Setting Up Base Benefits Core Tables

This chapter provides an overview of the Base Benefits core tables and explains how to:

• Set up the provider table.

• Set up dependent relationship table

• Set up coverage codes.

• Set up coverage group codes.

• Set up Federal Employee Group Life Insurance (FEGLI) Codes.

• Set up the service step table.

• Set up rates and premium amounts.

• Set up annual benefits base rates (ABBRs).

• Set up calculation rules.

• Set up deduction codes.

• Set up special accumulators.

• Set up limits for qualified savings plans.

• Set up earning for leave and vacation buy/sell plans.

Understanding the Base Benefits Core Tables

Before you can begin building your benefit programs and entering your benefit plan information, there are some core tables that must be set up first. This chapter covers setting up those core tables.

Setting Up the Provider Table

A benefit provider is a vendor. A benefit provider is the entity that sponsors the benefit plan that your company offers your employees. For example, if your company offers a Blue Cross/Blue Shield health insurance plan, Blue Cross/Blue Shield is the provider. If your organization has a self-funded medical plan but uses a third-party administrator (TPA) to handle administrative functions such as eligibility and claims, the TPA can be considered a vendor.

You use the Provider/Vendor Table to set up an ID for each vendor.

In order to include a benefit provider in the HIPAA (Health Insurance Portability and Accountability Act) EDI File Creation process, you must specify the vendor's Federal Employer Identification Number (FEIN).

Warning! If your organization uses PeopleSoft Enterprise Payroll for North America and PeopleSoft Enterprise Payables to pay a benefit vendor, add the vendor using the Payables Vendor Table, not the Base Benefits Vendor Table.

See Also

Setting Up Vendors

PeopleSoft Enterprise Payables 8.9 PeopleBook

Setting Up the Dependent Relationship Table

You define the relationships—for example, son, daughter, grandmother, grandfather, nephew, or niece—that qualify as dependents according to your organization’s rules. You cannot enroll dependents in benefits if their relationships are not defined. For example, if you had not defined grandmother as an allowable dependent type, you couldn’t enter an employee’s grandmother as a dependent.

Beneficiary relationships are not tracked because they do not have the same legal ramifications as dependents.

Page Used to Set Up Dependent Relationships

Defining Dependent Relationships

Access the Dep. Relationship page.

Relationship to Employee	The system displays the relationship that you selected to access the page.
Effective date	Enter the date on which the dependent status of this relationship goes into effect.
Status	Select whether the dependent relationship is Active or Inactive. If the status is Inactive, the relationship is no longer considered a valid dependent relationship.
Covered Person Type	Select the covered person type you are using to define the relationship. The delivered Translate Table values are: Employee Spouse Child Other Qualified Dependent Domestic Partner Non-qualified Dependent
Age Limit Flag	When the COBRA process for over-aged dependents is run, the system uses this flag to indicate which dependent roles should have the over-age rules applied.

Setting Up Coverage Codes

Coverage codes define who can be covered by a benefit.

You define and manage coverage codes for your benefit programs with the Coverage Code table. You will attach these coverage codes to your benefit plan options on the Benefit Program table.

PeopleSoft delivers seven basic coverage codes for which you define a minimum and maximum allowable for each eligible covered person type. These delivered coverage codes are described in this table:

You can also define coverage codes to validate enrollments against a total number of eligible covered person types, for example, a coverage code that allows enrollment of the employee plus one dependent. The dependent can be either a spouse or a child. The system will sum the allowable covered person types defined for the coverage code rather than look at the minimum and maximum defined for each individual covered person type.

Page Used to Set Up Coverage Codes

Entering Coverage Code Information

Access the Coverage Code Tbl page.

COBRA Coverage Set	This is a two character code that is used to group coverage codes together for COBRA eligibility purposes. When an individual experiences a COBRA event, the system must adjust the range of coverage codes available to each qualified beneficiary. By restricting itself to a specific set of coverage codes, COBRA processing is able to more accurately determine which benefit options to present to a participant who is eligible for COBRA coverage. If COBRA coverage sets are not established, then COBRA processing may encounter multiple equivalent coverage codes, and eligibility determination may fail.
Total Covered Persons	Select this check box to activate the total covered person types functionality for this coverage code.
Total Minimum Covered andTotal Maximum Covered	These fields are only visible when the Total Covered Persons check box is selected. Enter the allowable minimum and maximum covered persons. Include the employee in this count.

Allowable Covered Person Types

Setting Up Coverage Group Codes

Life insurance and accidental death and dismemberment (AD/D) plans use coverage group codes to establish the maximum lifetime coverage allowed.

For example, if you define a coverage group code with a 500,000 USD maximum, then enter that coverage group code for a supplemental life plan and a group life plan, and associate both benefit plans with a benefit program. If you were to enroll an employee in both of those plans, the system would ensure that the employee's total coverage by both plans does not exceed 500,000 USD.

If the total coverage for a participant exceeds the coverage maximum, the system will reduce the total coverage to meet the coverage maximum. As the system processes the deduction, it accumulates the coverage amounts and will begin reducing coverage when the coverage group maximum is reached. The system processes plans in order of deduction priority, and if more than one plan has the same priority, it processes in increasing plan type order.

Note. Payroll uses the effective date to determine which coverage maximum to use for a particular processing cycle, according to the pay period end date.

Page Used to Set Up Coverage Group Codes

Entering Coverage Group Code Information

Access the Coverage Group Tbl page.

Effective Date	Enter the effective date for the coverage maximum. Payroll uses the effective date to determine which coverage maximum to use for a particular processing cycle, according to the pay period end date.
Coverage Maximum	Enter the maximum total life and AD/D coverage. This amount applies to all the life and AD/D benefit plans that you associate with the coverage group code and that you associate with one benefit program. You connect a life or AD/D plan with a coverage group code using the Life and AD/D Plan Table.

Setting Up FEGLI Codes

Define codes for your Federal Employee Group Life Insurance (FEGLI) plans.

Pages Used to Set Up FEGLI Codes

Entering FEGLI Code Information

Access the FEGLI Code Table page.

Setting Up the Service Step Table

When you set up savings plans you can define your organization's employer match according to the employee's years of service. The Service Step Table defines the different intervals, tax classification, and the amount of match.

You can also define deduction classifications based on either a percentage of the employee’s gross salary or a percentage of the employee’s contribution amount.

Page Used to Set Up the Service Step Table

Entering Service Step Table Information

Access the Service Step Table page.

After Months of Service	Enter the number of months the employee must be employed to receive the employer match.
Deduction Class	Enter the tax classification for this match.
Up to % of Employee's Earnings (up to percent of employee's earnings)	Enter the maximum amount of the employer match contribution percentage.
% of Employee Investment (percent of employee investment)	Enter the percentage amount of the employee contribution that the employer will match.

Example of Before- and After-Tax Matching

Let's say you have a 401(k) plan that's set up to match:

• 50% for the first 3% of the employee's salary for before-tax contributions.

• 100% up to 6% of the employee's salary for before-tax contributions.

• 25% on the first 2%, 50% up to 4%, and 100% up to 6% on the employee's after-tax contributions.

Here's how you set this up:

Example of After Months of Service Rewards

This example shows how to use the After Months of Service field to create multiple service steps to reward employees for staying with the company.

Setting Up Rates and Premium Limits

Your benefit system relies on rates to calculate the cost of benefits. You can create rate tables based on:

• Age

• Salary

• Service

• Flat amounts

In addition to these rates tables, you may want to limit the amount an employee pays towards the premium. On each rate table, you have the option of setting a limit on the employee portion of the premium.

Understanding Employee Premium Limits

You can define limits on the employee’s portion of a benefit premium by specifying a percent of gross limit on the Calculation Rules Table.

For example, current legislation in Hawaii requires that employers charge no more than 1.5% of an employee’s gross wages for medical coverage. Only the employee’s personal coverage is subject to this limit.

If the rate table indicates the employer pays part of the premium, then any premium in excess of this final employee deduction amount (in this case, 1.5% of gross wages) is redirected (added) to the employer-paid portion of the premium. If the employer does not pay part of the premium, then no redirection takes place.

If the calculation rule associated with the benefit plan specifies a percent of gross limit, then the system calculates the premium as follows:

Lesser of [(EE Premium Amount Subject to Limit) or (Gross Pay × Limit %)] plus (Total EE Premium Amount − EE Premium Amount Subject to Limit)

Suppose that a monthly-paid employee is enrolled in family medical coverage, which has a flat rate of 300 USD per month. The amount of the employee’s portion is 125 USD. The following example shows how to apply a 1.0% of gross pay limit to the employee-only coverage:

Total EE Premium Amount = 300 USD

EE Premium Amount Subject to Limit = 125 USD

Limit = 1.0% of Gross Pay

Gross Pay = 10,000 USD

The deduction is calculated as:

[Lesser of (125 or (10,000 × .01))] + (300 − 125)

= [Lesser of (125 or 100)] + (175)

= (100) + (175)

= 275 USD

The amount of the employee premium in excess of the limited deduction is 25 USD (300 - 275). This excess amount is added to the employer-paid premium.

Here’s another example. Instead of the employee’s single-coverage portion of the premium being a flat amount of 125 USD, let’s define this as 30% of the premium amount:

Total EE Premium Amount = 300 USD

EE Premium Amount Subject to Limit = 30%

Limit = 1.0% of Gross Pay

Gross Pay = 10,000 USD

The deduction is calculated as:

[Lesser of (300 × 30%) or (10,000 × .01))] + (300 − 125)

= [Lesser of (90 or 100)] + (175)

= (90) + (175)

= 265 USD

In this case, 35 USD (300 - 265) is added to the employer-paid premium.

Warning! PeopleSoft delivers a set of rates with an ID of IRS. PeopleSoft Enterprise Payroll for North America uses these IRS rates to calculate imputed income. The IRS table ID set should not be changed.

Common Elements Used by Rates and Premium Limits

Pages Used to Define Rates and Premium Limits

Defining Age-Graded Rates

Access the Age-Graded Rate page.

Coverage/Price

Define rates for a specified gender, age range, and smoking habit. The system calculates the employee portion of the premium based on the total rate and employer portion. Note. We deliver a set of rates with an ID of IRS. PeopleSoft Enterprise Payroll for North America uses these IRS rates to calculate imputed income. This table should not be changed.

Defining Salary Rates

Access the Salary Rate Table page.

Employee Portion

Automatically calculated based on the total rate and employer portion.

Defining Service Rates

Access the Service Rate Table page.

Employee Portion

Automatically calculated based on the total rate and employer portion.

Defining Flat Rate Tables

Access the Flat Rate Table page.

Total	Enter the total cost of the coverage. Include any administrative fee that you may charge.
Employee	Automatically calculated from the total and employer amounts.
Provider	The system automatically assigns theTotal amount to the provider. If you include an administrative fee in the total, override the provider amount with what you actually pay the provider. The Provider amount is only informational; you can use it for reports of provider payments.

Defining Employee Premium Limits

Access the Amount to Limit page.

Setting Up Annual Benefits Base Rates

Some benefits, such as life and disability insurance, can be based upon the employee’s actual compensation rate or an annual benefits base rate (ABBR) that you define for the employee.

You can define and use an unlimited number of annual benefits base rates.

Page Used to Set Up ABBR Types

Defining Annual Benefits Base Rates

Access the ABBR Type page.

Setting Up Calculation Rules

You use calculation rules to define how deductions are calculated for each benefit plan. Calculation rules apply to the premium and the amount of coverage. When determining calculation rules, you need to understand:

• Compensation base and annual benefits base rate.

• (USF) Compensation base.

• Salary as-of dates.

• Employee compensation base.

• Age or service as-of dates.

• Coverage minimums and maximums.

• Calculation options.

• Rounding options.

Compensation Base Versus Annual Benefits Base Rate

Calculation rules use an employee’s earnings as part of the definitions. If you are going to base the employee’s earnings on an amount other than the employee’s regular compensation rate, you need to enter an amount in the Annual Benefits Base Rate field on the Compensation page of the Job Data component.

See Increasing the Workforce.

Note. If a calculation rule specifies that the ABBR should be used, but the employee has not been assigned an ABBR, the system will use the employee’s regular compensation rate instead.

(USF) Compensation Base

The compensation base is set through the Personnel Action Request (PAR) process. You can:

• Use the adjusted regular compensation amount provided in the Expected Pay page accessed from the Compensation Data page of the PAR component. The regular compensation amount will be the base pay for the employee's compensation frequency with locality or LEO adjustments.

• Override the FEGLI Base rate.

The system uses the regular adjusted compensation amount for benefit processing. The exception to this rule is FEGLI plans: you can have the system use a different base rate when processing FEGLI plans by overriding the FEGLI base. The FEGLI base mirrors the quoted total pay until it is overridden.

See (USF) Hiring Employees.

Salary As-Of Dates

If the premium or coverage is based on employee salary, you can specify the salary as of:

• A specific day and month for the current year.

• A specific day and month for the previous year.

• The current pay period.

• The next pay period.

If you use Multiple Jobs functionality, you must also tell the system which jobs to use when calculating the employee’s earnings.

The calculation possibilities with as-of rates are:

Example #1: Employer Pays Increased Premium

An employee belongs to a life insurance plan that uses the premium as of January 1, current year and coverage as of the current date. The system uses the benefit base for the calculation.

The employee gets a raise, so coverage increases during the year; however, until the next January 1, the system calculates the employee premium as if the coverage did not increase. The employer pays the difference between the employee deduction and the actual cost. This affects imputed income.

Example #2: Coverage and Premium Remain the Same

Another employee belongs to a life insurance plan that uses the premium as of January 1, current year and coverage as of January 1, current year.

There is no change in Jim Henry’s coverage or premium until the new year.

Page Used to Set Up Calculation Rules

Defining Calculation Rules

Access the Calculation Rules page.

Effective Date	Must be the same as or prior to the effective dates of the one or more benefit program and benefit plan combinations that you associate the calculation rules with.
Combine Salary for Multi Jobs	Select to activate the grouping method for multiple jobs.
Consider Active Jobs Only	If you selected Combine Salary for Multi Jobs, select this option to have the system only look at jobs with a status of Active in the Job Data components.
Group Method	If you selected Combine Salary for Multi Jobs, select the grouping method to use when calculating premium and coverage amounts. Choose from: All Flagged: All flagged jobs, regardless of benefit record number, are included in the calculation. Flagged BR: All flagged jobs within the current benefit record number are included in the calculation. Primary: Only the primary job within the current benefit record number is included in the calculation.
Premium Calculation	Select the employee salary that will be used for the premium calculation. Choose from: Cur/Chk Dt (current/check date): Indicates that PeopleSoft Payroll uses the pay end date to calculate premiums. Last Yr On (last year on): Indicates a specific date last year. You must enter the month and day. This Yr On (this year on): Indicates a specific date this year. You must enter the month and day.
Coverage Calculation	Select the employee salary that will be used for the coverage calculation.
Age As Of	Used to calculate rates for life plans that you associate with age-graded rates. If you don’t use the Age-Graded Rate Table, leave this field blank.
Service As Of	Used to calculate rates for plans that you base on years of service. If you don’t use the Service Rate Table, leave this field blank.
Age Source	Designate whose personal information that you want to use. Choose from Dependent, Employee, or Spouse. The system only uses dependent age and demographic information for Dependent Life plans that are designated as Sum of Dependent Coverage. A Flat Amount or Factor Plus Base Dependent Life plan typically has a premium that is based not on the number or demographics of the dependents covered, but on the coverage amount. Flat Amount and Factor Plus Base Dependent Life plans should therefore only use employee or spouse demographics. If the system cannot locate a birth date for a dependent or spouse, it generates a warning that a birth date was not located and uses the employee’s age instead, while still retaining the dependent’s sex and smoker status.
Coverage Minimum	Enter the minimum amount of coverage an employee can receive for individual plans with this set of calculation rules. The system does not round over or under these amounts.
Coverage Maximum	Enter the maximum amount of coverage an employee can receive for individual plans with this set of calculation rules. The system does not round this amount. If you use the Coverage Group Table to define a coverage group maximum for one or more life and AD/D plans that you link with this set of calculation rules, the system may force a lower minimum for the employee than the one that you enter here because the system calculates the coverage group maximum last. If you are using calculation rules for general credits and if you enter a coverage maximum, PeopleSoft Enterprise Benefits Administration will limit employee salary to that coverage maximum before calculating credits. If you do not want to limit the salary, leave the Coverage Maximum field blank.
Maximum Benefit Base	Enter an amount to limit the portion of an employee’s salary that is used to calculate the premium and coverage amounts. This field is no longer used for the 401(a)(17) limit, which is now defined on the Limit table.
Add Flat Amount Option	If you have set up a benefit plan where coverage is based upon a Factor x Benefit Base + Flat Amount, select how you want the flat amount applied. You can choose from: After Fctr (after factor): Arranges the equation as (Factor × Salary) + (Flat amount). Before Fctr (before factor): Arranges the equation as(Factor) × (Salary + Flat Amount).
Max Deduction % of Gross Pay (maximum deduction percentage of gross pay)	If you have employees in Hawaii, state laws mandate that employers charge no more than 1.5% of gross wages for employee-only coverage. Use this field to establish a calculation rule with the maximum deduction percent of gross pay set to a value of 1.5 or lower. This rule will be attached to the cost row of the benefit plan coverage code associated with employee-only coverage. This deduction calculation is performed when: The Pay Calculation process is being run. The plan type is Health. The coverage code is Employee Only. The calculation rule ID is defined. The values for maximum percent of gross pay, deductions, and gross pay are all greater than zero. The maximum deduction percent of gross pay calculation looks like this: Deduction = (Max Percent of Gross Pay) × (Federal Taxable Gross Pay) ÷ 100. The smaller deduction appears on the paycheck.
Source for Benefits Base	Designate the rate of pay used to make calculations. Select either: Annual Rate to use the regular compensation base entered on the Job Data - Compensation page. Annual Benefits Base Rate to use the ABBR entered on the ABBR Update page. ABBRs are defined on the ABBR Type Table. Note. For federal users, ABBR corresponds to the Total Pay field on the Expected Pay page of the PAR Compensation Data component.
Round Up On	Enter the amount to round up on.
Round to Multiple of	Enter the multiple that you want to round to. For example, if the benefits base rate for an employee is 46,746 USD and you enter 1,000 in the Round to Multiple of field and 500 in the Round Up On field, the system calculates and rounds coverage for the employee as follows: 46746 ÷ 1000 = 46, with a remainder of 746. 746 is greater than 500, so 46 + 1 = 47. 47 × 1000 = 47,000 coverage amount.
Round Benefits Base	Rounds the benefit base according to the rules set up in the Round Up On and Round to Multiple of fields before performing any other calculation. Use this option when pay is equal to the benefits base with no flat amount added.
Round Factored Benefits Base Before Adding Flat Amount	Rounds the factored benefits base according to the rules set up in the Round Up On and Round to Multiple of fields before adding a flat amount. Displayed only if you select After Fctr in the Add Flat Amount Option field.
Round Final Calculated Covrg (round final calculated coverage)	Select to round the final coverage amount according to the rules set up in the Round Up On and Round to Multiple of fields.

Setting Up Deduction Codes

The Base Benefits business process in Human Resources is designed to work with PeopleSoft Enterprise Payroll for North America and PeopleSoft Enterprise Payroll Interface. Calculating deductions accurately is an important payroll function.

To set up benefit deductions:

• Use the Deduction Table component (DEDUCTION_TABLE) to select the plan type (any plan type except General Deduction), enter a deduction code, and set up the deduction processing rules.

  See Defining Deductions.

  See Setting Up Deduction Data.

• Use the Benefit Plan Table component (BENEFIT_PLAN_TABLE) and other components in the Base Benefits business process to set up the benefit plans.

  See Setting Up Benefit Plans.

• Use the Benefit Program Table component (BEN_PROG_DEFN) and other components in the Base Benefits business process to build the benefit program and to define the deduction calculation rules.

  See Building Base Benefit Programs.

The Deduction Table component enables you to select a plan type, enter a deduction code, and set up the deduction processing rules that enable you to specify processing details such as deduction priorities, deduction tax classifications, deduction pay period schedules, and other special payroll process indicators. The Benefit Program Table component enables you to set up the deduction calculation rules, actual rates, rules, and routines used to determine the cost of the deduction. To calculate benefit deductions, payroll uses both the deduction processing rules from the Deduction Table component and deduction calculation rules from the Benefit Program Table.

Note. To set up the Benefit Program Table, you must enter deduction codes. Deduction codes are set up on the Deduction Table component through either Payroll for North America or Payroll Interface. However, if you are not using a PeopleSoft payroll application to calculate deductions, you can set up dummy deduction codes using other pages in Human Resources.

Designing a Deduction Strategy

When setting up deduction you need to make some basic decisions about your strategy before you set up deduction rules, and these decisions depend in part upon how you want to report deductions to employees.

Here’s a quick reference that shows the basic benefit deduction pay stub reporting options and how to make them happen:

Page Used to Set Up Deduction Codes

Creating Deduction Codes

Access the Deduction Table - Setup page.

To create a deduction code, enter the effective date and the long description.

If you are using Payroll for North America or Payroll Interface, refer to the documentation for those products for information on how to set up the Deduction Table component (DEDUCTION_TABLE).

See PeopleSoft Enterprise Payroll for North America 8.9 PeopleBook

See PeopleSoft Enterprise Payroll Interface 8.9 PeopleBook

Setting Up Special Accumulators

Sometimes it is necessary to define an employee’s earnings based on specific types of earnings rather than total gross earnings. Special accumulators act like a bucket accumulating only the earning types you want included when determining the employee’s earnings.

Special accumulators are used during deduction calculations and limit testing. You might have a benefit deduction that you base on an earnings amount other than total gross.

For example, you might use a special accumulator to identify all the separate earnings to include when accumulating employee earnings for 401(k) deductions.

Typically, you want to define a special accumulator for qualified savings plans, such as 401(k) that are subject to limit testing.

You first name the special accumulator using the Special Accumulator Table. The next step is to tie specific earnings types to that special accumulator.

Pages Used to Set Up Special Accumulators

Entering Special Accumulators

Access the Special Accumulator Table page.

Setting Up Limits for Qualified Savings Plans

Certain qualified benefit savings plans may be subject to government regulations.

This section provides overviews of limits and discusses how to:

• Set up 401(a) limits.

• Set up 402(g) limits.

• Set up 403(b) limits.

• Set up 457 limits.

Understanding Limits

Limits are tied to deduction codes. When your payroll department runs the pay calculation process, the system checks to see whether a deduction has any limits associated with it. If it does, the system runs the testing calculations and makes the limit adjustments to every affected employee’s records. If a deduction cannot be taken, it is reported with the appropriate reason-not-taken code.

Understanding 401 Limit

The 401 limit is designed to eliminate the tax advantage highly compensated employees have by participating in qualified plans. This limit sets up a maximum cap on the employee’s annual earnings during the calculation of the employee’s contribution. When calculating the employee annual earnings, the 401 limit is applied against the Special Accumulator field defined on the Savings Plan tables, not on the Special Accumulator field on the Limit Table.

Understanding 402 Limit

The 402 limit imposes a flat dollar annual limit on the amount an employee can contribute as an elective deferral.

Understanding 403 Limit

The 403 limit defines the parameters that extend the maximum amount of the elective deferrals that an employee (with 15 or more years of service) in a qualifying organization can contribute to the 403(b) savings plans. In addition to the 403 limit, 403(b) savings plans are also subject to 401, 402, and 415 limits.

To calculate this amount:

1. Multiply the employee’s eligible earnings by 20%.

2. Multiply the figure by the employee’s total years of service.

3. Subtract the prior year’s pretax contributions.

Understanding 415 Limit

The 415 limit restricts the total amount an employee can contribute to defined savings plans. 401(k) plans are the most common type of defined savings plans to fall under Section 415, but other types include profit-sharing, money purchase pensions, stock bonuses, thrift savings, and target benefit plans.

Employee year-to-date contributions cannot exceed either:

• A specific percentage amount of the employee’s eligible earnings.

• A specific flat annual amount.

If, for a given payroll, the employee’s contribution exceeds the limits, the contribution must be reduced to fall within the limits.

Understanding 415Z Limit

This is identical to the 415 limit with the exception that it applies to 403(b) plans only.

Understanding 457 Limit

Section 457 plans are deferred compensation plans offered by state and local governments and employers that are exempt from federal income tax. The amount deferred annually by an employee cannot exceed a specific flat amount or 100% of the employee’s taxable income, whichever is less.

Note. Section 457 plans are not qualified plans and are not subject to the tax code's nondiscrimination and related requirements. However, they are subject to deferral limits and mandatory distribution rules that apply to qualified plans.

Understanding Limit Extensions

Employees, who meet specific eligibility criteria and elect the applicable option, can increase their elective deferrals in savings plans subject to certain limits. The increase is handled with limit extensions, where, in general, the sum of the limit table amount and the extension amount are used instead of the limit table amount. Limit extensions are stored on the Savings Management (SAVINGS_MGT_EE) record.

The limit extensions are:

• 402 - Catch Up, for employees with 15 or more years of service in a 403(b) plan.

• 457 - Catch Up, for employees within three years of retirement in a 457 plan.

• 402 - Age 50, for employees age 50 or more in a 401(k) and/or a 403(b) plan.

• 457 - Age 50, for employees age 50 or more in a 457 eligible governmental plan.

See Also

Managing Savings Plans

Common Elements Used to Define Limits

Page Used to Define Limits

Setting Up 401(a) Limits

Access the Limit Table page for 401(a) limits.

Setting Up 402(g) Limits

Access the Limit Table page for 402(g) limits.

Setting Up 403(b) Limits

Access the Limit Table page for 403(b) limits.

403(b) Service Prorated By	Select the proration method to use for the 403(b) service year calculation in the Projection process. This information is taken from the employee’s job record.
Alternative Limits Parameters and 402(g) Limits and Cap Expansions	All of these fields are determined by IRS regulations. Enter the current approved standards.

Setting Up 457 Limits

Access the Limit Table page for 457 limits.

Max Annual 457 Catch Up (maximum annual 457 catch up)

Section 457 plans have a catch-up rule. Within three years of retirement, a participant may increase the amount contributed to the savings plan. This field is determined by IRS regulations.

Setting Up Leave and Vacation Buy/Sell Earnings

Earnings types are the various ways in which an employee might receive income. The benefit-related earnings that most concern earnings types are leave plans and vacation buy/sell plans.

To have the system process these earnings during the payroll process, you’ll use the Earnings Table to create these codes. The Earnings Table stores the business rules that define how to calculate employee earnings.

Setting Up Payroll Information for Leave Accruals

This section assumes that your payroll department uses Payroll for North America. If your organization uses another payroll accounting system, you’ll need to ensure that the proper information is provided to the system for the correct processing of leave accruals. Follow these basic steps, making appropriate choices from your options.

1. On the Earnings Table - Special Process page enter the leave plan type for the leave plan you’re defining in the Leave Plan Accrual group box.

2. Select the appropriate Add To Accrual Balance check box.

   The Add To Accrual Balance selection is important during the PeopleSoft Payroll Confirm process. It enables you to indicate where the accrued hours will be posted as unprocessed data on the employee’s Leave Accruals pages.

   You can choose to add hours to the Taken, Service Hours, Adjusted, Bought, or Sold accumulators.

   The Leave Accrual process retrieves data from these sections to calculate the leave accrual award and the resulting leave accrual balance.

3. Select Taken when you want these hours to reduce the accrual balance (as in taken vacation hours or sick hours—but not regular hours).

   Select Service Hours when the associated leave plans accrue a leave balance based upon the number of hours worked, and the hours for this earnings code should be considered in the accrual calculation.

   Select Adjusted to define a special Earnings Type that adjusts accrual balances by adding to or subtracting from employee accrual balances.

   Select Bought or Sold only when you are using this earning as the Vacation Buy or Vacation Sell earning.

See Also

Managing Leave Plans

Setting Up Vacation Buy and Sell Earnings

Organizations typically allow employees to buy or sell vacation once, at the beginning of a plan year, based on vacation buy and sell earnings, deduction, and benefit plan rules.

To set up vacation buy/sell earnings:

1. Access the Earnings Table - Special Process page.

2. For Vacation Buy plans, select Bought in the Add to Accrual Balance group box.

3. For Vacation Sell plans, select Sold in the Add to Accrual Balance group box.

See Also

Managing Vacation Buy/Sell Plans