Benefits Process Walkthrough August 29, 2006

2 Agenda Objectives of the process walkthrough Glossary of terms Employee life cycle and key HR concepts Integration points and key changes Benefits eligibility and enrollment process A glance into SAP: How to use the concurrent employment workbench to Enroll in benefit plans Enroll dependents Display costs of benefits plans Manual benefits termination Summary of key points to remember Communication and training highlights

3 Objectives Communicate the Benefits key change impacts to LAUSD affected end-users Give the end-users a first glance into SAP Encourage end-users to share concerns and ask questions around BTS before they attend training Provide end-users with information around training and communication

4 SAP Key Terminology SAP: “System Applications and Products”. The name of the software vendor and its core integrated product – SAP R/3 Infotype: A set of data that is grouped together according to subject matter; a set of related data records. Infotypes are identifiable through a four-character numerical string. Example: Infotype 0171 – General Benefits Information Dynamic Action: Automatic processing triggered when specific infotype records are updated. Example: Infotype 0171 – General Benefits Information is automatically created during the hiring action Delimit: A process to shorten the validity period of an object or infotype record by replacing its end date with an earlier date. Example: When an employee terminates, their open-ended date (12/31/9999) is delimited with an end date (i.e., 6/30/2007) Transaction Code: Sequence of characters that identifies a transaction. Example: PA20 – Display HR Master Data Concurrent Employment Benefits Workbench: Enables the administration and processing of benefits for employees with multiple assignments Benefit Area: Defines plans available to employees, retirees, and dependents. Example: Benefit Area is 01 for LAUSD

5 SAP Key Terminology cont’d Program Grouping I: Identifies a group of employees with common characteristics in order to determine on a high level the benefit program. Example: REG (regular) Program Grouping II: Identifies a group of employees with common characteristics on a detailed level. Example: FULL Adjustment Reasons: A personal or organizational change experienced by an employee, as a result of which the employee can change current benefit elections. Example: Birth of a child Benefit Plan Type: General category of benefit plans. Example: Medical, Dental, Vision Benefit Plan Codes: Code assigned to a specific benefit plan. Example: A010 Kaiser Personnel Area: An organizational unit representing a bargaining unit in an enterprise delimited according to personnel administration, time management, and payroll accounting criteria. Example: 2UTK (Teachers) Work Contract: Value assigned to identify benefit eligibility for certain groups. Example: 11 Retiree with benefits Variant: Variants are alternative report displays set up by specifying selection criteria. Variants allow users to create basic criteria that can be used repeatedly Selection Criteria: Selection criteria are fields you use to define the type and amount of information you want a report to process. If no values are entered in the selection criteria, the system uses all data for the type of report being generated when it executes the report. Note: You should never leave all fields blank.

6 The Employee Lifecycle Create Organizational Structure Create Budget & Position Control Identify Vacancy in Organizational Structure Hire Employees Recruit Candidates Identify Candidates Administer Benefits Report Time Run Payroll Post to Finance

7 Key HR Concepts: Enterprise Structure Enterprise Structure is used to group employees and apply rules for the processing of time, benefits, and payroll. SAP Legacy Bargaining Unit Benefits Eligibility Retirement Impacts Basis School Type (Calendar) Pay Frequency Salary Type Assignment Status Code Personnel Area Personnel Sub Area Employee Group Employee Subgroup Benefit Eligibility Retirement Eligibility Illness/Vacation Accrual Calendar Options Planned Working Time Salary Base Pay Tenure Employee Benefits Leave Benefits

8 Benefits Administration Integration SAP Benefits Administration uses information from the following HR components: Personnel Administration, Payroll and Time

9 What has Changed? Current ProcessNew Process Employee benefits are improperly terminated when assignment changes are processed Many manual tasks and/or duplicate reviews are sometimes required to determine eligibility in benefit plans Benefits enrollment will be timely and accurate Integrated SAP system processes assignment terminations as status changes, resulting in improved benefits compliance HR Personnel Actions will be used to administer benefits, determine eligibility and process benefits terminations

10 What has Changed, cont.? Current ProcessNew Process Legacy system handles direct billing for optional life insurance ‘No Deduct’ process includes manual steps and duplicate reviews by multiple departments to determine when an employee on leave should maintain benefits Direct billing of missed premiums will be outsourced to ING, decreasing the workload in Benefits Administration Use of HR Personnel Actions in SAP will streamline the 'No Deduct’ process and eliminate manual effort

11 What has Changed, cont.? Current ProcessNew Process Retirement plan processing manually routed from various HR locations to payroll for data entry Payroll department verifies STRS membership in the REAP system but often too late to prevent adjustment Majority of the retirement processing will be automated through HR Personnel Administration and custom programs. Work will be shared between HR, Payroll and Benefits Benefits will log on to the REAP system to verify if the newly hired or rehired part- time contract teacher, substitute teacher is already a member of STRS * Most changes are behind the scenes and not visible in the system’s user interface

12 Benefits Eligibility and Enrollment 1. Manage Plan Design 2. Determine Eligibility 3. Plan & Implement Benefits Enrollment 5. Generate Benefits Reports 4. Manage Student Verification

13 How to Use the Concurrent Employment Workbench Use Concurrent Employment Benefits Workbench to enter benefit adjustment reasons and enroll employees and dependents (if applicable) into various benefit plans 1 - Enter the “Reporting Period” 3 - De-select this box 2 - Enter the “Person ID”

14 How to Use the Concurrent Employment Workbench, cont. 1 - Click on the personnel assignment # to specify the benefit plans which the employee qualifies for 2 - Click “Adjustment Reason” to capture adjustment history in the benefits system. This is a required step in benefits enrollment

15 How to Use the Concurrent Employment Workbench, cont. 1 - Complete the required field by clicking on the tab down arrow to select the appropriate adjustment reason: Example: AA Initial Enrollment 2 - Click to enter information

16 How to Use the Workbench to Enroll in Benefit Plans Click “Enrollment” to begin benefit plan enrollment

17 How to Use the Workbench to Enroll in Benefit Plans, cont. Click “Get offer” to begin benefit plans enrollment Example: Enrollment in Delta Care PMI

18 How to Use the Workbench to Enroll in Benefit Plans, cont. Click on the appropriate plan

19 How to Use the Workbench to Enroll in Benefit Plans, cont. As required, complete/review the appropriate dependent coverage

20 How to Use Workbench to Enroll Dependents 1 - Click to enter information 2 - Click to select dependent 3 - Click to accept

21 Other Usages of the Benefits Workbench The enrollment process shown in the previous slides (Delta Care PMI example) is also used to enroll in the following benefits: –Dental plan of choice –Medical plan of choice –Vision plan of choice –403 B contributions –457 B contributions –Flexible spending account –Basic life insurance –Employee Assistance Plan (EAP)

22 How to Display Costs of Benefits Plans Click “costs” to display an overview of all the selected benefit plans costs/contributions to review before completing the enrollment process

23 How to Display Costs of Benefits Plans, cont. If applicable: Click “Cost overview (ER credits)” to review the Employer Credits for the misc. plan Employee Assistance Program automatically selected for the employee. Click “Cost overview (ER costs)” to review the Employer Costs for the various benefit plans. Click “403B contribution” to review the Employee monthly contribution. Click “STRS Retirement” to review the Employee/Employer contribution. Click “Employer contribution” to review the Employer contribution. Click “Dependent Care” to review the annual (per plan year) amount. Click “Health Care” to review the annual (per plan year) amount. Click “X” to exit window.

24 After all Plans have been Selected Click “Enroll” after all the appropriate plans have been selected

25 Evidence of Insurability Click the plans to indicate evidence of insurability has been provided

26 Confirmation of Benefit Plan Enrollment 1- Click “Enroll” to complete the enrollment if all the appropriate plans are listed with the correct From and To Dates 2 - Click “Confirmation” to generate a benefit confirmation form to be mailed to the employee

27 Manual Benefits Termination Determine if No Deduct Condition Manage COBRA/AB528 Does Action result in Auto Terminate? No Terminate Participant’s Benefits Determine if Auto Termination Yes

28 Key Points to Remember Summary of Key Changes HR Personnel Actions will have an effect on benefits eligibility (i.e.: hire, leaves, separations) Time, Payroll, HR / Personal Administration and Benefits are closely integrated, users must understand the downstream impact of their actions Direct billing for Optional Life Insurance will be outsourced to ING. Integrated system will provide one single source of data that will automate manual deduction and remittance processing and reconciliation. (i.e. Benefits integrates with Payroll. Payroll integrates with 3 rd Party Vendor. Integration effects remittance process and posting to GL) The majority of the retirement processing (PERS, STRS and PARS) will be automated through HR personnel actions and custom programs. Processing will be shared between Benefits, Payroll and HR. 90% of all retirement adjustments will be eliminated

29 Communications and Training Highlights AugSeptOct.Nov 2006 Dec End User Training* Jan Go Live Campaign Process Walkthroughs On- going specific messages 2007 My Change and Training Guide

30 October - December 2006 Training Curriculum for Benefits 19 Hours WBL – 2 ILT – 17 R3100 Basic Navigation 1 hr WBL BN200 Benefits Eligibility & Enrollment 8 hrs ILT HR100 Human Resources Basics 1 hr WBL BN210 Benefits Termination 3 hrs ILT BN220 3 rd Party Vendor Payment Processing 3 hrs ILT BN230 Retirement Plan Data Maintenance 3 hrs ILT Benefits Basic Navigation WBL = Web Based Learning ILT = Instructor Led Training * The information on this slide has been updated since its presentation in the Process Walkthrough.

31 More project information To learn about the BTS project: –Check out the BTS Website ( –

32 Questions Before leaving the room, please make sure that you have –Signed in –Completed the process walkthrough assessment survey

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