Benefits Cofiguration Documents

[Former Member]

Hi,

I am new to Benefits module.Can anybody help me with benefits configuration documents

Thanks in advance

Usha

[sikindar_a · Accepted solution]

Benefit Administration:

This section of the Implementation Guide (IMG) is where you set the

SAP Benefits Administration component.

Here you enter in the system all the details of the benefit plans

offered by your company.

Benefit Area:

Benefit areas allow you to have separate administration of different

benefit plan pools. This division is primarily for administrational

purposes and would not normally be used for eligibility

IMG Path: Personnel Management  Benefits  Basic Settings  Define Benefit Area

Assign Currency to Benefit Area:

In this step, you specify the currency for the benefit area

IMG Path: Personnel Management  Benefits  Basic Settings  Assign Currency

this step, you enter the providers of the benefit plans you offer.

This could be the Insurance company, or Health Maintenance

Organization that receives the benefit plan costs

IMG Path: Personnel Management  Benefits  Basic Settings  Define

Benefit Providers

In this step, you set relevant benefit area for your Customizing activities

If you have more than one benefit area to set up, you must set up each

independently. After you have set up all the plans in one area, you

must return to this view, set the next current benefit area and work

through the IMG again, setting up the new benefit area.

IMG Path: Personnel Management  Benefits  Basic Settings  Set

Current Benefit Area

Benefit Plan Types:

In this step, you enter the benefit plan types that you require for

the plan categories predefined in the system.

The following plan categories are provided by MSD:

u2022 Health Plans

o Medical

o Dental

o Vision

u2022 Insurance Plans

o Basic Life

o Supplemental Life

o Accidental Death & Dismember

u2022 Savings Plans

o 403B

o 457

o PERS (Public Employees retirement Scheme for CP Benefit Plan) & TRS

(Teachers Retirement Scheme for TP Benefit Plan)

u2022 Flexible Spending Accounts

o Health care

o Dependent care

IMG Path: Personnel Management  Benefits  Basic Settings  Plan

Attributes  Define Benefit Plan Types

Define Benefit Plan Status:

It is important that you assigning statuses in order to be able to

control the availability of plans with a minimum of effort. For

example, you can control whether or not employees can enroll in a plan

simply by changing its status

IMG Path: Personnel Management  Benefits  Basic Settings  Plan

Attributes  Define Benefit Plan Status

Benefit Plan Status:

In this step, you define parameter groups. You decide which groups you

require in two stages:

1. You consider which costs, credits, coverage and employee and

employer contributions for your plans vary according to the age,

salary and/or seniority of employees (or possibly the age of the

employee's spouse).

2. You determine the different ways in which you need to divide your

employees according to different value ranges for these criteria.

It is not possible to define overlaps of ranges for a criterion within

a single parameter group. Therefore, if you require different employee

groupings for different plans, you need to create a separate parameter

group.

For each unique combination of criteria and their values, you need to

define a parameter group.

In this step, you simply create the parameter groups to which you

assign groups for the individual criteria in the following steps. You

later refer to the parameter groups, where applicable, in the

individual rule variants for plans. Since one parameter group can be

referenced by multiple plans, Customizing effort is kept to a minimum.

In the plan variant, you also have the flexibility of being able to

specify that you only want to use certain criteria values belonging to

a parameter group, for example, age ranges

IMG Path: Personnel Management  Benefits  Basic Settings  Define

Employee Groupings  Define Employee Criteria Groups  Define

Parameter Groups

Age Groups:

In this step, you define the age groups for the parameter groups that

you defined in a previous step.

Depending on your needs, you may find for some parameter groups, you

can leave out this step, if for example there is no requirement to

differentiate between employees based on age

IMG Path: Personnel Management  Benefits  Basic Settings  Define

Employee Groupings  Define Employee Criteria Groups  Define Age

Groups

Age Groups under Parameter grouping "PAR1"

Cost Groupings:

In the parameter group you could differentiate between employees based

upon age, salary and seniority. Here you can further differentiate

between employees, based on other employee criteria, such as

geographical location, job classification, marital status and so on.

Only set up this feature, if you find that the parameter group does

not adequately cover your needs, when specifying costs for different

groups of employees

IMG Path: Personnel Management  Benefits  Basic Settings  Define

Employee Groupings  Define Cost Groupings

Coverage Groupings:

In the parameter group you could differentiate between employees based

upon age, salary and seniority. Here you can further differentiate

between employees, based on other employee criteria, such as

geographical location, employment contract, residence status and so

on. Only set up this feature, if you find that the parameter group

does not adequately cover your needs, when specifying coverage for

different groups of employees

IMG Path: Personnel Management  Benefits  Basic Settings  Define

Employee Groupings  Define Coverage Groupings

Employee Contribution Groupings:

In the parameter group you could differentiate between employees based

upon age, salary and seniority. Here you can further differentiate

between employees, based on other employee criteria, such as

geographical location, weekly hours, residence status and so on. Only

set up this feature, if you find that the parameter group does not

adequately cover your needs, when specifying employee contribution for

different groups of employees

IMG Path: Personnel Management  Benefits  Basic Settings  Define

Employee Groupings  Define Employee Contribution Groupings

the parameter group you could differentiate between employees based

upon age, salary and seniority. Here you can further differentiate

between employees, based on other employee criteria, such as

geographical location, weekly hours, residence status and so on. Only

set up this feature, if you find that the parameter group does not

adequately cover your needs, when specifying employee contribution for

different groups of employees

IMG Path: Personnel Management  Benefits  Basic Settings  Define

Employee Groupings  Define Employer Contribution Groupings

the parameter group you could differentiate between employees based

upon age, salary and seniority. Here you can further differentiate

between employees, based on other employee criteria, such as

geographical location, weekly hours, residence status and so on. Only

set up this feature, if you find that the parameter group does not

adequately cover your needs, when specifying employee contribution for

different groups of employees

IMG Path: Personnel Management  Benefits  Plans  Health Plans 

Define Employer Contribution Groupings

the parameter group you could differentiate between employees based

upon age, salary and seniority. Here you can further differentiate

between employees, based on other employee criteria, such as

geographical location, weekly hours, residence status and so on. Only

set up this feature, if you find that the parameter group does not

adequately cover your needs, when specifying employee contribution for

different groups of employees

IMG Path: Personnel Management  Benefits  Plans  Health Plans 

Define Options for Health Plans

Dependent Coverage Options:

In this step, you define the dependent coverage that are used in health plans.

Define all possible variations that you need, because this view is not

specific to any plan or plan option

IMG Path: Personnel Management  Benefits  Plans  Health Plans 

Define Dependent Coverage Options

Number of Dependents:

In this step, you can restrict participation in a health plan under a

dependent coverage option to certain types of dependent, as determined

by the subtypes of the Family/Related Persons infotype (0021). You can

also define a minimum and maximum number of persons of a particular

type that can be covered. During enrollment, the system only includes

those dependent coverage options in the benefit offer for which the

appropriate dependents are available

IMG Path: Personnel Management  Benefits  Plans  Health Plans 

Define Minimum and Maximum Number of Dependents

Define Cost Variants:

In this step you define cost variants to determine which factors

influence the cost of a health plan for an employee. Variants are

plan-specific; each plan has its own variant(s).

You do not enter any actual costs in this step. You simply define how

costs vary according to:

u2022 Plan

u2022 Option

u2022 Dependent coverage

u2022 Employee data

Before you start to define cost variants, you need to do the following:

1. Determine how often costs vary for all the combinations of option

and dependent coverage that you have defined in each plan.

This indicates how many cost variants you need. You can use the same

cost variant more than once, for example, if costs are always

identical for the dependent coverages 'employee only' and 'employee

plus family' within a plan, regardless of the plan option

2. Determine how costs vary according to employee data.

This determines how you need to set up your variants using employee groupings.

For each variant, you can specify a parameter group and cost grouping

to determine cost. You can also indicate whether the gender of

employees and whether or not they are smokers are cost criteria

IMG Path: Personnel Management  Benefits  Plans  Health Plans 

Define Cost Variants

Cost Rules:

You need to define costs for each possible combination of employee

grouping in the criteria you have attributed to each variant. If you

have not specified any criteria in a variant, you assign one rule only

IMG Path: Personnel Management  Benefits  Plans  Health Plans 

Define Cost Rule

Health Plan Attributes:

In this step, you bring together all the definitions relevant to the

health plan that you have made in the previous steps.

You assign to each health plan:

u2022 Its options

u2022 Relevant dependent coverages

u2022 The cost variants for the combination of options and dependent coverages

IMG Path: Personnel Management  Benefits  Plans  Health Plans 

Assign Health Plan Attributes

Insurance Plans:

In this step, you define general data for insurance plans

IMG Path: Personnel Management  Benefits  Plans  Insurance Plans 

Define Insurance Plan General Data

Coverage Variants:

In this step, you define coverage variants to determined which factors

influence the coverage an employee is entitled to in a plan. Variants

are plan-specific; each plan has its own variant(s).

You do not enter any actual coverage in this step. You simply define

how coverage varies according to:

u2022 Plan

u2022 Coverage option

u2022 Employee data

Before you start to define coverage variants, you need to do the following:

1. Determine how often coverage varies for different coverage options.

This indicates how many coverage variants you need. Note the following:

u2022 If a plan has set coverages (including salary multiples), you need a

coverage variant for each.

u2022 If a plan allows employees to choose any amount of coverage within a

range, you need only one coverage variant.

u2022 If a plan has options, you will need a coverage variant for each option.

2. Determine how coverage varies according to employee data.

This determines how you need to set up your variants using employee

groupings. For each variant, you can specify a parameter group and

coverage grouping to determine coverage

IMG Path: Personnel Management  Benefits  Plans  Insurance Plans 

Coverage Rules:

In this step, you define the actual coverages for a plan.

You need to define coverage for each possible combination of employee

grouping in the criteria you have attributed to each variant. If you

have not specified any criteria in a variant, you assign one rule

only.

Coverage can be defined as a flat amount or as a factor of salary

IMG Path: Personnel Management  Benefits  Plans  Insurance Plans 

Define Coverage Rules

Cost Variants:

In this step you define cost variants to determine which factors

influence the cost of an insurance plan for an employee. Variants are

plan-specific; each plan has its own variant(s).

You do not enter any actual costs in this step. You simply define how

costs vary according to:

u2022 Plan

u2022 Coverage option

u2022 Employee data

Before you start to define cost variants, you need to do the following:

1. Determine how often cost varies for different coverage options:

u2022 If an insurance plan has set flat coverage options and flat costs, you need

to define a cost variant for each flat cost.

u2022 If you have set flat coverage options and the flat costs are directly

proportional to the coverage stated in the flat cost, you need only one

cost variant.

u2022 If an employee can choose any amount of coverage within a range and the

cost of the coverage is directly proportional to the coverage, you need

only one cost variant.

2. Determine how costs vary according to employee data.

This determines how you need to set up your variants using employee groupings.

For each variant, you can specify a parameter group and cost grouping

to determine cost. You can also indicate whether the gender of

employees and whether or not they are smokers are cost criteria

IMG Path: Personnel Management  Benefits  Plans  Insurance Plans 

Define Cost Variants

Cost Rules:

You need to define costs for each possible combination of employee

grouping in the criteria you have attributed to each variant. If you

have not specified any criteria in a variant, you assign one rule only

IMG Path: Personnel Management  Benefits  Plans  Insurance Plans 

Define Cost Rules

Insurance Plan Attributes:

In this step, you bring together all those parts of an insurance plan,

that you have already defined in the previous few steps.

You define the insurance plan options, then associate to each insurance plan:

u2022 Cost variant

u2022 Coverage variant

IMG Path: Personnel Management  Benefits  Plans  Insurance Plans 

Assign Insurance Plan Attributes

Combined Coverage Limits:

When you define coverages for plans such as insurance, you can set

limits on the coverage amount. This is often used when the coverage is

an amount dynamically calculated when the employee chooses her

coverage.

However these limits apply only to one plan and yet you might need to

define limits which combine the coverages of more than one plan.

In this chapter, you define these combined limits as follows:

1. The limit that might span 2 or more plans is reduced to a

mathematical equation, where there is an amount on one side and plan

coverages on the other side. The two sides of this equation are then

DIVIDED BETWEEN the two views in this chapter.

2. The first view defines the limit in monetary terms which is one

side of the equation. It also defines the operator (equals, is greater

than, and so on).

3. The second view defines the other side of the equation in terms of

the plan coverages

IMG Path: Personnel Management  Benefits  Plans  Insurance Plans 

Combined Coverage  Combined Coverage

Combined Coverage Limit Expressions:

In this step, you enter the second half of the equation, as discussed

in combined coverage

IMG Path: Personnel Management  Benefits  Plans  Insurance Plans 

Combined Coverage  Define Combined Coverage Limit Expressions

Imputed Income for Selected Benefits:

In this section of the IMG, you define the criteria needed to

calculate Imputed Income.

Imputed Income is based upon benefits paid for by the employer and

calculated using rates set by the Internal Revenue Service (IRS). This

value is then treated as taxable income for the employee

IMG Path: Personnel Management  Benefits  Plans  Insurance Plans 

Combined Coverage  Review Age Groups for Imputed Income

Review Calculation Factors for Imputed Income:

In this step, you check that the Imputed Income Rate Table entries are correct.

The imputed income age groups are associated with the rates/factors

set by the IRS

IMG Path: Personnel Management  Benefits  Plans  Insurance Plans 

Combined Coverage  Review Calculation Factors for Imputed Income

Savings Plans:

In this step, you define general data for savings plans.

You have defined the relevant type, status, and provider for each plan

in the Basic Settings section of the Benefits IMG

IMG Path: Personnel Management  Benefits  Plans  Savings Plans 

Define Savings Plan General Data

Employee Contribution Variants:

In this step you define employee contribution variants to determine

which factors influence the permitted employee contribution to a plan.

Variants are plan-specific; each plan has its own variant(s).

You do not enter any actual contributions in this step. You simply

define how contributions vary according to:

u2022 Plan

u2022 Option (only for plans in the plan category Miscellaneous)

u2022 Employee data

Before you start to define variants, you need to do the following:

1. Determine how often employee contributions vary for plans and any

plan options.

This indicates how many contribution variants you need.

2. Determine how employee contributions vary according to employee data.

This determines how you need to set up your variants using employee groupings.

For each variant, you can specify a parameter group and employee

contribution grouping to determine employee contribution

IMG Path: Personnel Management  Benefits  Plans  Savings Plans 

Define Employee Contribution Variants

Employee Contribution Rules:

In this step, you define the employee contribution limits for each plan.

You need to define employee contributions limits for each possible

combination of employee grouping in the criteria you have attributed

to each variant. If you have not specified any criteria in a variant,

you assign one rule only.

You can define minimum and maximum employee contribution in the following ways:

u2022 As a fixed amount

u2022 As a percentage of salary

u2022 As a contribution unit

In Payroll, the total employee contribution is the sum of these amounts

IMG Path: Personnel Management  Benefits  Plans  Savings Plans 

Define Employee Contribution Rules

Employer Contribution Variants:

In this step you define employer contribution variants to determine

which factors influence the contribution the employer makes to a plan.

Variants are plan-specific; each plan has its own variant(s).

You do not enter any actual contribution in this step. You only define

how contributions vary according to:

u2022 Plan

u2022 Option (only for plans in the plan category Miscellaneous)

u2022 Employee data

Before you start to define variants, you need to do the following:

1. Determine how often employee contributions vary for plans and any

plan options.

This indicates how many contribution variants you need.

2. Determine how employee contributions vary according to employee data.

This determines how you need to set up your variants using employee groupings.

For each variant, you can specify a parameter group and employer

contribution grouping to determine employer contribution

IMG Path: Personnel Management  Benefits  Plans  Savings Plans 

Define Employer Contribution Variants

Employer Contribution Rules:

In this step, you define limits for the contributions made by the

employer to employee plans. You so this for each employer contribution

variant for each plan.

You need to define employer contributions limits for each possible

combination of employee grouping in the criteria you have attributed

to each variant. If you have not specified any criteria in a variant,

you assign one rule only.

You can define the employer contribution and the contribution limit in

either of the following ways:

u2022 As a fixed amount / as an amount per unit contributed by the employee

u2022 As a percentage of employee base salary or employee contribution

IMG Path: Personnel Management  Benefits  Plans  Savings Plans 

Define Employer Contribution Rules

Assign Savings Plan Attributes:

In this step, you complete the definition of savings plans by bringing

together the relevant elements that you have already defined:

u2022 EE contribution variant

u2022 ER contribution variant

IMG Path: Personnel Management  Benefits  Plans  Savings Plans 

Assign Savings Plan Attributes

Flexible Spending Accounts (FSAs):

In this step, you define general data for flexible spending accounts (FSAs).

Requirements

You have created the appropriate plan type , plan status, and benefit

provider in the preceding steps

IMG Path: Personnel Management  Benefits  Plans  Flexible Spending

Accounts (FSAs)  Define Spending Account General Data

Assign Spending Account Attributes:

In this step, you enter the details of your flexible spending accounts

including contribution limits, an employer contribution variant (if

required), and rules for the reimbursement of claims

IMG Path: Personnel Management  Benefits  Plans  Flexible Spending

Accounts (FSAs)  Assign Spending Account Attributes

Flexible Administration:

In this chapter, you define the flexible aspects of your Benefits

administration. You define the availability of plans to your

employees, in terms of the plans themselves. You also define aspects

of the enrollment process.

you enter parameters that apply to processing within an entire

benefits area, including:

u2022 Open enrollment period dates

u2022 Default validity dates for adjustment/standard plan records

u2022 Advance availability of future plans

u2022 Dependent age limits

IMG Path: Personnel Management  Benefits  Flexible Administration 

Define Administrative Parameters

Benefit Adjustment Groupings:

In this step, you define adjustment groupings. These groupings allow

you to specify different adjustment permissions for different groups

of employees

IMG Path: Personnel Management  Benefits  Flexible Administration 

Benefits Adjustment Reasons  Define Benefit Adjustment Groupings

Benefit Adjustment Reasons:

In this step, you define adjustment reasons to control changes to

employee enrollments according to company policy.

The adjustment reason types that you define here are assigned as

subtypes of Adjustment Reasons records (infotype 0378) in HR Master

Data. Since a record can only have one subtype, a new record must be

created for every adjustment reason an employee experiences.

According to the adjustment concept, an employee can only make changes

to her enrollments if she has an Adjustment Reasons record (infotype

0378) with the required adjustment reason as a subtype. The only

exceptions to this are if changes are made during an open enrollment

period or if an anytime adjustment reason is assigned to the plan

type.

In addition to defining adjustment reasons for certain events that can

trigger changes, you may also want to define a special adjustment

reason to allow changes to plans at any time

IMG Path: Personnel Management  Benefits  Flexible Administration 

Benefits Adjustment Reasons  Define Benefit Adjustment Reasons

Adjustment Permissions:

In this section, you assign adjustment permissions to each benefit

plan type for an adjustment reason and any adjustment grouping that

you have defined.

Note that the elements for which you can define permissions are

automatically determined by the system, dependent on the plan category

Health Plans:

In this step, you define the changes permitted for all plans of this

type. You do this for each combination of adjustment reason,

adjustment grouping, and plan type

IMG Path: Personnel Management  Benefits  Flexible Administration 

Benefits Adjustment Reasons  Define Adjustment Permissions  Health

Plans

this step, you define the changes permitted for all plans of this

type. You do this for each combination of adjustment reason,

adjustment grouping, and plan type

IMG Path: Personnel Management  Benefits  Flexible Administration 

Benefits Adjustment Reasons  Define Adjustment Permissions 

Insurance Plans

Savings Plans:

In this step, you define the changes permitted for all plans of this

type. You do this for each combination of adjustment reason,

adjustment grouping, and plan type

IMG Path: Personnel Management  Benefits  Flexible Administration 

Benefits Adjustment Reasons  Define Adjustment Permissions  Savings

Plans

Spending Accounts:

In this step, you define the changes permitted for all plans of this

type. You do this for each combination of adjustment reason,

adjustment grouping, and plan type

IMG Path: Personnel Management  Benefits  Flexible Administration 

Benefits Adjustment Reasons  Define Adjustment Permissions  Spending

Account

Programs:

In this section of the IMG, you define benefit programs and the

eligibility restrictions and termination conditions for the plans

within these programs.

Within a program, eligibility for plans can be determined on two levels:

u2022 Program groupings control eligibility on a high level

(macro-eligibility) by allocating an employee a defined program,

depending on his/her organizational and employment data.

u2022 Eligibility rules are optional and control eligibility on a low

level (micro-eligibility) by determining whether an employee can

participate in a plan within the relevant program. An employee must

fulfill the conditions defined in the rule in order to be able to

enroll. Eligibility rules are assigned to plans in programs by means

of an eligibility variant.

First Program Grouping:

In this step, you define first program groupings. Later, you define

programs for a combination of first and second program groupings.

Identical attributes are available for the setup of both the first and

second program groupings, and they are therefore interchangeable. The

fact that you determine macro-eligibility for a program using two

dimensions means that you are able to make finer distinctions between

groups of employees

IMG Path: Personnel Management  Benefits  Flexible Administration 

Programs  Define First Program Grouping

Second Program Grouping:

In this step, you define second program groupings. Later, you define

programs for a combination of first and second program groupings.

Identical attributes are available for the setup of both the first and

second program groupings, and they are therefore interchangeable. The

fact that you determine macro-eligibility for a program using two

dimensions means that you are able to make finer distinctions between

groups of employees

IMG Path: Personnel Management  Benefits  Flexible Administration 

Programs  Define Second Program Grouping

Employee Eligibility:

In this section of the IMG, you define the criteria according to which

you control eligibility for individual benefit plans within a benefits

program (definition of micro-eligibility). You perform the following

steps to set up eligiblity requirements:

u2022 You define eligibility grouping to identify groups of employees for whom

certain eligibility criteria apply.

u2022 You create eligibility variants, which you later use to link eligibility

rules to programs.

u2022 If necessary, you define dynamic eligibility conditions relating

specifically to actual hours worked/length of service, or zip codes.

u2022 You bring your definitions together in the eligibility rule, where you

can also specify further conditions for enrollment.

IMG Path: Personnel Management  Benefits  Flexible Administration 

Programs  Employee Eligibility  Define Eligibility Groupings

Eligibility Variants:

In this step, you define eligibility variants. These consist simply of

an identifier and a description

IMG Path: Personnel Management  Benefits  Flexible Administration 

Programs  Employee Eligibility  Define Eligibility Variants

Eligibility Rules:

In this step, you define eligibility rules for the benefit plans

offered by your organization. You define these rules for combinations

of eligibility grouping and eligibility variant, thereby determining

the eligibility conditions that will apply for different groups of

employees

IMG Path: Personnel Management  Benefits  Flexible Administration 

Programs  Employee Eligibility  Define Eligibility Rules

Participation Termination:

In this section of the implementation guide you define criteria for

the termination of benefit plans

Termination Groupings:

In this section of the implementation guide you define criteria for

the termination of benefit plans

IMG Path: Personnel Management  Benefits  Flexible Administration 

Programs  Participation Termination  Define Termination Groupings

Termination Variants:

In this step, you define termination variants. These consist simply of

an identifier and a description

IMG Path: Personnel Management  Benefits  Flexible Administration 

Programs  Participation Termination  Define Termination Variants

Termination Rules:

In this step, you define termination rules. You define these rules for

every combination of termination grouping and termination variant,

thereby determining the coverage continuation periods and termination

day that will apply for different groups of employees

IMG Path: Personnel Management  Benefits  Flexible Administration 

Programs  Participation Termination  Define Termination Rules

Define Benefit Programs:

In this step, you define termination rules. You define these rules for

every combination of termination grouping and termination variant,

thereby determining the coverage continuation periods and termination

day that will apply for different groups of employees

IMG Path: Personnel Management  Benefits  Flexible Administration 

Programs  Define Benefit Programs

Dependent/Beneficiary Eligibility:

In this step, you define family member groupings and determine how

family members are allocated to these groupings

IMG Path: Personnel Management  Benefits  Flexible Administration 

Dependent/Beneficiary Eligibility  Define Family Member Groupings

Dependent Eligibility Rule Variants:

In this step, you define the dependent eligibility variants to which

you want to assign dependent eligibility rules. You also specify

whether you wish to use a family member grouping in the associated

eligibility rule to restrict eligibility to types of family members

with certain characteristics

IMG Path: Personnel Management  Benefits  Flexible Administration 

Dependent/Beneficiary Eligibility  Define Dependent Eligibility Rule

Variants

Dependent Eligibility Rules:

In this step, you define dependent eligibility rules to determine

which types of family member are eligible as dependents. You then

assign your rules to the appropriate plans by means of a rule variant

in the step Assign Eligibility Rule Variant to Plan

IMG Path: Personnel Management  Benefits  Flexible Administration 

Dependent/Beneficiary Eligibility  Define Dependent Eligibility Rules

Beneficiary Eligibility Rule Variants:

In this step, you define the beneficiary eligibility variants to which

you assign beneficiary eligibility rules in the next step. You also

specify the following:

u2022 Whether you want to use a family member grouping in the associated

eligibility rule to restrict eligibility to types of family members

with certain characteristics

u2022 Whether the following apply for plans to which the variant is assigned:

 The employee can be a beneficiary

 Contingency beneficiaries can be named

 Spouse approval is required if beneficiaries other than the spouse

are to be amed (the system only takes this setting into consideration

for plans of the category avings)

IMG Path: Personnel Management  Benefits  Flexible Administration 

Dependent/Beneficiary Eligibility  Define Beneficiary Eligibility

Rule Variants

Beneficiary Eligibility Rules:

In this step, you define beneficiary eligibility rules to determine

which types of family member are eligible as beneficiaries. You then

assign your rules to the appropriate plans by means of a rule variant

in the step Assign Eligibility Rule Variant to Plan

IMG Path: Personnel Management  Benefits  Flexible Administration 

Dependent/Beneficiary Eligibility  Define Beneficiary Eligibility

Rules

Assign Eligibility Rule Variant to Plan:

In this step, you assign dependent eligibility variants and

beneficiary eligibility variants to plans, thereby assigning the

eligibility rules associated with these variants

IMG Path: Personnel Management  Benefits  Flexible Administration 

Dependent/Beneficiary Eligibility  Assign Eligibility Rule Variant to

Plan

COBRA Plans:

In this step, you specify which health plans that you have already

defined in the system are COBRA-relevant.

When a clerk collects COBRA-qualified beneficiaries, the system only

considers employee enrollments in the plans you select here as

legitimate cases where COBRA must be offered to the employee

IMG Path: Personnel Management  Benefits  COBRA  Choose COBRA Plans

this step, you determine for which flexible spending accounts (FSAs)

you will offer continuation of coverage under COBRA. You need to do

this for each benefit area separately

IMG Path: Personnel Management  Benefits  COBRA  Choose COBRA

Spending Accounts

Qualifying Event Coverage Periods:

In this step, you define the events that qualify individuals for COBRA

coverage, and the periods of permitted coverage continuation for each

qualifying event type. COBRA legislation states the following

regarding coverage continuation periods:

u2022 In the case of Termination of employment and Reduction in working

hours, only 18 months coverage must be provided. If qualified

beneficiaries are determined to be disabled within 60 days of the

COBRA event, they are entitled to a further 11 months of coverage, as

are the other qualified beneficiaries who experienced the original

event.

u2022 For all other qualifying events except Bankruptcy of employer, a

qualified beneficiary is entitled to 36 months continuation coverage,

and there is no extension provision for disability.

u2022 In the case of the event Bankruptcy of employer, the coverage

continuation period is the life of the retired employee or retired

employee's widow/widower. You therefore do not need to define a

continuation period in this case.

IMG Path: Personnel Management  Benefits  COBRA  Define Qualifying

Event Coverage Periods

Assign COBRA Events to Personnel Actions:

In this step, you define how the system recognizes COBRA-qualifying

events from employee personnel actions (infotype 0000) records. You do

this by creating a link between the two.

The only COBRA-qualifying event types that you assign to personnel actions are:

u2022 Termination

u2022 Death of employee

u2022 Reduction in hours

You need to assign these COBRA-qualifying event types since they are

based on customizable entries in your HR master data and therefore

cannot be delivered as standard.

When the system collects COBRA-qualified beneficiaries, it considers

employee records within the date range you specify in two stages as

follows:

1. The system searches for employee personnel action (infotype 0000)

records. The COBRA qualifying events assigned to any personnel actions

found are collected.

2. The system checks other employee infotype records for specific

information which corresponds to COBRA-qualifying event types

IMG Path: Personnel Management  Benefits  COBRA  Assign COBRA

Events to Personnel Actions

Notification and Payment Intervals:

In this step, you define details of COBRA administration for those

states where state law concerning COBRA differs from federal law.

Federal regulations are reflected in the state settings for the

District of Columbia, which is also the system default.

If you must comply with state regulations that differ from the federal

regulations, you should create a new state entry. Otherwise, you can

use the DC version for all employees, regardless of which state they

reside in

IMG Path: Personnel Management  Benefits  COBRA  Define

Notification and Payment Intervals

[Former Member · Accepted solution]

Thanks alot Sikindar

Usha

[Former Member]

HI

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