Setting Up Flexible Credits

This chapter provides an overview of flexible credits and discusses how to:

• Define flexible credit earnings.

• Set up excess credit calculations.

Understanding Flexible Credits

Many organizations offer their employees credits that they can apply towards their benefits. PeopleSoft Enterprise Benefits Administration enables you to define three types of flexible credits:

• General credits that apply when an employee is enrolled in a benefit program.

• Plan-based credits that apply when an employee enrolls in a specific benefit plan type.

• Option-based credits that apply when an employee enrolls in a specific benefit option.

After you have defined the flexible credit earnings, use the Benefit Program table to link the credit to the benefit program, benefit plan type, or benefit option.

The Benefits Administration process sums all credits for an employee and passes the totals by earnings code to payroll. The total credits are treated as additional earnings for employees.

Defining Flexible Credit Earnings

This section discusses how to:

• Set up flexible credits.

• Set up credit amounts.

Setting Up Flexible Credits

To set up flexible credits:

1. Establish the credit amount using one of the rate tables.

2. Set up the calculation rules for the credit.

3. Identify the earnings code that will define the credit in the earnings program.

Warning! If earnings codes for each plan type are not unique, flexible credits might not start and end correctly during open enrollment and event maintenance processing. For example, five medical benefit plans in a benefit program can use the same earnings code. However, dental, life, and general credits need their own earnings codes.

Note. (USF) Flexible credits are not generally used in the U.S. federal government.

See Also

Defining Earnings Codes and Earnings Programs

Setting Up Credit Amounts

To set up the credit amount, use one of the four rate tables:

• Age-Graded Rate.

• Flat Rate Table.

• Service Rate Table.

• Salary Rate Table.

When defining a general credit using any of the rate tables, the Rate Per Unit field value must be None. Only the employee portion is picked up and reflected as the credit amount. Option based credits may have a rate per unit.

Note. If you have defined the credit amount based on age or salary percentage, you need to set up a calculation rule to define how the system determines age and benefit base salary amount.

See Also

Setting Up Calculation Rules

Setting Up Excess Credit Calculations

To set up excess credit calculations, use the Excess Credit Calculation (EXCESS_CRDT_CALC) component.

This section provides an overview of excess credit calculation setup and discusses how to enter excess credit calculation plan types and deductions.

Understanding Excess Credit Calculation Setup

During the calculation of benefits costs and credits, Benefits Administration computes a value called excess credits. This is an important value, because an organization can choose to treat excess credits in a variety of ways. Excess credits can appear on the paycheck as net additional pay, they can simply be forfeited “use it or lose it,” or they can be “rolled over” to automatically increase certain voluntary contributions such as savings plans and flexible spending accounts. Normally, excess credits are calculated by:

Total of All Flexible Credits - Total of All Before Tax Costs

You can override the Total of All Before Tax Costs portion of the calculation with plan types and deduction codes of your choice. For U.S. based companies, normally you will not override this calculation. However, Canadian based companies may need to implement a more complex set of deductions.

Page Used to Set Up Excess Credit Calculations

Entering Excess Credit Calculation Plan Types and Deductions

Access the Excess Credit Tbl page.

Enter the plan types and deduction classifications that you want the system to include when calculating the excess credit amount.