SAP HR Module - Benefits

[Former Member]

Hi Gurus,

Can you please give me any documentation or ppt's on the benefits or why to implement SAP HR Module???

Please give me some details.

Thank You

[sikindar_a · Accepted solution]

Benefit Administration:

This section of the Implementation Guide (IMG) is where you set the SAP Benefits Administration component.

Here you enter in the system all the details of the benefit plans offered by your company.

Benefit Area:

Benefit areas allow you to have separate administration of different benefit plan pools. This division is primarily for administrational purposes and would not normally be used for eligibility

 Basic Settings  Benefits IMG Path: Personnel Management Define Benefit Area

Assign Currency to Benefit Area:

In this step, you specify the currency for the benefit area

IMG Path: Personnel Management Assign Currency Basic Settings Benefits

this step, you enter the providers of the benefit plans you offer.

This could be the Insurance company, or Health Maintenance Organization that receives the benefit plan costs

Define Basic Settings  Benefits IMG Path: Personnel Management Benefit Providers

In this step, you set relevant benefit area for your Customizing activities

If you have more than one benefit area to set up, you must set up each independently. After you have set up all the plans in one area, you must return to this view, set the next current benefit area and work through the IMG again, setting up the new benefit area.

IMG Path: Personnel Set Current Benefit Area Basic Settings  Benefits Management

Benefit Plan Types:

In this step, you enter the benefit plan types that you require for the plan categories predefined in the system.

The following plan categories are provided by MSD:

• Health Plans

o Medical

o Dental

o Vision

• Insurance Plans

o Basic Life

o Supplemental Life

o Accidental Death & Dismember

• Savings Plans

o 403B

o 457

o PERS (Public Employees retirement Scheme for CP Benefit Plan) & TRS

(Teachers Retirement Scheme for TP Benefit Plan)

• Flexible Spending Accounts

o Health care

o Dependent care

IMG Path: Personnel Define Benefit Plan Plan Attributes  Basic Settings  Benefits Management Types

Define Benefit Plan Status:

It is important that you assigning statuses in order to be able to control the availability of plans with a minimum of effort. For example, you can control whether or not employees can enroll in a plan simply by changing its status

IMG Path: Personnel Management Define Benefit Plan Plan Attributes  Basic Settings Benefits Status

Benefit Plan Status:

In this step, you define parameter groups. You decide which groups you require in two stages:

1. You consider which costs, credits, coverage and employee and employer contributions for your plans vary according to the age, salary and/or seniority of employees (or possibly the age of the employee's spouse).

2. You determine the different ways in which you need to divide your employees according to different value ranges for these criteria.

It is not possible to define overlaps of ranges for a criterion within a single parameter group. Therefore, if you require different employee groupings for different plans, you need to create a separate parameter group.

For each unique combination of criteria and their values, you need to define a parameter group.

In this step, you simply create the parameter groups to which you assign groups for the individual criteria in the following steps. You later refer to the parameter groups, where applicable, in the individual rule variants for plans. Since one parameter group can be referenced by multiple plans, Customizing effort is kept to a minimum. In the plan variant, you also have the flexibility of being able to specify that you only want to use certain criteria values belonging to a parameter group, for example, age ranges

 Basic Settings  Benefits IMG Path: Personnel Management Define Parameter Define Employee Criteria Groups Define Employee Groupings Groups

Age Groups:

In this step, you define the age groups for the parameter groups that you defined in a previous step.

Depending on your needs, you may find for some parameter groups, you can leave out this step, if for example there is no requirement to differentiate between employees based on age

Define Basic Settings  Benefits IMG Path: Personnel Management Define Age Define Employee Criteria Groups Employee Groupings Groups

Age Groups under Parameter grouping “PAR1”

Cost Groupings:

In the parameter group you could differentiate between employees based upon age, salary and seniority. Here you can further differentiate between employees, based on other employee criteria, such as geographical location, job classification, marital status and so on. Only set up this feature, if you find that the parameter group does not adequately cover your needs, when specifying costs for different groups of employees

IMG Path: Personnel Management Define Cost Define Employee Groupings  Basic Settings Benefits Groupings

Coverage Groupings:

In the parameter group you could differentiate between employees based upon age, salary and seniority. Here you can further differentiate between employees, based on other employee criteria, such as geographical location, employment contract, residence status and so on. Only set up this feature, if you find that the parameter group does not adequately cover your needs, when specifying coverage for different groups of employees

Define Basic Settings  Benefits IMG Path: Personnel Management Define Coverage GroupingsEmployee Groupings

Employee Contribution Groupings:

In the parameter group you could differentiate between employees based upon age, salary and seniority. Here you can further differentiate between employees, based on other employee criteria, such as geographical location, weekly hours, residence status and so on. Only set up this feature, if you find that the parameter group does not adequately cover your needs, when specifying employee contribution for different groups of employees

IMG Path: Personnel Define Define Employee Groupings  Basic Settings  Benefits Management Employee Contribution Groupings

the parameter group you could differentiate between employees based upon age, salary and seniority. Here you can further differentiate between employees, based on other employee criteria, such as geographical location, weekly hours, residence status and so on. Only set up this feature, if you find that the parameter group does not adequately cover your needs, when specifying employee contribution for different groups of employees

Define Basic Settings  Benefits IMG Path: Personnel Management Define Employer Contribution GroupingsEmployee Groupings

the parameter group you could differentiate between employees based upon age, salary and seniority. Here you can further differentiate between employees, based on other employee criteria, such as geographical location, weekly hours, residence status and so on. Only set up this feature, if you find that the parameter group does not adequately cover your needs, when specifying employee contribution for different groups of employees

 Benefits IMG Path: Personnel Management Define Employer Contribution Groupings Health Plans Plans

the parameter group you could differentiate between employees based upon age, salary and seniority. Here you can further differentiate between employees, based on other employee criteria, such as geographical location, weekly hours, residence status and so on. Only set up this feature, if you find that the parameter group does not adequately cover your needs, when specifying employee contribution for different groups of employees

 Benefits IMG Path: Personnel Management Define Options for Health Plans Health Plans Plans

Dependent Coverage Options:

In this step, you define the dependent coverage that are used in health plans.

Define all possible variations that you need, because this view is not specific to any plan or plan option

IMG Path: Personnel Management Define Dependent Coverage Options Health Plans  Plans Benefits

Number of Dependents:

In this step, you can restrict participation in a health plan under a dependent coverage option to certain types of dependent, as determined by the subtypes of the Family/Related Persons infotype (0021). You can also define a minimum and maximum number of persons of a particular type that can be covered. During enrollment, the system only includes those dependent coverage options in the benefit offer for which the appropriate dependents are available

Health Plans  Benefits IMG Path: Personnel Management Define Minimum and Maximum Number of DependentsPlans

Define Cost Variants:

In this step you define cost variants to determine which factors influence the cost of a health plan for an employee. Variants are plan-specific; each plan has its own variant(s).

You do not enter any actual costs in this step. You simply define how costs vary according to:

• Plan

• Option

• Dependent coverage

• Employee data

Before you start to define cost variants, you need to do the following:

1. Determine how often costs vary for all the combinations of option and dependent coverage that you have defined in each plan.

This indicates how many cost variants you need. You can use the same cost variant more than once, for example, if costs are always identical for the dependent coverages 'employee only' and 'employee plus family' within a plan, regardless of the plan option

2. Determine how costs vary according to employee data.

This determines how you need to set up your variants using employee groupings.

For each variant, you can specify a parameter group and cost grouping to determine cost. You can also indicate whether the gender of employees and whether or not they are smokers are cost criteria

Define Health Plans  Plans  Benefits IMG Path: Personnel Management Cost Variants

Cost Rules:

You need to define costs for each possible combination of employee grouping in the criteria you have attributed to each variant. If you have not specified any criteria in a variant, you assign one rule only

Health Plans  Benefits IMG Path: Personnel Management Define Cost RulePlans

Health Plan Attributes:

In this step, you bring together all the definitions relevant to the health plan that you have made in the previous steps.

You assign to each health plan:

• Its options

• Relevant dependent coverages

• The cost variants for the combination of options and dependent coverages

IMG Path: Personnel Management Assign Health Plan Attributes Health Plans  Plans Benefits

Insurance Plans:

In this step, you define general data for insurance plans

IMG Define Insurance Plans  Plans  Benefits Path: Personnel Management Insurance Plan General Data

Coverage Variants:

In this step, you define coverage variants to determined which factors influence the coverage an employee is entitled to in a plan. Variants are plan-specific; each plan has its own variant(s).

You do not enter any actual coverage in this step. You simply define how coverage varies according to:

• Plan

• Coverage option

• Employee data

Before you start to define coverage variants, you need to do the following:

1. Determine how often coverage varies for different coverage options.

This indicates how many coverage variants you need. Note the following:

• If a plan has set coverages (including salary multiples), you need a

coverage variant for each.

• If a plan allows employees to choose any amount of coverage within a

range, you need only one coverage variant.

• If a plan has options, you will need a coverage variant for each option.

2. Determine how coverage varies according to employee data.

This determines how you need to set up your variants using employee groupings. For each variant, you can specify a parameter group and coverage grouping to determine coverage

 Plans  Benefits IMG Path: Personnel Management Insurance Plans

Coverage Rules:

In this step, you define the actual coverages for a plan.

You need to define coverage for each possible combination of employee grouping in the criteria you have attributed to each variant. If you have not specified any criteria in a variant, you assign one rule only.

Coverage can be defined as a flat amount or as a factor of salary

 Insurance Plans  Plans  Benefits IMG Path: Personnel Management Define Coverage Rules

Cost Variants:

In this step you define cost variants to determine which factors influence the cost of an insurance plan for an employee. Variants are plan-specific; each plan has its own variant(s).

You do not enter any actual costs in this step. You simply define how costs vary according to:

• Plan

• Coverage option

• Employee data

Before you start to define cost variants, you need to do the following:

1. Determine how often cost varies for different coverage options:

• If an insurance plan has set flat coverage options and flat costs, you need

to define a cost variant for each flat cost.

• If you have set flat coverage options and the flat costs are directly

proportional to the coverage stated in the flat cost, you need only one

cost variant.

• If an employee can choose any amount of coverage within a range and the

cost of the coverage is directly proportional to the coverage, you need

only one cost variant.

2. Determine how costs vary according to employee data.

This determines how you need to set up your variants using employee groupings.

For each variant, you can specify a parameter group and cost grouping to determine cost. You can also indicate whether the gender of employees and whether or not they are smokers are cost criteria

IMG Path: Define Cost Insurance Plans  Plans  Benefits Personnel Management Variants

Cost Rules:

You need to define costs for each possible combination of employee grouping in the criteria you have attributed to each variant. If you have not specified any criteria in a variant, you assign one rule only

Insurance Plans  Benefits IMG Path: Personnel Management Define Cost RulesPlans

Insurance Plan Attributes:

In this step, you bring together all those parts of an insurance plan, that you have already defined in the previous few steps.

You define the insurance plan options, then associate to each insurance plan:

• Cost variant

• Coverage variant

 Insurance Plans  Plans  Benefits IMG Path: Personnel Management Assign Insurance Plan Attributes

Combined Coverage Limits:

When you define coverages for plans such as insurance, you can set limits on the coverage amount. This is often used when the coverage is an amount dynamically calculated when the employee chooses her coverage.

However these limits apply only to one plan and yet you might need to define limits which combine the coverages of more than one plan.

In this chapter, you define these combined limits as follows:

1. The limit that might span 2 or more plans is reduced to a mathematical equation, where there is an amount on one side and plan coverages on the other side. The two sides of this equation are then DIVIDED BETWEEN the two views in this chapter.

2. The first view defines the limit in monetary terms which is one side of the equation. It also defines the operator (equals, is greater than, and so on).

3. The second view defines the other side of the equation in terms of the plan coverages

IMG Path: Personnel Management Combined Combined Coverage  Insurance Plans  Plans Benefits Coverage

Combined Coverage Limit Expressions:

In this step, you enter the second half of the equation, as discussed in combined coverage

IMG Path:  Combined Coverage  Insurance Plans  Plans  Benefits Personnel Management Define Combined Coverage Limit Expressions

Imputed Income for Selected Benefits:

In this section of the IMG, you define the criteria needed to calculate Imputed Income.

Imputed Income is based upon benefits paid for by the employer and calculated using rates set by the Internal Revenue Service (IRS). This value is then treated as taxable income for the employee

IMG Combined Insurance Plans  Plans  Benefits Path: Personnel Management Review Age Groups for Imputed IncomeCoverage

Review Calculation Factors for Imputed Income:

In this step, you check that the Imputed Income Rate Table entries are correct.

The imputed income age groups are associated with the rates/factors set by the IRS

IMG Path: Personnel Management Review Calculation Combined Coverage  Insurance Plans  Plans Benefits Factors for Imputed Income

Savings Plans:

In this step, you define general data for savings plans.

You have defined the relevant type, status, and provider for each plan in the Basic Settings section of the Benefits IMG

 Savings Plans  Plans  Benefits IMG Path: Personnel Management Define Savings Plan General Data

Employee Contribution Variants:

In this step you define employee contribution variants to determine which factors influence the permitted employee contribution to a plan. Variants are plan-specific; each plan has its own variant(s).

You do not enter any actual contributions in this step. You simply define how contributions vary according to:

• Plan

• Option (only for plans in the plan category Miscellaneous)

• Employee data

Before you start to define variants, you need to do the following:

1. Determine how often employee contributions vary for plans and any plan options.

This indicates how many contribution variants you need.

2. Determine how employee contributions vary according to employee data.

This determines how you need to set up your variants using employee groupings.

For each variant, you can specify a parameter group and employee contribution grouping to determine employee contribution

IMG Path: Define Employee Savings Plans  Plans  Benefits Personnel Management Contribution Variants

Employee Contribution Rules:

In this step, you define the employee contribution limits for each plan.

You need to define employee contributions limits for each possible combination of employee grouping in the criteria you have attributed to each variant. If you have not specified any criteria in a variant, you assign one rule only.

You can define minimum and maximum employee contribution in the following ways:

• As a fixed amount

• As a percentage of salary

• As a contribution unit

In Payroll, the total employee contribution is the sum of these amounts

IMG Path: Define Employee Savings Plans  Plans  Benefits Personnel Management Contribution Rules

Employer Contribution Variants:

In this step you define employer contribution variants to determine which factors influence the contribution the employer makes to a plan. Variants are plan-specific; each plan has its own variant(s).

You do not enter any actual contribution in this step. You only define how contributions vary according to:

• Plan

• Option (only for plans in the plan category Miscellaneous)

• Employee data

Before you start to define variants, you need to do the following:

1. Determine how often employee contributions vary for plans and any plan options.

This indicates how many contribution variants you need.

2. Determine how employee contributions vary according to employee data.

This determines how you need to set up your variants using employee groupings.

For each variant, you can specify a parameter group and employer contribution grouping to determine employer contribution

IMG Path: Personnel Define Employer Contribution Savings Plans  Plans  Benefits Management Variants

Employer Contribution Rules:

In this step, you define limits for the contributions made by the employer to employee plans. You so this for each employer contribution variant for each plan.

You need to define employer contributions limits for each possible combination of employee grouping in the criteria you have attributed to each variant. If you have not specified any criteria in a variant, you assign one rule only.

You can define the employer contribution and the contribution limit in either of the following ways:

• As a fixed amount / as an amount per unit contributed by the employee

• As a percentage of employee base salary or employee contribution

IMG Path: Define Employer Savings Plans  Plans  Benefits Personnel Management Contribution Rules

Assign Savings Plan Attributes:

In this step, you complete the definition of savings plans by bringing together the relevant elements that you have already defined:

• EE contribution variant

• ER contribution variant

 Plans  Benefits IMG Path: Personnel Management Assign Savings Plan AttributesSavings Plans

Flexible Spending Accounts (FSAs):

In this step, you define general data for flexible spending accounts (FSAs).

Requirements

You have created the appropriate plan type , plan status, and benefit provider in the preceding steps

IMG Path: Personnel Define Flexible Spending Accounts (FSAs)  Plans  Benefits Management Spending Account General Data

Assign Spending Account Attributes:

In this step, you enter the details of your flexible spending accounts including contribution limits, an employer contribution variant (if required), and rules for the reimbursement of claims

BenefitsIMG Path: Personnel Management Assign Spending Account Flexible Spending Accounts (FSAs)  Plans  Attributes

Flexible Administration:

In this chapter, you define the flexible aspects of your Benefits administration. You define the availability of plans to your employees, in terms of the plans themselves. You also define aspects of the enrollment process.

you enter parameters that apply to processing within an entire benefits area, including:

• Open enrollment period dates

• Default validity dates for adjustment/standard plan records

• Advance availability of future plans

• Dependent age limits

 Flexible Administration  Benefits IMG Path: Personnel Management Define Administrative Parameters

Benefit Adjustment Groupings:

In this step, you define adjustment groupings. These groupings allow you to specify different adjustment permissions for different groups of employees

IMG Benefits Flexible Administration  Benefits Path: Personnel Management Define Benefit Adjustment GroupingsAdjustment Reasons

Benefit Adjustment Reasons:

In this step, you define adjustment reasons to control changes to employee enrollments according to company policy.

The adjustment reason types that you define here are assigned as subtypes of Adjustment Reasons records (infotype 0378) in HR Master Data. Since a record can only have one subtype, a new record must be created for every adjustment reason an employee experiences.

According to the adjustment concept, an employee can only make changes to her enrollments if she has an Adjustment Reasons record (infotype 0378) with the required adjustment reason as a subtype. The only exceptions to this are if changes are made during an open enrollment period or if an anytime adjustment reason is assigned to the plan type.

In addition to defining adjustment reasons for certain events that can trigger changes, you may also want to define a special adjustment reason to allow changes to plans at any time

 Flexible Administration  Benefits IMG Path: Personnel Management Define Benefit Adjustment ReasonsBenefits Adjustment Reasons

Adjustment Permissions:

In this section, you assign adjustment permissions to each benefit plan type for an adjustment reason and any adjustment grouping that you have defined.

Note that the elements for which you can define permissions are automatically determined by the system, dependent on the plan category

Health Plans:

In this step, you define the changes permitted for all plans of this type. You do this for each combination of adjustment reason, adjustment grouping, and plan type

 Benefits IMG Path: Personnel Management Define Adjustment Benefits Adjustment Reasons Flexible Administration Health PlansPermissions

this step, you define the changes permitted for all plans of this type. You do this for each combination of adjustment reason, adjustment grouping, and plan type

IMG Path: Personnel Management Define Benefits Adjustment Reasons  Flexible Administration Benefits Insurance PlansAdjustment Permissions

Savings Plans:

In this step, you define the changes permitted for all plans of this type. You do this for each combination of adjustment reason, adjustment grouping, and plan type

IMG Benefits Flexible Administration  Benefits Path: Personnel Management Savings Plans Define Adjustment Permissions Adjustment Reasons

Spending Accounts:

In this step, you define the changes permitted for all plans of this type. You do this for each combination of adjustment reason, adjustment grouping, and plan type

 Benefits IMG Path: Personnel Management Define Adjustment Benefits Adjustment Reasons Flexible Administration Spending AccountPermissions

Programs:

In this section of the IMG, you define benefit programs and the eligibility restrictions and termination conditions for the plans within these programs.

Within a program, eligibility for plans can be determined on two levels:

• Program groupings control eligibility on a high level (macro-eligibility) by allocating an employee a defined program, depending on his/her organizational and employment data.

• Eligibility rules are optional and control eligibility on a low level (micro-eligibility) by determining whether an employee can participate in a plan within the relevant program. An employee must fulfill the conditions defined in the rule in order to be able to enroll. Eligibility rules are assigned to plans in programs by means of an eligibility variant.

First Program Grouping:

In this step, you define first program groupings. Later, you define programs for a combination of first and second program groupings.

Identical attributes are available for the setup of both the first and second program groupings, and they are therefore interchangeable. The fact that you determine macro-eligibility for a program using two dimensions means that you are able to make finer distinctions between groups of employees

IMG Path: Personnel Define First Programs  Flexible Administration  Benefits Management Program Grouping

Second Program Grouping:

In this step, you define second program groupings. Later, you define programs for a combination of first and second program groupings.

Identical attributes are available for the setup of both the first and second program groupings, and they are therefore interchangeable. The fact that you determine macro-eligibility for a program using two dimensions means that you are able to make finer distinctions between groups of employees

Flexible Benefits IMG Path: Personnel Management Define Second Program Grouping Programs Administration

Employee Eligibility:

In this section of the IMG, you define the criteria according to which you control eligibility for individual benefit plans within a benefits program (definition of micro-eligibility). You perform the following steps to set up eligiblity requirements:

• You define eligibility grouping to identify groups of employees for whom

certain eligibility criteria apply.

• You create eligibility variants, which you later use to link eligibility

rules to programs.

• If necessary, you define dynamic eligibility conditions relating

specifically to actual hours worked/length of service, or zip codes.

• You bring your definitions together in the eligibility rule, where you

can also specify further conditions for enrollment.

IMG Path: Employee Programs  Flexible Administration  Benefits Personnel Management Define Eligibility GroupingsEligibility

Eligibility Variants:

In this step, you define eligibility variants. These consist simply of an identifier and a description

Flexible Benefits IMG Path: Personnel Management Define Eligibility Employee Eligibility  Programs Administration Variants

Eligibility Rules:

In this step, you define eligibility rules for the benefit plans offered by your organization. You define these rules for combinations of eligibility grouping and eligibility variant, thereby determining the eligibility conditions that will apply for different groups of employees

Flexible Benefits IMG Path: Personnel Management Define Eligibility Employee Eligibility  Programs Administration Rules

Participation Termination:

In this section of the implementation guide you define criteria for the termination of benefit plans

Termination Groupings:

In this section of the implementation guide you define criteria for the termination of benefit plans

IMG Path:  Programs  Flexible Administration  Benefits Personnel Management Define Termination GroupingsParticipation Termination

Termination Variants:

In this step, you define termination variants. These consist simply of an identifier and a description

IMG Path: Personnel Management  Participation Termination  Programs  Flexible Administration Benefits Define Termination Variants

Termination Rules:

In this step, you define termination rules. You define these rules for every combination of termination grouping and termination variant, thereby determining the coverage continuation periods and termination day that will apply for different groups of employees

Flexible Benefits IMG Path: Personnel Management Define Termination Participation Termination  Programs Administration Rules

Define Benefit Programs:

In this step, you define termination rules. You define these rules for every combination of termination grouping and termination variant, thereby determining the coverage continuation periods and termination day that will apply for different groups of employees

IMG  Programs  Flexible Administration  Benefits Path: Personnel Management Define Benefit Programs

Dependent/Beneficiary Eligibility:

In this step, you define family member groupings and determine how family members are allocated to these groupings

 Benefits IMG Path: Personnel Management Define Family Dependent/Beneficiary Eligibility Flexible Administration Member Groupings

Dependent Eligibility Rule Variants:

In this step, you define the dependent eligibility variants to which you want to assign dependent eligibility rules. You also specify whether you wish to use a family member grouping in the associated eligibility rule to restrict eligibility to types of family members with certain characteristics

IMG Path: Personnel Management Define Dependent/Beneficiary Eligibility  Flexible Administration Benefits Dependent Eligibility Rule Variants

Dependent Eligibility Rules:

In this step, you define dependent eligibility rules to determine which types of family member are eligible as dependents. You then assign your rules to the appropriate plans by means of a rule variant in the step Assign Eligibility Rule Variant to Plan

 Flexible Administration  Benefits IMG Path: Personnel Management Define Dependent EligibilityDependent/Beneficiary Eligibility Rules

Beneficiary Eligibility Rule Variants:

In this step, you define the beneficiary eligibility variants to which you assign beneficiary eligibility rules in the next step. You also specify the following:

• Whether you want to use a family member grouping in the associated eligibility rule to restrict eligibility to types of family members with certain characteristics

• Whether the following apply for plans to which the variant is assigned:

The employee can be a beneficiary

Contingency beneficiaries can be named

Spouse approval is required if beneficiaries other than the spouse are to be amed (the system only takes this setting into consideration for plans of the category avings)

IMG Path: Personnel Dependent/Beneficiary Flexible Administration  Benefits Management Define Beneficiary Eligibility Rule VariantsEligibility

Beneficiary Eligibility Rules:

In this step, you define beneficiary eligibility rules to determine which types of family member are eligible as beneficiaries. You then assign your rules to the appropriate plans by means of a rule variant in the step Assign Eligibility Rule Variant to Plan

 Flexible Administration  Benefits IMG Path: Personnel Management Define Beneficiary EligibilityDependent/Beneficiary Eligibility Rules

Assign Eligibility Rule Variant to Plan:

In this step, you assign dependent eligibility variants and beneficiary eligibility variants to plans, thereby assigning the eligibility rules associated with these variants

 Flexible Administration  Benefits IMG Path: Personnel Management Assign Eligibility Rule Variant toDependent/Beneficiary Eligibility Plan

COBRA Plans:

In this step, you specify which health plans that you have already defined in the system are COBRA-relevant.

When a clerk collects COBRA-qualified beneficiaries, the system only considers employee enrollments in the plans you select here as legitimate cases where COBRA must be offered to the employee

Choose COBRA COBRA  Benefits IMG Path: Personnel Management Plans

this step, you determine for which flexible spending accounts (FSAs) you will offer continuation of coverage under COBRA. You need to do this for each benefit area separately

Choose COBRA Spending COBRA  Benefits IMG Path: Personnel Management Accounts

Qualifying Event Coverage Periods:

In this step, you define the events that qualify individuals for COBRA coverage, and the periods of permitted coverage continuation for each qualifying event type. COBRA legislation states the following regarding coverage continuation periods:

• In the case of Termination of employment and Reduction in working hours, only 18 months coverage must be provided. If qualified beneficiaries are determined to be disabled within 60 days of the COBRA event, they are entitled to a further 11 months of coverage, as are the other qualified beneficiaries who experienced the original event.

• For all other qualifying events except Bankruptcy of employer, a qualified beneficiary is entitled to 36 months continuation coverage, and there is no extension provision for disability.

• In the case of the event Bankruptcy of employer, the coverage continuation period is the life of the retired employee or retired employee's widow/widower. You therefore do not need to define a continuation period in this case.

Define Qualifying Event COBRA  Benefits IMG Path: Personnel Management Coverage Periods

Assign COBRA Events to Personnel Actions:

In this step, you define how the system recognizes COBRA-qualifying events from employee personnel actions (infotype 0000) records. You do this by creating a link between the two.

The only COBRA-qualifying event types that you assign to personnel actions are:

• Termination

• Death of employee

• Reduction in hours

You need to assign these COBRA-qualifying event types since they are based on customizable entries in your HR master data and therefore cannot be delivered as standard.

When the system collects COBRA-qualified beneficiaries, it considers employee records within the date range you specify in two stages as follows:

1. The system searches for employee personnel action (infotype 0000) records. The COBRA qualifying events assigned to any personnel actions found are collected.

2. The system checks other employee infotype records for specific information which corresponds to COBRA-qualifying event types

Assign COBRA  Benefits IMG Path: Personnel Management COBRA Events to Personnel Actions

Notification and Payment Intervals:

In this step, you define details of COBRA administration for those states where state law concerning COBRA differs from federal law.

Federal regulations are reflected in the state settings for the District of Columbia, which is also the system default.

If you must comply with state regulations that differ from the federal regulations, you should create a new state entry. Otherwise, you can use the DC version for all employees, regardless of which state they reside in

Define Notification COBRA  Benefits IMG Path: Personnel Management and Payment Intervals

[jay_dalwadi · Accepted solution]

that in my company they not implementation whole hr module but they use payslip after uploading daily working hours, Overtimes hours, Night allowance. now i want to upload figure punching attendance data. i would like to ask you that for this type of requirement whether SAP charge to my company to purchasing extra licenses.

[Former Member]

Complete Copy/Paste garbage...

Not sure how someone can just configure Benefits reading this post.

[Former Member]

Gurus,

I finished configruing my health plans, but the $ amounts for the plans are not showing up on the EEs Infotype 167 record. In this case the EE pays $0 dollars and the cost is incurred by the EMPLOYER, but when the EE is enrolled in the plans the amount for the plans does not show.

Can you give me some advise??

Thanks!

[Former Member]

Sikander & Shiva,

Thanks alot friends..The content is very much helpful for those who are starters in benefits.

Cheers!!!

[Former Member]

Create wage type and enter wage type on the plans you can do this by navigation path Payroll>USA>Benefit Integration

[Former Member]

hi gverma,

Benefits

In a competitive employment market, benefits play a significant role in total compensation offers designed to attract and keep the best possible employees.

The SAP Benefits (PA-BN) component offers you powerful and comprehensive tools for creating and managing tailor-made benefits packages for your employees.

It allows you to administer an extensive range of benefit plans, and its sophisticated configuration options can accommodate complex plan

definitions.

The Benefits application component offers comprehensive tools for administering employee benefits in an organization. It provides all the concepts and functions that are needed to manage extensive and highly individual benefits packages for the employees of an organization.

Benefits integrates to SAP's International Payroll, however, it does not integrate to every SAP Country Payroll version.

If we want to use Benefits for a Country Payroll version that is not integrated, in

conjunction with non-SAP payroll software or an external payroll service, we must provide our own interface for the transfer of data.

The Benefits Administration component provides the functions needed to handle the organization's benefits administration processes. It enables us to perform the following key

activities:

u2022 Enroll employees in benefits plans and terminate enrollments

u2022 Monitor eligibility

u2022 View information about current benefit enrollments

u2022 Print enrollment and confirmation forms

u2022 Transfer data electronically to plan providers

ENROLLMENT

This is a process of enrolling employees of an organization for Benefit

Plans depending on their eligibility

The Enrollment function enables us to enroll employees and, where possible, make changes to employee benefit elections as required for the following tasks:

u2022 Enrollment of employees during an open enrollment period in plans for the coming Season

u2022 Enrollment of new hires in plans that are automatically offered

u2022 Enrollment of new hires in default plans as an interim measure, until they have made their benefits choices

u2022 Adjustment of plan enrollments as a result of employee life or job changes

There are four types of Enrollments. They are

1. Open Enrollment Offer

2. Default Enrollment Offer

3. Automatic Enrollment Offer and

4. Adjusted Enrollment Offer

These Enrollments are also known as Benefit Offers.

OPEN ENROLLMENT

An open offer is the most unrestricted type of offer. It is generated by the system when you start enrollment for a date that lies within an open enrollment period. Only those plans are available in an open offer for which the employee fulfills certain eligibility criteria, as defined in Customizing.

A period of time during which an organization allows its employees to enroll in new benefits plans or change existing benefits elections

The benefits offer set up for open enrollment is valid only during the open enrollment period. Plans available for selection during the open enrollment start on a future date, typically at the beginning of the coming year

Open enrollment is implemented in the USA and Canada.

Ex:

Example

A company allows its employees to choose their benefits on an annual basis for the coming year. The open enrollment period is 1 Oct 1999 to 30 Nov 1999, and any new benefits elected by employees are valid from 1 Jan 2000 to 31 Dec 2000.

Default

A plan in which employees can be enrolled before they communicate their benefits elections to the benefits office

Default plans are typically used for giving short-term coverage to new hires and therefore often allow little flexibility to the employee regarding the plan terms.

Automatic

A plan in which employees are enrolled without the requirement that they consent to the enrollment or make any elections within the plan An employee is enrolled in all relevant automatic plans at all times.

Automatic plans are often provided at no extra cost to the employee and often allow little flexibility to the employee regarding the plan terms.

Adjusted

A personal or organizational change experienced by an employee, as a result of which the employee is allowed to change his/her current benefit elections.

In the SAP System, the adjustment reason is a user-defined parameter to which certain adjustment permissions are assigned for different types of benefit plan.

The following are examples of adjustment reasons:

u2022 Marriage

u2022 New dependent

u2022 Hiring (initial enrollment)

u2022 Job change

Benefit Area

Benefit areas allow you to have separate administration of different benefit plan pools.

This division is primarily for administrational purposes and would not normally be used for eligibility.

This is a primary subdivision of plan set up within the benefits component. Benefit areas are set up and function completely independently of each

other.

Typically, employees will be enrolled in a benefit area that groups them according to common attributes such as country or organizational assignment.

Below mentioned are some of the Benefit Areas:

Benefit Name of

Area HR country

01 Germany

02 Switzerland

03 Austria

04 Spain

05 The Netherlands

06 France

07 Canada

08 Great Britain

09 Denmark

10 USA

11 Ireland

12 Belgium

13 Australia

14 Malaysia

15 Italy

16 South Africa

17 Venezuela

18 Czech Republic

19 Portugal

20 Norway

21 Hungary

22 Japan

Benefit Category:

Benefit Category is the broadest classification of benefits. Categories are maintained by SAP.

The following plan categories are provided by SAP:

u2022 Health Plans

u2022 Insurance Plans

u2022 Savings Plans

u2022 Stock Purchase Plans

u2022 Flexible Spending Accounts

u2022 Credit Plans

u2022 Miscellaneous Plans

These categories are predefined because the system handles each differently. In order to reflect your own requirements regarding the categorization of plans, you define plan types within these categories.

Benefit Category is the highest level in the Benefit Plan structure. Benefit Categories are again divided into Plan types. Every Category may consist of one or more Benefit Plan types.

Benefit Plan Types

Benefit Plan types are the logical grouping of different benefit plans. Each Plan type is identified by a unique identifier, which is a maximum of four characters.

Ex:

MEDI - Comes under Health Plan Category (MEDI => Medical)

DCAR - Comes under Flexible spending Accts (DCAR => Dependent Care Spending)

LIFE - Comes under Insurance Plans Category (LIFE => Life Insurance)

SAVE - Comes under Savings Plans Category (SAVE => Savings)

STPC - Comes under Stock Option Category (STPC => Stock Purchase)

CAR - Comes under Miscellaneous Plans Category (CAR => Company Car)

CRED - Comes under Credit Plans Category (CRED => Flex Credit)

Plan types are a control mechanism for enrollment, since the system does not allow an

employee to enroll in more than one benefit plan per plan type. This allows you, for

example, to offer a choice of regular health care from different providers under one plan

type, without the risk of accidentally enrolling an employee in more than one of these

benefit plans.

Within each plan category (for example, Insurance Plans) you should define one plan type

for each sort of benefit plan that the employee is likely to elect (for example, Life Insurance,

Spousal Life, Supplemental Life). Thus an employee can elect a plan from the Life Insurance

as well as from the Spousal Life plan type.

Example

The following are examples of plan types for each of the plan categories:

Health Plans

u2022 General medical care

u2022 Dental care

u2022 Vision care plan

Insurance Plans

u2022 Basic life insurance

u2022 Dependent life insurance

u2022 Supplemental life insurance

Savings Plans

u2022 Retirement plan

u2022 Savings plan

Stock Purchase Plans

u2022 Own company stock plan

Flexible Spending Accounts

u2022 Health care spending account

u2022 Dependent care spending account

Credit Plans

u2022 Cafeteria plan

Miscellaneous Plans

u2022 Company car

Benefit Plans

The Granularity level in the Benefit Plans Structure is identified by Benefit Plans. Many

Benefit plans may be grouped together under a particular plan type. The benefit Plans are

also identified by a unique identifier, which is of a maximum of four characters.

Ex: MEDI, DENT, VISI for Health Plans Category (MEDI Plan Type)

Benefit plans within the health plan category cover the basic health needs of an employee. A

typical health plan might provide the employee with medical, dental or vision coverage.

Insurance plans provide monetary amounts of coverage payable to the employee or

designated beneficiaries.

A savings plan allows an employee to accumulate capital within a company sponsored

benefit plan.

A spending account provides an employee with the opportunity to establish account

balances to meet anticipated spending needs during the course of the employee's benefit

plan year. These needs are most often associated with health, dependent care or legal

benefits.

Benefit first program grouping

The first program grouping is a method of grouping employees for purposes of macro eligibility.

The second program grouping is a second, identical method of grouping

employees into other macro eligibility groups.

The cross reference of these two groupings places every employee into a benefit program.

First program groupings are a means of identifying a group of employees who share a common set of benefits and eligibility criteria.

Example

An organization offers one set of benefit plans for hourly-paid employees and a different

set for salaried employees. Hourly-paid employees may enroll in medical, dental and life

insurance plans after a four-month waiting period. Salaried employees may enroll in medical,

dental, life and vision plans after a one-month waiting period.

Benefit second program grouping

The second program grouping is a method of grouping employees for purposes of macro eligibility.

The first parameter grouping is a second, identical method of grouping employees into other macro eligibility groupings.

The cross reference of these two groupings places every employee into a benefit

program.

Second program grouping is a means of subdividing your first program groupings

depending upon their employment status.

Example

An organization offers one set of benefit plans for full-time employees and a different set

for part-time employees. Full-time employees may enroll in medical, dental and life insurance

plans after a four-month waiting period. Part-time employees may enroll in medical, dental,

life and vision plans after a one-month waiting period.

Eligibility

The important part in the Benefits is Identifying the all the Eligible Employees for a given

Benefit Plan.

This can be achieved using function module

u2018HR_BEN_CHECK_MICRO_ELIGIBILITYu2019. This function module determines whether a person

is eligible or not.

Similarly to determine the Eligibility date and the Participation date of an employee for a

benefit plan we can use the function module(s)

u2018HR_BEN_CALC_ELIGIBILITY_DATEu2019 for eligibility and

u2018HR_BEN_CALC_PARTICIPATION_DATEu2019 for participation date.

Infotypes used in Benefits

Here below is the most commonly used Infotypes.

Health Plans (Infotype 0167)

Insurance Plans (Infotype 0168)

Savings Plans (Infotype 0169)

Spending Accounts (Infotype 0170)

Credit Plans (Infotype 0236)

Stock Plans (Infotype 0375)

Miscellaneous Plans (Infotype 0377)

General Benefits Data (Infotype 0171)

Family/Related Person (Infotype 0021)

External Organization (Infotype 0219)

Date Specifications (Infotype 0041)

Monitoring of Dates (Infotype 0019)

COBRA Qualified Beneficiary (Infotype 0211)

Control Tables / Catalog Tables

Control tables are master table, here below is some control tables used.

T5UBA --- Benefit Plans

T5UB1 --- Benefit Plan type

T5UBU --- Benefit Program

T5UB3 --- Benefit Area

Benefits Specific to USA:

The Benefits, which are specific to USA, are

COBRA plans

Flexible Spending Accounts and

Tax Sheltered Annuity Plans,

The Benefit Plans specific to ASIA are Cloth reimbursements

Recurring Payments and

Deductions (0014)

Stores additional wage elements, which are not usually effected or withheld

in every payroll period. SAP R/3 system allows you to specify the

frequency at which these payments or deductions take place. Benefits will

use this infotype to store the monthly Benefits base rate.

Additional Payments (0015)

Stores information about one-time payments and deductions. Hershey

benefits will use this infotype to maintain the Annual Benefits Base Rate.

This rate sets the salary for certain deductions.

Monitoring of Tasks (0019)

Stores dates and follow-up tasks required for Benefits probation and

expiration dates, dependent review and leave of absence periods.

Family/Related Person (0021)

Stores related person, dependent, or family member personal information,

such as the name, gender, birth date, and primary physician id.

Corporate Function (0034)

Differentiates Corporate Functions. Benefits will use this infotype to

indicate ERP and switcher group records.

Data Specifications (0041)

Stores a listing of dates for which other HR processes reference. For

example, the employeeu2019s Hire date is stored here and will determine the

eligibility date for the employeeu2019s selected benefit plans.

Additional Personal Data (0077)

Stores personal information that is not stored in the other master data

infotypes. Benefits will use this infotype to identify whether the employee is

eligible for Medicare.

Health Plans (0167)

Stores details of the health plans in which the employee is enrolled. This

infotype includes Medical, Dental, Vision, and Prescription Plans. A

separate record exists for each health plan in which the employee

participates.

Insurance Plans (0168)

Stores details of the insurance plans in which the employee is enrolled. A

separate record exists for each insurance plan in which the employee

participates. This infotype includes employee life, dependent life,

accidental death & dismemberment, and long term disability.

Flexible Spending Plans (0170)

Stores details of the Flexible Spending Accounts. A separate record exists

for each FSA in which the employee participates. This infotype will include

medical and dependent care FSAu2019s.

General Benefits Information

(0171)

Stores the benefit information such as the Benefit area, the First Program

Grouping and the Second Program Grouping assignment of the employee.

This is required to enroll in benefits.

COBRA u2013 Qualified Beneficiary

(0211)

Stores information about individuals who have experienced a COBRA

qualifying event. This infotype is automatically updated during COBRA

administration and does not require maintenance and will indicate when an

employee was sent on the COBRA interface.

External Organization (0219)

Stores details about an external organization. The analyst can create this

infotype to record details of beneficiaries that are not family or related

persons. The organization type and name of an external organization are

read by the plans that have this organization allocated as a beneficiary.

Benefits Medical Data (0376)

Stores the details of an employeeu2019s primary care physicianu2019s id.

Miscellaneous Plans (0377)

Stores Miscellaneous plan information and employee contribution amounts.

Benefits will use this infotype to store vacation purchase elections for

Hershey Foods Corporation employees.

Adjustment Reasons (0378)

Stores the Benefit area and Adjustment Reason for an individual employee.

This infotype is required before an individual can enroll in or change any

benefit plan elections based on life and work events.

Thanks & Regards,

Shiva vs.