Benefits Enrollment, Maintenance & Termination (Outside Carrier)

Agenda Welcome Introduction of facilitators Objectives and overview of the course Logistics and expectations

Introducing the players Trainer Participants

Logistics and Ground Rules Training facility information (breaks, lunch, etc.) Cell phones / Blackberrys on silent mode No email during training Participate in group activities Respect time frames Trainer to go through the logistics of the facility and overall ground rules

Benefits Enrollment, Maintenance & Termination (Outside Carrier) Overview Benefits Enrollment Benefits Maintenance Benefits Termination Benefits Override Reports and Auditing

Benefits Enrollment, Maintenance & Termination (Outside Carriers) Objectives At the end of this course, you will be able to: Describe new terms and concepts associated with Benefits Administration Explain and execute the steps for Enrollment, Maintenance and Termination of employee benefit plans Explain and execute the steps to print a Confirmation Form

Benefits Enrollment, Maintenance & Termination (Outside Carriers) Objectives (cont’d) Understand a Benefits Override Understand and explain how integration points in the system trigger Benefits Enrollment, Maintenance and Termination Describe the various benefit reports available

Benefits Enrollment, Maintenance & Termination Overview Benefits Enrollment, Maintenance & Termination Overview Benefits Enrollment Benefits Maintenance Benefits Termination Benefits Override Reports and Auditing

Overview Objectives At the end of this module, you will be able to: Describe new terms and concepts Provide an overview of Benefits Administration Identify some of the key integration points in the system with Benefits Enrollment, Maintenance and Termination

New Terms and Concepts Infotypes Benefits Administration An infotype is a collection of logically related data on the employee master record. Infotypes are identified with a four digit number. For example, IT0006 is the Addresses infotype containing all of the address information such as street, city, province. Each infotype is represented by a screen in SAP. The Benefits Administration functional area of the Human Resources Module is used to enroll employees in eligible benefit plans. Benefit plans included in this Module are Savings (Pension and RRSP) and EAP.

Employee Life-Cycle Employee Life-Cycle Life changes Hiring Separation Benefits Employee Life-Cycle Next in the employee life-cycle we will discuss Benefits; not only the initial enrollment when employees are hired but various maintenance activities to those benefits resulting from employee life changes Org. Management Compensation / Cost Planning Payroll Time Reporting N S E W Travel

Benefits: Key Integration Points HR Human Resources Personnel Administration Time Management Organizational Management Benefits Administration Payroll The overall SAP HR module has many components, or individual applications, for Benefits Administration the Key Integration Points include: Personnel Administration Payroll

Benefits: Key Integration Points Personnel Administration Hiring triggers the requirement for benefits enrollment. Leave of absence may trigger the requirement for benefits maintenance. A termination triggers the requirement to stop participation in benefit plans. Payroll Enrolled or changed benefits and their costs flow through to payroll and ultimately Financial Accounting and Controlling modules. Possible triggers enrollment – hire, rehire, organizational change Maintenance – leave of absence/return, temporary assignment, organizational change Termination – retirement, resignation, organization change, temporary assignment

Module Review What is an infotype? 2. What is SAP Benefits Administration (BN)? 3. What other two modules are key integration points with Benefits Administration?

Answers to Module Review 1. What is an infotype? An infotype is a collection of logically related data on the employee master record in SAP HR. An address infotype, for example, would contain all of the address information such as street, city, province, etc. 2. What is SAP Benefits Administration (BN)? SAP Benefits Administration can be divided in 3 distinct groups of activities Enrollment Maintenance Termination

Answers to Module Review Continued What other two modules are key integration points with Benefits Administration? Payroll and Personnel Administration

Benefits Enrollment, Maintenance & Termination Overview Benefits Enrollment Benefits Maintenance Benefits Termination Benefits Override Reports and Auditing

Enrollment Objectives At the end of this module, you will be able to: Describe new terms and concepts Describe and execute a Benefits Enrollment Understand employee eligibility for benefits plans Produce and view a Benefit Confirmation Form

New Terms and Concepts Benefit Plan Category Benefit Plan Type Benefit Plan Category – is the highest level of plan classification. Health Plans, Insurance Plans, and Savings Plans are examples of plan category. Benefit Plan Type – is the breakdown of the benefit plan category. For example, Pension and RRSPs are plan types within the Savings Plan (Pension) Category. Benefit Plan – is a further breakdown of the benefit plan type due to different coverage under each plan. For example, PEN2 and PEN6 are benefit plans under the benefit plan type Pension.

Enrollment Information Benefit enrollment enables the enrollment of an employee into eligible benefit plans. The applicable benefit plans are determined when the employee has been hired into a position. In most cases, a corresponding Personnel Action must exist in order to process a PA40 Benefits Change. Speak to waiting period (i.e.) configured automatically so that the action date = hire date. The date of the offer will be equivalent to the eligibility date which may or may not be the same as the hire date depending on the Collective Agreement rules regarding waiting periods.

Enrollment Required Fields to complete: Personnel Number Eligibility date Benefit Change Field from the Action Type Column In most cases, a corresponding Personnel Action must exist in order to process a PA40 Benefits Change.

Reason for Action Dropdown Window The reason for action will determine which number to choose during the Benefit Change activity. It is important to remember the reason for action for the Benefits Change Action must match the Personnel Administration activity. In the case of an original hire the reason for action is 01 Enrollment. In the case of a Rehire the reason for action is 09 Rehire. If an employee is being rehired for one day to pay out a severance amount (for example) you would follow the Benefits Rehire work instructions to enroll the employee into the applicable pension plan (this allows the system to calculated the proper pension amount/percentage). You would then follow the Benefits Termination work instruction to stop participation in the pension plan on the very next day.

Benefit Plan Offers In Order to display the eligible benefit plans you must double click Hire

Benefit Plan Options Ensure that you select the correct pre and post tax percentages for the applicable Pension Plan Pre and Post tax percentages are determined by the Pension provider. Pre-tax - this is the percentage up to YMPE (yearly maximum pensionable earnings) Post-tax – this is the percentage in excess of the YMPE (yearly maximum pensionable earnings) There are some instances, only pre tax requires an entry.

Benefits Confirmation At the end of the Benefits Enrollment you can print or view a Benefits Confirmation form for validation After a successful Benefits enrollment it is very important to validate and audit your action. The Benefits Confirmation is a report that shows the employee’s master data information. For example, Personnel number, Name of the employee, Personnel area. The Benefits Confirmation also indicates the name of the benefits plan, the plans attributes, employee and employer costs, and the effective dates. The confirmation report can also be printed out at a later date.

Module Review Name four of the nine Benefit Reasons for Action. What is a possible offer? What audit tool can be used to validate your benefits enrollment?

Answers to Module Review 1. Name four of the nine Benefit Reasons for Action. Enrollment Life Status Change Organizational Change Temporary Assignment Leave of Absence On Leave of Absence Return Termination Inc/Dec Life Insurance Rehire

Answers to Module Review Continued What is a possible offer? A possible offer is list of one or more action(s) shown on an SAP screen during a Benefits Change. What audit tool can be used to validate your benefits enrollment? The Benefits Confirmation Form

Demonstration and Practice Exercise 1

Benefits Enrollment, Maintenance & Termination Benefits Maintenance Benefits Enrollment, Maintenance & Termination Overview Benefits Enrollment Benefits Maintenance Benefits Termination Benefits Override Reports and Auditing

Benefits Maintenance At the end of this module you will be able to: Describe new terms and concepts Understand and explain how integration points in the system trigger Benefits Maintenance Understand and execute the steps to maintain an employee’s benefits

Terms and Concepts Payroll Simulation Pay simulation is a tool within the payroll application which allows payroll to run in simulation or test mode. Since it is a simulation it does not generate real payroll results for the employee(s).

Temporary Assignment / Organizational Change An employee has an organizational change to a position with the same classification. No change to benefits. An employee has an organizational change to a position in a different personnel area. This would require a Benefits Change. For example, Educational Assistant/Educational Program Assistant to NSTU. A PA40 Personnel Action for a temporary assignment or organizational change is a pre‑requisite before a corresponding Benefits Change Action is processed. A temporary assignment or organizational change will trigger a benefit change when an employee who has moved from one personnel area to another results in a change to their available benefit plans. If there are no changes to the employee’s available benefit plans, as a result of the temporary assignment or organizational change, no Benefits Change Action will be processed.

Temporary Assignment

Leave of Absence Depending on the business requirements of the individual Boards (in line with the Collective Agreements) a Benefit Change action may be required for various leave of absences. Should a situation arise, when an employee will be required to submit payment to continue benefit contributions, a Payroll Simulation can be used to determine the contribution amount.

Leave of Absence On When an employee goes on a Leave of Absence a Benefit Change action may be required. Not all leave of absences processed in Personnel Administration will require a benefit change. If a Benefits Change action is to be processed the reason for action used will be 05 Leave of Absence On. Depending on the business requirements of the individual Boards (in line with the Collective Agreement) a Benefit Change action may be required for various leave of absences.

Payroll Simulation Payroll simulation is the first step in determining the employee’s benefit costs while on unpaid leave

Leave of Absence Return If a Benefits Change action with the reason Leave of Absence On was processed on an employee, then upon the employee’s return the Benefits Change action must be re-executed with the reason 06. The Benefits Change action for Leave of Absence Return should be processed effective the employee’s first day back to work.

Demonstration and Practice Exercises 2, 3 and 4

Module Review 1. When would an Organization Change or Temporary Assignment necessitate a change to the employee’s Pension Plan? 2. What payroll activity can determine future benefit deductions an employee needs to pay while on a Leave of Absence without pay?

Answers to Module Review 1. When would an Organizational Change or Temporary Assignment necessitate a change to the employee’s Pension Plan? A change to the employee’s Pension Plan would be required if the employee’s personnel area changes as a result 2. What payroll activity can determine future benefit deductions an employee needs to pay while on a Leave of Absence without pay? Payroll simulation

Benefits Enrollment, Maintenance & Termination Benefits Termination Benefits Enrollment, Maintenance & Termination Overview Benefits Enrollment Benefits Maintenance Benefits Termination Benefits Override Reports and Auditing

Termination Objectives At the end of this module, you will be able to: Describe new terms and concepts Understand the effective date for a Benefits Termination Explain and execute a Benefits Termination

New Terms and Concepts Benefits Termination Benefits Termination is the process within SAP to terminate an employee's participation in a benefit plan (s).

Benefit Termination Date Important Benefit effective date of termination of benefits will be the first day the employee is no longer at work This must correspond with the employee’s termination date in Personnel Administration Benefit Termination Date is an important part of Benefit Administration. When an activity has occurred in Personnel Administration, specifically a termination or a retirement, the effective date entered in the system is the actual last day of employment of the employee. Following this activity benefits must be terminated. The termination date of benefits is the first day the employee is no longer at work.

Reason for Action Dropdown Window Depending on the reason for action will determine which number you will choose during the Benefit Change activity. It is important to remember the reason for action must match the Personnel Administration activity. For Benefits Termination you would select 07 Termination

Benefits Termination In the Possible Offers select Termination in order to Terminate Benefits It is important to choose the matching possible offer when processing a termination. If the incorrect offer is selected, the termination activity will not be an available option; only the activities performed for that offer will be displayed.

Termination Information Benefits Termination makes it possible to “Stop Participation” in Benefit Plans

Termination Information You can confirm the action taken by the small stop sign icon in the Activity column

Demonstration and Practice Exercise 5

Module Review What is Benefits Termination? What is the term that refers to the termination of a particular benefits plan?

Answers to Module Review Continued 1. What is Benefits Termination? The process within SAP to terminate an employee's participation in a benefit plan (s). What is the term that refers to the termination of a particular benefits plan? Stop Participation

Benefits Enrollment, Maintenance & Termination Benefits Override Benefits Enrollment, Maintenance & Termination Overview Benefits Enrollment Benefits Maintenance Benefits Termination Benefits Override Reports and Auditing

Benefits Override Objectives At the end of this module, you will be able to: Describe new terms and concepts Explain and execute a Benefits Override

New Terms and Concepts Benefits Override – is the procedure used to enroll an employee in a benefit plan(s) which under normal circumstances the employee is not entitled to. For example, a casual employee who would not be entitled to benefits savings plans, but perhaps has a special agreement with the school board to be contributing to the pension plan.

Benefits Override - Enrollment A Benefits Change Enrollment needs to be completed through PA40 in order to create infotypes 0171 and 0378. A PA30 (maintain) will also have be executed. In order for an employee to be enrolled in a benefits plan, they would not regularly be entitled to, a benefits change action with reason for action as enrollment must be processed through transaction PA40. Examples: 1. If a non-union no agreement employee who is not eligible for enrollment of any benefit plan, negotiates with the Boards to participate in a benefit plan, a benefit override would need to be processed. 2. Also, if an employee who is eligible for Plan A, negotiates with the Board to participate in Plan B. Enrollment in the alternate plan would be processed through a benefit override.

Benefits Override – Enrollment General Benefits Information Infotype 0171 When validating the 2nd program grouping for an employee not entitled to benefits it will show “No Benefits”

Benefits Override – Enrollment Adjustment Reasons Infotype 0378

Benefits Override – Enrollment The Benefit Plan the employee has negotiated will not be available from the Enrollment screen. Therefore, Click No and proceed to PA30 to perform a manual override.

Benefits Override - Enrollment When selecting the Possible Offer – Hire, for an employee not entitled to Benefits, you will receive the message “Selected offer contains no plans” If the user does happen to hit Yes, explain to them that the following will occur. If the Enrollment screen is access the following information message will be displayed “Selected offer contains no plans” to indicate that the employee is not entitle to Benefits as per the Collective Agreement rules configured in the system.

Maintain Benefit Plans (PA30) When the Benefits Change Action has been processed the next step will be to enroll in the plans through PA30 Savings Plan (IT0169) will have to be maintained

Benefits Override – Savings Plans The Savings Plans Infotype contains pension plan details When enrolling the employee in a pension plan the percentage of the contribution has to be completed.

Benefits Override – Savings Plans The effective date (start date) will be determined from the negotiation between the employee and the Board Regular contrib. tab and Administration tab must be completed. On the Regular contrib. tab enter the pre and post tax percentages for the appropriate plan. This tab is where the percentage of earnings being contributed to the pension plan is keyed. On the administration tab enter the participation date.

Demonstration and Practice Exercise 6

Module Review What is a Benefits Override? What two infotypes must exist before a Benefits Override can be processed?

Answers to Module Review Continued 1. What is Benefits Override? Benefits Override is the procedure used to enroll an employee in a benefit plan(s) which under normal circumstances the employee is not entitled to. What two infotypes must exist before a Benefits Override can be processed? Infotype 0171 General Benefits Information and Infotype 0378 Adjustment Reasons must be created through a PA40 Benefits Change Action before an override can be processed.

Benefits Enrollment, Maintenance & Termination Reports and Auditing Benefits Enrollment, Maintenance & Termination Overview Benefits Enrollment Benefits Maintenance Benefits Termination Benefits Override Reports and Auditing

Reports/Auditing Objectives At the end of this module, you will be able to: Describe the available benefit reports. Demonstrate how to run reports related to benefit plans.

Report/Auditing In this module the following reports will be covered: HRBEN0003 - Participation Monitor Report HRBEN0006 - Participation Overview Report HRBEN0015 - Confirmation Form HRBEN0071 - Eligible Employee Report HRBEN0083 - Changes in General Benefit Information ZRHRPA003 - School Board Audit Report ZRHRBN002 - School Board Pension Report

HRBEN0003 – Participation Monitor The Participation Monitor enables you to detect employees who are no longer eligible for plans in which they are participating and find any inconsistencies in plan elections. To run this report enter HRBEN0003 in the command field.

HRBEN006 – Participation Overview The participation overview reports allow you to display information about the benefits of individual employees. This function would be used, for example, if you receive an inquiry from an employee regarding their current enrollments.

HRBEN0015 – Confirmation Form Transaction code HRBEN0015 is used to produce the Benefit Confirmation Form Fields required are in the Period and Selection sections The Benefits Confirmation Form can be produced during the Benefits Change Action – Enrollment, or outside of enrollment using transaction code HRBEN0015. The Benefits Confirmation Form is a report that shows the employee’s master data information. For example, Personnel number, Name of the employee, Personnel area. The Benefits Confirmation Form also indicates the name of the benefits plan, the plans attributes, employee and employer costs, and the effective dates.

HRBEN0071 – Eligible Employee This report shows the employees who are eligible for specified benefit plans on a given date. The report lists eligible employees per plan and also the following information: The employee’s date of entry. The calculated eligibility date. To run this report enter HRBEN0071 in the command field.

HRBEN0083 – Changes in General Benefit Information This report gives information identifying employees who have had a manual override change in general benefits, specifically infotype 0171. The report will retrieve information based on the dates requested in the Key Date field. The Changes in General Benefit Information Report can be processed through transaction code HRBEN0083.

School Board Audit Report Transaction code ZRHRPA003 The School Board Audit Report will tell the Benefit Administration what Personnel Administration actions have taken place; therefore identifying what PA40 Benefit Change may need to be processed.

ZRHRBN002 – NS School Board Pension Plan Report

Review of Course Objectives Describe new terms and concepts Explain and execute the steps for Enrollment, Maintenance and Termination of employee benefit plans Explain and execute the steps to print a Confirmation Form Understand a Benefits Override Understand and explain how integration points in the system that trigger Benefits Enrollment, Maintenance and Termination Describe the various benefit reports available

Access Information To view answers that have resulted form the Parking Lot, for any training session, the web site address is: www.projectjem.ednet.ns.ca To gain access to the sandbox send an email request to: jemtraining.gov.ns.ca

Evaluation Please complete the course evaluation sheets. Your input will help to shape future enhancements in the SAP R/3 Training Program.