PeopleSoft 8.8 Human Resources PeopleBook: Base Benefits - Oracle

PeopleSoft 8.8 Human Resources PeopleBook: Base Benefits December 2002

PeopleSoft 8.8 Human Resources PeopleBook: Base Benefits SKU HRMS88BBN-B 1202 PeopleBooks Contributors: Teams from PeopleSoft Product Documentation and Development. Copyright 1988-2002 PeopleSoft, Inc. All rights reserved. Printed in the United States. All material contained in this documentation is proprietary and confidential to PeopleSoft, Inc. ("PeopleSoft"), protected by copyright laws and subject to the nondisclosure provisions of the applicable PeopleSoft agreement. No part of this documentation may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including, but not limited to, electronic, graphic, mechanical, photocopying, recording, or otherwise without the prior written permission of PeopleSoft. This documentation is subject to change without notice, and PeopleSoft does not warrant that the material contained in this documentation is free of errors. Any errors found in this document should be reported to PeopleSoft in writing. The copyrighted software that accompanies this document is licensed for use only in strict accordance with the applicable license agreement which should be read carefully as it governs the terms of use of the software and this document, including the disclosure thereof. PeopleSoft, PeopleTools, PS/nVision, PeopleCode, PeopleBooks, PeopleTalk, and Vantive are registered trademarks, and Pure Internet Architecture, Intelligent Context Manager, and The Real-Time Enterprise are trademarks of PeopleSoft, Inc. All other company and product names may be trademarks of their respective owners. The information contained herein is subject to change without notice. Open Source Disclosure This product includes software developed by the Apache Software Foundation (http://www.apache.org/). Copyright (c) 1999-2000 The Apache Software Foundation. All rights reserved. THIS SOFTWARE IS PROVIDED “AS IS’’ AND ANY EXPRESSED OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE APACHE SOFTWARE FOUNDATION OR ITS CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. PeopleSoft takes no responsibility for its use or distribution of any open source or shareware software or documentation and disclaims any and all liability or damages resulting from use of said software or documentation.

Contents General Preface About This PeopleBook . .xvii PeopleSoft Application Prerequisites. . . . . . . .xvii PeopleSoft Application Fundamentals. . . . . . . .xvii Related Documentation. .xviii Obtaining Documentation Updates.xviii Ordering Printed Documentation.xviii Typographical Conventions and Visual Cues. .xix Typographical Conventions.xix Visual Cues. . . . . . . .xx Comments and Suggestions. .xxi Common Elements in These PeopleBooks. .xxi Preface PeopleSoft Human Resources Base Benefits Preface. . . . . . .xxiii PeopleSoft Application Fundamentals. .xxiii PeopleBook Structure. .xxiii Chapter 1 Getting Started With PeopleSoft Human Resources Base Benefits. .1 PeopleSoft Human Resources Base Benefits Business Process. .1 Implementing PeopleSoft Human Resources Base Benefits. .1 Setting Up PeopleSoft HRMS Fundamental Tables.2 Setting Up Core PeopleSoft Human Resources Base Benefits Tables.2 Setting Up Additional PeopleSoft Human Resources Base Benefits Tables.4 Chapter 2 Understanding Base Benefits. .7 PeopleSoft Human Resources Base Benefits. . .7 PeopleSoft Human Resources Base Benefits Features. .7 Integrating With Other PeopleSoft Products. .8 Designing Your Benefits Program. .8 Setting Up Support Tables and Benefit Plans. .9 PeopleSoft Proprietary and Confidential iii

Contents Building Benefit Programs. . . . . . . .11 Chapter 3 Setting Up Core Human Resources Base Benefits Tables. . . . . . . . .13 Understanding the Core Human Resources Base Benefits Tables. . . . . . . . .13 Setting Up the Provider Table. . . . . . . . .13 Setting Up Coverage Codes. . . . . . . . .14 Page Used to Set Up Coverage Codes. . . . . . . .15 Entering Coverage Code Information. . . . . . . .15 Setting Up Coverage Group Codes. . . . . . . . .16 Page Used to Set Up Coverage Group Codes. . . . . . . .16 Entering Coverage Group Code Information. . . . . . . .16 Setting Up FEGLI Codes. . . . . . . . .17 Pages Used to Set Up FEGLI Codes. . . . . . . .17 Entering FEGLI Code Information. . . . . . . .17 Setting Up the Service Step Table. . . . . . . . .18 Page Used to Set Up the Service Step Table. . . . . . . .18 Entering Service Step Table Information. . . . . . . .18 Setting Up Rates and Premium Limits. . . . . . . . .21 Common Elements Used by Rates and Premium Limits. . . . . . . .22 Pages Used to Define Rates and Premium Limits. . . . . . . .23 Defining Age-Graded Rates. . . . . . . .23 Defining Salary Rates. . . . . . . .24 Defining Service Rates. . . . . . . .25 Defining Flat Rate Tables. . . . . . . .25 Defining Employee Premium Limits. . . . . . . .26 Setting Up Calculation Rules. . . . . . . . .26 Page Used to Set Up Calculation Rules. . . . . . . .29 Defining Calculation Rules. . . . . . . .29 Setting Up Deduction Codes. . . . . . . . .33 Page Used to Set Up Deduction Codes. . . . . . . . .34 Creating Deduction Codes. . . . . . . .34 Setting Up Special Accumulators. . . . . . . . .35 Pages Used to Set Up Special Accumulators. . . . . . . .36 Entering Special Accumulators. . . . . . . .36 Setting Up Limits for Qualified Savings Plans. . . . . . . . .36 Understanding Limits. . . . . . . .36 Understanding 401 Limit. . . . . . . .37 Understanding 402 Limit. . . . . . . .37 iv PeopleSoft Proprietary and Confidential

Contents Understanding 403 Limit. . . . . . . .37 Understanding 415 Limit. . . . . . . .37 Understanding 415Z Limit. . . . . . . .37 Understanding 457 Limit. . . . . . . .37 Limit Extensions. . . . . . . .38 Common Elements Used to Define Limits. . . . . . . .38 Page Used to Define Limits. . . . . . . .39 Setting Up 401(a) Limits. . . . . . . .39 Setting Up 402(g) Limits. . . . . . . .40 Setting Up 403(b) Limits. . . . . . . .41 Setting Up 457 Limits. . . . . . . .41 Setting Up Leave and Vacation Buy/Sell Earnings. . . . . . . . .42 Setting Up Payroll Information for Leave Accruals. . . . . . . .42 Setting Up Vacation Buy and Sell Earnings. . . . . . . .43 Chapter 4 Setting Up Benefit Plans. . . . . . . . .45 Understanding Benefit Plans. . . . . . . . .45 Defining Benefit Plans. . . . . . . . .49 Page Used to Define Benefit Plans. . . . . . . .49 Entering Benefit Plan Information. . . . . . . .49 Setting Up Health Plans. . . . . . . . .51 Page Used to Set Up Health Plans. . . . . . . .51 Entering Health Plan Details. . . . . . . .51 Setting Up Health Plans for Domestic Partners. . . . . . . .52 Setting Up Life Insurance and Accidental Death Plans. . . . . . . . .52 Page Used to Set Up Life Insurance and AD&D Plans. . . . . . . .52 Entering Life Insurance and AD&D Plan Details. . . . . . . .52 (USF) Understanding Option A - Standard FEGLI Plan Calculations. . . . . . . .54 Setting Up Disability Plans. . . . . . . . .54 Page Used to Set Up Disability Plans. . . . . . . .55 Entering Disability Plan Details. . . . . . . .55 Setting Up Savings Plans. . . . . . . . .56 Pages Used to Set Up Savings Plans. . . . . . . .56 Defining Employee Investment Limits. . . . . . . .56 Defining Employer Match or Other Contributions. . . . . . . .58 Setting Up Employee Rollover Options. . . . . . . .60 Setting Up Leave Plans. . . . . . . . .61 Page Used to Set Up Leave Plans. . . . . . . .62 PeopleSoft Proprietary and Confidential v

Contents Entering Leave Plan Details. . . . . . . .62 Setting Up FMLA Plans. . . . . . . . .64 Page Used to Set Up FMLA Plans. . . . . . . .65 Activating FMLA Administration. . . . . . . .65 Entering FMLA Plan Details. . . . . . . .65 Setting Up FSA Plans. . . . . . . . .67 Page Used to Set Up FSA Plans. . . . . . . .67 Entering FSA Plan Details. . . . . . . .68 Setting Up Retirement Plans. . . . . . . . .68 Page Used to Set Up Retirement Plans. . . . . . . .69 Entering Retirement Plan Details. . . . . . . .69 Setting Up U.S. Pension Plans. . . . . . . . .70 Page Used to Set Up Pension Plans. . . . . . . .70 Entering Pension Plan Details. . . . . . . .70 (CAN) Entering Pension Plan Details. . . . . . . .72 Setting Up Vacation Buy/Sell Plans. . . . . . . . .73 Page Used to Set Up Vacation Buy/Sell Plans. . . . . . . .73 Entering Vacation Buy/Sell Plan Details. . . . . . . .73 Chapter 5 Building Base Benefit Programs. . . . . . . . .75 Building Benefit Programs. . . . . . . . .75 Understanding Benefit Programs. . . . . . . .75 Understanding Plan Types. . . . . . . .76 Understanding Plans. . . . . . . .76 Understanding Effective Dates. . . . . . . .77 Building Benefit Programs With the Benefit Program Table Components. . . . . . . . . . . . . . . .77 Pages Used to Build Benefit Programs With the Benefit Program Table Components. . . . . . . . . . . . . . . . . . .78 Defining Basic Benefit Program Information. . . . . . . .78 Associating Plan Types With a Benefit Program. . . . . . . .81 Linking a Benefit Program and Plan Type to Rate and Calculation Rules. . . . . . . . . . . . . . . . . . . . .87 Setting Up Benefit Programs That Provide Benefits to Nonqualified Dependents. . . . . . . . . . .90 Cloning Benefit Programs, Eligibility Rules, or Event Rules. . . . . . . . .91 Page Used to Clone Benefit Programs, Eligibility Rules, or Event Rules. . . . . . . . . . . . . .91 Using the Cloning Utility. . . . . . . .91 vi PeopleSoft Proprietary and Confidential