Setting Up Break Rules

To set up service break rules and waiting periods for service restoration, use the Service-Break Rules (BREAK) component.

This topic provides an overview of break rules and discusses how to set up break rules.

Page Name

Definition Name

Usage

Break Restore Rules Page

PA_BREAK_PNL3

Set up the general service restoration rules.

Break Wait Rules Page

PA_BREAK_PNL2

Set up a waiting period for service restoration.

An employee accrues service continuously from the time of hire until retirement. Often, however, service is interrupted by breaks, due to termination and rehire, leave of absence, and other status changes. Break rules determine when an employee is charged with a break in service and how that status affects prior service accrual. Break rules comprise break restore and break wait rules.

You implement break definitions using the same function results as you use for service definitions. When you create a service function result, the Function Result page automatically includes parameters for the break definition.

Use the Break Restore Rules page (PA_BREAK_PNL3) to set up general service restoration rules.

Navigation:

Set Up HCM > Product Related > Pension > Components > Service-Break Rules > Break Restore Rules

This example illustrates the fields and controls on the Break Restore Rules page.

Break Restore Rules page

Field or Control

Description

Copy

This is a shortcut you can use to copy a similar definition. Establish the first definition, click the Copy button, enter a new name and description, and the system clones the original definition using the new name. You can then make whatever minor adjustments you need to the new definition. If you have to make major adjustments, consider creating the new definition from scratch instead of copying an existing definition.

Service Restoration Rule

The service restoration rule establishes how you determine whether or not to restore service after break.

Field or Control

Description

Count Breaks

Select this option when the number of consecutive one-year breaks determines whether service can be restored.

Field or Control

Description

User Code

Select this option for any other break method.

Count Break

Field or Control

Description

Breaks Allowed

Enter the minimum number of consecutive one-year breaks that disqualifies an employee from having previous service restored.

Restore Service if Vested

Select this option to make vested employees automatically eligible for service restoration, regardless of the number of one-year breaks. Vested employees are still subject to repayment and waiting period rules. Partially vested employees are considered vested. (The system can identify vested employees because periodic processing keeps employees' vesting histories.)

Use Rule of Parity

Select this option to make service restoration dependent on the length of the previous service and the length of the break. In this case, service is restored unless the break is longer than one of the following:

  • The number of breaks allowed (typically five).

  • The total years of service before the break.

    For example, an employee with three years of service does not lose that service after a two-year break, but does lose it after a four-year break.

Use Other Service FR for Restoration (use other service function result for restoration)

Select this option to make service restoration dependent on the length of the service obtained from an alternate function result. Enter the alternate function result in the text Function Result field.

The break restore rules are applied to the service amount retrieved from the alternate function result.

For example, your plan may require that vesting service be used to determine whether to restore prior benefit service after a break. In this case, you would enter the plan's vesting service function result in the text box.

Break Defined By

If you count breaks, you need to establish what constitutes a one-year break. Do this in the Break Defined By group box.

Field or Control

Description

Break Type

Select one of these break types:

  • Hours Threshold: Select this option when the break rule is used with hours counting or hours equivalence service method. Enter the number of hours that constitute a full year, for the purpose of determining a break. For example, if you enter 1000, employees with at least 1000 hours in a year are not charged with a break, even if they do not have enough hours to accrue service. The break rule tracks hours using the consolidated hours specified in the associated service definition.

    Note: Use hours based break definitions with hours based service definitions, and use elapsed time break definitions with elapsed time service definitions.

  • Elapsed Time: Select this option when the break rule is used with the elapsed time service method. In this case, the break time is measured by the calendar. Enter a duration option in the text box below.

    The system uses the specified method to measure the length of the break. The break start and end points are based on an employee's action and reason history and the action and reason codes you defined as not included in your service definition.

  • User Code: Select this option to use your custom code to define the break rule.

Use the Break Wait Rules page (PA_BREAK_PNL2) to set up a waiting period for service restoration.

Navigation:

Set Up HCM > Product Related > Pension > Components > Service-Break Rules > Break Wait Rules

This example illustrates the fields and controls on the Break Wait Rules page.

Break Wait Rules page

Field or Control

Description

One Year Wait

Select this option if you require that employees returning from a break wait a year before you restore service. Then select one of the following methods of determining the one-year wait period:

  • Elapsed Time: In the Elapsed Time Counting Period group box, select either Days per Year and enter the Number of Days, or select User Code and use one of the user code options to measure the wait.

  • User Code:

    Select this option to use custom code to determine elapsed time.

    Note: To measure a waiting period other than a year, select One year wait code (y/n). Then enter the length of the waiting period in Days per Year, or use a user code option.