Proration Calculation Method for Plan Members Who Fall Off a Tree

Sometimes a worker is a member of a group that was on the VC Tree for part of a payout period, but by the end of the period, the worker or group is no longer on the tree due to reorganization or other factors.

The Determine Eligibility proration process does not calculate the proration factor for such workers who fall off the tree. For prorated plans, the Consistency Report, available from the Variable Compensation report menu, provides a list of the names and employee IDs of workers who have fallen off a tree, along with the group ID to which they belonged. The VC administrator or the workers' managers can use this information to manually add the workers back into the tree in a special group for this purpose.

To recalculate eligibility for workers who fall off a tree:

1. Create a group with all of the workers who fell off the tree.

2. Manually attach this group to the tree.

3. Run the eligibility process to correctly calculate the proration factor for members in the group.