Setting Up Hours Equivalence Service

To set up hours equivalence service, use the Hours Equivalence Service (SERVICE_HRS_EQUIV) component.

This section provides an overview of hours equivalence service statuses and discusses how to set up Hours Equivalency Rules.

Note: The only page in the Hours Equivalence Service component that is unique to hours equivalence is the Hours Equivalency Rules page. All other pages in this component are identical to (and documented in the context of) hours counting service.

See Setting Up Hours Counting Service.

Page Name

Definition Name

Usage

Service-Hours Equivalence - Definition Page

PA_SVC_DEFINITION

Set up basic service information.

See Service-Hours Counting - Definition Page

Time Requirement Page

PA_SVC_HRS_TIME

Set up service period thresholds that employees must meet before getting service credit for a computation period.

See Time Requirement Page

Status and Categories Page

PA_SVC_STATUS

Establish which employee action and reason codes turn service accrual off and which turn service accrual on.

See Service-Hours Counting - Status and Categories Page

Service Category Detail Page

PA_SVC_CAT_SEC

Set up category-specific rules, including action/reason effective date adjustments, future status code adjustments, and service limits (minimums and maximums).

See Service Category Detail Page

Hours Equivalency Rules Page

PA_SVC_HREQV

Specify how much credit to give for what time periods.

Conversion Page

PA_SVC_HRS_CONVERT

Set up rules to convert hours to service.

See Conversion Page

Final Handling Page

PA_SVC_FINAL_RND

Set up any adjustments to the total service amount.

See Final Handling Page

Hours equivalence definitions assign a specific number of hours per time period worked. For example, if the equivalence rate is 45 hours per week, an employee who is in service status for an entire year receives credit for 53 weeks (52 whole weeks and one partial week), or 2,385 hours.

The system uses an employee's service status to determine whether or not to credit hours. It uses the action and reason codes in the employee's job record to determine the employee's service status.

Use the Hours Equivalency Rules page (PA_SVC_HREQV) to specify how much credit to give for what time periods.

Navigation:

Set Up HCM > Product Related > Pension > Components > Service-Hours Equivalence > Hours Equivalency Rules

This example illustrates the fields and controls on the Service-Hours Equivalence - Hours Equivalency Rules page.

Hours Equivalence - Hours Equivalency Rules page

Hours Equivalence Type

Field or Control

Description

DOL Standard

Select this option if you use the Department of Labor (DOL) minimum requirements. Also, select from the options in the DOL Standard Rules group box.

Custom Rule

Select this option if you want to enter some other number of hours per period. Also, compete the Custom Equivalence Rules group box:

Custom Equivalence Rule

Field or Control

Description

Hour Count and Hours Per

Enter the number of hours and select one of these values in the Hours Per field:

  • Day: The system counts the total number of days in the service period and grants five days of hours for every seven-day period. When the last period has less than seven days, the system grants credit for the first five days, but not for the sixth.

  • Week: The system divides the total number of days by seven and grants a week of hours for each of the full weeks and for any remaining days.

  • Month: The system counts both whole and partial months from the beginning of the service segment. For example, if Ernie works from March 7, 2004 to September 28, 2004, he gets six months of credit for the time from March 7 to September 7, then an additional month of credit for the remaining portion of September.

  • Semi-Month: The system gives two semi-month credits for each whole month worked; and it gives one or two more semi-months, depending on whether the remainder is more than a half month. Under this rule, Ernie gets twelve semi-months for the time up to September 7, then two more semi-months for the period from September 7 to September 28. If he had stopped working on September 15, then he would only get one semi-month credit for the remainder.