date to determine actual employee compensation.
3. From the Preceding and Current Year section, consider the following fields. Compensation 1 Type an amount of compensation to select employees who received compensation greater than this amount as highly compensated employees. This field works with the Top-paid Percent field to determine which employees are highly compensated. Type an amount of compensation to select employees who received compensation greater than this amount. An employee is considered highly compensated if the employees compensation exceeds this amount and the employee is in the percent group of employees specified in the Top-paid Percent field. Type the percent of top-paid employees who are considered to be highly compensated and who received compensation greater than the amount specified in the Compensation 2 field. Type an amount of compensation to select employees who are identified as officers in the Benefits subform of Employee (HR11.1) and who received compensation greater than this amount. If you leave this field blank, all officers will be listed on the report.
Compensation 2
Top-paid Percent
Officer Compensation
4. From the Current Year section, consider the following field. Number of Employees To select a specified number of highest paid employees in the company, type the number of top-paid employees you want listed. For example, if you type 100 the report lists the 100 top-paid employees in the company.
5. Choose the Add form function. 6. Submit the report. 7. Access Employee (HR11.1) and set the Highly Compensated field flag on the Plan Test form tab for each employee identified from the report. Benefits Administration User Guide Chapter 24 Benefit Processes: Benefit Plan Testing 333
Performing the ADP and ACP Tests

Determine whether a defined contribution plan satisfies the Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) tests. The ADP test calculates and compares actual deferral percentages for highly compensated and non-highly compensated employees. STOP Verify that your highly compensated employees have been flagged on Employee (HR11.1). For more information, see "Listing Highly Compensated Employees" on page 332.
STEPS
To perform the ADP and ACP tests

1. Access ADP and ACP Tests (BN340). 2. From the Parameters section, Consider the following fields. Plan Year Start Date Type the plan year start date. This is a required field. The application uses payroll records for the year beginning on this date to determine actual employee compensation. The plan year start date also determines which defined contribution records are used on the report. Plan Select a defined contribution plan that you want on the report. If you leave all the Plan fields blank, the report includes all defined contribution plans. Compensation Select the compensation you want on the report. This is a required field. The program uses compensation from the Payroll application up to the maximum amount defined in Benefits Annual Limits (BN12.1). Pay Class If you select Pay Class in the Compensation field, select the pay class that you want to use to determine compensation. Select the contributions you want to include on the report. This is a required field.
Report Option
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Determining if Employees are Reaching an Elective Deferral Limit

NOTE The Payroll application determines elective deferral limits using Business Software, Inc. (BSI). STEPS Determine whether an employees contributions to 401(k), 403(b), or 457 plans approach the elective deferral limit or the maximum annual additions limit. Use the report to stop or reduce contributions for those employees who are reaching the percent of compensation limit.
To determine if employees are reaching their elective deferral limit

1. Access Employee Deferral Report (BN335). 2. From the Parameters section, Consider the following fields. Tax Year Report Option Type the tax year for which the report is being run. This is a required field. Select the report you want. This is a required field. If you select Annual Additions Maximum, the report uses the maximum annual additions limit from Benefits Annual Limits (BN12.1). If you select Elective Deferral Limit, the report lists employees who are approaching the elective deferral limits for the tax year. DC Type If you selected Elective Deferral Limits in the Report Option field, select the kind of defined contribution plan you want on the report. If you selected Elective Deferral Limits in the Report Option field, type the percentage of the Maximum Deferral field amount that an employees elective deferral must exceed to appear on the report. For example, if you type 75, the report shows employees whose contributions are 75 percent or more of the amount in the Maximum Deferral field. If you selected Elective Deferral Limits in the Report Option field, type the current annual pretax deferral limit for the type of defined contribution plan selected in the DC Type field.
Contribution Percent
Maximum Deferral
Determining Percentage DC/DB Plan Participation

NOTE The report is based on participation on the system date. Determine whether defined contribution (DC) or defined benefit (DB) plans satisfy the percentage test, also called the 70 percent test. The percentage test compares the number of employees who are eligible for the plan with the Chapter 24 Benefit Processes: Benefit Plan Testing 335
number of participants. To determine which employees are eligible, the test uses the eligibility requirements of each benefit plan. STEPS
To determine the percentage of DC or DB plan participation

1. Access Percentage Test (BN345). 2. From the Parameters section, Consider the following fields. Benefit Type Plan Select the type of plan you want to test. This is a required field. Select a plan for the test. If you leave all the Plan fields blank, the report includes all plans for the benefit types that you selected in the Benefit Type field.
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Chapter 25
Benefit Processes: Retiree or COBRA Invoicing and Tracking

This chapter focuses on creating and printing COBRA participant or retiree invoices and updating your invoices and payments to General Ledger.
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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The following procedures explains how to create and print retiree and COBRA participant invoices and update your invoices and payments to the General Ledger Application. Creating Manual Invoices Create retiree or COBRA participant invoices for partial premiums or for retroactive premiums. Create monthly invoices and general ledger transactions for retirees or COBRA participants. Print premium invoices for retirees and COBRA participants. Enter the payment and allow the Benefits Administration to automatically apply the payment. Enter payments for retiree or COBRA participant invoices and apply the payment to the appropriate invoice. Create general ledger transactions for monthly and manual invoices and for payments not yet updated.
Creating Monthly Invoices
Printing Invoices Entering and Automatically Applying Payments Entering and Manually Applying Payments
Updating Invoices and Payments to General Ledger
Creating Manual Invoices

Create invoices for retirees or COBRA participants for partial premiums or for retroactive premiums. Change your manual invoices until you run General Ledger Update (BN190). For more information, see "Updating Invoices and Payments to General Ledger" on page 345. STEPS
To create manual invoices

1. Access Manual Invoice Entry (BN80.1). 2. Consider the following fields. Invoice Number If you are adding an invoice, leave this field blank; the application sequentially assigns invoice numbers for each retiree or COBRA participant. Select the benefit type for which the invoice is being created. This is a required field.
Plan Type
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Plan Start Date
Select the plan for which premiums are being invoiced. This is a required field. Type the start date of the retirees or participants benefit record for which premiums are being invoiced. This is a required field. NOTE To see start dates for the retiree or COBRA participant, drill around on the Participant or Retiree field.
3. From the Invoice section, Consider the following fields. Invoice, Due Date Type the manual invoice date that you want to print on the invoice. In the second field, type the date the payment is due. This date prints as the premium due date on the invoice. The application uses this date to determine when a payment is overdue. These are required fields. Type the invoice amount to be billed to the retiree or COBRA participant. The invoice amount prints on the invoice created by Invoice Print (BN181) as the premium due amount. This is a required field. For retirees, the invoice amount must be less than or equal to the premium amount. For COBRA participants, the invoice amount must be greater than or equal to the premium amount. Premium Amount Type the premium amount for general ledger transactions. This is a required field. The premium amount is used to create general ledger transactions; the premium amount does not print on invoices. For retirees, the amount will include the company paid portion of the premium. For COBRA participants, the amount will not include any administrative fees that were included in the invoice amount. NOTE The invoices general ledger information defaults after you add the invoice. 4. Choose the Add form function.
Invoice Amount

To List manual invoices Display all invoices, payments, and credit memos for a retiree or COBRA participant Use Invoice Edit (BN180) Transaction Inquiry (BN82.1)
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Creating Monthly Invoices

You can create invoices and general ledger transactions for retirees and COBRA participants on a monthly basis. When you process Invoice Edit (BN180) for the creation of monthly invoices, the invoice period must correspond to the billing period on Benefits Company (BN00.1) for retirees and COBRA Parameters (BN00.2) for COBRA participants. For more information, see " Setup: BN Company" on page 33. STEPS
To create monthly invoices

1. Access Invoice Edit (BN180). Figure 62. Form clip: Using BN180 to create monthly invoices
2. From the Parameters section, Consider the following fields. Invoice Period Type the date you want the application to use to create invoices. This is a required field. Invoices are created for retirees and COBRA participants with benefits in effect on this date. NOTE The first time you run Invoice Edit (BN180), the Billing Period fields in BN00.1 for retirees and in BN00.2 for COBRA participants are populated. Thereafter, when you run BN180, the month and year of the date in this field must correspond to the billing period date in BN00.1 for retiree invoices and the billing period date in BN00.2 for COBRA participant invoices. Invoice Date Due Date Type the invoice date. This is a required field. The date you type prints on each invoice. Type the date that payments are due. If you leave this field blank, the application calculates the due date using the Due Date field in Benefits Company (BN00.1) for retirees and COBRA Parameters (BN00.2) for COBRA participants. Benefits Administration User Guide
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Selection Option
Select the kind of invoices that you want processed. This is a required field. If you select Manual Invoices, the report lists the invoices created in Manual Invoice Entry (BN80.1). If you select Monthly and Manual Invoices, the report lists manual invoices from BN80.1 and creates monthly invoices for the specified invoice period. Select the people for whom invoices are being created.
Report Option

To Display all invoices, payments, and credit memos for a COBRA participant or retiree List all benefits in which COBRA participants or retirees are enrolled Use Transaction Inquiry (BN82.1)
COBRA, Retiree Benefit Inquiry (BN77.1) or COBRA/Retiree Benefit Report (BN233)
Printing Invoices
Print premium invoices for retirees and COBRA participants. Invoice Print (BN181) prints manual invoices created in Manual Invoice Entry (BN80.1) and monthly invoices created in Invoice Edit (BN180). IMPORTANT If you do not print the current months invoices, you will not be able to run Invoice Edit (BN180) for the next month.
STEPS
To print invoices
1. Access Invoice Print (BN181). 2. From the Parameters section, Consider the following fields. Invoice Option Reprint Option Select the kind of invoices you want to print. Select the value that indicates whether you want to reprint invoices for a COBRA participant or retiree. If you select Reprint, enter the COBRA participant or retiree number and the invoice number of the invoice you want to reprint.
3. Choose the Add form function. 4. Submit the report. Benefits Administration User Guide Chapter 25 Benefit Processes: Retiree or COBRA Invoicing and Tracking 341

To List all benefits in which COBRA participants or retirees are enrolled Use COBRA, Retiree Benefit Inquiry (BN77.1) or COBRA/Retiree Benefit Report (BN233)
Entering and Automatically Applying Payments

TIP Select the Credit Memo in the Type field to apply credit towards an invoice. Enter the payment and allow the Benefits Administration application to automatically apply the payment. The application applies payments to the oldest invoice first. Use the Release form action to release the payment for updating to the general ledger. IMPORTANT The application recognizes only invoices that have been printed. For more information, see "Printing Invoices" on page 341.
STEPS
To enter and automatically apply payments

1. Access Cash Entry (BN81.1). Figure 63. Form clip: Using BN81.1 to automatically apply payments
Consider the following fields. Type Payment, Credit Memo Select the type of cash application. This is a required field. Type the number of the payment or credit memo being applied. The payment number and credit memo numbers must be unique for a COBRA participant or retiree. This is a required field.
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Amount Transaction Date
Type the amount of cash received or the amount of the credit memo. This is a required field. Type the date of the cash application. This is a required field. The transaction date is the date payment was received or the date a credit memo was issued. Select Yes to automatically apply the payment. The application applies the payment to the oldest invoice first. If the invoice includes multiple benefit types, cash is applied in alphabetical order for each benefit type. For more information, see "Entering and Manually Applying Payments" on page 343.
Auto Apply
Account
If you are entering a credit memo, select the general ledger account information for the debit entry. If you are entering a payment, the application debits the Cash Account defined in Benefits Company (BN00.1); the Cash Account does not display and cannot be overridden.
2. Choose the Add form function. 3. Choose the Special Actions, Release form function to release the applied payment to the general ledger.
IMPORTANT Release a payment only when the unapplied amount is zero.

To Review released payments Display all invoices, payments, and credit memos for a COBRA participant or retiree Use Cash Application Edit (BN281) Transaction Inquiry (BN82.1)
Entering and Manually Applying Payments

Use this procedure if you want to apply a payment to an invoice other than the oldest invoice or if you want to spread a payment over multiple invoices. Fill out the needed information on BN81.1 and the application opens BN81.2 which displays all open invoices for that COBRA participant or retiree. You apply the payment to the appropriate invoice.
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STEPS
To enter and manually apply payments

1. Access Cash Entry (BN81.1). 2. Consider the following fields. Type Payment, Credit Memo Select the type of cash application. This is a required field. Type the number of the payment or credit memo being applied. The payment number and credit memo numbers must be unique for a COBRA participant or retiree. This is a required field. Type the amount of cash received or the amount of the credit memo. This is a required field. Type the date of the cash application. This is a required field. The transaction date is the date payment was received or the date a credit memo was issued. Select No to enter the payment.
Amount Transaction Date
Auto Apply
3. Choose the Add form function. The application automatically opens Cash Entry and Application (BN81.2). Figure 64. Form clip: Using BN81.2 to manually apply payments
TIP If the unapplied amount is not equal to the invoice amount, apply the difference to an over-short account.
4. In Cash Entry and Application (BN81.2), the Unapplied Amount and Invoices display. Type the unapplied amount into the appropriate Apply Amount field(s).
IMPORTANT The application recognizes only invoices that are printed. If there is no invoice to apply the payment to yet, close Cash Entry and Application (BN81.2). The payment is entered in the application. Apply the payment at a later date, after the invoices are run. For more information, see "Printing Invoices" on page 341.
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5. Choose the Change form function. 6. Choose the Special Actions, Release form function to release the applied payment to the general ledger.
IMPORTANT Release a payment only when the unapplied amount is zero.

To Display all invoices, payments, and credit memos for a COBRA participant or retiree Review released payments Use Transaction Inquiry (BN82.1)
Cash Application Edit (BN281)
Updating Invoices and Payments to General Ledger

Create General Ledger transactions for monthly and manual invoices that were printed in Invoice Print (BN181) and for released payments not yet updated. STEPS
To update invoices and payments to General Ledger

1. Access General Ledger Update (BN190). 2. Consider the following fields. GL Posting Date Update Type the general ledger posting date. This is a required field. Select the action you want to perform. This is a required field. Lawson recommends that you select Report Only to review the report before selecting Update.

To Display all invoices, payments, and credit memos for a COBRA participant or retiree Review released payments Use Transaction Inquiry (BN82.1)
Cash Application Edit (BN281)
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346
Chapter 26

This chapter focuses on individual processes provided in the Benefits Administration application.
Setup
BN Company
BN Plan Enrollment
Flex Plans
Plan Maintenance
BN Processes
Preliminaries
Employees
Flex Plan
BN-Plans
COBRA
Special Processing
BN Entry Rules
Retirees
BN-Plan Coverage
BN Automation Rules
You Are Here
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The following procedures focus on processes that are optional and unique. Use them to simulate benefit elections, forecast and purge enrollments, invoices, and payments. Simulating Benefit Elections Simulate the cost of various benefit elections to see the effect on an employees wages. Estimate an employees net income for one pay period. Forecast the future account balance of a defined contribution plan based on an employees contributions and company match contributions. Purge employee, COBRA participant, and retiree benefits and their deductions. Purge invoice and payment records for COBRA participants and retirees.
Estimating Take Home Pay Forecasting Defined Contribution Account Balances
Purging Benefit Enrollments
Purging Invoices and Payments
Simulating Benefit Elections

NOTE You do not need to create a flex dollar record for the employee before you use this simulation. STEPS You can simulate the cost of various benefit elections. Use different combinations of pretax and after-tax dollars and see the effect of benefits on an employees federal taxable wages. For flex plans, the application spends flex credits before spending employee pre-tax dollars.
To simulate benefit election

1. Access Election Simulation (BN65.1).
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Figure 65. Form clip: Using BN65.1 to simulate benefit elections
TIP For security purposes, the employees gross pay does not default. Use drill around to view the employees gross pay if your security level allows. TIP From the FC field next to the plan name, use the drill around feature to view the plans options.
2. Select the company, employee, and type the As of Date and Gross Pay. 3. Choose the Inquire form function. The form displays all benefit plans for which the employee is eligible.
4. Enter the benefit elections desired. For each plan, enter a value in the appropriate column. Consider the following fields. Cov Opt If the plan has coverage options, type the coverage option the employee wants. NOTE A plan has coverage options if the Contribution Type field is Coverage Options for the plan in Benefit Plan (BN15.1). Mult Amount If the plans coverage is a multiple of salary, type the multiple of salary the employee wants to elect. For plans offering coverage as an amount, type an amount of coverage. For defined contribution plans, type the total annual contribution as a flat dollar amount, including the pretax and after-tax. Do not enter the contribution as a percent. If the plan only allows percent contributions, you are not able to simulate the election using this form. For vacation plans, type the number of hours to be bought or sold. For spending accounts, savings bonds, and stock purchase plans, type the annual contribution amount.
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PreTax
Type the amount the employee wants to spend on a pretax basis for this benefit, including flex credits and pretax dollars. If the benefit gives the employee flex credits, type a negative amount. If you enter a value in the Cov Opt, Mult, or Amount field, leave this field blank. The application defaults the pre-tax amount when you add the record, unless the plan allows both pre and after tax contributions and no default tax type is defined for the plan.
AFtTax
Type the amount the employee wants to spend on an after-tax basis for this benefit. If you enter a value in the Cov Opt, Mult, or Amount field, leave this field blank. The application defaults the after-tax amount when you add the record, unless the plan allows both pre and after tax contributions and no default tax type is defined for the plan.
Options for Simulating Benefit Elections

The following options are available from Election Simulation (BN65.1). After you specify the employees contributions, choose the Totals button to access the Flex Credits (BN65.2) subform. Use this subform to see the total flex and pretax dollars the employee can use to purchase benefits and the overall effect on federal taxable income for the simulated elections.
Estimating Take Home Pay

Estimate an employees net income for one pay period. If you have transferred directly from Election Simulation (BN65.1) using the local form transfer, the application uses the simulated elections and annual contributions from BN65.1. Or use the Inquire form function to bring in the data from Election Simulation (BN65.1). Based on the pretax and after-tax contributions, the Benefits Administration application calculates the employees withholding amount to determine the employees net pay. Type an amount of take home pay instead of the gross amount that an employee wants, and the Benefits Administration application calculates the gross pay needed to cover the elected benefits. STEPS
To estimate take home pay

1. Access Estimated Pay Calculation (BN66.1). 2. From the Compensation section, Consider the following fields.
350
Pay Period Gross Income
Type the employees gross income for one pay period. To calculate the gross pay needed to cover the elected benefits, leave this field blank. Type the net income the employee wants in the Estimated Net Pay field. NOTE If a benefit simulation is entered on Election Simulation (BN65.1), and you form transfer to this form, this field may be populated. It can be overridden if desired.
Flex Credits Benefit Credits
Type the flex credits the employee receives each pay period. Type the number of flex credits the employee received for electing benefits that cannot be spent on other benefits.
3. From the Spend section, Consider the following fields. Pre-tax Dollars Spent Type the employees pretax contribution for benefits each pay period. NOTE If a benefit simulation is entered on Election Simulation (BN65.1), and you form transfer to this form, this field may be populated. It can be overridden if desired. Defined Contribution Spend Type the employees contribution to 401(k), 403(b), and 457 plans each pay period. NOTE If a benefit simulation is entered on Election Simulation (BN65.1), and you form transfer to this form, this field may be populated. It can be overridden if desired.
4. From the Deductions section, Consider the following fields. Federal In the first field, type the federal exemptions the employee wants to use in the calculation. In the second field, Type the employees federal marital status. If you leave these fields blank, the application uses the federal exemptions from Employee Taxes (PR13.1). In the first field, type the state exemptions the employee wants to use in the calculation. In the second field, type the employees state marital status. If you leave this field blank, the application uses the marital status from Employee Taxes (PR13.1) based on the employees resident state.
State
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After-Tax Deductions
Type the after-tax deduction amount for each pay period. NOTE If a benefit simulation is entered on Election Simulation (BN65.1), and you form transfer to this form, this field may be populated. It can be overridden if desired.
Other Deductions
Type the total amount of any other deductions, such as union dues, that are taken for each pay period.
5. Select the Special Actions, Calculate form function.
Forecasting Defined Contribution Account Balances

Forecast the future account balance of a defined contribution plan based on an employees contributions and company match contributions. Compare different future balances by assuming different contributions.
352
STEPS
To forecast defined contribution account balances

1. Access Defined Contribution Forecast (BN67.1). 2. Consider the following fields. Annual Salary Salary Increase If contributions are a percent of salary, type the employees salary for the forecast. Type a percent that the salary increases for each year of the forecast. For example, for 7% type 7 in the field. To include the employees current account balance, type the employees account balance.
Current Balance
3. From the Annual Contribution section, consider the following fields. Percent If the forecast is based on a contribution defined as a percent of annual salary, type the employee contribution percent. If the employees annual contribution is a flat dollar amount, type the annual contribution. If the company matches a percent of employee contributions, type the match percent. If the plan has a company match limit that is a percent of an employees annual salary, type that limit.
Amount Company Match Limit
4. From the Return section, Consider the following fields. Rate of Return Type an average annual rate of return or the interest rate of the investment. The rate of return compounds annually. Type the number of years of the forecast. This is a required field.
Years
5. Choose the Special Action, Calculate form function.
Purging Benefit Enrollments

Purge employee, COBRA participant, and retiree benefits and their deductions. Lawson recommends that you keep at least one year of benefit history. You have three ways to purge benefits. Purge all benefits, flex benefit records, employee deductions, and standard time records under a flex plan for a specified flex plan year. Purge all non-flex benefit and deductions with a stop date that is equal to or earlier than a designated date.
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Purge all non-flex benefit and deductions in effect on a particular date. Lawson strongly recommends caution when using this option. This option is designed to purge test data and as a result will purge benefits even if payroll history exists. WARNING Purging records permanently removes them from the Lawson database. You cannot retrieve purged information. It is strongly recommended that you back up data, following your organizations MIS procedures, before running any purge programs.
STEPS
To purge benefit enrollments

1. Access Benefit Purge (BN430). 2. Consider the following fields. Purge Thru Date As of Date Type a date to purge non-flex benefits with a stop date equal to or earlier than this date. Type a date to purge non-flex benefits in effect on this date.
CAUTION This option is designed to be used to purge test data only. Benefit Type Type an X to include benefit plans of this kind for purging. You must select at least one benefit type. If you are purging benefits under a flex plan, type an X in all Benefit Type fields. Benefit types are as follows. Termination Date HL = Health DN = Dental DI = Disability EL = Employee Life DL = Dependent Life DC = Defined Contribution DB = Defined Benefit VA = Vacation buy or sell RS = Spending Account SB = Saving Bond SP = Stock Purchase
Type a date to purge benefits for employees with termination dates equal to or earlier than this date.
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Report Option
Select the value that indicates whether you want to purge benefit records for employees, retirees, COBRA participants, or all benefit records. This is a required field. Select the action you want to perform. This is a required field. If you select Report Only, the report lists, but does not purge the benefit information that you select for purging. If you select Update, the report purges and lists the benefit information that you select for purging. Lawson recommends that you select Report Only to view the report before selecting Update.
Update
Purging Invoices and Payments

Purge invoice and payment records for COBRA participants and retirees. Print invoices and update to the general ledger before purging. Apply and release payments before purging. WARNING Purging records permanently removes them from the Lawson database. You cannot retrieve purged information. It is strongly recommended that you back up data, following your organizations MIS procedures, before running any purge programs. STEPS
To purge invoices and payments

1. Access Invoice, Payment Purge (BN480). 2. From the parameter section, Consider the following fields. Thru Date Type a date to purge invoices and payments with dates equal to or before this date. This is a required field. Select the action you want to perform. This is a required field. If you select Report Only, the report lists, but does not purge the invoices or payment. If you select Update, the report lists and purges the invoices or payments that you select for purging. Lawson recommends that you select Report Only to view the report before selecting Update 3. Choose the Add form function. 4. Submit the report.
Update
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Appendix A
Report Samples
The Benefits Administration application includes a number of reports and listings that allow you to review your data. This appendix provides a brief description of the major reports and listings along with a sample of the report output.
Employee Change Benefit Update (BN100)

Run Employee Change Benefit Update (BN100) to automatically add, change, and terminate employee benefits based on changes made by personnel actions. Figure 66. Form clip: Running Employee Change Benefit Update (BN100)
Appendix A
Report Samples
357
602 Hanson, Hannah Action JOB CHG Delete Add Change UNIONS FT SAL BW Salary FT HR BW
Effective Date 02/09/98
Figure 67. Report sample: Employee Change Benefit Update (BN100)
Process Plan Start Stop Coverage Contribution -------- ----------------------- -------- -------- ------------ -------------Chg Stop HL HL1 Health Union an 01/01/96 02/28/98 PT 1000.00 CO 500.00 Chg Add HL HL1 Health Union an 03/01/98 PT 900.00 CO 600.00 Err Chg DI DI1 STD Disability 01/01/96 24,960.00 CO 11.32
Deduction Error ------------ ---------------------------------------9PH1 83.33 9CH1 41.67 9PH1 75.00 9CH1 50.00 9CI1 .44 Change rules not defined for action JOB
Appendix A
Report Samples
358
Mass Benefit Add (BN101)

Run Mass Benefit Add (BN101) to list the employees who are eligible for plans. Figure 68. Form clip: Running Mass Benefit Add (BN101)
Appendix A
Report Samples
359
BN101 Date 09/25/00 Time 14:15
Company 4321 Two Rivers Company Mass Benefit Add Calculation Date 01/01/00
Update
Page
Plan Type Plan Code Pct/Amt ------Amount
DI DI1
Disability STD Disability Default
Start ---Option---- Mult Cov/Pay Per Sal/Annual -------- ------------- ------ ------------- ----------01/01/00 28900.00 38500.00 Pre-Tax After-Tax Comp 13.09 9CI1 .50 01/01/00 28100.00 37440.00 Pre-Tax After-Tax Comp 12.73 01/01/00 Pre-Tax After-Tax 01/01/00 Pre-Tax After-Tax 01/01/00 Pre-Tax After-Tax
Amount
Amount
Figure 69. Report sample: Mass Benefit Add (BN101)
Amount

56300.00 75000.00 Comp 25.50 9CI1 .98 10200.00 13520.00 Comp 4.60 9CI1 .18 23400.00 31200.00 Comp 10.61
Employee ----------------------------------------------------------28 Andersen, Iris A Contribution Flex Deduction 4002 Angell, Michael Contribution Flex Deduction 9CI1 .49 2002 Arc, Lisa L Contribution Flex Deduction 18 Buttgling, Katherine A Contribution Flex Deduction 4001 Dahl, Karen Contribution Flex Deduction
Amount
Appendix A
Report Samples
360
Plan Employee Update (BN102)

Run Plan Employee Update (BN102) to update employee benefits for a plan that has coverage or contributions based on age or years of service. Figure 70. Form clip: Running Plan Employee Update (BN102)
Appendix A
Report Samples
361
BN102 Date 09/21/00 Time 13:25
Company 4321 Two Rivers Company Plan Update Calculation Date 10/01/00
Report Only
Page
Plan Type Plan Code
EL EL1
Employee Life Employee Multiple of Life New Contribution Amounts --------------------------------------------Flex Amt Pre-Tax Aft-Tax Total Amt Company -------- -------- -------- --------- -------29.38 29.38 44.06 80.11 80.11 119.65
Figure 71. Report sample: Plan Employee Update

Original Contribution Amounts --------------------------------------------Flex Amt Pre-Tax Aft-Tax Total Amt Company -------- -------- -------- --------- -------28.80 28.80 43.20 1.11 1.66 80.85 80.85 120.75 3.11 4.64
Employee Name Start --------- ----------------- -------500 Johnson, Mark M 09/01/00 Deduction 502 Morrison, Mathew 02/01/00 Deduction
Appendix A
Report Samples
362
Plan Update (BN105)

Run Plan Update (BN105) to update all benefits for plans in which coverage, contributions, or general ledger overrides have been added or changed. Figure 72. Form clip: Running Plan Update (BN105)
Appendix A
Report Samples
363
BN105 Date 09/25/00 Time 14:28
Company 4321 Two Rivers Company Plan Update - Employees Effective Date 01/01/00
Update
Page
Plan Type Plan Code
HL HL1
Health Health Union and Non Union New Amounts ------------------------------------------------------Coverage Flex Amt Pre-Tax Aft-Tax Total Amt Company --------- -------- -------- -------- --------- -------1200.00 100.00 1000.00 83.33 1100.00 91.67 1200.00 850.00 70.83 1000.00 650.00 54.17 1100.00 550.00 45.83
Employee --------300
Figure 73. Report sample: Plan Update (BN105)
803
Original Amounts ------------------------------------------------------Start Dt Coverage Flex Amt Pre-Tax Aft-Tax Total Amt Company -------- --------- -------- -------- -------- --------- -------01/01/97 Ackner, Andrew M 1100.00 1100.00 800.00 Deduction 91.67 66.67 01/01/96 Brown, Jan B 900.00 900.00 600.00 Deduction 75.00 50.00 01/01/96 Espy, Johanna J 1000.00 1000.00 500.00 Deduction 83.33 41.67
Appendix A
Report Samples
364
Life Insurance Reportable Income (BN150)

Run Life Insurance Reportable Income (BN150) to calculate the cost of excess employee and dependent life insurance for each employee.
Appendix A
Report Samples
365
BN150 Date 09/25/00 Time 14:40
Company 4321 Two Rivers Company Employee Life Reportable Income Report As Of 08/01/00 Pre-Tax Premium ---------8.43 4.30 2.61 1.02 1.01 105.83 Reportable Income --------------
Report Only
Page
Figure 74. Report sample: Life Insurance Reportable Income (BN150)
Employee --------5 303 500 502 503 750 802
Name --------------------------------Paynter, Jordan R Carter, Thomas M Johnson, Mark M Morrison, Mathew L Shandell, Sharon M Larson, Patricia A Smith, Elizabeth
Excess Employee Life -------------20,000.00 110,000.00 90,000.00 55,000.00 40,000.00 24,000.00 150,000.00
Cost Of Excess -----------2.20 18.70 9.90 9.35 6.80 11.52 175.50
After Tax Premium ---------2.80 10.27 5.60 6.74 5.78 10.51 69.67
Appendix A
Report Samples
366
Plan Parameter Listing (BN215)

Run Plan Parameter Listing (BN215) to list parameters of one or more benefit plans.
Appendix A
Report Samples
367
BN215 Date 10/23/00 Time 14:48 HL 1 Health Basic Health plan (US)
Company 3004 Sues QA Test Company Plan Parameter Listing
Page
Plan Type Plan Code
Category Start Date 01/01/99 Stop Date
Parameters ---------Coverage Type Contribution Type Default Waive 1 1 A No Coverage Options Options Amount Always Default
Figure 75. Report Sample: Plan Parameter Listing (BN215)

US USD Yes ACTIVE FT Active Full Time Employees No Yes
Insurer ------Insurer Contract Number
International ------------Country Currency
Appendix A
Eligibility ----------Employees Covered Employee Group Postal Code
Retirees Covered Employee Group
Report Samples
COBRA (U.S.) Covered
368
Flex ---Flex Plan Flex Core Deduction Benefit Plan Pay Code Time Accrual Plan No
COBRA and Retiree Accounts -------------------------Accrual Account 3004 CORP Accounts Receivable 3004 CORP Expense 3004 CORP 10100 11400 12500 Cash Accrued Deductions I/C Accounts Receivable 1 Percent Deductions Basic Table
Frequency Table
Amount Deductions -----------------
Appendix A
Report Samples
369
Benefit Entry Rules Listing (BN216)

Run Benefit Entry Rules Listing (BN216) to list a plans waiting periods, add rules, change rules, and termination rules.
370
Appendix A
Report Samples
BN216 Date 09/25/00 Time 14:45 Health
Company 4321 Two Rivers Company Benefit Plan Rules Report
Page
Plan Type Plan
HL
Rule Type
Add Rules
Start Date Employee Group Personnel Action
01/01/97
REHIRE

Adjusted Hire Date 30 Next Entry Point Adjusted Hire Date
Eligibility ----------From Date Months Days Hours Pay Class Entry Type
Figure 76. Report sample: Benefit Entry Rules Listing (BN216)
Points -----01/01 02/01 03/01 04/01 05/01 06/01 07/01 08/01 09/01 10/01 11/01 12/01
Rule Type
Add Rules
Start Date Employee Group Personnel Action
01/01/97
Appendix A
REHIRE<YR
Eligibility ----------From Date Months Days Hours Pay Class
Report Samples
371
Benefit Plan Status Report (BN220)

Use Benefit Plan Status Report (BN220) to verify statuses of benefit plans. Figure 77. Form clip: Running Benefit Plan Status Report (BN220)
372
Appendix A
Report Samples
BN220 Date 09/25/00 Time 14:47
Company 4321 Two Rivers Company Benefit Plan Status Report
Page
BN105 (Plan Update) Statuses
Plan Type ---DC DI
Plan ---401J DI1
Group Name ----------
401k Plan STD Disability Default

Start Date -------01/01/00 01/01/99 01/01/00 01/01/00 01/01/00 01/01/00 01/01/99 01/01/99 01/01/00 01/01/00 Record Type -----------CONTRIBUTION COVERAGE COVERAGE CONTRIBUTION COVERAGE CONTRIBUTION CONTRIBUTION COVERAGE CONTRIBUTION COVERAGE Action Needed -------None Update Update None None Update None None None None
DIJK
Joelyns Disability
DL EL
DL1 AD&D
Dependent Life Accid. Death & Dismemberment
Figure 78. Report sample: Benefit Plan Status Report (BN220)
EFLJ
Flex Emp Life
Appendix A
Report Samples
373
Plan Participant Report (BN230)

Run Plan Participant Report (BN230) to list the plan participants of a benefit.
374
Appendix A
Report Samples
BN230 Date 09/25/00 Time 14:49
Company 4321 Two Rivers Company Plan Participant Report - Employee Beginning Date 01/01/00
Page
Benefit Type Health Union and Non Union
Health

Start Stop Opt Date Date Nbr -------- -------- -----01/01/00 2.000 01/01/00 1.000 01/01/00 1.000 01/01/00 1.000 01/01/00 2.000 01/01/00 1.000 01/01/00 5.000 Employee Coverage Contribution --------------- -------------Employee + 1 1,200.00 Employee Only 1,000.00 Employee Only 1,100.00 Employee Only 1,100.00 Employee + 1 1,300.00 Employee Only 1,000.00 Employee + 4 1,750.00 Company Match Contribution Up To -------------- -----850.00 650.00 550.00 550.00 750.00 650.00 1,400.00 Total Contribution -------------2,050.00 1,650.00 1,650.00 1,650.00 2,050.00 1,650.00 3,150.00
Plan
HL1
Figure 79. Report Sample: Plan Participant Report (BN230)
Employee ----------300 2 803 800 304 602 302
Name ------------------------Ackner, Andrew M Brown, Jan B Espy, Johanna J Forseth, Betty W Freeman, Linda M Hanson, Hannah H Hanson, Luke D
Appendix A
Report Samples
375
Employee Benefit Report (BN231)

Run Employee Benefit Report (BN231) to list all benefits in which employees are enrolled.
376
Appendix A
Report Samples
BN231 Date 08/24/00 Time 15:45
Company 4321 Two Rivers Company Employee Benefit Report Benefits Date Range 01/01/98 - 12/31/98 Description -----------------------------Start Date ---------Stop Date --------Opt/Nbr ------Emp Election -----------Comments --------
Page
Type --------------------
Plan ----
01/31/98

Pension DEFAULT ALL Employees 403b Plan 403b Plan STD Disability Default Employee Life Flat Amount Health Union and Non Union Dependent Care Spending Acct 2 12/31/98 2.00 % 2.00 % 24750.00 10000.00 Employee + 1 5000.00 04/01/97 04/01/97 02/01/98 09/30/96 09/30/96 01/01/97 01/01/98 No No No No No No No
Figure 81. Report sample: Employee Benefit Report (BN231)
300 Ackner, Andrew M Defined Benefit PENS Defined Contribution 403B Defined Contribution 403B Disability DI1 Employee Life EL2 Health HL1 Spending Account RS2
Appendix A
Report Samples
377
Benefits Statement (BN232)

Run Benefits Statement (BN232) to create personalized benefits statements for employees.
378
Appendix A
Report Samples
Prepared For:
Smith, Randy D
Page
Two Rivers Company Employee Benefits Statement Prepared On: 01/01/00
Employee Life/AD&D Benefits ------------------------------
Employee Life Flat Amount

10,000.00 Company Contribution -------------------0.00 75,000.00 -------------75,000.00
Coverage: Benefit Of
Summary Statement -----------------
Figure 82. Report sample: Benefits Statement (BN232)
Benefit Type -----------------
Plan Description ------------------------------
Total Company Contributions 2000 Annual Salary
Total Compensation
Appendix A
Report Samples
379
Participation Report (BN236)

Run Participation Listing (BN236) to list the plan participants of defined contribution and defined benefit plans.
380
Appendix A
Report Samples
BN236 Date 09/25/00 Time 15:01
Company 4321 Two Rivers Company Participation Listing - Defined Contribution Plan Year 1998
Page
Plan 403B Start/Stop Date Hours Of Service: Required Minimum Vesting 0 0 0
403b Plan 01/01/80

Date Of Birth ---------05/13/1964 01/20/1961 04/06/1960 11/15/1973 08/20/1972 Age --36 39 40 26 28 Entry Date ---------07/01/81 06/01/96 06/01/96 11/01/96 05/01/96 -----Service Requirements----Months Hours Active Last Day ------ ------- --------------12 300.00 YES 12 160.00 YES 12 240.00 YES 12 280.00 YES 12 250.00 YES Compensation -------------3,300.00 5,153.84 3,692.31 3,150.00 2,805.00
Figure 83. Report sample: Participation Report
Meet Required Hours Of Service - Eligible For Contribution
Employee --------2 201 203 211 212
Name --------------------------------Brown, Jan B Walterson, Anthony T Holmer, John D Schumacher, Adam R Petra, Kimberly A
Appendix A
Report Samples
381
One Page Benefit Statement (BN242)

Run One Page Benefits Statement (BN242) to create benefits statements that estimate the total cost of an employees benefits.
382
Appendix A
Report Samples
1998
Benefits Statement
300 Andrew M. Ackner 445 Main Street Soc Nbr 450-98-0009 Birthdate 07/14/73 Hire Date 09/30/96

MN 55413 COMPANY COST -----------Employee + 1 $800.00 $1,100.00 YOUR COST --------$10,000.00 $150.00 $11.22
Minneapolis
Your estimated annual benefit cost for 1998 is $961.22. The following summary statement has been prepared for you to show each benefit cost. Actual values were used when possible while other amounts were estimated.
MEDICAL AND DENTAL BENEFITS: ---------------------------
Figure 84. Report sample: One Page Benefits Statement
Health Union and Non Union
INCOME PROTECTION BENEFITS: --------------------------
Employee Life Flat Amount STD Disability Default
Appendix A
Report Samples
383
Benefit Election Form (BN245)

Run Benefit Election Form (BN245) to create benefit election or confirmation forms for employees.
384
Appendix A
Report Samples
Benefit Election Form
Page
Company Employee 1
4321
Two Rivers Company Albrit, Tina K
475-88-9632 Birthdate 07/10/75 07/12/84 07/12/84 Age Date 07/12/84 07/12/84 Age AP 2 S HDQTR ADMIN Active Part-time Biweekly Single Two Rivers Headquarters Administration

HR DIRECT HR director 612 588-9635 8885 4321 102 12/31/98 01/01/99 51080
Figure 85. Report sample: Benefit Election Form (BN245)
Social Nbr Hire,Adjusted Hire Date Anniversary,Seniority Date Benefits Date 1 - 5 Employee Status Pay Frequency True Marital Status Process Level Department User Level Location Code Supervisor Mail Group Mail Box Nbr Home,Work Phone,Ext Spouse Employer Spouse Address 1 Spouse Address 2 Spouse Address 3 Spouse Address 4 City or Address 5 State or Province, Zip Country Expense Account Activity Current,New Election Date
Appendix A
Report Samples
385
Flex Missing Benefits Report (BN246)

Run Flex Plan Participant Errors (BN246) to list employees whose benefits have not been completely added for the flex plan year.
386
Appendix A
Report Samples
BN246 Date 09/25/00 Time 15:04
Company 4321 Two Rivers Company Flex Missing Benefits Report Plan Year - 01/01/00 Joelyns Flex
Page
Flex Plan
JKFL

Open Benefit Types -----------------------------------------DN DL DB SB SP DN DL DC DB RS SB SP DL DC DB RS SB SP
Figure 86. Report sample: Flex Missing Benefits Report (BN246)
Employee --------4001 4002 4003
Name ------------------------------------------------Dahl, Karen Angell, Michael Simmons, Christine
Appendix A
Report Samples
387
Monthly Premium Report (BN320)

Run Monthly Premium Report (BN320) to review monthly billings. Create four kinds of reports: a premium report, an exception report, a summary report, and a combination of all three. Select which report you need in the Report Option field. The following report samples display a premium report, an exception report and a summary report. Figure 87. Form clip: Running Monthly Premium Report (BN320)
388
Appendix A
Report Samples
BN320 Date 09/25/00 Time 15:06 1999
Company 4321 Two Rivers Company Monthly Premium Report For December Premium Report - Employees
Page
Benefit Type Plan
Health HL1 Health Union and Non Union

Date Of Effective Employee Company Total Birth Smk Date Coverage Premium Premium Premium -------- --- --------- --------------- ----------- ----------- ----------05/13/64 01/01/96 Employee Only 75.00 50.00 125.00 07/28/65 01/01/99 Employee Only 75.00 50.00 125.00 01/20/61 01/30/96 Employee + 3 125.00 100.00 225.00 07/14/73 01/01/97 Employee + 1 91.67 66.67 158.34 08/28/53 01/01/96
Employee Group Date
01/01/96
Figure 88. Report sample: Premium Report from Monthly Premium Report (BN320)
Employee -------------------2 5 201 300 302
Name --------------------------------Brown, Jan B Paynter, Jordan R Walterson, Anthony T Ackner, Andrew M Hanson, Luke D
Appendix A
Report Samples
389
BN320 Date 09/25/00 Time 15:06
Company 4321 Two Rivers Company Monthly Premium Report For December 1999 Exception report (Employee Terminations)
Page
Benefit Type Plan
Employee Group Date Employee Company Premium Premium ----------- ----------75.00 50.00 75.00 50.00 125.00 100.00 91.67 66.67 141.67 116.67
01/01/96 Total Premium ----------125.00 125.00 225.00 158.34 258.34
Figure 89. Report sample: Exception Report from Monthly Premium Report (BN320)

Date Of Effective Birth Smk Date Coverage -------- --- --------- --------------05/13/64 12/31/99 Employee Only 07/28/65 12/31/99 Employee Only 01/20/61 12/31/99 Employee + 3 07/14/73 12/31/99 Employee + 1 08/28/53 12/31/99 Employee + 4 02/01/63 12/31/99
Employees -------------------2 5 201 300 302 500
Name --------------------------------Brown, Jan B Paynter, Jordan R Walterson, Anthony T Ackner, Andrew M Hanson, Luke D Johnson, Mark M
Appendix A
Report Samples
390
BN320 Date 09/25/00 Time 15:06 1999
Company 4321 Two Rivers Company Monthly Premium Report For December Summary Report
Page
Benefit Type Plan
Employee Group Date
01/01/96

Employee Company Total Premium Premium Premium ------------- ------------- ------------525.00 350.00 875.00 91.67 66.67 158.34 250.00 200.00 450.00 141.67 116.67 258.34 Employee Company Total Premium Premium Premium ------------- ------------- ------------8.33 116.67 125.00 16.67 141.67 158.34 50.00 258.33 308.33
Employees
Coverage --------------Employee Only Employee + 1 Employee + 3 Employee + 4
Number Covered ------7 1 2 1
Retirees
Figure 90. Report sample: Summary Report from Monthly Premium Report (BN320)
Coverage --------------Employee Only Employee + 1 Full Family
Number Covered ------1 1 1
Appendix A
Report Samples
391
DC Plan Contributions (BN330)

Run DC Plan Contributions (BN330) to list investment amounts for defined contribution plans.
392
Appendix A
Report Samples
BN330 Date 09/07/00 Time 11:09
Company 4321 Two Rivers Company DC Plan Contributions Payroll Payment Dates 01/01/98 - 12/31/99
Page
Plan Pre-Tax -----------After-Tax -----------Company ------------
403B
403b Plan Total -------------
Employee ---------
Name Percent ------------------------------------------- -------
300 100.00
Ackner, Andrew M Guaranteed Fund
76.14 76.14
0.00 0.00
.25 .25
76.39 76.39
520 100.00 8.00 4.00 .20 .05

115.20 115.20 0.00 0.00 .79 .79 115.99 115.99 66.20 28.05 42.37 42.37 58.00 24.00 24.00
Anderson, Julie A Undistributed
Figure 91. Report sample: DC Plan Contributions (BN330)
Brown, Jan B Guaranteed Fund Mutual Fund
Appendix A
Report Samples
393
394
Appendix A
Report Samples
Appendix B
Appendix B
395
Calculating Annual and Hourly Pay Rates

This section explains the following calculations: "Calculating Annual Salary for an Hourly Employee" on page 396 "Calculating Hourly Rate for a Salaried Employee" on page 396
Calculating Annual Salary for an Hourly Employee

The Benefits Administration application calculates an annual salary for an hourly employee for the following reasons: To calculate the annual salary for an hourly employee, the Benefits Administration application uses the following equation: Figure 91. Report sample: DC Plan Contributions (BN330) To calculate the annual salary for coverage, contribution, and flex dollar calculations To calculate limits for plans with the contribution types contribution limits, match limit schedule, and match percent schedule
Hourly rate
Job code FTE
Annual hours = Annual salary
How the Benefits Administration application determines the hourly rate, job code FTE, and annual hours depends on whether these values are current or if they are based on an as of date or the first of the month. If these values are current, the hourly rate and job code FTE are from Employee (HR11.1); the annual hours figure is from Job Code (HR06.1) or, if the employee is not assigned a job code, from Company (HR00.1). If these values are based on an As of date or the first of the month, these values are based on history files.
Calculating Hourly Rate for a Salaried Employee

The Benefits Administration application calculates an employees hourly rate to determine the value of each vacation hour for flex vacation plans in which an employee can buy or sell vacation hours. The Benefits Administration application calculates the employees hourly rate as follows:
396
Appendix B
1. If the flex vacation plan is based on a salary other than the employees flex salary, the Benefits Administration application annualizes the employees pay rate. For more information, see "Calculating Annual Salary for an Hourly Employee" on page 396. If the flex vacation plan uses the employees salary used for flex calculations in Employee Flex Credits (BN45.1), the application determines which salary is used based on the parameters defined for the flex vacation plan in the Flex Salary Parameters subform on Flex Credits (BN08.1). 2. The Benefits Administration application calculates the cost of a vacation hour using the following equation:
Annual salary Job code FTE Annual hours
Cost = Cost of one vacation hour
The Cost figure is from the Misc. form tab on Benefit Plan (BN15.1).
Appendix B
397
Company Match Calculations

This section explains how the Benefits Administration application creates company match deductions and how the deduction is calculated. Two contribution types create company match deductions: Match limit schedule and Match percent schedule
Each contribution type works differently. For the match limit schedule, the Benefits Administration application creates the deduction without any special calculations. The application creates the deduction taking the values directly from the schedule. The Payroll application performs calculations that are unique to these benefits deductions to determine the amount of the deduction in each payroll cycle. For the match percent schedule, the Benefits Administration application performs unique calculations to determine the values to be used when the deduction is created. The Payroll application handles the deduction like all other payroll deductions.
Company Match Deduction Creation for Match Limit Schedules

How the Benefits Administration application creates the company match deduction depends on the plans contribution schedule, which is defined on Match Limits Schedule (BN18.6). Based on the years-of-service range the employee is part of, the Benefits Administration application uses the figures directly from the contribution schedule for the company match deduction it creates. The following examples at ABC Foods are based on the following contribution schedule. Years 1-4 5-99 Match percent 25% 50% Up to 5% 10% $Amount $1,000.00 $2,000.00
Mary has two years of service. The deduction is created in PR14.1 (Employee Deduction) like this: Amount or percent 25.00 Up to 5.00 Balance type D Balance $1,000.00
Bob has 15 years of service. The deduction is created like this:
398
Appendix B
Amount or percent 50.00
Up to 10.00
Balance type D
Balance $2,000.00
If the employees contribution is split between pretax and after-tax, and the company matches both types of contributions, the match is prorated. For example, Joe has ten years of service and contributes 10% pretax and 5% after-tax. Two company match deductions are created as follows.
Pretax company match

Amount or percent 50.00 Up to 6.67 Balance type D Balance $1,333.33
After-tax company match

Amount or percent 50.00 Up to 3.33 Balance type D Balance $666.67
The calculation for the company match deduction as defined on Deduction (PR05.1) is Percent of Employee Deduction. The Up To field can be viewed only through drill around.
Payroll Calculation for Match Limit Deductions

To calculate the company match deduction, the Payroll application determines if the employees contribution is greater than the Up To percent defined as the limit of the company match on Match Limit Schedule (BN18.6). If the contribution does not exceed the Up To percent, the match is calculated based on the employees deduction amount. If the contribution exceeds the Up To percent, the percent limit is calculated and the company match deduction based on the reduced amount. If the employee contributes a flat amount (instead of a percent), the Payroll application first calculates the percent the employee is contributing using the following equation.
Employee' s deduction Employee' s pay

For example:
100 = Employee' s contributi on percent
Vinnies pay is $1,600.00. His deduction amount is $22.13, so he is contributing 1.383% of his pay ($22.13/$1,600.00 * 100 = 1.383).
Appendix B
399
The Payroll application determines the companys contribution amount as follows: If the employees percent contribution is equal to or less than the Up To amount, the company match calculates as follows: Employees contribution * Match% = Company match At ABC Foods, if an employees contribution is up to 5%, the company match is 50% of the employees contribution. For example: Sheilas pay is $1,600.00. She contributes three percent of her pay, which is $48.00 ($1,600.00 * 0.03). The company match is $24.00 ($48.00 * 0.50). If the employees contribution is greater than the Up To amount, the company match calculates as follows: (Employees pay * Up To percent) * Match% = Company match) At ABC Foods, if an employees contribution exceeds 5%, the Payroll application calculates 5% of the employees pay and calculates the companys contribution as 50% of that amount. For example: Tonys pay is $1,600.00. He contributes 7% of his pay, which is $112.00 ($1,600.00 * 0.07). Because Tonys contribution exceeds 5% of his pay, the Payroll application calculates 5% of Tonys pay, which is $80.00 ($1,600.00 * 0.05). The company match is $40.00 ($80.00 * 0.50). In the above example, if the employee contribution is an amount, rather than a contribution of 7%, the employee contribution would be a flat amount of $112.00 each pay period, and the application would have calculated what percent the contribution is. If there is a dollar amount limit, the company match stops when the descending balance = $0.00.
Company Match Deduction Creation for Match Percent Schedules

How the Benefits Administration application creates the company match deduction depends on the plans contribution schedule, which is defined on Match Percent Schedule (BN18.7) and the match calculation described below. To determine the company match amount, the Benefits Administration application finds the employees contribution percent on the schedule. If the employee contributes a flat amount instead of a percent, the application determines the percent of the employees contribution, using the following equation:
400
Appendix B
Employee' s contributi on Employee' s Annual Salary

For example:
100 = Employee' s percent contributi on
Barts annual salary is $40,000.00 based on the salary definition on the contribution. His flat amount contribution is $4,500.00, so he is contributing 11.25% of his salary ($4,500.00/$40,000.00 * 100 = 11.25).
Calculations Based on the Type of Match Calculation

The type of match is defined by the Match Calc tab on Match Percent Schedule (BN18.7). There are two types of match calculations: Fixed The company match is determined using only the values from the detail line that contains the percent the employee elected. Cumulative The company match is determined using the values of all contribution levels up to and including the detail line that contains the percent the employee elected.
Company Match Deduction Creation for Fixed Match Calculation

The schedule would look like this: Percent 0-4 5-10 Match percent 50.00* 25.00* Amount $500.00 $1,000.00
* This field can be defined as 50% or 5% depending upon the Calculation Type on the deduction in Deduction (PR05.1). For more information, see "How do I Define Benefit Contributions?" on page 149. The deduction is created in Employee Deduction (PR14.1) as follows: Niki contributes 3%, which is within the first range on the schedule (between 0% and 4%). The company match deduction is created as follows: Amount or percent 50.00 Balance type D Balance $500.00
Mike contributes 7%, which is within the second range on the schedule (between 5% and 10%). The company match deduction is created as follows: Amount or percent 25.00 Bal. type D Balance $1,000.00
Appendix B
401
Payroll Calculation for Fixed Match Calculation Deductions

The following examples illustrate payroll calculation for fixed match calculation deductions. The way you set up the deductions affects the deduction calculations. For these examples, the calculation type came from Deduction (PR05.1).
Deductions with Calculation Type of Percent of Employee Deduction

Nikis 3% contribution is calculated as follows: $1,000.00 * 0.03 = $30.00 The company match is 50% of her deduction of $30.00 or $15.00. (30.00 * 0.50 = 15.00) Mikes 7% contribution is calculated as follows: $1,500.00 * 0.07 = $105.00 The company match is 25% of his deduction of $105.00 or $26.25 ($105.00 * 0.25 = $26.25)
Deductions with Calculation Type of Percent

Nikis 3% contribution is calculated as follows: $1,000.00 * 0.03 = $30.00. The company match is 3% of her pay or $30.00 ($1,000.00 * 3.00 = $30.00) Mikes 7% contribution is calculated as follows: $1,500.00 * 0.07 = $105.00. The company match is 5% of his pay or $75.00 ($1,500.00 * 5.00 = $75.00)
Company Match Deduction Creation for Cumulative Match Calculations

The schedule would look like this: Percent 0-4 5-8 9-15 Match percent 100.00 50.00 25.00 Amount $500.00 $1,000.00 $1,500.00
The deduction is created in Employee Deduction (PR14.1) as follows: Robin contributes 3%, which is within the first range on the schedule (between 0% and 4%). The company match deduction is created as follows:
402
Appendix B
Amount or percent 3.00
Balance type D
Balance $500.00
The amount or percent is calculated as 3% * 100 = 3. Walter contributes 7%, in second range on the schedule (between 5-8). The company match deduction is created as follows: Amount or percent 5.50 The amount or percent calculates as follows: (4% * 100.00 = 4%) + (3% * 50 = 1.5%) = 5.50% Fred contributes 11%, in the third range on the schedule (between 9% and 12%). The company match deduction is created as follows: Amount or percent 6.75 Balance type D Balance $1,500.00 Balance type D Balance $1,000.00
The amount or percent calculates as follows: (4% * 100.00 = 4%) + (4% * 50 = 2.00%) + (3% * 0.25 = 0.75%) = 6.75%
Payroll Calculation for Cumulative Match Calculation Deductions

The following examples illustrate payroll calculation for cumulative match calculation deductions. All of these deductions should have a calculation type of percent on Deduction (PR05.1). Robins 3% contribution is calculated as follows: The company match is 3% of her pay or $30.00 ($1,000.00 * 0.03 = $30.00) Walters 7% contribution is calculated as follows: The company match is 5.5% of his pay or 82.50 ($1,500.00 * 0.055 = $82.50). Freds 11% contribution is calculated as follows: The company match is 6.75% of his pay or $135.00 ($2,000.00 * 0.0675 = $135.00).
Appendix B
403
Calculating the Cost of Excess Life Insurance

The following sections explain how the Benefits Administration application calculates the cost of excess life insurance.
Determining Which Plans Are Reportable

The Reportable field, located on BN15.1 (Benefit Plan), indicates whether an employee or dependent life plan is included in the cost of excess life insurance. If the Reportable field is Yes, the Benefits Administration application includes coverage under the plan in the cost of excess life insurance.
Determining Who Is Covered

In the report parameters of Life Insurance Reportable Income (BN150), you indicate the date for which the report is being run. BN150 uses all benefits in effect on that date. To determine whether a plan covers employees or dependents, the Benefits Administration application uses the Covered field on Coverage Amounts (BN17.3). The field indicates who is covered in a life plan.
Determining Which Plans Cover an Employee

Employees are covered under all employee life plans in which the Covered field is Employee.
Determining Which Plans Cover Dependents and Spouses

If the Covered field is either Spouse or Both Spouse and Dependents for a dependent life plan, spouses are covered under that plan. If the Covered field for a plan is either Dependents or Both Spouse and Dependents, dependents are covered in that plan.
Determining Which Dependents Are Covered in a Reportable Plan

The Spouse or Dependent field determines whether a dependent in Dependent (HR13.1) receives spouse or dependent coverage. How the Benefits Administration application determines which dependents are covered in dependent life plans depends on whether the Benefits Administration application tracks dependent coverage in those plans. If the
404
Appendix B
Dependent Life field on Benefits Company (BN00.1) is Yes, the Benefits Administration application tracks dependent coverage in dependent life plans. If the Benefits Administration application tracks dependent coverage, the Dependent Benefits subforms on HR13.1 or on benefit entry forms indicate which dependents are covered under an employees health, dental, and dependent life benefits. Life Insurance Reportable Income (BN150) uses dependent benefits in effect on the date for which the report is being run. If the Benefits Administration application does not track dependent coverage, the application uses the Life field in HR13.1 to determine whether the dependent is covered in a reportable life insurance plan.
Determining the Value of Excess Coverage

To determine the value of excess coverage for an employee, the Benefits Administration application performs separate calculations for the employee and the employees dependents. To determine the value of an employees excess coverage, the Benefits Administration application uses the larger result from either of the following two calculations. 1. Cost factor from group life W-2 table To determine an employees excess coverage amount, the Benefits Administration application adds the coverage amounts for reportable life insurance benefits that cover the employee. The application includes all benefits in effect on the parameter date. From this amount, the application subtracts the excludable amount of life insurance which is defined on the Exclusions: Employee Life field on Group Life W-2 Table (BN00.4). The result is the employees amount of excess coverage for the reporting period. To determine the value of excess life insurance, the Benefits Administration application performs a calculation based on the value selected in the Frequency field on Life Insurance Reportable Income (BN150). This calculation uses two values from Group Life W-2 Table (BN00.4), the amount in the Monthly Cost Per field and the cost associated with the employees age. a. If the Frequency field on BN150 is Monthly, the cost of excess life insurance is calculated as follows: Excess Coverage Monthly Cost Per b. If the Frequency field on BN150 is Annual, the cost will be multiplied by 12: X Cost for employees age group
Appendix B
405
Excess Coverage Monthly Cost Per c.
12
Cost for employees age group
If the Frequency field on BN150 is Pay Period, the cost will be multiplied by 12 and divided by the employees pay frequency: X 12 X Cost for employees group
Excess Coverage Monthly Cost Per
Pay Frequency
The value of excess life insurance is based on the employees age as of December 31 of the year specified in the As of Date. 2. Pretax cost The Benefits Administration application determines the amount of pretax dollars the employee paid for all reportable life insurance benefits as follows: The Benefits Administration application adds the pretax contribution for all reportable life insurance benefits, resulting in the annual pretax cost. If the Frequency field is Monthly, the annual pretax cost is divided by twelve, resulting in the monthly pretax cost. If the Frequency field is Pay Period, the pretax cost is divided by the employees pay frequency (12, 24, 26 or 52), resulting in the pay period pretax cost.
From whichever amount is greater from calculations 1 and 2, the application subtracts the amount of after-tax dollars the employee paid for all reportable life insurance benefits. The result is the employees reportable amount of excess life insurance for one month.
Determining the Cost of Excess Dependent Coverage

To determine the cost of an employees excess dependent coverage, the Benefits Administration application uses the larger result from the either of the following two calculations.
406
Appendix B
1. Cost from group life W-2 table For each dependent, the Benefits Administration application adds the coverage amount for all reportable life insurance benefits that cover the dependent. The application compares this amount with the excludable amount of life insurance, which is defined on the Exclusions: Dependent Life field on Group Life W-2 Table (BN00.4). If the reportable life insurance amount is greater than the excludable amount, the application uses the entire reportable life insurance amount as the excess coverage amount. The result is each dependents amount of excess coverage for one month. To determine the cost of excess life insurance for each dependent, the Benefits Administration application performs the following calculations. a. Calculates the cost for each dollar of excess coverage based on the value of the Frequency field in Life Insurance Reportable Income (BN150) and the Monthly Cost Per field in BN00.4. If the Frequency field is Monthly, the cost for each dollar of excess coverage equals the value in the Monthly Cost Per field. If the Frequency field is Annual, the Monthly Cost Per field is multiplied by 12 to annualize the monthly cost. If the Frequency field is Pay Period, the Monthly Cost Per field is multiplied by 12, then divided by the employees pay frequency (for example, 12, 24, 26, or 52). The result is cost per dollar of coverage for the year, month, or pay period. b. Calculates the cost of excess life insurance based on the following equation:
Excess coverage Cost for each dollar of coverage
Cost of excess Cost for dependent' s = life insurance age group
The application totals the cost for each dependent. The result is annual, monthly, or pay period cost of reportable excess life insurance for the employees dependents. 2. Pretax cost The Benefits Administration application determines the amount of pretax dollars the employee paid for all reportable dependent life insurance benefits as follows: The Benefits Administration application adds the pretax contribution for all reportable dependent life insurance benefits, resulting in the annual pretax cost. If the Frequency field is Monthly, the annual pretax cost is divided by twelve, resulting in the monthly pretax cost. If the Frequency field is Pay Period, the pretax cost is divided by the employees pay frequency (12, 24, 26 or 52), resulting in the pay period pretax cost.
Appendix B
407
From whichever amount is greater from calculations 1 and 2, the application subtracts the amount of after-tax dollars the employee paid for all reportable dependent life insurance benefits. The result is the reportable amount of excess life insurance for one month for the employees dependents.
An Example of Calculating the Cost of Excess Life Insurance

ABC Foods uses the following group life W-2 table on Group Life W-2 Table (BN00.4).
Neil, an employee at ABC Foods, is 41 years of age, and has $90,000 of coverage under an employee life plan. He pays for all his insurance on a pretax basis under a flex plan. Neil has a spouse (Sarah) and two dependents (Karen and Bob) who are covered under ABC Foods dependent life plan. Sarah, who is 42 years of age, is covered under a spouse life plan for $10,000, while Karen and Bob, who are 13 and 16 years of age, are covered under a dependent plan for $5,000 each. ABC Foods ran Life Insurance Reportable Income (BN150) to calculate monthly cost of excess life insurance. That is, when they ran BN150, they selected Monthly in the Frequency field.
Calculating Neils Reportable Life Insurance for Neil

To calculate Neils reportable life insurance, the Benefits Administration application uses the greater of the following two calculations. 1. Using the group life W-2 table, the Benefits Administration application calculates the amount of Neils reportable life insurance as follows: Neil has $40,000 ($90,000 - 50,000) in excess coverage. The cost of his excess life insurance is $4.00 ($40,000/1,000 * 0.100). 2. The total pretax premium for Neils employee life plan for one month is $13.89.
408
Appendix B
Because Neils pretax premium is greater than the cost calculated from the group life W-2 table, the Benefits Administration application uses the pretax premium as the cost of Neils reportable life insurance.
Calculating the Reportable Life Insurance for Sarah, Karen, and Bob
To calculate the reportable life insurance for Neils dependents, the Benefits Administration application uses the greater of the following two calculations. 1. Using the group life W-2 table, the Benefits Administration application calculates the amount of reportable life insurance for Neils dependents as follows: Sarah has $10,000 ($10,000 is greater than $2,000) in excess coverage. The cost for her excess life insurance is $1.00 ($10,000/1,000 * 0.10). Karen and Bob each have $5,000 ($5,000 is greater than $2,000) in excess coverage. The cost for each of their excess life insurance is $0.30 ($5,000/1,000 * 0.08). The total cost of life insurance for Sarah, Karen, and Bob is $1.60 ($1.00 + 0.30 + 0.30). 2. The total pretax premium for Neils dependent life plan for one month is $3.54. Because the pretax premium is greater than the cost calculated from the group life W-2 table, the Benefits Administration application uses the pretax premium as the cost for Neils dependent life insurance.
The Result
The total cost of Neils excess life insurance, including his spouse and dependents, for one month is $17.43 ($13.89 + 3.54).
Appendix B
409
Calculating COBRA Excess Premium Amounts

The application calculates the administrative fee or excess premium amount for COBRA contributions as follows: 1. Determine the excess premium percent. If the Premium Percent field on COBRA Parameters(BN00.2) is 100 percent or greater, the application subtracts 100 from the value of the Premium Percent field. For example, if the Premium Percent field is 102.00, the excess premium percent is 2.00 (102.00 - 100). If the Premium Percent field on BN00.2 is 100 percent, the application does not calculate the excess premium. 2. Determine the cost for each percent. The application divides the annual COBRA participant contribution by the value of the Premium Percent field. For example, if the annual contribution is $280.00, the cost for each percent is $2.75 ($280/102.00). 3. Determine the excess premium amount. The application multiplies the cost for each percent by the excess premium percent. The excess premium amount of the example is $5.50 ($2.75 * 2). The application posts the administration fee to the excess premium account selected on COBRA Parameters (BN00.2).
410
Appendix B
Appendix C
Appendix C
411
Tracking Flex Credits

The Benefits Administration application uses standard time records and deductions to track flex credits.
Standard Time Records

A standard time record represents an employees flex credits that are added to his or her taxable wages. If the flex plan lets employees add unspent flex credits to their taxable wages, the Benefits Administration application creates or updates standard time records for each employee when the Benefits Administration application creates flex credits for the employee on Employee Flex credits (BN45.1) or Flex credits Calculation (BN145) and when the employee enrolls in a benefit with a negative premium. A negative premium indicates that an employee receives flex credits for electing the benefit. If the flex plan does not let employees add unspent flex credits to their taxable wages, the Benefits Administration application does not create standard time records. Each employee under a flex plan can have either One standard time record that represents all flex credits that are added to the employees taxable wages Multiple standard time records that represent the flex credits the employee receives for each benefit with a negative premium
The number of standard time records an employee can have depends on whether a flex pay code has been assigned to each benefit plan. If each benefit plan is assigned a flex pay code, each benefit creates a standard time record. If a flex pay code is assigned only to the flex plan, each employee has only one standard time record that is updated for all flex credits received. The amount of the standard time record calculates as follows:
Annual flex credits * Unspent t axable dollars Divisor of employee' s pay frequency
Flex credits added to taxable wages for each pay period
The divisor of the employees pay frequency is from the flex plans frequency table. The Unspent Taxable Dollars is from Flex Credits (BN08.1) and determines the percent of an employees flex credits that can be added to his or her payment. For example, if a plan lets each employee keep half of his or her unspent flex credits, the value of the Unspent Taxable Dollars field is 50 percent. When employees have used all of their flex credits that can be added to taxable wages, the Benefits Administration application deletes the employees standard time record.
412
Appendix C
If the Unspent Taxable Dollars field is zero, the Benefits Administration application does not create standard time records for employees because they lose any of their unspent flex credits.
Deductions
Deductions track employee and company premiums. Flex plans use four kinds of deductions: flex company, pretax, after-tax, and company. Flex company Used if an employee spends flex credits to purchase a benefit. The flex company deduction has no effect on an employees taxable wages, and can be printed on employee payments to show how flex credits were used. Pretax Used if an employee spends pretax dollars to purchase a benefit. For a flex plan in which an employee can spend flex credits, a pretax deduction is created after the employee has spent all of his or her flex credits. For a flex plan in which an employee does not spend flex credits, a pretax deduction is created for any benefit with a positive employee cost. After-tax Used if an employee spends after-tax dollars to purchase a benefit. The Benefits Administration application creates an after-tax deduction for benefits with an employee cost when flex and pretax dollars have been spent. Company Used to track the companys cost of benefits in addition to, or instead of, flex credits.
Kinds of Flex Plans

How the Benefits Administration application tracks flex credits depends on the kind of flex plan you define. To illustrate how the Benefits Administration application tracks flex credits, the following sections show three examples of flex plans at ABC Foods. However, you are not limited to these three kinds. You can create combinations of these kinds.
Flex Plan 1 Example

Gives employees flex credits before they elect benefits. The flex credits can be used to purchase benefits. Creates one standard time record for each employee using the flex plans flex pay code. Reduces available flex credits when employees elect benefits. Shows only the net gain from benefit elections on employee payments when an employee receives more flex credits than he or she has spent. Uses flex company deductions to show spent flex credits on payments.
To create the first flex plan, ABC Foods assigned a flex pay code only to the flex plan. A flex company deduction is assigned to each benefit plan. Benefits Administration User Guide Appendix C Benefit System Logic Information 413
Employees in ABC Foods first flex plan can keep half of their unspent flex credits.
Creating flex credits for Employees

When ABC Foods runs BN145 (flex credits Calculation), the Benefits Administration application creates flex credits for each employee based on the flex credit and pretax parameters on BN08.1 (flex credits). BN145 creates flex credits for every employee in the flex plan. Because employees can add half of their unspent flex credits to their payments (that is, the Unspent Taxable Dollars field on BN08.1 is 50.00), the Benefits Administration application creates a standard time record for each employee who receives flex credits. The Benefits Administration application creates the standard time record using the flex plans flex pay code.
Enrolling Employees in Benefits

Benefits in this kind of flex plan all have positive premiums. When you enroll an employee in benefits, the Benefits Administration application spends flex credits first, then pretax dollars. When all flex and pretax dollars are spent, the Benefits Administration application spends after-tax dollars. When an employee spends flex credits to pay for a benefit, the Benefits Administration application Reduces the employees available flex credits Reduces the employees standard time record (the standard time record is deleted when the employee uses all of his or her flex credits) Creates a flex company deduction for the cost of the benefit
When all flex credits are spent and the employee uses pretax dollars to pay for a benefit, the Benefits Administration application Reduces the employees available pretax dollars and Creates a pretax deduction for the employee for the cost of each benefit
When the employee has spent all of his or her pretax dollars and the application uses after-tax dollars to pay for a benefit, the application Creates an after-tax deduction for the cost of the benefit
Example
Susan, an employee of ABC Foods, receives $1,000 flex credits and has a pretax limit of $5,000 which she can spend on benefits. The Benefits Administration application creates a standard time record for Susan for $9.62 ($1,000 * 0.50/52). If Susan did not elect any benefits, she would receive $9.62 each pay period. Susan elects a health plan that costs $400. Because Susan has flex credits available, the Benefits Administration application reduces Susans available flex credits to $600 ($1,000 - 400), Reduces Susans standard time record to $5.77 ($600 * 0.50/52) Creates a flex company deduction of $7.69 ($400/52) for the cost of the benefit
414
Appendix C
If Susan elects no more benefits, her taxable wages are $1,005.77 ($1,000 + 5.77), as shown on the payment below. Wages Regular flex credits Totals Taxable wages $1,000.00 5.77 $1,005.77 $1,005.77 Deductions Health-flex company $7.69
Susan elects a disability benefit that costs $750.00. The Benefits Administration application Reduces Susans available flex credits to zero ($600 - 750) Deletes Susans standard time record Creates a flex company deduction of $11.54 ($600/52) for the portion of the benefits cost paid for with flex credits Reduces her available pretax dollars to $4,850 ($5,000 - 150) Creates a pretax deduction of $2.89 ($150/52) for the portion of the benefits cost paid for with pretax dollars
Susans taxable wages are $997.11 ($1,000 - 2.89), as shown on the payment below. Wages Regular pay $1,000.00 Deductions Health-flex company Disability-flex company Disability-pretax Totals Taxable wages $1,000.00 $997.11 $7.69 11.54 2.89 $2.89
Flex Plan 2 Example

Gives employees flex credits based on the benefits they elect. The flex credits can be used to purchase other benefits. Creates one standard time record for each employee using the flex plans flex pay code. Increases available flex credits when employees elect benefits with negative premiums. Reduces available flex credits when employees elect benefits with positive premiums. Shows only the net gain from benefit elections on employee payments when an employee receives more flex credits than he or she has spent. Appendix C Benefit System Logic Information 415
Uses flex company deductions to show spent flex credits on payments.
To create the second flex plan, ABC Foods assigns a flex pay code only to the flex plan. A flex company deduction is assigned to each benefit plan. Employees in ABC Foods second flex plan can keep all of their unspent flex credits.
Creating flex credit Records for Employees

ABC Foods runs BN145 (flex credits Calculation) to create flex credit records based on the flex credit and pretax parameters on BN08.1 (flex credits). The flex credit record indicates that employees have $5,000 pretax dollars to spend on benefits. Because employees receive no flex credits before they elect benefits, BN145 creates no flex credits and no standard time records.

Benefits in this kind of flex plan have negative and positive premiums. When you enroll an employee in the first benefit with a negative premium, the Benefits Administration application Increases the employees available flex credits Creates a standard time record for the employee using the flex pay code from the flex plan
When you enroll an employee in additional benefits with negative premiums, the Benefits Administration application Increases the employees available flex credits Increases the employees existing standard time record
When you enroll an employee in a benefit with a positive premium, the Benefits Administration application spends flex credits first, then pretax dollars. When all flex and pretax dollars are spent, the Benefits Administration application spends after-tax dollars. When an employee spends flex credits to pay for a benefit, the Benefits Administration application Reduces the employees available flex credits Reduces the employees standard time record (when the employee uses all of his or her flex credits, the standard time record is deleted) Creates a flex company deduction for the cost of the benefit
When all flex credits have been spent and the employee uses pretax dollars to pay for a benefit, the Benefits Administration application Reduces the employees available pretax dollars Creates a pretax deduction for the employee for the cost of each benefit
When the employee has spent all of his or her pretax dollars and the application uses after-tax dollars to pay for a benefit, the application Creates an after-tax deduction for the cost of the benefit
416
Appendix C
Example
Marks benefits are: Flex vacation (sold 10 hours) Dental Health $115$130$50
When Mark elects the flex vacation benefit that gives him $115 flex credits, the Benefits Administration application Increases Marks available flex credits to $115 Creates a standard time record for Mark for $2.21 ($115/52)
When Mark elects the dental benefit that gives him $130 flex credits, the Benefits Administration application Increases Marks available flex credits to $245 ($115 + 130) Increases his standard time record to $4.71 ($245/52)
If Mark elects no more benefits, his taxable wages are $1,004.71 ($1,000.00 + 4.71), as shown on the payment below. Wages Regular pay flex credits Totals Taxable wages $1,000.00 4.71 $1,004.71 $1,004.71 Deductions None
Mark elects a health benefit that costs him $50. Because Mark has flex credits available, the Benefits Administration application Reduces Marks available flex credits to $195 ($245 - 50) Reduces Marks standard time record to $3.75 ($195/52) Creates a flex company deduction of $0.96 ($50.00/52) for the cost of the benefit
If Mark elects no more benefits, his taxable wages are $1,003.75, as shown on the payment below. Wages Regular pay flex credits Totals Taxable wages $1,000.00 3.75 $1,003.75 $1,003.75 Deductions Health-flex company $0.96
Appendix C
417
Flex Plan 3 Example

Gives employees flex credits based on the benefits they elect. The flex credits are not used to purchase other benefits. Creates multiple standard time records for each employee using each benefit plans flex pay code. Does not increase available flex credits when employees elect benefits with negative premiums. Does not reduce available flex credits when employees elect benefits with positive premiums. Pretax deductions are created for the cost of benefits. Shows the total flex credits received on employee payments. Benefit elections are shown as pretax deductions. Does not use flex company deductions.
To create the third flex plan, ABC Foods assigned a flex pay code to the flex plan and to each benefit plan under the flex plan. Each employee in ABC Foods third flex plan can keep all of his or her unspent flex credits.
Creating flex credit Records for Employees

ABC Foods runs BN145 (flex credits Calculation) to create flex credit records based on the flex credit and pretax parameters on BN08.1 (flex credits). The flex credit record indicates that employees have $5,000 pretax dollars to spend on benefits. Because employees receive no flex credits before they elect benefits, BN145 creates no flex credits and no standard time records.

Benefits in this kind of flex plan have negative and positive premiums. Each time you enroll an employee in a benefit with a negative premium, the Benefits Administration application Does not update the employees available flex credits because the flex credits from benefits with negative premiums are not available to purchase other benefits Creates a standard time record for each benefit using the flex pay code on each benefit plan
When you enroll an employee in a benefit with a positive premium, the Benefits Administration application spends pretax dollars first, then after-tax dollars. When the employee uses pretax dollars to pay for a benefit, the Benefits Administration application Reduces the employees available pretax dollars Creates a pretax deduction for the employee for the cost of each benefit
When the employee has spent all of his or her pretax dollars and the application uses after-tax dollars to pay for a benefit, the Benefits Administration application Creates an after-tax deduction for the cost of the benefit
418
Appendix C
Example
Marks benefits are: Flex vacation (sold 10 hours) Dental Health $115$130$50
When Mark elects the flex vacation benefit that gives him $115 flex credits, the Benefits Administration application creates a standard time record for Mark for $2.21 ($115/52). When Mark elects the dental benefit that gives him $130 flex credits, the Benefits Administration application creates another standard time record for $2.50 ($130/52). If Mark elects no more benefits, his taxable wages are $1,004.71 ($1,000.00 + 4.71), as shown on the payment below. Wages Regular pay Flex vacation hours Dental plan Totals Taxable wages $1,000.00 2.21 2.50 $1,004.71 $1,004.71 Deductions None
Mark elects a health benefit that costs him $50. When the employee uses pretax dollars to pay for a benefit, the Benefits Administration application Reduces Marks available pretax dollars to $4,950 ($5,000 - 50) Creates a pretax deduction of $0.96 ($50/52) for the cost of the health benefit
If Mark elects no more benefits, his taxable wages are $1,003.75 ($1,004.71 0.96), as shown on the payment below. Wages Regular pay Flex vacation hours Dental plan Totals Taxable wages $1,000.00 2.21 2.50 $1,004.71 $1,003.75 $0.96 Deductions Health-pretax $0.96
Appendix C
419
Defined Contribution Flex Benefits

Defined contribution benefits that spend flex credits are unique because the amount of flex credits the employee spends on the benefit has to be included in the employees social and Medicare taxable wages. To accommodate this, the Benefits Administration application creates a standard time record offset with a 401(k) deduction. The Payroll application calculates the taxes. Each defined contribution plan under a flex plan has a unique flex pay code. Like all other benefits, if an employee spends flex credits on a defined contribution plan, the Benefits Administration application does the following to show the flex credits spent. Reduces the employees available flex credits Reduces the employees flex standard time record
Unlike other benefits, the Benefits Administration application does the following to include flex credits in the employees social and Medicare taxable wages. Creates a standard time record equal to the number of flex credits spent on the defined contribution benefit Creates a 401(k) deduction equal to the entire contribution. If both flex and pretax dollars are contributed to the defined contribution plan, the Benefits Administration application creates a 401(k) deduction that includes both the flex credit and pretax dollar amounts.
For example, Walter has $1,000 flex credits and $5,000 pretax dollars to spend on benefits. For Walters $1,000 flex credits, the Benefits Administration application creates a standard time record for $19.23 ($1,000/52). Walter contributes $1,500 to a 401(k) plan. To do so, he uses all of his flex credits and $500 pretax dollars. The Benefits Administration application Reduces Walters available flex credits to zero Deletes Walters standard time record because he used all of his flex credits Creates a standard time record using the defined contributions flex pay code for the flex credits Walter spent on the 401(k) plan [the amount of the standard time record is $19.23 ($1,000/52)] Creates a 401(k) deduction equal to the flex and pretax dollars Walter spent on the 401(k) plan. The amount of the deduction is $28.85 ($1,500/52)
Walters $1,000 flex credits, which he spent on the defined contribution benefit, are included in gross wages. The 401(k) deduction reduces all taxable wages except social and Medicare.
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Appendix C
Using Flex Benefit Periods

A flex benefit period is a period of time for which a particular combination of an employees flex benefits are in effect during a flex plan year. The Benefits Administration application uses flex benefit periods to determine how many flex and pretax dollars an employee has available and has spent on any date in a flex year. Initially, the Benefits Administration application creates one flex benefit period for the entire flex plan year. Each time you add or stop benefits in a flex plan year, the Benefits Administration application updates or creates another flex benefit period. For example, Dorothy receives $1,000 flex credits for the flex plan year. The Benefits Administration application creates one flex benefit period for the entire flex plan year and one standard time record for the amount of $19.23 ($1,000/52). Dorothy enrolls in the following benefits from January 1 to December 31. Benefit Dental Employee Life Health Total Cost $100 75 500 $675
Dorothy spends some of her flex credits, so the Benefits Administration application reduces her standard time record to $6.25 ($325/52). On April 1, Dorothy changes her benefit elections. ABC Foods stops her existing benefits on March 31. The Benefits Administration application stops the first flex benefit period and the associated standard time record on March 31. The Benefits Administration application creates a second flex benefit period and standard time record for April 1 through December 31. The amount of the standard time record is $19.23 ($1,000/52) because Dorothy has not spent any flex credits during the second flex benefit period. ABC Foods adds the following benefits for Dorothy beginning April 1. Benefit Health Dental Employee Life/AD&D Disability Total Cost $1,000 100 75 100 $1,275
Dorothy spends all her flex credits for the second flex benefit period, so the Benefits Administration application deletes the standard time record associated with the second flex benefit period. Benefits Administration User Guide Appendix C Benefit System Logic Information 421
On September 30, Dorothy stops her benefits for the rest of the flex plan year. The Benefits Administration application stops the second flex benefit period. The Benefits Administration application creates a third flex benefit period and standard time record for October 1 through December 31. The amount of the standard time record is $19.23 ($1,000/52) because Dorothy has not spent any flex credits during the third flex benefit period. By looking at Dorothys flex benefit periods, you can see that she had three different combinations of benefit elections in this flex plan year. During the first period, she received part of her flex credits as taxable income. During the second period, she spent all her flex credits. During the third period, she received all her flex credits as taxable income.
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Appendix C
Processing Automatic Benefit Changes

The following explains how Employee Change Benefit Update (BN100) processes benefit changes based on employee changes made by personnel actions.
Creating Benefit Change Audit Records

Employee Change Benefit Update (BN100) determines which benefits are updated using benefit change audit records. A benefit change audit record is created on Benefit Change Audit (BN35.1) when a personnel action that might affect employee benefits is updated in Individual Action (PA52.1) or Action Update (PA100). A benefit change audit record is created by a personnel action if all of the following are true. The personnel action is made on an employee who has at least one benefit. When the personnel action was made on the employee, the Update Benefits field is Yes in Individual Action (PA52.1), Mass Pay Action (PA52.2), or Mass Action (PA52.3). The personnel action performs one or more of the following changes: Adds or deletes the employee from an employee group that was defined with Yes in the Benefits field on Employee Group Definition (HR55.1), Employee Groups By Employee (HR55.2), or Employee Groups By Criteria (HR55.3). For example, a personnel action changes the employees status from part-time to full-time. The status change removes the employee from the PARTTIME employee group and adds the employee into the FULLTIME employee group. NOTE If an employees home postal code and benefit postal code are the same, changing an employees home postal code also changes the employees benefit postal code. Changes the employees benefit postal code in Employee (HR11.1). Changes the employees salary. Changes to all of the following data items from Employee (HR11.1) are considered a change to the employees salary: job code, FTE (Full-Time Equivalent), rate of pay, step, grade, schedule, salary class, or benefit salaries 1 through 5. Changes the employees pay frequency Changes the employees birthdate Changes the employees age* Changes the employees years of service. * Changes to all of the following data items from HR11.1 (Employee) are considered a change to the employees years of service: hire date, adjusted hire date, seniority date, and benefit dates 1 through 5. Changes the employees smoker status. * * Indicates these changes are listed on Employee Change Benefit Update (BN100) as affecting an employees benefits but do not trigger BN100 to update an employees benefits. Benefits Administration User Guide Appendix C Benefit System Logic Information 423
If a change is on hold on Benefit Change Audit (BN35.1), Employee Change Benefit Update (BN100) does not process the change. A change is on hold if you change the Hold field to Yes on BN35.1. After BN100 processes a change, the change is deleted from BN35.1.
424
Appendix C
Index A
Actual contribution percentage, 9, 334 Actual deferral percentage, 9, 334 Add rules Defining, 6, 202 When do I use, 6, 197 Annual limits Defined, 3, 46 Defining, 4, 49 Automation rules Defined, 6, 197 How do I use employee groups, 6, 200 Updating benefits automatically, 7, 253 What happens when I add benefits, 7, 250 What happens when I change benefits, 7, 249 What happens when I stop benefits, 7, 248 Cost of excess life insurance, 10, 404 Change records Holding or deleting, 7, 251 Change rules Defining, 6, 205 When do I use, 6, 198 Changing benefits Manually, 7, 260 COBRA Adding a second occurrence, 7, 275 Calculating excess premium amounts, 10, 410 Canceling coverage, 7, 278 Changing participant benefits, 7, 274 Defining parameters, 3, 39 Enrolling a participant, 7, 272 Notification letters, 7, 277 Notifying or terminating rights, 7, 277 Occurrence types Defined, 3, 35 Defining, 3, 41 Participant Defined, 7, 269 Defining, 7, 270 Tracking dates, 7, 275 Company Defined, 3, 35 Defining, 3, 37 Company match Calculating contributions, 5, 155 Compensation Adjusting balances, 9, 321 Contribution rate tables, 5, 158 Contribution types Defined, 4, 85 Differences between, 5, 150 Working with coverage types, 4, 87 Contributions Company match, 5, 155 Defining flat, 5, 173 Defining limits, 6, 180 How calculated, 5, 153 How do I define, 5, 149 Updating, 8, 292 Coverage amounts Defining, 5, 129 When to use, 5, 124 Coverage information Updating, 8, 291 Coverage limits
B
Beneficiaries Assigning for a savings bond, 7, 241 Assigning to plan, 7, 241 Benefit categories, 4, 94 Benefit change audit records, 7, 245 Benefit dates, 4, 92 Benefit plan Defining primary, 5, 95 How do I enroll employees, 6, 223 How does Lawson track changes, 8, 288 Terminating or replacing, 8, 300 Why change, 8, 288 Benefit process order Defined, 3, 48 Defining, 4, 52 Benefit salaries, 5, 123 Benefits Big Picture, 3, 24 Process flow, 3, 23 Setup overview, 3, 29
C
Calculations Annual and hourly pay rates, 10, 396 COBRA excess premium amounts, 10, 410 Company match, 10, 398
Index
425
Defining, 5, 140 Coverage options Defining, 5, 125 Deleting, 8, 300, 302 When to use, 5, 124 Coverage rate table Defining, 6, 177 Coverage reduction table Defined, 5, 124 Defining, 5, 138 Coverage salary parameters Defining, 5, 135 Coverage types Defined, 4, 84 Working with contribution types, 4, 87
Forms, 6, 225 Updating for frequency table changes, 8, 298 Updating for plan changes, 8, 296 Entry points, 5, 115 Entry rules Defined, 5, 115 Defining, 5, 117 How to define, 5, 115 Estimating Take home pay, 9, 350 Excess life insurance rates, 3, 42
F
Flex core plans, 4, 92 Flex credit rate tables, 4, 69 Flex credit record, 6, 213 Flex credit records Defined, 4, 57 When to define, 4, 58 Flex credits Automatically creating records, 6, 215 Changing, 7, 264 Defined, 4, 57 Defined contribution benefits, 11, 420 Defining, 4, 64 Defining based on age, 4, 72 Defining based on dependents, 4, 75 Defining based on lifestyle, 4, 76 Defining based on years of service, 4, 74 Issued, 4, 58 Manually creating records, 6, 217 Structured, 4, 58 Tracking, 10, 412 Unspent, 4, 59 Flex periods, 6, 11, 213, 421 Flex plan Considerations when manually changing, 7, 247 How do I make mid-year changes, 7, 247 When is a standard time record created, 6, 214 Flex plan contributions, 5, 156 Flex plans Defined, 4, 56 Defining full, 4, 62 Defining spending account only, 4, 61 Flex salary parameters, 4, 67 Flexible spending accounts, 7, 262 Frequency table Defined, 3, 47 Frequency tables Attaching a different, 8, 294 Defining, 4, 52
D
Deductions How used, 4, 88 Default plan Automatic enrollment, 6, 226 Defined, 4, 89 Defined benefit Adjusting balances, 9, 320 Define compensation, vesting, reporting, 5, 104 Determining percentage participation, 9, 335 Defined contribution Adjusting balances, 9, 320 Define compensation, vesting, reporting, 5, 104 Determining percentage participation, 9, 335 Flex benefits, 11, 420 Forcasting balances, 9, 352 Top heavy, 9, 332 Dependent Changing benefits, 7, 266 Enrolling, 7, 240
E
Elective deferral limit, 9, 335 Eligibility, 4, 90 Eligibility date, 6, 223 Employee groups, 4, 90 Nested, 6, 200 Enrolling dependents, 7, 240 Enrolling employees Automatically into default plans, 6, 226 Manually into multiple plans, 6, 230 Enrollment
426
Index
Updating, 8, 293
P
Payments Entering and automatically applying, 9, 342 Entering and manually applying, 9, 343 Updating to General Ledger, 9, 345 Plan Type Charecteristics, 4, 82 Defined, 4, 81 Postal code tables, 4, 53 Process benefits How does Lawson, 7, 246 Purging Benefit enrollments, 10, 353 Invoices and payments, 10, 355
G
General ledger Overriding accounts, 5, 108 Updating overrides, 8, 294
H
Highly compensated employees, 9, 332
I
Insurance carriers, 4, 50 Integration, 3, 25 SEA, 26 Investment options, 5, 107 Invoices Creating manual, 9, 338 Creating monthly, 9, 340 Printing, 9, 341 Updating to General Ledger, 9, 345
R
Rate tables, 5, 155 Re-entry rules, 5, 115 Report samples, 10, 357 Reportable Group Term Life Insurance, 3, 36 Reportable income, 9, 325 Retiree Canceling coverage, 8, 286 Defined, 7, 282 Enrolling, 8, 283
K
Key employees, 9, 330
S
Salary override, 6, 224 Salary rate table, 6, 177 Savings bond Adding beneficiaries, 8, 314 Assigning beneficiaries, 7, 241 Defining purchase sequence, 9, 315 Updating purchases, 9, 316 Simulating Benefit elections, 9, 348 Spending account, 8, 308 Standard record, 6, 214 Start date, 6, 224 Statuses Viewing records requiring updates, 8, 295 Which are tracked, 8, 290 Stock purchases Updating, 8, 312 Stop dates, 7, 246 Stopping employee benefits, 7, 259
M
Match limit schedules, 6, 186 Match percent schedules, 6, 190
N
Nested employee groups, 6, 200
O
Options amount Defining, 5, 165 Defining a range, 5, 170
Index
427
T
Termination rules Defining, 6, 207 When do I use, 6, 199
V
Vacation Update balances, 8, 304 Vesting Adjusting hours, 9, 322 Vesting schedule Defined, 3, 46 Defining, 4, 51
U
Updating benefits Automatically based on age, salary, years of service, 7, 256 Automatically based on automation rules, 7, 253 Processing, 11, 423
W
Waive plan, 4, 91
428
Index

Benefits User Guide

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Benefits Administration User Guide

Version 8.0.3 May 2002

Benefits Administration Overview

Benefits Administration Setup Overview

Benefits Administration Setup Overview....................... 29

Concepts in this Chapter........................................... 35

Procedures in this Chapter ........................................ 37

Concepts in this Chapter........................................... 46

Benefits Administration User Guide

Procedures in this Chapter ........................................ 49

Setup: Flex Plan

Concepts in this Chapter........................................... 56

Procedures in this Chapter ........................................ 60

Setup: Benefits Plan

Concepts in this Chapter........................................... 81

Procedures in this Chapter ........................................ 93

Benefits Administration User Guide

Setup: Benefit Entry Rules

Concepts in this Chapter......................................... 115

Procedures in this Chapter ...................................... 117

Setup: BN Plan Coverage

Concepts in this Chapter......................................... 123

Procedures in this Chapter ...................................... 125

Setup: BN Plan Contributions

Concepts in this Chapter......................................... 149

Procedures in this Chapter ...................................... 157

Benefits Administration User Guide

Setup: Automation Rules

Concepts in this Chapter......................................... 197

Procedures in this Chapter ...................................... 202

BN Enrollment: Enrolling Employees in Flex Plans

Concepts in this Chapter......................................... 213

Procedures in this Chapter ...................................... 215

BN Enrollment: Enrolling Employees in Benefit Plans

Concepts in this Chapter......................................... 223

Procedures in this Chapter ...................................... 225

Benefits Administration User Guide

BN Enrollment: Maintain Employee Enrollments

Concepts in this Chapter......................................... 245

Procedures in this Chapter ...................................... 251

Concept in this Chapter .......................................... 269

Procedures in this Chapter ...................................... 270

Concept in this Chapter .......................................... 282

Procedures in this Chapter ...................................... 283

Plan Maintenance: Benefit Plans

Concepts in this Chapter......................................... 288

Procedures in this Chapter ...................................... 291

Plan Maintenance: Vacation Buy and Sell

Procedure in this Chapter ....................................... 304

Plan Maintenance: Spending Account Balances

Procedure in this Chapter ....................................... 308

Plan Maintenance: Stock Purchase Update

Procedures in this Chapter ...................................... 312

Plan Maintenance: Savings Bond Update

Procedures in this Chapter ...................................... 314

Benefits Administration User Guide

Plan Maintenance: Benefit Plan Limits

Procedures in this Chapter ...................................... 320

Benefit Processes: Reportable Excess Group Life Insurance 323

Benefit Processes: Benefit Plan Testing

Procedures in this Chapter ...................................... 330

Benefit Processes: Retiree or COBRA Invoicing and Tracking 337

Benefit Processes: Special Processing