Benefits Module Configuration

Question

Hello All,
I am new to learning the Benefits module and would like to know the steps and procedures involved in the configuration of the Benefits module in and out starting to beginning.
Can anybody please help me with some good materials and information.
You can also e-mail me at [email protected]
Appreciate your valuable replies asap.
Thanks in advance.
Shivani.

Answer 1

Hi
In order to administer and maintain your plans separately, you will work in your own benefit area.
1a.           Define the benefit areas
Menu Path:
IMG>Personnel Management>Benefits>Basic Settings>Define benefit areas.
(Note:  This is not used for eligibility but administration.  It allows you to have separate administration or separate benefit plan pools.  A benefit area can be administered in one currency at a time only).
Steps:
- Hit the “New entries” button
- Enter your own Benefit area and Country grouping
- Hit the “Save” button
1b.           Maintain BAREA feature
Menu Path:
IMG>Personnel Management>Benefits>Basic Settings>Define Benefit Areas
Steps:
- Click on “Feature” button and Maintain
1c.           Set currency for the benefit areas
Menu Path:
IMG>Personnel Management>Benefits>Basic Settings>Assign currency to Benefit areas
Steps:
- Hit the “New entries” button
           - Enter your Benefit area and Currency          
1d.           Set the current benefit area (IMG and user parameters)
Menu Path:
IMG>Personnel Management>Benefits>Basic Settings>Set current benefit area
Steps:
- Select your Benefit area and hit enter
           For User Parameter:
           - System > User profile > Own data > Parameters tab
           - Set parameter as BEN = XX
2.           National is the provider for all benefit plans.  Within National, there is a provider for each health/spending, savings, and insurance plans.
2a.           Define the benefit provider
Menu Path:
IMG>Personnel Management>Benefits>Basic Settings>Define benefit providers
           Steps:
- Hit the “New entries” button
- Enter your health/spending, savings, and insurance plans providers
- Hit the “Save” button
3.           QD allows members of the immediate family to be considered as dependents and beneficiaries.
3a.           Define dependents and beneficiaries
Menu Path:
IMG>Personnel Management>Benefits>Basic Settings>Dependents and Beneficiaries>Define dependents and beneficiaries
Steps:
Note:  Here you will define employee’s relatives and close acquaintances are permitted dependents for health and miscellaneous plans, and beneficiaries for insurance, savings and miscellaneous plans. (i.e. spouse, divorced spouse, step-child, child).
- Hit the “New entries” button
- Select the dependent subtype from the drop down window
- Check dependent box or beneficiary box or both
- Hit the “Save” button
4.           QD offers 8 types of benefit plans: medical, dental, basic life insurance, supplementary life insurance, 2 separate savings plans, credit, legal coverage, and a healthcare spending account.
4a.           Define the benefit plan types
Menu Path:
IMG>Personnel Management>Benefits>Basic Settings>Plan attributes>Define benefit plan types
Steps:
Note:  The system does not allow for an employee to enroll in more than one benefit plan per plan type (i.e. employee can not enroll in both the Medical Indemnity and Medical HMO, but they do have a choice of one or the other).
                      - Enter a plan type identifier and its description
                      - Choose the corresponding benefit category code for the plan type.
5.           QD’s plans are all active and able to be enrolled in, but they would like the option for closing and phasing out plans if needed.
5a.           Define benefit plan status
Menu Path:
IMG>Personnel Management>Benefits>Basic Settings>Plan attributes>Define benefit plan status
Steps:
- Enter an identifier to represent each status
- Enter a status description
- Indicate if plan is active and if it is available for enrollment
Status           Text            Active            Enroll
CL           Closed                     
LK           Locked                     
OP           Open                      
6.           QD offers a basic insurance plan that has different costs depending on the age and salary of the employee.  Develop the salary and age as criteria for the plans.
6a.            Define parameter groups.
           Menu Path:
IMG>Personnel Management>Benefits>Basic Settings>Define employee groupings>Define employee criteria groups>Define parameter groups
Steps:
           - Enter parameter group and description
           - Hit the “Save” button
           6b.  Define age, salary and seniority groups (read step 12 for the required groups)
           Menu Path: Salary group
IMG>Personnel Management>Benefits>Basic Settings>Define employee groupings>Define employee criteria groups>Define salary groups
Steps:
                      - Select “Salary criteria” in the “Select Transaction screen”
- Enter the Salary group ID and its description
                      - Enter the Low and High values for the salary group
Menu Path: Age group
IMG>Personnel Management>Benefits>Basic Settings>Define employee groupings>Define employee criteria groups>Define age groups
Steps:
- Select “Age criteria” in the “Select Transaction screen”
- Enter the Age group ID and its description
- Enter the Low and High values for the age group
Menu Path: Seniority group
IMG>Personnel Management>Benefits>Basic Settings>Define employee groupings>Define employee criteria groups>Define age groups
Steps:
- Select “Seniority criteria” in the “Select Transaction screen”
- Enter the Length of service ID and its description
- Enter the Lowest and Maximum values
7.           The legal plan covers employees in the executive organizational unit.  Create a coverage group for the executive legal plan.
7a.           Define coverage groupings
           Menu Path:
IMG>Personnel Management>Benefits>Basic Settings>Define employee groupings>Define coverage groupings
Steps:
- Hit the “New entries” button
- Enter coverage group
- Hit the “Save” button
8.           For the 401k savings plan, full time employees (greater than 37.5 hours/week) may contribute a maximum of 16% of their pre-tax salary.  Part time employees may contribute a maximum of 10%.  Create groups to separate the part time and full time employees.
8a.           Define Employee Contribution Groups
           Menu Path:
IMG>Personnel Management>Benefits>Basic Settings>Define employee groupings>Define employee contribution groups
Steps:
- Hit the “New entries” button
- Enter identification and description for employee contribution group
- Hit the “Save” button
9.           QD contributes to a retirement plan (RBAP) after one year of service for the salary employees only.  Create groups to distinguish the salary employees from the hourly employees.
9a.           Define Employer Contribution Groups
Menu Path:
IMG>Personnel Management>Benefits>Basic Settings>Define employee groups>Define employer contribution groups
Steps:
- Hit the “New entries” button
- Enter identification and description for employer contribution group
- Hit the “Save” button
10.           The 2 medical plans offered are an HMO and a traditional indemnity.  The company pays 50% of the provider costs for each.  The following costs are stated in monthly amounts:
•           The provider cost for a nonsmoking HMO are $60 for employee only, $80 for employee and spouse, and $150 for employee and family.  Smoking adds an additional $20 to the provider cost.
•           The traditional indemnity has a high deductible and a low deductible option.  The cost for a high deductible is $100 for employee only, $120 for employee and spouse, and $200 for employee and family.  Smoking adds an additional $20 and a low deductible an additional $10 to the provider cost.
Menu Path:
IMG >Personnel Management>Benefits>Plans>Health Plans
Steps:
- Define health plan general data                                
- Define options for health plans
                      - Define dependent coverage options
                      - Define cost variants          
                      - Define cost rules
                      - Assign health plan attributes          
                      - Define evidence of insurability conditions
11.           A dental plan is offered to all employees and is subject to no specific criteria.  The cost, regardless of number of dependents, is $5/month, paid for entirely by the employer.
Menu Path:
IMG >Personnel Management>Benefits>Plans>Health Plans
Steps:
- Define health plan general data                                
- Define options for health plans
- Define dependent coverage options
           - Define cost variants          
- Define cost rules
- Assign health plan attributes          
- Define evidence of insurability conditions
12.           The basic life insurance is subject to age and salary criteria.  The plan coverages offered are 1x base salary and 2x base salary, up to a maximum coverage of $500,000.  Costs are paid for by the employee and are, per $1000 coverage:
•           for salary levels below $120,000:  $0.05 below age 50, $.08 above age 50
•           for salary levels above $120,000:  $0.07 below age 50, $.10 above age 50
           Supplementary life insurance is not subject to criteria and is a flat $200,000 coverage and costs $7 month, paid for by the employee.
           There is a combined coverage limit of $500,000 for basic and supplementary insurance.
Menu Path:
IMG >Personnel Management>Benefits>Plans> Insurance Plans
Steps:
                      - Define insurance plan general data                     
                      - Define coverage formula          
                      - Define coverage rules
                      - Define cost variants
                      - Define cost rules
                      - Assign insurance plan attributes          
                      - Define evidence of insurability conditions
Menu Path: (combined coverage)
IMG >Personnel Management>Benefits>Plans> Insurance Plans>Combined coverage
Steps:
                      - Define combined coverage for insurance
                      - Define combined coverage limit expressions
13.           A 401k savings plans is available and QD starts immediate matching.  QD matches at a rate of 100% of employee contribution up to $1000.  After this limit is reached, QD matches 50% of employee contribution to a maximum of 16% of the employee base salary.  The 401k is subject to employee contribution groups (step 8).  The maximum pre-tax employee contribution percents are explained in step #8 and the maximum dollar amount is $10,000.  The employee is 20% vested after one year, and an additional 40% each year after.
           QD contributes $4000 to an RBAP for the salary employees after 1 year of service.  Employees so not contribute to this plan and are 100% vested after 1 year.  The RBAP is subject to an employer contribution rule (step 9).
           Choices for investments are stock, mutual funds, or both.
Menu Path:
IMG >Personnel Management>Benefits>Plans> Savings Plans
Steps:
- Define savings plan general data
- Define employee contribution variants
- Define employee contribution rules
- Define employer contribution variants
- Define employer contribution rules
Menu Path:
IMG >Personnel Management>Benefits>Plans> Savings Plans>Vesting
Steps:
- Define vesting rules
- Define vesting portions
Menu Path:
IMG >Personnel Management>Benefits>Plans> Savings Plans>Investments
Steps:
- Define investments
- Define investment groups
- Assign investments to groups
Menu Path:
IMG >Personnel Management>Benefits>Plans> Savings Plans
Steps:
- Assign savings plan attributes
14.           QD offers a healthcare spending account with contribution limits of $100-$7000 per year.  Reimbursements for spending accounts can be obtained through QD in amounts of $50 or greater.  Valid reimbursements are doctor, dentist, vision, and prescription.
Menu Path:
IMG >Personnel Management>Benefits>Plans> Flexible Spending Accounts
Steps:
                      - Define spending account general data
           - Define employer contribution variants
           - Define employer contribution rules
           - Assign spending account attributes
           - Define spending account claim types
15.           QD gives each employee a monthly credit of $50 to offset the costs of benefit plans.
Menu Path:
IMG >Personnel Management>Benefits>Plans> Credit Plans
Steps:
- Define credit plan general data
- Define credit variants
- Define credit rules
- Assign credit plan attributes
16.           QD offers a legal plan for all employees in the executive organizational unit.  The coverage group was determined in step 7.  The legal plan has a coverage amount of $5,000,000 and costs the employer $100 per month.
           you will use coverage amount and cost formulas for the legal plan configuration
Menu Path:
IMG >Personnel Management>Benefits>Plans> Miscellaneous Plans
17.           To enroll in a dental plan, the employee must be enrolling in either an HMO or the medical indemnity.  To enroll in supplementary insurance, the employee must be enrolling in the basic life insurance plan.
17a.           Define prerequisite or corequisite plans
Note:  Prerequisite plan is a plan the employee must first be enrolled in.
Corequisite plan is a plan the employee must enroll in at the same time.
           Menu Path:
IMG >Personnel Management>Benefits>Flexible Administration>Prerequisites and \Corequisites>Define prerequisites/ Define corequisites
Steps:
- Choose a plan requiring a pre/co requisite
- Enter the plan or plans that are to be the pre/co requisite
- Determine if the plan requires a requisite of “all” or “any”
18.           Employees are eligible for all plans (except RBAP) immediately upon hire.  Salary employees are eligible for RBAP after one year of service.
18a.           Define eligibility groupings
           Menu Path:
IMG >Personnel Management>Benefits>Flexible administration>Programs>Employee Eligibility>Define eligibility groupings
Steps:
- Hit the “New entries” button
- Enter Eligibility group and description
- Hit the “Save” button
18b.           Maintain ELIGR feature
Menu Path:
IMG >Personnel Management>Benefits>Flexible administration>Programs>Employee Eligibility>Define eligibility groups
Steps:
- Click on “Feature” button and Maintain
18c.           Define eligibility variants
Menu Path:
IMG >Personnel Management>Benefits>Flexible administration>Programs>Employee Eligibility>Define eligibility variants
Steps:
- Hit the “New entries” button
- Enter Eligibility rule variant and description
- Hit the “Save” button
18d.           Define eligibility rules
Menu Path:
IMG >Personnel Management>Benefits>Flexible administration>Programs>Employee Eligibility>Define eligibility rule criteria
Steps:
- Select the eligibility rule for which to define conditions
- Enter the waiting period information
- Enter the first day of enrollment after waiting period met
- Enter minimum working time and age restrictions, if required
- Hit the “Save” button
19.           When employment ends, termination is classified as wither resigned or retired and benefit plans cease after 30 days, or cease immediately.
19a.           Define termination groupings
Menu Path:
IMG>Personnel Management>Benefits>Flexible administration>Programs>Participation termination>Define termination groupings
Steps:
- Hit the “New entries” button
- Enter Termination grouping and description
- Hit the “Save” button
19b.           Define termination variants
Menu Path:
IMG>Personnel Management>Benefits>Flexible administration>Programs>Participation termination>Define termination variants
Steps:
- Hit the “New entries” button
- Enter Termination variants and description
- Hit the “Save” button
19c.           Define termination rules
Menu Path:
IMG>Personnel Management>Benefits>Flexible administration>Programs>Participation termination>Define termination rules
Steps:
- Select your Termination rule
- Select Benefits termination rule criteria
- Enter the appropriate Coverage continuation period and hit the “Save” button
20.           Group plans together as an “offer” to active salary and hourly employees.
20a.           Define benefit programs
Menu Path:
IMG>Personnel Management>Benefits>Flexible administration>Programs>Define benefit programs
Steps:
- Select your Benefit groups
- Select your Employee status
- Enter the Benefit plan, Eligibility rule and Termination rule and hit the “Save” button.
21.           All active employees are defaulted into the traditional indemnity medical plan, low deductible, employee only if they do not elect benefits.  The RBAP, credit, and legal plans are all automatic enrollment.
21a.           Define standard selections
Menu Path:
IMG>Personnel Management>Benefits>Flexible administration>Standard selections>Define Standard health selections
Steps:
- Select your Benefit groups
- Select your Employee status
- Hit the “New entries” button
- Enter the Benefit plan type, Benefit plan, Health plan options and Dependent coverage for health plan
- Select the processing type and hit the “Save” button.
22.           Benefit events are classified as Hire (can add all relevant plans) or Other Event (marriage, birth of child and can delete, add, change and relevant plan)
22a.           Define benefit adjustment groupings
Menu Path:
IMG>Personnel Management>Benefits>Flexible administration>Benefits adjustment reasons>Define benefit adjustment groupings
Steps:
- Hit the “New entries” button
- Enter adjustment groupings and description
22b.           Maintain EVTGR feature
Menu Path:
IMG>Personnel Management>Benefits>Flexible administration>Benefits adjustment reasons>Define benefit adjustment groupings
Steps:
- Click on “Feature” button and maintain EVTGR feature
22c.           Define benefit adjustment reasons
Menu Path:
IMG>Personnel Management>Benefits>Flexible administration>Benefits adjustment reasons>Define benefit adjustment reasons
Steps:
- Hit the “New entries” button
- Enter Benefit adjustment reasons and description
- Hit the “Save” button
22d.           Define permitted changes for adjustment (up to you!)
Menu Path:
IMG>Personnel Management>Benefits>Flexible administration>Benefits adjustment reasons >Define adjustment permissions
Steps:
- Select your Benefit adjustment
- Select your adjustment group
- Hit the “New entries” button
- Enter the Benefit plan type,
- Check the appropriate boxes for Benefit plan, Options, Dependent coverage and Dependents and save your records
Edited by: Santhosh Kumar R on Feb 27, 2008 9:35 AM