HR325 Administration

HR 325 Benefits Administration
HR325
R/3 System Release 46C 05/02/2001
http://ebookssap.blogspot.com
HR 325 Benefits Administration...................................................................................................................................0-1

Copyright ..................................................................................................................................................................0-2
The R/3 Integration Model....................................................................................................................................0-3
Human Resources (1)............................................................................................................................................0-4
Prerequisites ..........................................................................................................................................................0-5
Target Group .........................................................................................................................................................0-6
Introduction...............................................................................................................................................................1-1
Course Goals .........................................................................................................................................................1-2
Course Objectives .................................................................................................................................................1-3
Contents ................................................................................................................................................................1-4
Contents (North America).....................................................................................................................................1-5
Course Overview Diagram....................................................................................................................................1-6
Course Overview Diagram (North America) ........................................................................................................1-7
Main Business Scenario ........................................................................................................................................1-8
Benefits Overview.....................................................................................................................................................2-1
Benefits Overview: Unit Objectives .....................................................................................................................2-2
Benefits Overview: Course Overview Diagram....................................................................................................2-3
Benefits Overview: Business Scenario .................................................................................................................2-4
Benefits Menu .......................................................................................................................................................2-5
Benefits Enrollment ..............................................................................................................................................2-6
Benefits Infotypes in Enrollment ..........................................................................................................................2-7
What Happens During the Enrollment Process? ...................................................................................................2-8
Master Data Infotype Requirements .....................................................................................................................2-9
New slide to replace this one follows (still screen shot)!Overview of current benefits ......................................2-10
Open enrollment..................................................................................................................................................2-11
Benefits Events ...................................................................................................................................................2-12
Monitoring of Eligibility During Participation ...................................................................................................2-13
Insurability ..........................................................................................................................................................2-14
Benefits Overview: Unit Summary .....................................................................................................................2-15
Basic Settings & Common Concepts ........................................................................................................................3-1
Basic Settings & Common Concepts: Unit Objectives .........................................................................................3-2
Basic Settings & Common Concepts: Course Overview Diagram .......................................................................3-3
Basic Settings & Common Concepts: Business Scenario .....................................................................................3-4
Benefits Customizing - IMG.................................................................................................................................3-5
Benefit Area ..........................................................................................................................................................3-6
Define Benefit Providers.......................................................................................................................................3-7
Benefit categories..................................................................................................................................................3-8
Plan Types.............................................................................................................................................................3-9
Category, Type and Plan in the Infotype.............................................................................................................3-10

Define Benefit Plan Statuses...............................................................................................................................3-11
Define Dependents and Beneficiaries .................................................................................................................3-12
Basic Settings & Common Concepts: Unit Summary........................................................................................3-13
Health Plans ..............................................................................................................................................................4-1
Health Plans: Unit Objectives ...............................................................................................................................4-2
Health Plans: Course Overview Diagram .............................................................................................................4-3
Health Plans: Business Scenario ...........................................................................................................................4-4
Health Plan Setup..................................................................................................................................................4-5
Define Health Plan General Data ..........................................................................................................................4-6
Health Plan Options and Dependent Coverage .....................................................................................................4-7
Formula and calculation rules ...............................................................................................................................4-8
Cost Variant, Grouping and Rule..........................................................................................................................4-9
Cost formula........................................................................................................................................................4-10
Cost Grouping Feature - CSTV1.........................................................................................................................4-11
Define Cost Grouping & Set up Feature .............................................................................................................4-12
Define Cost Variant ............................................................................................................................................4-13
Cost Rules ...........................................................................................................................................................4-14
Assign Health Plan Attributes .............................................................................................................................4-15
Evidence of Insurability (EOI) - Health ..............................................................................................................4-16
Define Evidence of Insurability Conditions........................................................................................................4-17
Evidence of Insurability on Infotype 0167 (Health)...........................................................................................4-18
Health Plans: Unit Summary...............................................................................................................................4-19
Insurance Plans .........................................................................................................................................................5-1
Insurance Plans: Unit Objectives ..........................................................................................................................5-2
Insurance Plans: Course Overview Diagram.........................................................................................................5-3
Insurance Plans: Business Scenario ......................................................................................................................5-4
- .............................................................................................................................................................................5-5
- .............................................................................................................................................................................5-6
Define Insurance Plan General Data .....................................................................................................................5-7
Coverage Variant, Grouping and Rule ..................................................................................................................5-8
Coverage Grouping Feature - COVGR.................................................................................................................5-9
Insurance Plans ...................................................................................................................................................5-10
Coverage Rules ...................................................................................................................................................5-11
Define Coverage Rule .........................................................................................................................................5-12
Cost formula........................................................................................................................................................5-13
Cost formula........................................................................................................................................................5-14
Cost group feature...............................................................................................................................................5-15
Cost group feature...............................................................................................................................................5-16
Define Cost Variant ............................................................................................................................................5-17

Cost Rules ...........................................................................................................................................................5-18
Define Cost Rule.................................................................................................................................................5-19
Step Limits ..........................................................................................................................................................5-20
Assign Insurance Plan Attributes ........................................................................................................................5-21
Evidence of Insurability (EOI) - Insurance .........................................................................................................5-22
Define Evidence of Insurability Conditions........................................................................................................5-23
Evidence of Insurability on Infotype 0168..........................................................................................................5-24
Combined Coverage Limits ................................................................................................................................5-25
Combined Coverage for Insurance I ...................................................................................................................5-26
Combined Coverage for Insurance II ..................................................................................................................5-27
Insurance Plans: Unit Summary..........................................................................................................................5-28
Savings Plans ............................................................................................................................................................6-1
Savings Plans: Unit Objectives .............................................................................................................................6-2
Savings Plans: Course Overview Diagram ...........................................................................................................6-3
Savings Plans: Business Scenario .........................................................................................................................6-4
- .............................................................................................................................................................................6-5
Savings Plans ........................................................................................................................................................6-6
Savings Plan Overview - Four Components .........................................................................................................6-7
Employee Contribution Variant, Grouping and Rule............................................................................................6-8
Employee Contribution Grouping Feature - EECGR............................................................................................6-9
Define EE Contribution Grouping & Set up Feature ..........................................................................................6-10
Define Employee Contribution Rule...................................................................................................................6-11
Employer Contribution Variant, Grouping and Rule ..........................................................................................6-12
Employer contribution group feature ..................................................................................................................6-13
Employer contribution group feature ..................................................................................................................6-14
Employer contribution rule criteria .....................................................................................................................6-15
Employer matching .............................................................................................................................................6-16
Vesting rule and schedule ...................................................................................................................................6-17
Investment groups ...............................................................................................................................................6-18
Assign savings plan attributes .............................................................................................................................6-19
Combined contribution limits .............................................................................................................................6-20
Combined Contribution Limits for Savings ........................................................................................................6-21
Combined Contribution Limits for Savings ........................................................................................................6-22
Savings plans: Unit Summary .............................................................................................................................6-23
Flexible Spending Accounts (FSAs - North America)..............................................................................................7-1
FSAs: Unit Objectives...........................................................................................................................................7-2
FSAs: Course Overview Diagram (North America) .............................................................................................7-3
FSAs: Business Scenario.......................................................................................................................................7-4
FSA Setup .............................................................................................................................................................7-5

Flexible Spending Accounts (FSAs) .....................................................................................................................7-6
Define FSA General Data .....................................................................................................................................7-7
Employer Contribution Variant, Grouping and Rule ............................................................................................7-8
Assign FSA Attributes ..........................................................................................................................................7-9
Define Receipt Types for FSA Claims Processing..............................................................................................7-10
FSA claims processing........................................................................................................................................7-11
FSAs: Unit Summary ..........................................................................................................................................7-12
Credit Plans...............................................................................................................................................................8-1
Credit Plans: Unit Objectives................................................................................................................................8-2
Credit Plans: Course Overview Diagram ..............................................................................................................8-3
Credit Plans: Business Scenario............................................................................................................................8-4
Credit Plan Setup ..................................................................................................................................................8-5
Define Credit Plan General Data...........................................................................................................................8-6
Credit Variant, Grouping and Rule .......................................................................................................................8-7
Credit Grouping Feature - CRDV1 .......................................................................................................................8-8
Define Credit Grouping & Set up Feature............................................................................................................8-9
Credit Rules ........................................................................................................................................................8-10
Assign Credit Plan Attributes..............................................................................................................................8-11
Credit Examples..................................................................................................................................................8-12
Credit Plans: Unit Summary ...............................................................................................................................8-13
Miscellaneous Plans..................................................................................................................................................9-1
Miscellaneous Plans: Unit Objectives...................................................................................................................9-2
Course Overview Diagram....................................................................................................................................9-3
Miscellaneous Plans: Business Scenario...............................................................................................................9-4
Miscellaneous Plan Setup .....................................................................................................................................9-5
Define Miscellaneous Plan General Data..............................................................................................................9-6
Two kinds of miscellaneous plans ........................................................................................................................9-7
Miscellaneous Plans - Example.............................................................................................................................9-8
Miscellaneous Plans - Example (Cont.) ................................................................................................................9-9
Assign miscellaneous plan attributes ..................................................................................................................9-10
Miscellaneous Plans: Unit Summary ..................................................................................................................9-11
Flexible Administration ..........................................................................................................................................10-1
Flexible Administration: Unit Objectives ...........................................................................................................10-2
Flexible Administration: Course Overview Diagram..........................................................................................10-3
Pre- and Corequisite Plans: Topic Objectives .....................................................................................................10-4
Pre- and Corequisite Plans: Business Scenario ...................................................................................................10-5
Prerequisite and Corequisite Plans......................................................................................................................10-6
Define Prerequisite and Corequisite Plan............................................................................................................10-7
Programs, Eligibility, Termination: Topic Objectives ........................................................................................10-8

Programs, Eligibility, Termination: Business Scenario ......................................................................................10-9
First Program Grouping Feature - BENGR.......................................................................................................10-10
Define First Program Grouping & Set up Feature.............................................................................................10-11
Second Program Grouping Feature - BSTAT ...................................................................................................10-12
Define Second Program Grouping & Set up Feature ........................................................................................10-13
Macro Eligibility: Programs.............................................................................................................................10-14
Micro Eligibility: Variant and Grouping Definitions........................................................................................10-15
Define Eligibility Grouping & Set Up Feature .................................................................................................10-16
Eligibility Rule..................................................................................................................................................10-17
Macro Eligibility Linked to Micro Eligibility...................................................................................................10-18
Termination is Eligibilitys Mirror Image ........................................................................................................10-19
Termination: Variant and Grouping Definitions ...............................................................................................10-20
Define Termination Grouping & Define Feature ..............................................................................................10-21
Termination Rule ..............................................................................................................................................10-22
Termination Variant in the Program .................................................................................................................10-23
Eligibility and Termination Variants in the Program ........................................................................................10-24
Standard Plans: Topic Objectives .....................................................................................................................10-25
Standard Plans: Business Scenario....................................................................................................................10-26
Standard Plans...................................................................................................................................................10-27
Define Standard Plan and Standard Plans Overview ........................................................................................10-28
Adjustment Reasons: Topic Objectives ............................................................................................................10-29
Adjustment Reasons: Business Scenario...........................................................................................................10-30
Adjustment Reasons and Adjustment Offer......................................................................................................10-31
Adjustment Grouping Feature - EVTGR ..........................................................................................................10-32
Event group feature ...........................................................................................................................................10-33
Define Adjustment Grouping & Set Up Feature ...............................................................................................10-34
Adjustment Permissions....................................................................................................................................10-35
Define Adjustment Permissions ........................................................................................................................10-36
Administrative Parameters: Topic Objectives...................................................................................................10-37
Administrative Parameters: Business Scenario .................................................................................................10-38
Parameters for open and event offers ................................................................................................................10-39
Administrative Parameters for Benefit Area .....................................................................................................10-40
Flexible Administration: Unit Summary...........................................................................................................10-41
COBRA (USA) .......................................................................................................................................................11-1
COBRA: Unit Objectives....................................................................................................................................11-2
COBRA: Course Overview Diagram (USA) ......................................................................................................11-3
COBRA: Business Scenario................................................................................................................................11-4
COBRA Qualifying Event System Criteria.........................................................................................................11-5
Assign COBRA Events to Personnel Actions.....................................................................................................11-6

Choose COBRA Plans ........................................................................................................................................11-7
Define Qualifying Event Coverage Periods ........................................................................................................11-8
Define Notification and Payment Intervals .........................................................................................................11-9
Define Processing Parameters...........................................................................................................................11-10
Define Early Termination Reasons ...................................................................................................................11-11
COBRA: Unit Summary ...................................................................................................................................11-12
Benefits Processing .................................................................................................................................................12-1
Benefits Processing: Unit Objectives..................................................................................................................12-2
Benefits Processing: Course Overview Diagram ................................................................................................12-3
Benefits Processing: Business Scenario ..............................................................................................................12-4
Enrollment II .......................................................................................................................................................12-5
Open offer processing .........................................................................................................................................12-6
Eligibility ............................................................................................................................................................12-7
Insurability ..........................................................................................................................................................12-8
Termination.........................................................................................................................................................12-9
Benefits Processing: Unit Summary .................................................................................................................12-10
Benefits Processing (North America) ....................................................................................................................13-1
Benefits Processing (North America): Unit Objectives ......................................................................................13-2
Benefits Processing (North America): Course Overview Diagram.....................................................................13-3
Benefits Processing (NA): Business Scenario.....................................................................................................13-4
Flexible Spending Accounts (North America) ....................................................................................................13-5
FSA Claims Processing I ....................................................................................................................................13-6
FSA Claims Processing II ...................................................................................................................................13-7
COBRA Administration I ...................................................................................................................................13-8
COBRA Administration II ..................................................................................................................................13-9
COBRA Administration III...............................................................................................................................13-10
COBRA Administration Menu..........................................................................................................................13-11
Benefits Processing (NA): Unit Summary ........................................................................................................13-12
Reporting & Customizing Tools .............................................................................................................................14-1
Reporting & Customizing Tools: Unit Objectives ..............................................................................................14-2
Reporting & Customizing Tools: Course Overview Diagram ............................................................................14-3
Reporting & Customizing Tools: Business Scenario ..........................................................................................14-4
Two types of Benefits reports .............................................................................................................................14-5
Employee data analysis reports ...........................................................................................................................14-6
Example: Insurance Plan Costs Report ...............................................................................................................14-7
Plan Overview.....................................................................................................................................................14-8
Plan Cost Summary.............................................................................................................................................14-9
Configuration Consistency Check.....................................................................................................................14-10
Copy/Delete Benefit Area/Benefit Plan ............................................................................................................14-11

- .........................................................................................................................................................................14-12
Reporting & Customizing Tools: Unit Summary..............................................................................................14-13
Payroll Integration: Contents ..................................................................................................................................15-1
Payroll integration: Unit Objectives....................................................................................................................15-2
Course Diagram ..................................................................................................................................................15-3
Payroll integration: Business Scenario................................................................................................................15-4
Points of Integration to Payroll ...........................................................................................................................15-5
Remittance to Benefit Providers .........................................................................................................................15-6
Wage Types - health plans ..................................................................................................................................15-7
Wage Types - insurance plans.............................................................................................................................15-8
Wage Types - savings plans ................................................................................................................................15-9
Wage Types - FSAs (USA only).......................................................................................................................15-10
Wage Types - credit plans.................................................................................................................................15-11
Wage Types - miscellaneous plans ...................................................................................................................15-12
Payroll integration: Unit Summary ...................................................................................................................15-13
- ...............................................................................................................................................................................16-1
- ...............................................................................................................................................................................17-1
Appendix.................................................................................................................................................................18-1
Main Benefits IMG Paths in 4.6..........................................................................................................................18-2
HR 325 Benefits Administration
HR325
Benefits Administration
SAP AG 1999
SAP AG
R/3
Release 4.6A
November 1999
Material number 5003 4899
Copyright
Copyright 1999 SAP AG. All rights reserved.

Neither this training manual nor any part thereof may
be copied or reproduced in any form or by any means,
or translated into another language, without the prior
consent of SAP AG. The information contained in this
document is subject to change and supplement without
prior notice.
All rights reserved.
SAP AG 1999
Trademarks
SAP and the SAP logo are registered trademarks of SAP AG.
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OS/2, CICS, MVS, ACF/VTAM, VSE, AIX, OS/400 and AS/400 are registered trademarks of IBM.
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Ethernet is a registered trademark of the Xerox Corporation.
ORACLE SQL*net, SQL*+ PRO*C are registered trademarks of the ORACLE Corporation.
INFORMIX-OnLine and INFORMIX-ESQL/C are registered trademarks of the INFORMIX
Corporation.
The R/3 Integration Model
SD
FI
Sales &
Distribution
Financial
Accounting
MM
CO
Materials
Mgmt.
Controlling
PP
Production
Planning
R/3
QM
Quality
Mgmt.
AA
Asset
Accounting
PM
PS
Client / Server Project
System
ABAP
WF
Plant
Maintenance
Workflow
HR
IS
Human
Resources
Industry
Solutions
SAP AG 1999
SAPs R/3 System has set new norms for standard software that can be universally implemented. R/3
uses advanced development techniques to achieve comprehensive integration of business administration
and data processing.
R/3 combines state-of-the-art technology with comprehensive business administration functions to
provide a fully-integrated business solution for your company.
Human Resources (1)

Level 3
Level 2
HR510
2 days
Personnel Development
HR505
3 days
Organizational
Management
HR305
3 days
Configuration of Master
Data
HR315
3 days
Recruitment
HR050
5 days
Human Resources
HR515
3 days
Training and Event
Management
HR306
2 days
Configuration of Time
Recording
(see
HR2)
HR520
2 days
Shift- and Workforce
Planning
HR310/311
4 days
Time Evaluation
AC270
3 days
Travel Management
HR307
2 days
Configuration of HRAdministration &
Security
HR540
3 days
Compensation
HR350
5 days
Programming in HR
HR325
2 days
HR530
3 days
Technical topics in HR
HR550
2 days
Human Resources &
Business Workflow
CA500
2 days
CATS Cross Application
TimeSheets
SAP AG 1999
Prerequisites
z Required:
HR050 Human Resources Management
HR305 Configuration of Master Data
SAP AG 1999
Target Group
z Benefits implementation project team

members
z SAP consultants and partners working with
SAP HR clients
SAP AG 1999
Introduction
Contents:
z Course Goals
z Course Objectives
z Course Content
z Course Overview Diagram
z Main Business Scenario
SAP AG 1999
(C) SAP AG
HR325 1-1
Course Goals
This course will enable you to:

z Learn how to configure the Benefits system to
accommodate your Benefits business processes.
SAP AG 1999
(C) SAP AG
HR325 1-2
Course Objectives
At the conclusion of this course, you will be able to:

z Configure the Benefits system.
z Explain and perform the Benefits business
processes.
SAP AG 1999
(C) SAP AG
HR325 1-3
Contents
Preface
Unit 1
Introduction
Unit 8
Credit Plans
Unit 2
Benefits Overview
Unit 9
Miscellaneous Plans
Unit 3
Basic Settings and

Common Concepts
Unit 10
Flexible Administration
Unit 11
Benefits Processing
Unit 12
Reporting &
Customizing Tools
Unit 13
Payroll Integration
Unit 4
Health Plans
Unit 5
Insurance Plans
Unit 6
Savings Plans
Unit 7
Stock Purchase Plans

Exercises
Solutions
Appendix
SAP AG 1999
(C) SAP AG
HR325 1-4
Contents (North America)
Preface
Unit 1
Unit 2
Introduction
Benefits Overview
Unit 9
Unit 10
Credit Plans
Miscellaneous Plans
Unit 3
Basic Settings and

Common Concepts
Unit 11
Unit 12
COBRA (USA)
Unit 4
Unit 5
Health Plans
Insurance Plans
Unit 13
Benefits Processing
Unit 14
Unit 6
Savings Plans
Benefits Processing
(North America)
Unit 7
Unit 15
Unit 8
Flexible Spending
Accounts (North America) Unit 16
Reporting &
Customizing Tools
Payroll Integration
Exercises
Solutions
Appendix
SAP AG 1999
(C) SAP AG
HR325 1-5
Course Overview Diagram
Benefits
Overview
Stock
Purchase
Plans
Reporting &
Customizing
Tools
Basic Settings
and Common
Concepts
Credit
Plans
Health
Plans
Insurance
Plans
Miscellaneous Flexible
Plans
Administration
Savings
Plans
Benefits
Processing
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 1-6
Course Overview Diagram (North America)
Benefits
Overview
Basic
Settings &
Common
Concepts
Stock
Purchase
Plans
Flexible
Spending
Accounts
(North
America)
Credit
Plans
COBRA
(USA)
Benefits
Processing
Benefits
Processing
(North
America)
Health
Plans
Insurance
Plans
Savings
Plans
Administration
Plans
Reporting &
Customizing
Tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 1-7
Main Business Scenario
z Your company is implementing new benefit plans to
make the company more attractive to prospective

employees, and to retain good employees already
within the company.
z You need to accommodate your companys benefits
in the SAP Benefits system.

z Then you must demonstrate to your benefits
administrator how SAP Benefits can streamline work

processes.
SAP AG 1999
(C) SAP AG
HR325 1-8
Benefits Overview
Contents:
z
Plan categories
Benefits menu
Infotypes
Benefits processing
SAP AG 1999
(C) SAP AG
HR325 2-1
Benefits Overview: Unit Objectives
At the conclusion of this unit, you will be able to:

z List the benefit plan categories.
z List infotypes relevant to Benefits.
z List the main benefits processes handled by the SAP
Benefits system:
Enrollment
Termination
Eligibility
Insurability
Overview
Cost summary
SAP AG 1999
(C) SAP AG
HR325 2-2
Benefits Overview: Course Overview Diagram
Benefits
Overview
Basic
Settings &
Common
Concepts
Health
Plans
Stock
Purchase
Plans
Flexible
Spending
Accounts
(North
America)
Credit
Plans
COBRA
(USA)
Benefits
Processing
Benefits
Processing
(North
America)
Insurance
Plans
Savings
Plans
Administration
Plans
Reporting &
Customizing
Tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 2-3
Benefits Overview: Business Scenario
z Your company is implementing new benefit

plans to make the company more attractive to
prospective employees and to retain good
employees already in the company.
z You need to see how the different categories of
benefits are accommodated in the SAP Benefits
system, and how the benefits processes are
streamlined.
SAP AG 1999
(C) SAP AG
HR325 2-4
Benefits Menu
R3 Main Menu
Human resources
Personnel management
Administration
Time management
Recruitment
Payroll
Personnel development
Training and events
Benefits
Organizational management
Compensation management
Travel management
Personnel costs
Information system
Benefits
Current benefits
Open offer
Event offer
Eligibility
Insurability
R
SAP AG
Benefits is a component of Personnel Management and is found below it in the SAP R/3 menu.
(C) SAP AG
HR325 2-5
Benefits Enrollment
Human Resources
Enrollment
Enroll
Managers Desktop
Personnel management
Benefits
Direct selection
Open offer for

4401
Personnel number
Rose Salizar
on
01.12.1999
Enrollment
BenArea
Enrollment period
1stProGrp.
2ndProGrp.
on
15.11.1999
Add
Replace
Offer selection
Pers.no.
Name
Please choose an offer:

Open offer
4401
Rose Salizar
7006
Albert Leroux
Default offer
Automatic offer
10721
Karen Holtzblatt
Always avail. offer
32599200
Guido Loersch
Initial enrollment
32599300
Ben Waltham
Birth of child
Flex Credits
Flex Credit Plan 1
Dental
Standard Dental Plan
Medical
Medical Plan 1
Medical for Singles
Life Insurance
Standard Life Insurance
Suppl. Life
Suppl. Life Insurance
Savings
Standard Savings Plan
Stock Purchase
Alternative Stock Purchase
Standard Stock Purch. Plan
Dependent Care
Dependent Care
Company Car
Company Car
Fitness Plan
Fitness club membership
01.03.2000-31.12.2000
01.01.2000-31.12.2000
01.01.2000-31.12.2000
01.01.2000-31.12.2000
01.01.2000-31.12.2000
01.01.2000-31.12.2000
01.01.2000-31.12.2000
01.01.2000-31.12.2000
01.01.2000-31.12.2000
01.01.2000-31.12.2000
01.03.2000-31.12.2000
01.01.2000-31.12.2000
SAP AG 1999
Under Enrollment, you have to specify an offer type before you get the list of all plans offered for an
employee.
As you enroll each employee, the system automatically presents only those plans for which the employee
is eligible.
The system also calculates the cost of the plan options, which can vary for each employee.
(C) SAP AG
HR325 2-6
Benefits Infotypes in Enrollment

Used
Used for
for enrollment
enrollment
Created
Created by
by enrollment
enrollment
Additional
Additional records
records
General
General Benefits
Benefits Data
Data
(IT
(IT 0171)
0171)
Health
Health Plans
Plans
(IT
(IT 0167)
0167)
Family/Related
Family/Related Person
Person
(IT
(IT 0021)
0021)
Adjustment
Adjustment Reasons
Reasons
(IT
(IT 0378)
0378)
Insurance
Insurance Plans
Plans
(IT
(IT 0168)
0168)
External
External Organizations
Organizations
(IT
(IT 0219)
0219)
Benefits
Benefits Medical
Medical Data
Data
(IT
(IT 0376)
0376)
Savings
Savings Plans
Plans
(IT
(IT 0169)
0169)
Monitoring
Monitoring of
of Dates
Dates
(IT
0019)
(IT 0019)
Additional
Additional Personal
Personal
Data
Data (USA
(USA only)
only)
(IT
(IT 0077)
0077)
Stock
Stock Purchase
Purchase Plans
Plans
(IT
(IT 0379)
0379)
Date
Date Specifications
Specifications
(IT
(IT 0041)
0041)
Credit
Credit Plans
Plans
(IT
(IT 0236)
0236)
HCE
HCE Information
Information
(IT
(IT 0375)
0375) (USA)
(USA)
Miscellaneous
Miscellaneous Plans
Plans
(IT
0377)
(IT 0377)
...
...
SAP AG 1999
FSA
FSA (IT
(IT 0170)
0170) (NA)
(NA)
FSA
Claims
FSA Claims (IT
(IT 0172)
0172) (NA)
(NA)
The benefits infotypes used for enrollment must be in place before enrollment takes place, depending on
the type of enrollment. General benefits data (Infotype 0171) contains essential employee information
including Benefit area, First program grouping and Second program grouping.
Master data infotypes Actions (0000), Organizational Assignment (0001), Personal Data (0002) and
possibly Basic Pay (0008) are also required for enrollment.
You can directly access the additional infotype records from the benefits enrollment screen and display,
change or create data.
(C) SAP AG
HR325 2-7
What Happens During the Enrollment Process?

Offer
Adjustment Reasons
(IT 0378)
Benefit plan DENT
General Benefits
Data (IT 0171)
Benefit plan LIFE
Personal Data
(IT 0002)
Benefit plan MED1
Plan selection
Org. Assignment
(IT 0001)
Actions
(IT 0000)
Personnel event
Status
Organizational
assignment
Master
Master data
data
and
benefits
and benefits
...
infotype
infotype records
records
SAP AG 1999
Consistency check
Provider
Plan Data
Regulatory reports
Attributes
Wage types
...
Credit Plan
(IT 0236)
Miscellaneous Plan
(IT 0377)
Benefit
Benefit plan
plan
setup
setup in
in IMG
IMG
Savings Plan
(IT 0169)
Stock Purchase Plan
(IT 0379)
Insurance Plan
(IT 0168)
Plan data
Plan dates
Employee data
Plan data
Plan attributes
Plan dates
Benefits salary/
coverage (annual)
Employee data
Plan attributes
Cost
Cost
Flexible Spending
Account (IT 0170)
Health Plan
(IT 0167)
Creation
Creation of
of new
new plans
plans
Enrollment requires employee master data records and benefit plan data to enroll the employee in
benefit plans.
The benefit plan infotype records are created by the enrollment process. You only need to select the plan
options for the employee, and the infotype records are created automatically by the system.
Note: Plans in which the employee is already participating, are considered in the offer as well.
Note: In the enrollment process, you do not only create plans for employees, but you can also stop the
participation in an existing plan in the given time period.
(C) SAP AG
HR325 2-8
Master Data Infotype Requirements

0000
0000 Actions
Actions
0001
0001 Org.
Org. Assignment
Assignment
employee
employee must
must exist
exist
0002
0002 Personal
Personal Data
Data
0008
0008 Basic
Basic pay
pay
0014
Deds..
Payments/
0014 Recur.
Recur. Payments/Deds
Payments/Deds.
0015
0015 Additional
Additional Payments
Payments
0001
0001 Org.
Org. Assignment
Assignment
0007
0007 Planned
Planned Working
Working Time
Time
0057
Membership
Fees
0057 Membership Fees
0094
0094 Residence
Residence Status
Status
0001,
0001, 0002,
0002, 0008,
0008, 0057,
0057, 0094
0094
0077
Addit
0077 Addit.
Addit.. Personal
Personal Data
Data
0006
0006 Addresses
Addresses
0007
Planned
0007 Planned Working
Working Time
Time
0021
0021 Family/Related
Family/Related Person
Person
0000
0000 Actions
Actions
cost,
cost, coverage,
coverage, credit
credit and
and
benefit
salary
calculations
benefit salary calculations
benefit
benefit area,
area,
first
program
first program grouping,
grouping,
second
second program
program grouping,
grouping,
adjustment
adjustment grouping
grouping
cost
cost grouping,
grouping,
coverage
coverage grouping
grouping
EE
EE and
and ER
ER contribution
contribution grouping,
grouping,
credit
grouping,
credit grouping,
eligibility
eligibility grouping
grouping
zip
zip code
code eligibility
eligibility
related
related person
person group
group
termination
termination grouping
grouping
SAP AG 1999
The first three master data infotypes above must exist in the system before benefits processing can take
place.
Depending on the way your system is implemented, the system requires certain other employee
infotypes in order to calculate the elements listed above.
(C) SAP AG
HR325 2-9
New slide to replace this one follows (still screen

shot)!Overview of current benefits
Current benefits
Participated as of 01/04/19XX
10 Benefit area
Ms Marita Bond
00004490
Flex credit plan
01011998 -31121998
Credit
Employer
Standard dental
250.00 USD monthly

01011998 -31121998
Attributes
Attributes
Option 1
Costs
Costs
Employee
Medical plan 1
Standard saving
Company car
Reserve account
33.33 USD monthly

01011998 -31121998
01011998 -31121998
01011998 -31121998
01011998 -31121998
SAP AG 1999
The current benefits display the enrollment of an employee.

Details of options, cost, coverage, contributions etc are also displayed.
(C) SAP AG
HR325 2-10
Open enrollment
Employee
Open offer
is created
for the
employee
Employee
makes
benefits
choices
Employee
is enrolled
in benefit
plans
SAP AG
The open offer processes employees during the open enrollment period.
This is usually the time period in which current employees are permitted to change from one plan to
another without requiring that a qualifying event has occurred, such as a change in marital status or a
new dependent.
(C) SAP AG
HR325 2-11
Benefits Events
New
New hire
hire
Change
Change
savings
savings
contribution
contribution
Marriage
Marriage
Job
Job change
change
New
New child
child
Time
SAP AG
The event offer processes employees who have experienced a benefits event and want to change their
benefits choices.
(C) SAP AG
HR325 2-12
Monitoring of Eligibility During Participation
Eligibility: Overview
Stop participation
Validity
Eligibility check 17.08.1999
99 Internation. Basic
4401 Rose Salizar
Medical Plan 2
4411 Chris Smith
Stand. Dental Plan
Medical Plan 1
4412 Alan Miller
Savings Plan
4413 Peter Banks
Reason for ineligibility
01.01.1999-31.12.1999
Address (type Home address) of employee does not exist
01.01.1999-31.12.1999
Employee 4411 is not enrolled in all corequisite plans for DENT
01.01.1999-31.12.1999
Employee 4411 is not enrolled in all corequisite plans for MED1
01.01.1999-31.12.1999
Required number of actual working hours for eligibility not reached
Stand. Dental Plan
01.01.1999-31.12.1999
Employee 4411 is not enrolled in all corequisite plans for DENT
Medical Plan 1
01.01.1999-31.12.1999
Employee 4411 is not enrolled in all corequisite plans for MED1
SAP AG 1999
Once employees are participating in plans, you can check that they continue to fulfill all eligibility
criteria for the plans.
The system checks:
y Is the plan in program?
y Is eligibility rule fulfilled (e.g. waiting period, min. working time, min./max. age, zip code)?
y Are corequisites fulfilled?
(C) SAP AG
HR325 2-13
Insurability
Insurability: Overview
Insurability proven
Stop participation
Status Option
End of grace period Period
Insurability on 08.09.1999
4401 Rose Salizar
Medical Plan 2
4411 Chris Smith
Standard Life Ins.
Option 2
09.05.1999
01.01.2000 - 31.12.2000
Coverage Level 1
Proven
01.01.1999 - 31.12.1999
Medical Plan 2
4412 Alan Miller
Altern. Life Ins.
4413 Peter Banks
Stand. Life Ins.
Option 2
09.05.1999
01.01.2000 - 31.12.2000
Coverage Level 2
01.12.1999
01.10.1999 - 31.12.1999
Coverage Level 1
01.08.1999
01.01.1999 - 30.09.1999
Altern. Life Ins.
Coverage Level 2
01.10.1999
01.10.1999 - 27.12.1999
Record is locked
Active
Pending
Insurability proven
Grace period expired
Insurability not proven
SAP AG 1999
Before employees can participate in some insurance and health plans, they must often provide Evidence
of Insurability (EOI) such as a medical affidavit for proof of good health.
You can further manage EOI by terminating employee enrollments, when the employee has not provided
EOI within the grace period.
(C) SAP AG
HR325 2-14
Benefits Overview: Unit Summary
You are now able to:

z List the benefit plan categories
within the system.
z List infotypes relevant to Benefits.
z List the main benefits processes
handled by the SAP Benefits system:
Enrollment
Termination
Eligibility
Insurability
Overview
Cost summary
SAP AG 1999
(C) SAP AG
HR325 2-15
Basic Settings & Common Concepts
Contents:
z Basic Settings
Benefit area
Plan types
Providers
Dependents/beneficiaries
Plan statuses
Common Concepts
Variants and Rules
Evidence of insurability
Calculation base date and cutoff date
Date override
SAP AG 1999
(C) SAP AG
HR325 3-1
Basic Settings & Common Concepts:

Unit Objectives

z Describe the concept of benefit areas.
z Describe the concept of plan types.
z Define basic settings needed for your benefits
configuration.
z Describe common concepts used throughout
the benefits system.
SAP AG 1999
(C) SAP AG
HR325 3-2

Benefits
Overview
Basic
Settings &
Common
Concepts
Health
Plans
Stock
Purchase
Plans
Flexible
Spending
Accounts
(North
America)
Credit
Plans
COBRA
(USA)
Benefits
Processing
Benefits
Processing
(North
America)
Insurance
Plans
Savings
Plans
Administration
Plans
Reporting &
Customizing
Tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 3-3

Business Scenario
z Your company has several different

benefit plans which need to be organized for
configuration in the SAP Benefits system.
You now have to make basic settings and define
benefit area, currency, providers,
dependents/beneficiaries, plan types and statuses.
SAP AG 1999
(C) SAP AG
HR325 3-4
Benefits Customizing - IMG
Basic Settings
Define Benefit Areas
Assign Currency to Benefit Area
Define Benefit Providers
Set Current Benefit Area
Dependents and Beneficiaries
Always
Always make
make sure
sure you
you
work
in
the
correct
work in the correct benefit
benefit area.
area.
Define Dependents and Beneficiaries

Define Dependent/Beneficiary Groups
Plan Attributes
Define Benefit Plan Types
Define Benefit Plan Status
Define Employee Groupings
Define Employee Criteria Groups
Define Cost Groupings
Define Credit Groupings
Define Coverage Groupings
Define Employee Contribution Groupings
Define Employer Contribution Groupings
Plans
COBRA
Toolset
You are currently working in benefit area 99
SAP AG 1999
The benefits implementation guide (IMG) can be found under Personnel Management in the SAP
Refererence IMG via Tools AcceleratedSAP Customizing Project management SAP
Reference IMG.
This topic covers the Basic settings part of the Benefits IMG except the Define employee groupings
node. This will be covered at the relevant points during the course.
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 the Set current benefit area view and set the next current
benefit area and work through the IMG again, setting up the new benefit area. Always make sure you
work in the correct benefit area by setting the relevant benefit area for your customizing activities in this
view.
(C) SAP AG
HR325 3-5
Benefit Area
First
First sub-division
sub-division of
of benefit
benefit information:
information:
Independent
Independent administration
administration
by
by currency
currency
Benefit
Benefit area
area 01
01
Benefit
Benefit area
area 04
04
Benefit
Benefit area
area 02
02
Benefit
Benefit area
area 05
05
Benefit
Benefit area
area 03
03
by
by benefit
benefit plan
plan pool
pool
...
...
by
by subsidiary
subsidiary
M
M
SAP AG 1999
A benefit area must be administered in one currency. In the case of a currency switch, however, the
conversion from one currency to another is supported by the system. Therefore, you use the reports
Currency conversion and Currency conversion of infotypes. These reports can be found in the Benefits
IMG under Toolset.
If groups of employees have very different benefit plan pools, you can set up a benefit area for each
benefit plan pool.
If your company has different subsidiaries, you can also set up a benefit area for each subsidiary.
Benefit areas allow separate administration of independent benefit plan pools.
You can also create separate IMG projects for the setup of each benefit area.
(C) SAP AG
HR325 3-6
Define Benefit Providers

Change View Benefit Plan Type: Overview
HR payee
00000001
Prudential Insurance
Provider number
00000000042
SponsorId
SAPCUSTOMTT
Vendor
VEND5
Link
Link to
to Financial
Financial Accounting
Accounting
Primary contact
Name
Telephone
Mr. James OBrien
Fax
(617) 345-1000
(617) 345-5838
Secondary contact
Name
Telephone
Ms. Nancy Clinton
Fax
(617) 345-1000
(617) 345-6729
Additional contact
Name
Mr. Louis Valls
SAP AG 1999
A benefit provider is the vendor or carrier of a benefit plan.

The list of benefit providers is valid for all benefit areas that you subsequently define.
The sponsor identification number is the indentifier the provider uses for your company. It is included in
the IDOC transmission file sent to the provider.
Vendor information is set up in Financial Accounting and referenced within the Benefits IMG.
(C) SAP AG
HR325 3-7
Benefit categories
Health
Insurance Savings
Credit
Miscellaneous Spending
Accounts
(USA only)
5% interest
SAP AG
There are five international benefit categories. These are the Health. Insurance, Savings, Credit and
Miscellaneous categories.
There is one USA specific benefit category. It is the Spending Accounts category.
The category defines the attributes of a plan. This determines how the plans are set up in the IMG and
how employees are enrolled in the plans.
(C) SAP AG
HR325 3-8
Category
Plan Types
Type
MEDI
MEDI
Plan
Health
Health
MED1
MED1
Insurance
Insurance
DENT
DENT
HMO1
HMO1
DENT
DENT
LIFE
LIFE
LIF1
LIF1
LIF2
LIF2
Savings
Savings
Miscellaneous
Miscellaneous
ALIF
ALIF
LTSV
LTSV
LEIS
LEIS
ALIF
ALIF
SAV1
SAV1
FIT1
FIT1
CAR
CAR
SPRT
SPRT
LXRY
LXRY
OR
Change View Benefit Plan Type: Overview
Plan type
Text
Plan category
Text
LTSV
Long Term Sav.
Savings plan
CAR
Company Car
Miscellaneous plan
DENT
Dental
Dental
Health plan
STPC
Stock Purchase
Stock purchase plan
LIFE
Life Insurance
Insurance plan
CRED
Flex Credits
Credit plan
SAP AG 1999
Plan types are the subdivisions of the benefit plan categories.

The categories are defined by SAP. Plan types and plans can be customized.
You define plan types in the Benefits IMG step Define plan types under Plan attributes.
Note:
The system allows employees to be enrolled in only one plan per plan type at the same time.
(C) SAP AG
HR325 3-9
Category, Type and Plan in the Infotype

Infotype
Infotype
Category
Edit
Goto
EEs plan
Help
1135
EE group
Active employee
EE subgroup
X0
Salaried employee
03.08.1999
DENT
Plan data
Plan
Sy
System
Personnel no
Plan
Plan type
View
Display Health Plans
From
Subtype
Extras
Name
Berta B...
Personnel area
3400
SSN
112-23-3445
31.12.9999
to
Chng 03.08.1999
Fusser
Administr.
Costs
Addl data
Dependents
General plan data

Benefit area
99
Plan type
DENT
Dental
Benefit plan
DENT
Health plan option
OPT1
Dependent coverage
Boston
Internation. Basic
Option 1
EE Employee only
Plan Parameter
Cost rule variant
DCOS Dental Cost
SAP AG 1999
The category determines which infotype is created by the system when an employee is enrolled in a
plan:
y Health Plans (IT 0167)
y Insurance Plans (IT 0168)
y Savings Plans (IT 0169)
y Stock Purchase Plans (IT 0379)
y Credit Plans (IT 0236)
y Miscellaneous Plans (IT 0377)
y Flexible Spending Account/FSA (IT 0170) - North America only
The plan type defines the subtype of this record.
(C) SAP AG
HR325 3-10
Define Benefit Plan Statuses
Table view Edit Goto Selection criteria Utilities System Help
Change View Benefit Plan Status: Overview
Plan Status
Text
OP
Open
LO
Locked
CL
Closed
Active
Enroll
Here,
Here, you
you choose
choose what
what the
the
defined
plan
status
means.
defined plan status means.
SAP AG 1999
The plan status defines whether a plan is active and whether employees can currently enroll in the plan.
This information is used later, when you define benefit plans.
Possible statuses might be Closed, Open and Locked.
(C) SAP AG
HR325 3-11
Define Dependents and Beneficiaries
Table view Edit Goto Selection criteria Utilities System Help
Change View Benefits Allowed Dependents/Beneficiaries: Overview
STyp
Name
Spouse
10
Divorced spouse
Child
Legal guardian
Testator
Guardian
Stepchild
Emergency contact
Related persons
Dependent
Beneficiary
Here,
Here, you
you define
define which
which
subtypes
subtypes of
of infotype
infotype 0021
0021
are
are allowed
allowed as
as dependents
dependents
or
or beneficiaries
beneficiaries or
or both.
both.
SAP AG 1999
During enrollment, the system allows you to select certain members of the employee's family or related
persons as dependents and beneficiaries. In order to be selected, these types of individuals must be
selected here. The possible selections here are the subtypes of Family/related person (Infotype 0021)
records.
This screen is customized once for all plans within a benefit area. Information that you enter here is
valid for all health, insurance, savings, stock purchase and miscellaneous plans.
This screen determines which subtypes from the Family/related persons infotype (0021) are valid as:
- dependents for health and miscellaneous plans
- beneficiaries for insurance, savings, stock purchase and miscellaneous plans.
(C) SAP AG
HR325 3-12
Basic Settings & Common Concepts: Unit Summary

z Describe the concept of benefit
areas.
z Describe the concept of plan types.
z Define basic settings needed for your
benefits configuration.
z Describe common concepts used
throughout the benefits system.
SAP AG 1999
(C) SAP AG
HR325 3-13
Health Plans
Contents:
z
Health plan general data
Options
Dependent coverages
Costs
Evidence of insurability (EOI)
SAP AG 1999
(C) SAP AG
HR325 4-1
Health Plans: Unit Objectives

z Set up a health plan that includes the following:
Options
Dependent coverage
Cost variants and rules
z Interpret the cost grouping feature.

z Set up EOI conditions for a health plan.
SAP AG 1999
(C) SAP AG
HR325 4-2
Health Plans: Course Overview Diagram
Benefits
Overview
Basic
Settings &
Common
Concepts
Health
Plans
Stock
Purchase
Plans
Flexible
Spending
Accounts
(North
America)
Credit
Plans
COBRA
(USA)
Benefits
Processing
Benefits
Processing
(North
America)
Insurance
Plans
Savings
Plans
Administration
Plans
Reporting &
Customizing
Tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 4-3
Health Plans: Business Scenario
Your company has two new health plans that need

to be set up:
z Standard Medical with the options
Deductible and No deductible
z Standard Dental with only one option
SAP AG 1999
(C) SAP AG
HR325 4-4
Health Plan Setup
Category
HEALTH
HEALTH
Plan Type
MEDICAL
MEDICAL
DENTAL
DENTAL
...
Plan
STANDARD
STANDARD MEDICAL
MEDICAL
HMO
HMO
Option
NODT
NODT
HMO
HMO
Dependent
Coverage
Cost
Variant
YSDT
YSDT
EE
EE
EEF
EEF
EE
EE
CST1
CST1
CST3
CST3
CST2
CST2
EEF
EEF
CST4
CST4
EE
EE
CST1
CST1
EE1
EE1
EEF
EEF
CST3
CST3
CST5
CST5
SAP AG 1999
Health plans can be set up in different ways. Above, you can see possible ways to set up a health plan.
The plan category Health is pre-defined by SAP. The plan type is defined in the Basic Settings part of
the Benefits IMG.
The plan, option, dependent coverage and cost variant building blocks are all set up in the Health Plans
section in the Benefits IMG.
Options represent the different levels of health care within a health plan.
An option may consist of varying levels of dependent coverage.
Each combination of option and dependent coverage has a cost variant.
Tip:
At the option level, you can set up a waive option with zero costs to positively record that an employee
has not elected the benefit plan. For example, if an employee is covered under a spousal plan.
(C) SAP AG
HR325 4-5
Define Health Plan General Data
Change View Benefit Health Plan General Data: Details

Start
STMD
Benefit plan
01.01.1900
Standard Medical
End
31.12.9999
General data
Plan type
MEDI
Medical
Plan status
OP
Provider
00000001
Open
Plan number
1236658734
Short text
SMedical
Prudential
Assign
Assign dependent/
dependent/
beneficiary
beneficiary group
group
Health plan attributes

Dependent relevant
Selection groups
Pre-tax allowed
Credits allowed
Post-tax allowed
ER costs are not credited to employee
Insurance code
HLT
Set
Set up
up dependent/
dependent/
beneficiary
beneficiary group
group
feature
feature (RLPGR)
(RLPGR)
SAP AG 1999
Here, you define the name and the characteristics of the health plan. If dependents are relevant and you
wish to restrict the number of possible dependents you defined in the IMG step Define dependents and
beneficiaries, you can do so by selecting Selection groups and assigning a dependent/beneficiary group
to the plan. For this group, you then have to set up the RLPGR feature to dynamically sort family/related
persons (infotype 0021) into the correct group at enrollment. This has been explained in detail in the
Basic Settings & Common Concepts unit.
You can define if the plan costs are pre-tax or post-tax. If you select both indicators, the employee can
choose on the enrollment screen whether the deductions should come from pre-tax or post-tax salary.
You can define if employees are allowed to use the credit from their credit plans to pay for the costs of
this plan.
The insurance code identifies what type of Health Insurance plan it is. These codes are required for the
IDOC data transfer and are defined by the ASC X12N 834 Standard and not by SAP. This code is only
needed if you use the IDOC data transfer to the provider.
The employer portion of costs for a benefit plan can take either of the following forms:
- Separate cost (indicator ER costs are not credited to employee set): The employer portion is not
credited to the employee. The employer cost is an additional cost and the employee's pay check is not
affected.
- Credit to the employee (indicator ER costs are not credited to employee not set): The employer portion
is used to reduce the employees cost for the plan.
(C) SAP AG
HR325 4-6
Health Plan Options and Dependent Coverage

Change View Benefit Health Plan Option: Overview
Options...
Options...
Benefit plan
STMD
Standard Medical
Benefit Health Plan Option
are
are defined
defined for
for
each
each health
health plan
plan
individually.
individually.
Text
No deductible
Yes deductible
Dependent
Dependent
coverage...
coverage...
Change View Benefit Dependent Coverage: Overview

Dependent coverage Description
Maximum dependents
EE
Employee only
EE + 1
Employee + Spouse
EE + F
Employee + Family
20
is
is valid
valid for
for
all
all health
health plans.
plans.
SAP AG 1999
Options are defined for each health plan. Options represent the coverage choices an employee can make
within a health plan.
Dependent coverage are defined for all health plans.
Options and dependent coverage are elements used later when you assign the attributes of a health plan
(IMG step Assign health plan attributes).
(C) SAP AG
HR325 4-7
Formula and calculation rules

Cost formula
Calculation rule
Credit formula
Calculation rule
Coverage
formula
Calculation rule
Employee
contribution rule
Rule criteria
Employer
contribution rule
Rule criteria
R
SAP AG
In benefits customizing, the above five plan attributes are set up according to a pattern that is common to
all. This pattern is as follows;
One formula or rule defines which factors (e.g. age, salary) will influence the calculation.
The formula or rule points to several calculation rules or rule criteria. Within these, the actual amounts
are defined, for each combination of factors stated within the formula or rule.
The formula or rule not only defines which factors affect the calculation, but it also defines how the
actual groups of employees are broken down. The salary, age and length of service groups are defined
within a criteria ID. This is defined before the formula or rule, which simply references it.
Each of the above formulas and rules can use its own feature to further create employee groups. (See the
course appendix for a list of benefits features.)
The cost formula has the additional possible factors of gender and smoker, to enable you to differentiate
between employees.
Each of the formulas and rules will be covered in more detail at the relevant points during the course.
(C) SAP AG
HR325 4-8
Cost Variant, Grouping and Rule
Parameter
Parameter group
group
Cost
Cost
variant
variant
Gender,
Gender,
Smoker
Smoker
Cost
Cost
Salary
Age Seniority
Seniority
Salary Age
grouping
grouping group group group
group group group
(CSTV1)
(CSTV1)
Cost
Cost rule
rule
SAP AG 1999
The cost variant defines what determines the cost of a health plan. It may use a parameter group, as
described above, and in addition:
- gender
- smoker/non-smoker
- cost grouping (feature CSTV1 for further differentiation between employees, based on other
employee criteria, such as geographical location, job classification, marital status etc.)
The parameter group allows you to group employees according to salary, age and seniority for cost
calculation.
Age, gender and smoker criteria can alternatively be taken from the spouse.
The cost rule then defines the actual cost of the plan for an employee who may have any combination of
the above criteria. For each combination, you must define a cost rule.
(C) SAP AG
HR325 4-9
Cost formula
STANDARD
STANDARD
MEDICAL
MEDICAL
NODT
NODT
EEF
EEF
CST3
CST3
Criteria
Criteria ID
ID
Salary
Salary groups
groups
LOS
LOS group
group
Gender
Gender
Smoker
Smoker
Cost
Cost group
group
Age
Age groups
groups
R
SAP AG
You can set up any combination of these criteria.

Each adds an extra dimension to the cost formula.
For every variation you must define a cost formula calculation rule.
(C) SAP AG
HR325 4-10
Cost Grouping Feature - CSTV1

Employee
Benefit cost grouping
Cost grouping
FAR
Description
Far
HRLY
NEAR
Hourly paid
Near
SLRY
Salaried
Benefit
Benefit
area
area
Benefit
Benefit
plan
plan
Zip code
NEAR
NEAR
FAR
FAR
Employee
group
Benefit
Benefit
plan
plan
Employee
group
HRLY
TEMP
SLRY TEMP
HRLY SLRY
Employee
group
Union
Union A
A
Union
Union B
B
SAP AG 1999
The cost grouping allows you to include other cost criteria, which are not included in the cost variant.
The cost grouping feature's technical name is CSTV1.
The cost grouping feature, as all other features, processes the data of an employee and allocates him or
her to the correct cost grouping.
(C) SAP AG
HR325 4-11
Define Cost Grouping & Set up Feature

Change View Benefit Cost Grouping
Cost grouping
FAR
Description
Far
HRLY
NEAR
Hourly
Near
SLRY
Salaried
Feature
Process feature CSTV1: decision tree

CSTV1
CSTV1 Cost grouping

BAREA Benefit area
After defining a
cost grouping,
you must set up the CSTV1
feature accordingly.
BPLAN Benefit Plan

CAR
PSTLZ ? 20000 Zip code compared with 20000
< (smaller)
NEAR
otherwise
FAR
STMD
PERSK Employee subgroup
X1 Hourly rate/wage
HRLY
X0 Salaried employee
SAP AG 1999
SLRY
This is an example of how a feature can actually be set up in the system.

In this example, the feature is making decisions on benefit area (BAREA), benefit plan (BPLAN), zip
code (PSTLZ), and employee subgroup (PERSK).
The cost groupings being assigned here are NEAR, FAR, HRLY and SLRY.
You define the cost groupings and set up the feature under Define employee groupings Define cost
groupings in the Benefits IMG.
(C) SAP AG
HR325 4-12
Define Cost Variant

Change View Benefit Cost Variant Health Plan: Details
Benefit plan
STMD
Standard Medical
Cost variant
SCOS
Standard Cost Variant
Cost criteria
Period
Parameter group
Monthly
PG1
Feature
Feature CSTV1
CSTV1
Parameter group 1
Salary
Age
Seniority
Cost grouping
Gender
Smoker
Determination of age, gender, smoker relevancy

Relevant data from
Employee
Spouse
Age basis
Salary basis
Cutoff day
Cutoff day
IfIf you
you choose
choose one
one or
or
more
more of
of these
these criteria,
criteria,
you
you have
have to
to specify
specify
aa parameter
parameter group.
group.
The
The parameter
parameter group
group
contains
contains the
the relevant
relevant
salary,
salary, age
age and
and
seniority
seniority groups
groups you
you
previously
defined.
previously defined.
Seniority basis
Cutoff day
Hire date override

Leaving date override
Calc. process
SAP AG 1999
The cost variant defines the factors that influence the cost of the plan. Once you have defined the
parameter group and the cost groupings (and set up feature CSTV1), you set up the cost variant itself, as
shown above.
Here, you define the period on which the costs defined later in the cost rules are based.
Example:
y Cost varies according to an employee's seniority, and whether the employee is hourly paid, salaried, in
union A, or in union B.
y The parameter group supplies the groups for seniority. The cost grouping supplies the groupings for
hourly paid/salaried/union A/union B.
You can choose whether the data for the determination of age, gender and smoker should be taken from
the employee or the spouse.
Note that, if the cost is to be based on the employees salary, the system uses the employees benefit
salary for the calculation.
The cutoff date and date override concept has been explained in detail in the Basic Settings & Common
Concepts unit.
The calculation process you can enter here, is used within the HR_Seniority function module (SAP
Standard Seniority Calculation) for the calculation of an employment period. If you leave this field
empty, a default calculation process will be used.
(C) SAP AG
HR325 4-13
Cost Rules
Cost
Cost Grouping
Grouping
Union
Union A
A
Union
Union B
B
Salaried
Salaried
Staff
Staff
Hourly
Staff
Seniority Group
Group
Seniority
00 -- 22
years
years
33 -- 55
years
years
66 -- 10
10
years
years
10>
10>
years
years
SAP AG 1999
You must define a cost rule for every possible combination of cost criteria defined within the cost
variant. If you have not defined any criteria in the cost variant, you have to define exactly one rule for
this variant.
The employee's personal data places him or her in exactly one of the cost rules.
Example:
y Each box in the diagram represents a cost rule.
y The dark box represents a cost rule applicable to employees:
- in cost grouping Salaried'
- with a seniority of 3-5 years
Note:
When setting up the seniority groups for a certain parameter group in the IMG (Benefits Administration
> Basic Settings > Define employee groupings > Define employee criteria groups > Define seniority
groups), please note that the seniority has to be entered as months.
(C) SAP AG
HR325 4-14
Assign Health Plan Attributes

Dependent
Coverage
Option
Plan
NODT
STANDARD
MEDICAL
YSDT
Cost
Variant
EE
NDE1
EE+1
NDE1
EE+F
NDEF
...
Change View Benefit Health Plan: Overview
After you have defined

the options, dependent
coverage and cost variants
for your health plan, you
must assign those attributes
at this point.
Benefit plan
STMD
Standard Medical
Benefit Health Plan

Option Text
Dependent cov. CostVa
Start date End date
Text
NODT
No deductible
EE
NDEE
No deduct. EE only 01.01.1900 31.12.9999
NODT
No deductible
EE + 1
NDE1
No deduct. EE + 1
01.01.1900 31.12.9999
NODT
No deductible
EE + F
NDEF
No deduct. EE + F
01.01.1900 31.12.9999
YSDT
Yes deductible EE
DEE
Deductible EE only 01.01.1900 31.12.9999
YSDT
Yes deductible EE + 1
DEE1
Deductible EE + 1
01.01.1900 31.12.9999
YSDT
Yes deductible EE + F
DEEF
Deductible EE + F
01.01.1900 31.12.9999
SAP AG 1999
This is the final step in defining a health plan.

All the building blocks (options, cost variant etc.) you have already defined, are brought together here.
(C) SAP AG
HR325 4-15
Evidence of Insurability (EOI) - Health

Option 2
Option 1
Dependent
coverage
Only on initial
enrollment
Always
Health plan
Action when
EOI not
provided
Active
Pending
Grace period
R
SAP AG
EOI set up allows you to mark certain plans as requiring evidence of insurability to participate in the
plan. This can be narrowed down to merely one option or dependent coverage.
How the system enrolls the employee at enrollment is specified.
The grace period to provide EOI is defined.
(C) SAP AG
HR325 4-16
Define Evidence of Insurability Conditions

Change View Benefit Evidence of Insurability Health Plan
Start
01.01.1900
STMD Standard Medical
Benefit plan
End
31.12.9999
Selection of options requiring evidence of insurability

Initial enrollment/ enrollment any time
Options requiring EOI
Change of coverage
Changes requiring EOI
Action
Create pending record for desired option
Grace period
1 Months
From enrollment date

From participation date
Benefit Evidence of Insurability Option Assignment
Benefit Evidence of Insurability: Option Jump Assignment

StOpt. Start option text StDcv. TgtOpt Target option text TgDcv.
YSDT Yes deductible EE
NODT
No deductible
EE
Option Text
Dep.
NODT No deductible
EE + 1 Employee + Spouse
NODT No deductible
EE + F Employee + Family
YSDT
Description
InitEnrol.
Yes deductible EE + F Employee + Family
SAP AG 1999
You can configure the system to enroll the employee in the plan in either pending or active status, while
awaiting EOI.
You can define grace periods for the provision of EOI.
Under Options requiring EOI, you enter options and dependent coverage for initial or anytime
enrollments for which EOI is required.
Under Changes requiring EOI, you enter start options and start dependent coverage as well as target
options and target dependent coverage for option jumps requiring EOI.
In the EOI Monitor, you can trace whether employees have provided required EOIs or not.
(C) SAP AG
HR325 4-17
Evidence of Insurability on Infotype 0167 (Health)

Change Health Plans
Personnel no
...
4401
Name
03.08.1999
From
STMD
Plan
Administration
to
31.12.1999
Chng 03.08.1999
Standard Medical
Plan data
Costs
Dependents
Participation data
Eligible on
Rose Salizar
01.07.1999
Eligibility override
Participation date
03.08.1999
Type of enrollment
Using open enrollment
This
This symbol
symbol shows
shows
that
that the
the infotype
infotype
record
record is
is pending
pending
(locked).
(locked).
IfIf no
no symbol
symbol appears,
appears,
the
the record
record is
is active
active
(unlocked).
(unlocked).
Additional data
Statement required
End of grace period
17.09.1999
Insurability proven
EOI
EOI information
information on
on the
the
Health
Plans
infotype
Health Plans infotype (0167)
(0167)
SAP AG 1999
The active or pending infotype records are created during enrollment. Whether the plan requires EOI and
whether the employee has provided EOI is stored on the Health Plans infotype (0167) record.
Additionally, the grace period is shown here.
See the Benefits Processing unit for further information on EOI processing.
For the administration of active and pending record status, the lock mechanism of the Personnel
Administration Infotype concept is used. For a locked record (pending), the lock symbol appears on the
infotype screen. For an unlocked (active) record, no symbol is shown.
(C) SAP AG
HR325 4-18
Health Plans: Unit Summary

z Set up a health plan that includes
the following:
Options
Dependent coverage
z Interpret the cost grouping feature.

z Set up EOI conditions for a health
plan.
SAP AG 1999
(C) SAP AG
HR325 4-19
Insurance Plans
Contents:
z
Insurance plan general data
Coverage
Cost
Combined coverage limits
SAP AG 1999
(C) SAP AG
HR325 5-1
Insurance Plans: Unit Objectives

z Set up an insurance plan that includes
the following:
Coverage variants and rules
z Interpret the cost grouping and coverage
grouping features.
z Set up EOI conditions for an
insurance plan.
SAP AG 1999
(C) SAP AG
HR325 5-2
Insurance Plans: Course Overview Diagram
Benefits
Overview
Basic
Settings &
Common
Concepts
Health
Plans
Stock
Purchase
Plans
Flexible
Spending
Accounts
(North
America)
Credit
Plans
COBRA
(USA)
Benefits
Processing
Benefits
Processing
(North
America)
Insurance
Plans
Savings
Plans
Administration
Plans
Reporting &
Customizing
Tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 5-3
Insurance Plans: Business Scenario
z Your company needs to set up two new

insurance plans:
Basic Life with two levels of coverage
Additional Life with only one coverage option
z There is a combined coverage limit for the

two insurance plans.
SAP AG 1999
(C) SAP AG
HR325 5-4
Insurance Set-Up
Category
INSURANCE
Plan Type
LIFE
DLIF
Std Life
Plan
Option 1
Option
Coverage
Formula
Cost
Formula
Basic 1
O1 Cost
Option 2
Basic 2
O2 Cost
SAP AG
Insurance plans can be set up in different ways. Above you can see one possible way to set up an
insurance plan.
The category Insurance' is pre-defined by SAP. Plan type is defined in the Basic Settings in the benefits
IMG.
The Plan, Options, Coverage formula and Cost formula building blocks are all set up in the Insurance
plans section of the IMG.
(C) SAP AG
HR325 5-5
Insurance Plan Set Up - Detail
Basic Life
Plan
Option
Option 1
Coverage
Variant
Coverage
Rule
Cost
Variant
Option 2
Basic 1
25K
Basic 2
1X
50k
O1 Cost
Cost Rule
2 per mo
1 per mo
2X
O2 Cost
0.5 per mo
1.5 per mo
SAP AG 1999
This is the same set up as the previous slide, but in more detail and from the plan level downwards.
(C) SAP AG
HR325 5-6
Define Insurance Plan General Data

Change View Benefit Insurance Plan General Data: Details
Start
Benefit plan
End
01.01.1900
LIFE Basic Life
31.12.9999
General data
Plan type
LIFE
Life Insurance
Plan status
OP
Provider
00000007 Provider 7
Open
Plan number
12456456546
Short text
BasicLife
Assign
Assign dependent/
dependent/
beneficiary
beneficiary group
group
Insurance plan attributes

Benefic. relevant
Selection groups
EE beneficiary
Pre-tax allowed
Credits allowed
Contingency benefic.
Post-tax allowed
Imputed income
Group Term Life
Set
Set up
up dependent/
dependent/
beneficiary
beneficiary group
group
feature
(RLPGR)
feature (RLPGR)
SAP AG 1999
Here, you define the name and the characteristics of the insurance plan.
The concept of the dependent/beneficiary group has already been explained in detail in the Health Plans
unit.
You can specify whether the actual employee can be specified as a beneficiary and whether it is possible
to store contingency beneficiaries.
You can define if the plan costs are pre-tax or post-tax. If you select both indicators, the employee can
choose on the enrollment screen whether the deductions should come from pre-tax or post-tax salary.
You can define if employees are allowed to use the credit from their credit plans to pay for the costs of
this plan.
The employer portion of costs for a benefit plan can take either of the following forms:
y Separate cost (indicator ER costs are not credited to employee set): The employer portion is not
credited to the employee. The employer cost is an additional cost and the employee's pay check is not
affected.
y Credit to the employee (indicator ER costs are not credited to employee not set): The employer
portion is used to reduce the employees cost for the plan.
The Group Term Life and Imputed Income fields are US-specific.
(C) SAP AG
HR325 5-7
Coverage Variant, Grouping and Rule
Parameter
Parameter group
group
Coverage
Coverage
variant
variant
Coverage
Coverage
grouping
grouping
(COVGR)
(COVGR)
Salary
Salary
group
group
Age
Age
group
group
Seniority
Seniority
group
group
Coverage
Coverage rule
rule
SAP AG 1999
The coverage variant defines what factors influence the coverage an employee is entitled to in an
insurance plan. It may use a parameter group, as described above, and in addition coverage groupings
(feature COVGR for further differentiation between employees, based on other employee criteria, such
as geographical location, job classification, marital status etc.).
The parameter group allows you to group employees according to salary, age and seniority.
There are two stages to deciding how to set up your coverage variants. Firstly, you must know how
coverage varies according to plan and option in this plan category. Secondly, you must know how the
option's coverage varies according to employee data. The first stage determines how many coverage
variants you need, the second how each coverage variant is set up.
The coverage rule then defines the actual coverage of the plan for an employee who may have any
combination of the above criteria. For each combination, you must define a coverage rule.
(C) SAP AG
HR325 5-8
Coverage Grouping Feature - COVGR

Employee
Benefit coverage grouping
Coverage grouping
COG1
Cover.grouping text
Coverage grouping 1
COG2
Coverage grouping 2
Benefit
Benefit
area
area
Benefit
Benefit
plan
plan
Zip
Zip code
code
NEAR
NEAR
FAR
FAR
Employee
group
Benefit
Benefit
plan
plan
Employee
group
COG1
COG2 TEMP
TEMP
COG1 COG2
Employee
Employee
group
group
Union
Union A
A
Union
Union B
B
SAP AG 1999
The coverage grouping allows you to include other cost criteria, which are not included in the coverage
variant.
The coverage grouping feature's technical name is COVGR.
The coverage grouping feature, as all other features, processes the data of an employee and allocates
him or her to the correct coverage grouping.
(C) SAP AG
HR325 5-9
Insurance Plans
Contents:
z
Insurance plan general data
Coverage
Cost
SAP AG 1999
(C) SAP AG
HR325 5-10
Coverage Rules
Coverage
Coverage Grouping
Grouping
Union
Union A
A
Union
Union B
B
COG1
COG1
COG2
COG2
Seniority Group
Group
Seniority
00 -- 22
years
years
33 -- 55
years
years
66 -- 10
10
years
years
10>
10>
years
years
SAP AG 1999
You must define a coverage rule for every possibility within the coverage variant. If you have not
defined any criteria in the coverage variant, you have to define exactly one rule for this variant.
The employee's personal data places him or her in one of the coverage rules.
Example:
y Each box in the diagram represents a coverage rule.
y The dark box represents a coverage rule applicable to employees:
- in coverage grouping COG1'
Note:
(C) SAP AG
HR325 5-11
Define Coverage Rule

Change View Benefit Coverage Rule Insurance Plan: Details
The
The system
system only
only
allows
allows you
you to
to
make
make entries
entries for
for
the
the criteria
criteria that
that
you
you have
have already
already
defined
as
defined as
relevant
relevant in
in the
the
coverage
coverage variant.
variant.
Benefit plan
LIFE
Basic Life
Start
Cover. variant
BASC
Basic Coverage
01.01.1900
3-5 years
COG1
Coverage grouping 1
End
31.12.9999
Salary group
Age group
Seniority group
Cover. grouping
Base amount
Coverage amount
Salary factor
Minimum total amount

130,000.00 UNI
2.00000
Minimum total amount
200,000.00 UNI
Min. factor
3,0000
Rounding rule
Rounding rule
Rounding div.
Rounding div.
Larger amount
Additional insurance coverage

Additional unit
Maximum total amount
1,000.00
Minimum units
Maximum units
Smaller amount
UNI
Maximum total amount
500,000.00 UNI
Max.sal.factor
100
Rounding rule
Rounding div.
Larger amount
Smaller amount
SAP AG 1999
This is where the actual coverage is defined. For each possible combination of criteria that you have
already defined in the coverage variant, you have to define a coverage rule.
Coverage can be a factor of salary, a flat amount or a combination of the two.
The coverage limits within the plan are defined here.
Example (employee earns 35,000 UNI annually and has chosen 8 additional units):
y BASIS
=
130,000 UNI + (2 x 35,000 UNI) = 200,000 UNI
y ADDITIONAL= 8 x 1000 UNI = 8,000 UNI
y TOTAL =
208,000 UNI
y MINIMUM LIMIT
y MAXIMUM LIMIT
= LARGER OF (200,000 UNI, 105,000 UNI) = 200,000 UNI

= 500,000 UNI
y COVERAGE 208,000 UNI is within limits.
(C) SAP AG
HR325 5-12
Cost formula
Criteria
Criteria ID
ID
Cost
Cost
formula
formula
Length
Length
Gender
Gender Cost
of
Cost Salary
Age
of
Salary Age
Smoker
Smoker group
group
group
Service
group group group Service
group
group
Cost
Cost formula
formula calculation
calculation rule
rule
R
SAP AG
Cost may be graduated according to one or a combination of the following:

y Salary
y Age
y Length of service (LOS)
The criteria ID allows you to group employees according to these criteria for cost calculation.
The cost formula defines what determines the cost of a health plan. It may use a criteria ID, as described
above, and in addition:
y gender
y smoker/non-smoker
y cost group
The cost formula calculation rule then defines the cost of the plan for an employee who may have any
combination of the above criteria.
(C) SAP AG
HR325 5-13
Cost formula
Standard
Standard
Life
Life
Option
Option 11
Criteria
Criteria ID
ID
Salary
Salary groups
groups
LOS
LOS group
group
01
01 Cost
Cost
Gender
Gender
Smoker
Smoker
Cost
Cost group
group
Age
Age groups
groups
SAP AG
You can set up any combination of these criteria.

Each adds an extra dimension to the cost formula.
For every variation you must define a cost formula calculation rule.
(C) SAP AG
HR325 5-14
Cost group feature
Employee
Benefit cost group

Cost. Text
HRLY Hourly paid
SLRY
Salaried
Benefit
Benefit
area
area
Benefit
Benefit
plan
plan
Zip code
AREA1
AREA1
AREA2
AREA2
Employee
group
Benefit
Benefit
plan
plan
Employee
group
HRLY
SLRY TEMP
TEMP
HRLY SLRY
Employee
group
Union
Union A
A
Union
Union B
B
SAP AG
The cost group feature's technical name is CSTV1.

The cost group feature, as all other features, processes the data of each employee, one at a time and
allocates him or her to the correct cost group.
The cost group allows you to include other cost criteria, which are not included in the cost formula.
(C) SAP AG
HR325 5-15
Cost group feature

Variable key
000010
C D Operations
D
BAREA
000020
**
BPLAN
000030
** CAR
** CAR <
PSTLZ?20000
000040
&CSTV1=NEAR,
000060
** CAR *
** STMD
000070
** STMD U1
&CSTV1=HRLY,
000080
** STMD U4
** DENT
&CSTV1=SLRY,
000050
000090
000110
** DENT U1
** DENT U4
000110
** STLF
000120
** STLF U1
** STLF U4
000100
000130
&CSTV1=FAR,
D
PERSK
PERSK
&CSTV1=HRLY,
&CSTV1=SLRY,
PERSK
&CSTV1=HRLY,
&CSTV1=SLRY,
R
SAP AG
This is how a feature is actually set up in the system.

In this example, the feature is making decisions on benefit area (BAREA), benefit plan (BPLAN), zip
code (PSTLZ), and employee subgroup (PERSK).
The groups being assigned here are NEAR, FAR, HRLY and SLRY.
This is the CSTV1 feature.
(C) SAP AG
HR325 5-16
Define Cost Variant

Change View Benefit Cost Variant Insurance Plan: Details
Benefit plan
LIFE
Basic Life
Cost variant
COST
Cost for Life Insurance
Cost criteria
Period
Parameter group
Monthly
PG1
Step-rate
Parameter group 1
Salary
Age
Seniority
Cost grouping
Gender
Smoker
Here,
Here, you
you indicate
indicate
whether
whether you
you want
want
to
to define
define different
different
cost
cost calculation
calculation
for
for different
different
levels
levels of
of coverage.
coverage.
Determination of age, gender, smoker relevancy

Relevant data from
Feature
Feature CSTV1
CSTV1
Employee
Spouse
Age basis
Salary basis
Cutoff day
Cutoff day
Seniority basis
Cutoff day
Hire date override

Leaving date override
Calc. process
IfIf you
you choose
choose one
one or
or
more
of
these
more of these
criteria,
criteria,
you
you have
have to
to specify
specify
aa parameter
parameter group.
group.
The
The parameter
parameter group
group
contains
contains the
the relevant
relevant
salary,
salary, age
age and
and
seniority
seniority groups.
groups.
SAP AG 1999
The concept of cost variant, rule and grouping (feature CSTV1) was already explained in detail in the
Health Plans unit.
In the example shown above, the costs for the insurance plan depend on an employees age, seniority
and cost grouping. For each possible combination of these criteria, you later have to define a cost rule
with the actual costs.
Note that, if the cost is to be based on the employees salary, the system uses the employees benefit
salary for the calculation.
You can choose whether the data for the determination of age, gender and smoker should be taken from
the employee or the spouse.
In the step-rate field, you specify if your plan includes step limits. Step limits are explained at a later
point in this unit. For each step limit, you later have to define a cost rule.
The cutoff day concept has been explained in detail in the Basic Settings & Common Concepts unit.
(C) SAP AG
HR325 5-17
Cost Rules
0-3
years
Seniority
Seniority group
group
3-6
years
Cost
Cost rules
rules
>6
years
HRLY
Cost
Cost grouping
grouping
SLRY
<25
25
Age
Age groups
groups
SAP AG 1999
You must define a cost rule for every possible combination of cost criteria defined within the cost
variant. If you have not defined any criteria in the cost variant, you have to define exactly one rule for
this variant.
The employee's personal data places him or her in exactly one cost rules.
Example:
y Each box in the diagram represents a cost rule.
y The dark box represents a cost rule applicable to employees:
- of an age greater than 25 years
Note:
(C) SAP AG
HR325 5-18
Define Cost Rule

Change View Benefit Cost Rule Insurance Plan: Details
Benefit plan
LIFE
Cost rule variant
COST Cost for Life Insurance
Basic Life
Start
01.01.1900
End
31.12.9999
Salary group
Depending
Depending on
on
the
the cost
cost criteria
criteria
you
you have
have
chosen
chosen in
in the
the
cost
cost variant
variant
view,
view, the
the
relevant
relevant fields
fields
are
are ready
ready for
for
input
input in
in this
this
view.
view.
Age group
Seniority group
Cost grouping
Female
>25
25 years and older
>6
6 years and longer

Hourly paid
HRLY
Male
Smoker
Step limit
0
Provider costs
Basis for cost rule

Cost period
Base unit
Costs
Monthly
Cost factor
1,000.00 UNI
UNI
0.12
Rounding rule
Rounding div.
Employee costs
Employer credit
Amount
Cost factor
UNI
0.12
UNI
Amount
Credit factor
Rounding rule
Rounding rule
Rounding div.
Rounding div.
0.10
SAP AG 1999
Cost can be flat costs or based upon the coverage of the insurance plan. In the case of flat costs, you
need to enter amounts here. If cost is based on coverage, you need to specify the cost factor per base
unit. The two examples below show how cost is graduated, based on how much coverage the employee
has chosen.
Example 1:
y An employee has 150,000 UNI COVERAGE
y COST is 0.12 UNI per 1000 UNI
y COST for this employee in this plan is (150,000/1000) x 0.12 = 18.00 UNI
Example 2:
y An employee has 175,000 UNI COVERAGE
y COST is 0.6 UNI per 5,000 UNI
y COST for this employee in this plan is (175,000/5,000) x 0.6 = 21.00 UNI
The step limit is the maximum amount of coverage to which the cost rule will be applied.
As soon as the coverage exceeds this amount, the next cost rule with a higher step limit is used to
calculate cost. The costs for the individual step limits are then added together to form the total cost.
(C) SAP AG
HR325 5-19
Step Limits
Plan
Plan coverage
coverage
100,000
Cost
0.23 per 1,000
80,000
Cost
0.19 per 1,000
Cost
0.14 per 1,000
40,000
SAP AG 1999
Step limits are levels which differentiate cost of coverage within an employee's insurance coverage.
They allow you to graduate cost, according to how much coverage the employee has chosen. For
example, the first 40,000 UNI of coverage may be a standard cost, then any subsequent coverage over
this amount is more expensive.
You must enter the various step limits when you define the cost rules.
Example:
y From a possible 100,000 UNI, an employee has chosen 85,000 UNI COVERAGE
y COST is then
y up to 40,000 UNI ->
40,000 (0.14/1000)
= 5.60 UNI
y up to 80,000 UNI ->
40,000 (0.19/1000)
= 7.60 UNI
y Rest
->
5,000 (0.23/1000)
= 1.15 UNI
y TOTAL COST
->
= 14.35 UNI
(C) SAP AG
HR325 5-20
Assign Insurance Plan Attributes
Define insurance plan option
Assign cost variant and coverage variant
Change View Benefit Insurance Plan: Details

Start
Benefit plan
LIFE
Basic Life
CovOption
LEV1
Coverage Level 1
01.01.1900
End
31.12.9999
Assigned rule variants

Cost variant
COST Cost for Life Insurance
Cover. variant
BASC Basic Coverage
SAP AG 1999
This is the final step in defining an insurance plan.

All the building blocks (coverage variants etc.) you have already defined, are brought together here and
the options (levels of coverage) for the insurance plan are defined.
You allocate a cost variant and coverage variant to every option of the insurance plan.
Remember that the cost variant defines the employee data that affect cost, and the coverage variant
defines the employee date that affects coverage. These variants point to the relevant calculation rule, for
each employee.
Example:
y The Standard Life insurance plan has the following two options:
- 40,000 UNI
- 70,000 UNI
y The cost is directly proportional to the coverage the employee chooses. The coverage variants and cost
variant have already been defined. The two options are defined as follows:
Option
Coverage variant
40K
70K
40K
70K
(C) SAP AG
HR325 5-21
Cost variant
STLI
STLI
Evidence of Insurability (EOI) - Insurance
Max coverage.
allowed:
Insurance
plan
- Initial enroll.
- change cov.
- any time
Defined as:
- amount
- factor of
salary
Active
Action when
EOI not
provided
Pending
Active max. jump
Pending + active max jump
Grace period
SAP AG 1999
EOI set up allows you to mark certain plans as requiring evidence of insurability to participate in the
plan. This can be specified as a particular coverage level within a plan.
Additionally, how the system enrolls the employee at enrollment is specified.
(C) SAP AG
HR325 5-22
Define Evidence of Insurability Conditions

Change View Benefit Evidence of Insurability Insurance Plan: Details
Start
Benefit plan
ALIF
End
31.12.9999
01.01.1900
Additional Life
Maximum coverage without evidence of insurability

Amount
Initial enrollment
Change of coverage
Enrollment any time
Factor
0.01 UNI
24,999.00 UNI
100,000.00 UNI
Salary factor
x Salary
x Salary
x Salary
Salary basis
Rounding rule
Cutoff day
Rounding div.
Action
Grace period
Create active record for desired option

1 Months
From enrollment date

From participation date
SAP AG 1999
Possible
Possible actions:
actions:

Createpending
pendingrecord
recordfor
fordesired
desiredoption
option
Create
Createactive
activerecord
recordfor
forbiggest
biggestjump
jumppossible
possible
Create
Createpending
pendingrecord
recorddesired
desiredoption,
option,active
activerecord
recordmaximum
maximum
Create
coveragejump
jump
coverage
You can specify maximum coverage without EOI when the employee enrolls in the plan for the first
time, when he or she elects a change of coverage, or for enrollment at any time.
You can configure the system to store employees' elections in either pending or active status, while
awaiting EOI. You can also create an active record for biggest option possible not requiring EOI or both
an active record for biggest option possible and a pending record for the desired option requiring EOI.
You can define grace periods for the provision of EOI.
(C) SAP AG
HR325 5-23
Evidence of Insurability on Infotype 0168
Display Insurance Plans

Personnel no
4401
...
03.08.1999
From
ALIF
Plan
Administration
Rose Salizar
Name
to
31.12.1999
Chng 03.08.1999
Costs
Beneficiaries
Additional Life
Plan data
Ins.cover.
Participation data
Eligible on
01.07.1999
Eligibility override
Participation date
03.08.1999
Type of enrollment
Default
Statement required
No
No symbol
symbol appears
appears here;
here;
that
means
that
this
that means that this record
record
is
is active
active (unlocked).
(unlocked).
IfIf aa lock
lock symbol
symbol is
is shown,
shown,
the
the infotype
infotype record
record
is
is pending
pending (locked).
(locked).
End of grace period
Insurability proven
EOI
EOI information
information on
on the
the
Insurance
Insurance Plans
Plans infotype
infotype (0168)
(0168)
SAP AG 1999
The active or pending infotype records are created during enrollment. Whether the plan requires EOI and
whether the employee has provided EOI is stored on the Insurance Plans infotype (0168) record.
Additionally, the grace period is shown here.
See the Benefits Processing unit for further information on EOI processing.
For the administration of active and pending record status, the lock mechanism of the Personnel
Administration Infotype concept is used. For a locked record (pending), the lock symbol appears on the
infotype screen. For an unlocked (active) record, no symbol is shown.
(C) SAP AG
HR325 5-24
Combined Coverage Limits
Combined coverage limits for more than

one plan
Define mathematical equations in two IMG

steps:
Define combined coverage limits
Define combined coverage limit

expressions
SAP AG 1999
In the coverage variant, you set up coverage limits for the plan itself.
Under combined limits, you set up coverage limits that span more than one plan.
(C) SAP AG
HR325 5-25
Combined Coverage for Insurance I
z Example 1:
Basic Life + Additional Life cannot exceed 200,000 UNI
Limit
Expression
200,000 >=
Basic Life
1.0
Additional Life 1.0
SAP AG 1999
The solved equation must have the monetary limit on one side and the plan expressions on the other.
The limit and the limit expression are set up in 2 separate views in the IMG.
Example:
200,000 UNI is the maximum coverage an employee can have under Basic Life and Additional Life.
y 200,000 UNI
>=
(1.0 x LIFE) + (1.0 x ALIF)
See the Benefits IMG for further information. Search for Combined coverage'.
(C) SAP AG
HR325 5-26
Combined Coverage for Insurance II
z Example 2:
Additional Life cannot exceed 50% of Basic Life
Limit
Expression
0 <=
Basic Life
.5
Additional Life -1.0
SAP AG 1999
Example:
y Additional Life (ALIF) cannot exceed 50% of Basic Life (LIFE)
y ALIF
<=
0.5 x LIFE
y 0 <=
(0.5 x LIFE) - (1.0 x ALIF)
(C) SAP AG
HR325 5-27
Insurance Plans: Unit Summary

z Set up an insurance plan that
includes the following:

Coverage variants and rules
z Interpret the cost grouping and
coverage grouping features

z Set up EOI conditions for an
insurance plan
SAP AG 1999
(C) SAP AG
HR325 5-28
Savings Plans
Contents:
z Savings plan general data
z Employee and employer contributions
z Vesting
z Investments
z Combined contribution limits
SAP AG 1999
(C) SAP AG
HR325 6-1
Savings Plans: Unit Objectives

z Set up a savings plan that includes the following:
Employee pre- and post-tax contributions
Employer contributions
Vesting rules and vested portions
Investment options
Combined contribution limits
z Interpret the employee and employer

contribution grouping features
SAP AG 1999
(C) SAP AG
HR325 6-2
Savings Plans: Course Overview Diagram
Benefits
Overview
Stock
Purchase
Plans
Reporting &
Customizing
Tools
Basic Settings
and Common
Concepts
Credit
Plans
Health
Plans
Insurance
Plans
Plans
Administration
Savings
Plans
Benefits
Processing
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 6-3
Savings Plans: Business Scenario
z Your company is introducing a long-term savings

plan with a pre-tax and post-tax option, and standard
saving plan with post-tax only.
z The first plan has two investment options; a
guaranteed annuity and a balanced fund. The second
plan has one mutual fund.
z An employees combined contribution to two plans
may be no more than 10% of annual salary.
z Vesting for both plans is 20% after 1 year, 40% after 2
and 60% after 3, 80% after 4 and 100% after 5 years.
SAP AG 1999
(C) SAP AG
HR325 6-4
Savings Set-Up
Category
SAVINGS
Plan Type
LONG
Plan
401K
Investment
group
401K
Employee
contribution
Pre
Employer
contribution
Vesting rule
SHRT
STSV
STSV
Post
Pre

5 year
XTRA
XTRA
Post
Post

1 year
1 year
R
SAP AG
Savings plans can be set up in many different ways. Above you can see two possible ways to set up a
savings plan.
The category Savings' is an integral part of the system. Plan type is defined in the Basic Settings in the
IMG.
The Plan, Investment group, Employee contribution, Employer contribution and Vesting rule are all set
up in the Savings plans section of the IMG.
(C) SAP AG
HR325 6-5
Savings Plans
Contents:
z Savings plan general data
z Employee and employer contributions
z Vesting
z Investments
z Combined contribution limits
SAP AG 1999
(C) SAP AG
HR325 6-6
Savings Plan Overview - Four Components
Employee
Employee
contribution
contribution
variant
variant
Employer
Employer
contribution
contribution
variant
variant
Savings
plan
3
Investment
Investment
group
group
Vesting
Vesting
rule
rule
SAP AG 1999
A savings plan includes up to four parts, as shown above. Depending on the savings plan your company
is offering, you might define just one or two, or up to all four parts.
The savings plan contribution may be an amount, a percentage of salary, a unit or any combination of the
three.
This may be either a pre-tax or post-tax deduction, or both.
Vesting rules can only be used if an employer contribution rule is also being used.
(C) SAP AG
HR325 6-7
Employee Contribution Variant, Grouping and Rule
Parameter
Parameter group
group
Employee
Employee
contribution
contribution
variant
variant
Employee
Employee
contribution
contribution Salary
Salary
grouping
group
grouping
group
(EECGR)
(EECGR)
Age
Age Seniority
Seniority
group
group
group
group
Employee
Employee contribution
contribution rule
rule
SAP AG 1999
The employee contribution variant defines what factors influence the employee contribution an
employee is entitled to in a savings plan. It may use a parameter group, as described above, and in
addition employee contribution groupings (feature EECGR for further differentiation between
employees, based on other employee criteria, such as geographical location, job classification, marital
status etc.).
The employee contribution rule then defines the actual employee contribution of the plan for an
employee who may have any combination of the above criteria. For each combination, you must define
an employee contribution rule.
(C) SAP AG
HR325 6-8
Employee Contribution Grouping Feature - EECGR

Employee
Employee contribution grouping
EE contr. grouping
OTHR
Text
Others
SING
Singles
Benefit
Benefit
area
area
Benefit
Benefit
plan
plan
Zip
Zip code
code
AREA1
AREA1
AREA2
AREA2
Benefit
Benefit
plan
plan
Family
status
Family
status
SING
OTHR
SING OTHR
ALL
ALL
Employee
Employee
group
group
Union
Union A
A Union
Union B
B
SAP AG 1999
The employee contribution grouping allows you to include other cost criteria, which are not included in
the employee contribution variant. This concept was covered in the Common concepts topic in the Basic
Settings unit.
The employee contribution grouping feature's technical name is EECGR.
The employee contribution grouping feature, as all other features, processes the data of an employee and
allocates him or her to the correct employee contribution grouping.
(C) SAP AG
HR325 6-9
Define EE Contribution Grouping & Set up Feature

Change View Benefit Employee Contribution Grouping
EE contr. grouping
OTHR
Text
Others
SING
Singles
Feature
Process feature EECGR: decision tree

EECGR
Employee Contribution Grouping

BAREA Benefit Area
99 Internation. Simple
After defining an employee

contribution grouping, you must
set up the EECGR feature.
BPLAN Benefit Plan

401K
FAMST
Marital status key

Marr.
OTHR
otherwise
SING
STSV
FAMST Marital status key
1
Marr.
OTHR
otherwise
SAP AG 1999
otherwise
...
SING

In this example, the feature is making decisions on benefit area (BAREA), benefit plan (BPLAN), and
marital status (FAMST).
The employee contribution groupings being assigned here are SING and OTHR.
You define the employee contribution groupings and set up the feature under Define employee groupings
Define employee contribution groupings in the Benefit IMG.
(C) SAP AG
HR325 6-10
Define Employee Contribution Rule
SAP AG 1999
Here, you define the actual employee contributions for each employee contribution variant for each plan.
First, you need to consider every variation of criteria that you have already defined in the employee
contribution variant. Then, for each possible combination of these criteria within the variant, you enter
the actual employee contribution.
You can define the minimum and maximum employee contribution limits for both regular payroll and
for bonus payments as a fixed amount, a percentage of salary, a contribution unit or any combination of
the three.
NOTE:
During enrollment, you can enter a contribution of 0 (zero), so that you can specifically record that an
employee has chosen not to participate in a plan.
NOTE:
During enrollment, when the employee enters his or her contribution, the limit check is only performed
within each contribution type (i.e. amounts are only checked against the limits specified for amounts,
percentage limits are only checked against the limits specified for percentages, etc.).
Instead of limits per period, you can also define annual contribution limits.
(C) SAP AG
HR325 6-11
Employer Contribution Variant, Grouping and Rule
Parameter
Parameter group
group
Employer
Employer
contribution
contribution
variant
variant
Employer
Employer
Seniority
Sequential
Age Seniority
Salary Age
contribution Salary
Sequential contribution
group
grouping
number
group
group
grouping group group group
number
(ERCGR)
(ERCGR)
Employer
Employer contribution
contribution rule
rule
SAP AG 1999
The employer contribution variant defines what factors influence the employer contribution an employee
is entitled to in a savings plan. It may use a parameter group, as described above, and in addition
employer contribution groupings (feature ERCGR for further differentiation between employees, based
on other employee criteria, such as geographical location, job classification, marital status etc.).
The employer contribution rule then defines the actual employer contribution of the plan for an
an employer contribution rule.
(C) SAP AG
HR325 6-12
Employer contribution group feature
Employer contribution group
Employee
Cost. Text
SING
Single
OTHR Others
Benefit
Benefit
area
area
Benefit
Benefit
plan
plan
Zip code
AREA1
AREA1
Family
status
AREA2
OTHR
SING OTHR
AREA2 SING
Benefit
Benefit
plan
plan
Family
status
ALL
ALL
Employee
Employee
group
group
Union
Union A
A
Union
Union B
B
SAP AG 1999
The employer contribution group feature's technical name is ERCGR.

The employer contribution group feature, as all other features, processes the data of each employee, one
at a time and allocates him or her to the correct employer contribution group.
The employer contribution group allows you to include other cost criteria, which are not included in the
employer contribution rule.
(C) SAP AG
HR325 6-13
Employer contribution group feature
Variable key
000010
C D Operations
D
BAREA
000020
**
BPLAN
000030
FAMST
000040
** 401K
** 401K 1
000050
** 401K *
000060
000070
** STSV
** STSV 1
000080
** STSV *
&ERCGR=SING,
&ERCGR=OTHR,
D
FAMST
&ERCGR=SING,
&ERCGR=OTHR,
000090
000100
000110
SAP AG 1999
This is how a feature is actually set up in the system.

In this example, the feature is making decisions on benefit area, benefit plan, and marital status.
This is the ERCGR feature.
(C) SAP AG
HR325 6-14
Employer contribution rule criteria
Benefit plan
401K
Standard 401K
ER contribution
ALL
ALL
from
to
01.01.1900 31.12.9999
Salary group
Age group
LOS group
<10
ER contr. group
Sequential no.
01
Formula basis
Period
01
Monthly
Contribution definition
Amount
Percentage rate
USD
Base salary
EE contribution
10,000.00 USD
Base salary
From
EE contribution
10.00 From
Contribution limit
Amount
Percentage rate
SAP AG 1999
Contributions and limits are valid for the specified period (e.g. monthly).
The employer contribution consists of one of the following:
- amount
- percentage of salary
- percentage of employee contribution
The employer contribution limit consists of one of the following;

- amount
- percentage of salary
- percentage of employee contribution
(C) SAP AG
HR325 6-15
Employer matching
3,500
3,500
3,500
Employee
contribution
3000
Employer
match
2000
1,750
1000
1,000
875
500
Contribution
Contribution
rules
Employer
match limit
01
01
350
02
02
250
03
03
SAP AG 1999
You can apply several employer matching rules at once to one employee contribution.To do this you use
the sequential number in the employer contribution rule.
The employer contribution rule criteria is defined under each sequential number. Each sequential number
is then applied separately to the complete employee contribution. The results from all the sequential
numbers are added together to form the total employer contribution.
Example:
y SEQ. NR. ER CONTR. LIMIT NET ER CONTR.
y 01 3,500 x 0.50 = 1,750
1000 1000
y 02 3,500 x 0.25 = 875
500
500
y 03 3,500 x 0.10 = 350
250
250
y
-------y TOTAL EMLPOYER CONTRIBUTION 1,750
NOTE:
y The SAP system offers only one solution to the many interpretations of employer matching. If your
company uses a different system to match employer contributions, you must implement a user exit.
For more information on user exits, search for User Exits in the Benefits IMG.
(C) SAP AG
HR325 6-16
Vesting rule and schedule
80%
60%
40%
20%
0%
1 year
2 years
3 years
4 years
5 years
SAP AG 1999
The vesting rule enables you to encourage company loyalty.

The vesting schedule represents availability of employer contributions to the employee over a period of
time.
Vesting applies only to the employer contribution. The employee always has full access to employee
contributions.
(C) SAP AG
HR325 6-17
Investment groups
Investment
Investment group
group 11
Gold
Gold bullion
bullion
Low
Low risk
risk // return
return
Investment
Investment group
group 22
Company
Company shares
shares
High
High risk
risk // return
return
SAP AG 1999
An investment group defines investment options within a savings plan.

When an employee enrolls in a savings plan, he or she can make choices about where contributions
should be invested.
(C) SAP AG
HR325 6-18
Assign savings plan attributes
Benefits savings plan

Benefit plan STSV
Standard Savings
01.01.1900
31.12.9999
Assigned rules
EE contribution rule
ALL
All
SAV
Savings
ER contribution rule
Vesting rule
Investment group
SAP AG 1999
This is the final step in defining a savings plan.

All the building blocks (employee contribution rule, employer contribution rule etc.) you have already
defined, are brought together here. Only the employee contribution rule is essential, the other three fields
may be left empty.
(C) SAP AG
HR325 6-19

for more than one savings plan
Define mathematical equations

in two IMG steps
Define combined
contribution limit
Define combined limit

expressions
SAP AG 1999
You can define employee saving contribution limits that span more than one plan.
The system will now check these limits whenever an employee makes any choices for benefits
enrollments. This gives you much greater control over the total contributions that an employee elects.
(C) SAP AG
HR325 6-20
Combined Contribution Limits for Savings
z Example 1:
Savings in Plan 1 and Plan 2 cannot exceed 10% of salary
Limit
Contribution
Plan 1
0.1 X Salary >=

Plan 2
SAP AG 1999
Combined contribution limits for savings plans are set up in two steps to form an equation.
In the first step you represent the left side of the equation as an amount or as a factor of a wage type,
along with the operator for the equation.
If you enter a factor of a wage type, it will probably be a wage type that is already in use in the benefits
set-up. If not, it will need to be set up by the payroll administrator.
You may enter a rounding rule and rounding divisor and an as of date.
The second side of the equation is the plan expressions.
Example:
y The employee's total contribution to Savings plan 1 and Savings plan 2 cannot exceed 10% of salary.
y 0.1 x salary
>=
(1.0 x SPL1) + (1.0 x SPL2)
See the Benefits IMG for further information. Search for Combined contributions'.
(C) SAP AG
HR325 6-21
z Example 2:
Savings in Plan 1 and Plan 2 cannot exceed 15,000
Limit
Contribution
Plan 1
$15,000 >=
Plan 2
SAP AG 1999
Example:
y The employee's total contribution to Savings plan 1 and Savings plan 2 cannot exceed 15,000.
y 15,000
>=
(1.0 x SPL1) + (1.0 x SPL2)
See the Benefits IMG for further information. Search for Combined contributions'.
(C) SAP AG
HR325 6-22
Savings plans: Unit Summary
z Savings plans consist of the following:

employee contribution rule
employer contribution rule
vesting rule and schedule
investment group
z Combined limits and wage types are assigned
after the plans have been set up.
SAP AG 1999
(C) SAP AG
HR325 6-23
Flexible Spending Accounts (FSAs - North America)
Contents:
z FSA general data
z Employer contribution
z Employee contribution limits
z Claims
SAP AG 1999
(C) SAP AG
HR325 7-1
FSAs: Unit Objectives

z Set up a Flexible Spending Account (FSA) that
includes:
Employee contribution limit
z Define receipt types for FSA claims processing.
SAP AG 1999
(C) SAP AG
HR325 7-2
FSAs: Course Overview Diagram (North America)
Benefits
Overview
Basic
Settings &
Common
Concepts
Health
Plans
Stock
Purchase
Plans
Flexible
Spending
Accounts
(North
America)
Credit
Plans
COBRA
(USA)
Benefits
Processing
Benefits
Processing
(North
America)
Insurance
Plans
Savings
Plans
Administration
Plans
Reporting &
Customizing
Tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 7-3
FSAs: Business Scenario
z Your company offers both dependent care and

health care FSAs.
z The dependent care FSA allows a maximum
annual contribution of 5,000 UNI.
z The health care FSA allows a maximum annual
contribution of 5,000 UNI.
SAP AG 1999
(C) SAP AG
HR325 7-4
FSA Setup
Category
FSA
FSA
Plan Type
HCAR
HCAR
DCAR
DCAR
Plan
HLTH
HLTH
DEPC
DEPC
Employer
contribution variant
FSA attributes
HCTR
HCTR
5,000
5,000 UNI
UNI
limit
limit
5,000
5,000 UNI
UNI
limit
limit
SAP AG 1999
Flexible Spending Accounts (FSAs) offer employees the opportunity to set aside pre-tax money for
eligible health care and/or dependent care expenses.
Above, you can see two possible ways to set up an FSA; with or without an employer contribution rule.
The category FSA' is pre-defined by SAP. The plan type is defined in the Basic Settings section of the
Benefits IMG.
The plan, employer contribution variant and rule (optional) building blocks are all set up in the FSA
section of the Benefits IMG.
(C) SAP AG
HR325 7-5
Flexible Spending Accounts (FSAs)
z tax-free dollars for health/dependent care

z minimum and maximum employee
contributions
Flexible Spending
accounts
z employer contribution variant

z current balance or annual contribution
available to employee
z claims from previous year

z reimbursements
SAP AG 1999
FSAs allow employees to set aside tax-free dollars for anticipated health and dependent care expenses.
Minimum and maximum contribution amounts are defined.
FSAs normally only have employee contributions. However, it is also possible to set up employer
contributions, if required.
The employee can access either the current account balance (dependent care) or the annual contribution
(health care), depending on the type of plan.
Claims from the previous year can be processed up to a specific date.
FSA claim processing allows claims to be recorded in the system, which the payroll can then access for
reimbursements.
(C) SAP AG
HR325 7-6
Define FSA General Data
Change View Benefit Flexible Spending Account General Data

Start
Benefit plan
DEPC Dependent Care Spending Acct
01.01.1900
End
31.12.9999
General data
Plan type
DCAR Dependent Care
Plan number
22333589889
Plan status
OP
Short text
Dep. Care
Open
Provider
SAP AG 1999
This is the first step in defining an FSA.

Here, you define the name and the characteristics of the FSA.
The setup of employer variants, groupings and rules is the same as in the savings plan category.
(C) SAP AG
HR325 7-7
Employer Contribution Variant, Grouping and Rule
Parameter
Parameter group
group
Employer
Employer
contribution
contribution
variant
variant
Employer
Employer
contribution
contribution Salary
Salary
group
grouping
group
grouping
(ERCGR)
(ERCGR)
Age
Seniority
Age Seniority
group
group
group
group
Employer
contribution rule
rule
SAP AG 1999
The employer contribution variant defines what factors influence the employer contribution an employee
is entitled to in a savings plan. It may use a parameter group, as described above, and in addition
employer contribution groupings (feature ERCGR for further differentiation between employees, based
on other employee criteria, such as geographical location, job classification, marital status etc.).
The employer contribution rule then defines the actual employer contribution of the plan for an
an employer contribution rule.
The definition of the employer contribution grouping as well as the setup of the ERCGR feature has
been explained in detail in the Savings Plans unit.
(C) SAP AG
HR325 7-8
Assign FSA Attributes

Change View Benefit Flexible Spending Account
Start
DEPC
Benefit plan
Dependent Care Spending Acct
01.01.1900
End
31.12.9999
Annual contribution limits

Minimum contribution
100.00 UNI
Maximum contribution
5,000.00 UNI
Here,
Here,you
you define
define the
the
annual
contribution
annual contribution
range
range allowed
allowedfor
for your
your
employees
employees by
byentering
entering
aa minimum
minimum and
andaa
maximum
contribution
maximum contribution
amount.
amount.
Off-cycle plan year

Plan year begin
Contribution variant
Reimbursement of claims
Reimburs. wage type
100.00 UNI
Min. reimbursement
Previous year claim to
Maximum availability
BE41
31
March
Curr.account balance
Annual contribution
SAP AG 1999
This is the final step in defining an FSA.

In this step, you define employee minimum and maximum annual contributions and the details of the
reimbursement of claims.
You can make use of an off-cycle plan year by defining the off-cycle plan year begin date to override the
calendar year as the cumulation year. If you leave these fields empty, the system always assumes
January, 1st.
If you have defined an employer contribution variant, you assign it here to the plan.
You have to define a wage type for the reimbursement of claims.
You can define a minimum claim amount before the employee can receive a reimbursement. The
exception to this is at year end, when all claims are settled.
You can also define how long an employee may still claim reimbursement for bills dating from the
previous year. The end of the grace period is defined by a day/month combination.
Under Maximum availability, you can specify whether the whole annual contribution (health care) or
only the current account balance (dependent care) is available for claims.
(C) SAP AG
HR325 7-9
Define Receipt Types for FSA Claims Processing

Change View Benefit Payment Receipt Type
Receipt type
DAYC
Text
Day care
DOCT
HOSP
Doctor visit
Hospital visit
MEDC
Medicine
FSA
FSA Claims
Claims Infotype
Infotype (0172)
(0172)
Create Spending Account Claims
Customizing
Customizing view
view
Personnel no
4401
Rose Salizar
Name
...
Plan type
Dependent Care
Benefit plan
Claim data
Claim date
15.12.1999
Date cost incurred
09.12.1999
300.00 UNI
Claim
Cancellation
Claim cancelled
Agreement to cancellation
Claim on hold
Receipt type
Daycare
Receipt number
Provider name
Spindles Kindergarten
SAP AG 1999
In this step, you enter the receipt types for FSA claims processing.
These receipt types can then be used in the FSA Claims records (infotype 0172) and are fully
customizable.
FSA claims processing will be covered in the Benefits Processing unit.
(C) SAP AG
HR325 7-10
FSA claims processing

00004401
Marita Bond
United States SubsidiActive employee

PSA 0001
343-43-4995
Salaried employees
Chngd 16.01.1998
Benefit plan type
DPSD
DEPEND CARE
Benefit plan
DPSD
DEPENDENT CARE SPENDING ACCT
WALDEN
Claim data
Claim submitted on
16.01.1998
Date cost incurred
16.01.1998
Cancellation
100.00
Claim
USD
Claim cancelled
Agreement to cancel
Claim on hold
DAYCARE
Receipt type
DAYC
Receipt number
Provider name
R
SAP AG
This is the FSA Claims (infotype 0172) where the receipt type is used.
FSA claims processing is covered in the Benefits processing unit. For more information on this subject,
refer to R/3 System online help: Benefits Administration. Search for FSA claim processing.
(C) SAP AG
HR325 7-11
FSAs: Unit Summary

z Set up a Flexible Spending Account
(FSA) that includes:

Employee contribution limit
z Define receipt types for FSA claims
processing.
SAP AG 1999
(C) SAP AG
HR325 7-12
Credit Plans
Contents:
z Credit plan general data
z Credit variants and rules
z Excess credit
SAP AG 1999
(C) SAP AG
HR325 8-1
Credit Plans: Unit Objectives
At the conclusion of this unit,

you will be able to:
z Set up a credit plan that includes a credit variant and
rule.
z Describe the relationship between credit plans and
other benefit plans.

z Explain the purpose of the excess field and
assign an excess percentage to a

credit plan.
SAP AG 1999
(C) SAP AG
HR325 8-2
Credit Plans: Course Overview Diagram
Benefits
Overview
Basic
Settings &
Common
Concepts
Health
Plans
Stock
Purchase
Plans
Flexible
Spending
Accounts
(North
America)
Credit
Plans
COBRA
(USA)
Benefits
Processing
Benefits
Processing
(North
America)
Insurance
Plans
Savings
Plans
Administration
Plans
Reporting &
Customizing
Tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 8-3
Credit Plans: Business Scenario
z Employees are allowed to use their credit to pay

for:
health plans
insurance plans
miscellaneous plans (only with costs)
z Each employee receives a certain percentage of

his/her base salary depending on their seniority
and on whether they are salaried or hourly paid
employees.
SAP AG 1999
(C) SAP AG
HR325 8-4
Credit Plan Setup
Category
CREDIT
CREDIT
Plan Type
CRED
CRED
Plan
FLEX
FLEX
Credit variant
SIMP
SIMP
SAP AG 1999
The category Credit is pre-defined by SAP. The plan type is defined in the Basic settings section of the
Benefits IMG.
The plan and the credit variant are both set up in the Credit plans section of the IMG.
(C) SAP AG
HR325 8-5
Define Credit Plan General Data
Change View Benefit Credit Plan General Data: Details

Start
Benefit plan
FLEX
01.01.1900
Flexible credit plan
End
31.12.9999
General data
Plan type
CRED Credit Plan
Plan status
OP
Open
Plan number
98897765
Short text
FlexCredit
Provider
SAP AG 1999
This is the first step in defining a credit plan.

Here, you define the name and the characteristics of the credit plan.
(C) SAP AG
HR325 8-6
Credit Variant, Grouping and Rule
Parameter
Parameter group
group
Credit
Credit
variant
variant
Credit
Credit
grouping
grouping
Salary
Salary
group
group
Age
Age Seniority
Seniority
group
group
group
group
Credit
Credit rule
rule
SAP AG 1999
The credit variant defines what factors influence the credit an employee is entitled to use for his/her
plans. It may use a parameter group, as described above, and in addition credit grouping (feature
CRDV1) for further differentiation between employees, based on other employee criteria, such as
geographical location, job classification, marital status etc.).
The credit rule then defines the actual credit for an employee who may have any combination of the
above criteria. For each combination, you must define a credit rule.
(C) SAP AG
HR325 8-7
Credit Grouping Feature - CRDV1

Employee
Benefit Credit Grouping
Credit grouping
HRLY
Description
Hourly paid
SLRY
Salaried
Benefit
Benefit
area
area
Benefit
Benefit
plan
plan
Zip
Zip code
code
Employee
group
Benefit
Benefit
plan
plan
Employee
group
AREA1
TEMP
HRLY SLRY
AREA1 AREA2
SLRY TEMP
AREA2 HRLY
Employee
Employee
group
group
Union
Union A
A
Union
Union B
B
SAP AG 1999
The credit grouping allows you to include other credit criteria, which are not included in the credit
variant.
The credit grouping feature's technical name is CRDV1.
The credit grouping feature, as all other features, processes the data of each employee, one at a time and
allocates him or her to the correct credit grouping.
(C) SAP AG
HR325 8-8
Define Credit Grouping & Set up Feature
Benefit Credit Grouping

Credit grouping
HRLY
Description
Hourly paid
SLRY
Salaried
Feature
Process feature CRDV1: decision tree

CRDV1
CRDV1 Credit grouping

BAREA Benefit area
After defining a credit

grouping, you must set up
the CRDV1 feature.
BPLAN Benefit plan
FLEX
X1 Hourly rate/wage
HRLY
SLRY
SAP AG 1999

In this example, the feature is making decisions on benefit area (BAREA), benefit plan (BPLAN), and
employee subgroup (PERSK).
The credit groupings being assigned here are HRLY and SLRY.
You define the credit groupings and set up the feature under Define employee groupings Define credit
groupings in the Benefits IMG.
(C) SAP AG
HR325 8-9
Credit Rules
Credit
Credit Grouping
Grouping
Union
Union A
A
Union
Union B
B
Salaried
Salaried
Hourly
paid
Seniority group
group
Seniority
00 -- 22
years
years
33 -- 55
years
years
66 -- 10
10
years
years
10>
10>
years
years
SAP AG 1999
You must define a credit rule for every possibility within the credit variant. If you have not defined any
criteria in the credit variant, you have to define exactly one rule for this variant.
An employee's personal data places him or her in exactly one of the credit rules.
Example:
y Each box in the diagram represents a credit rule.
y The dark box represents a credit rule applicable to employees:
Note:
(C) SAP AG
HR325 8-10
Assign Credit Plan Attributes

Define excess
Assign
Assign previously
previously
defined
defined credit
credit variant.
variant.
Plan
Text
FLEX
Flexible credit plan 01.01.1900
31.12.9999 CRV1
Credit variant 1
50
FLX1
Flex Credit Plan 1
01.01.1900
31.12.9999 CRD1
Credit variant Flex 1
50
FLX2
Flex Credit Plan 2
01.01.1900
31.12.9999 NEW
New variant
Start date
End date
CrdVar Credit variant text
Excess %
100
z Excess credit defined here for FLEX plan:

Return 50% of the excess credit.
SAP AG 1999
This is the final step in defining a credit plan. The credit variant which you have already defined is
assigned to the plan.
You can specify a return percentage for unused credit amounts. This employee percentage of excess
credit amount field refers to an employee's unused credit. If there is any credit remaining once other
plans have been paid for, the employee is entitled to receive the specified percentage of excess credit in
cash.
(C) SAP AG
HR325 8-11
Credit Examples
Plan
Credit
indicator
Cost
MED1
50
LIF1
10
CAR1
70
Credit
Excess
Credit
FLXA
100
50%
FLXB
30
100%
FLXC
200
30%
SAP AG 1999
Credit can be used to pay for health, insurance and miscellaneous plans (only with costs).
To indicate that a plan may be paid for with credits, the plan has the credit indicator selected when it is
first defined (See the IMG under Define health (etc.) plan general data).
Cost is defined in the cost variants for each plan. Credit is defined in the credit variant and excess credit
is defined in the credit plan.
Examples:
FLXA
FLXB
FLXC
y EE costs/
can use credits
50+70
= 120 50+70 = 120 50+70 = 120
y Credit
= 100
= 30
= 200
y Costs-credits
120-100
= 20 120-30 = 90 120-200
= -80
y Excess %
= 0
= 0 30% x -80
= -24
y EE cost/
cannot use credits
= 10
= 10
= 10
y EE pays 20+10 = 30 90+10 = 100 (30%x-80)+10 = -14
(C) SAP AG
HR325 8-12
Credit Plans: Unit Summary
z Set up a credit plan that includes a
credit variant and rule.

z Describe the relationship between
credit plans and other benefit plans.

z Explain the purpose of the excess field
and assign an excess percentage to a

credit plan.
SAP AG 1999
(C) SAP AG
HR325 8-13
Miscellaneous Plans
Contents:
z Miscellaneous plan general data

z Different kinds of plans using different
building blocks from other plan categories
SAP AG 1999
(C) SAP AG
HR325 9-1
Miscellaneous Plans: Unit Objectives
z Describe the different kinds of miscellaneous plans:
Cost/credit-relevant (providing a service)
Contribution-relevant (a financial plan)
z Set up a miscellaneous plan that includes
Cost variant
SAP AG 1999
(C) SAP AG
HR325 9-2
Benefits
Benefits
Overview
Overview
Stock
Credit
Purchase
plans
Plans
Benefits
Benefits
Reporting and
integration
Customizing
to Payroll
Tools
Basic Settings
Customizing
and Common
Benefits
Concepts
Health
Plans
Insurance
Plans
plans
Credit
Miscellaneous
Benefits
Administration
Plans
Plans
Administration
plans
processing
Savings
Savings
plans
Plans
Benefits
Reports
Processing
and tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 9-3
Miscellaneous Plans: Business Scenario
z Your company offers a company car. Employees
can choose between a standard and a luxury car.

Employees pay a higher premium if they live
beyond a 20 mile radius of the office.
z Your company also offers Health Club
membership. The flat monthly cost is the same for

all employees.
SAP AG 1999
(C) SAP AG
HR325 9-4
Miscellaneous Plan Setup
Category
MISCELLANEOUS
MISCELLANEOUS
Plan Type
CAR
CAR
CLUB
CLUB
CHAR
CHAR
Plan
CAR
CAR
CLUB
CLUB
CHAR
CHAR
CHAR
CHAR
Option
STRD
STRD
LUXY
LUXY
CLUB
CLUB
Cost variant
STRD
STRD
LUXY
LUXY
100
100 flat
flat amt.
amt.
5%
5% of
of salary
salary
10
10 UNI
UNI
SAP AG 1999
Miscellaneous plans allow you to administer plans that do not fit neatly into the other categories of
health, insurance, savings, stock purchase or credits. Examples of Miscellaneous plans are Company Car
or Health Club Membership.
Miscellaneous plans are the most versatile of plans because they can be set up using the five main
building blocks (cost variant, coverage variant, etc.) from all other plan categories.
Above, you can see three possible ways to set up a miscellaneous plan.
The category Miscellaneous is pre-defined by SAP. The plan type is defined in the Basic Settings section
of the Benefits IMG.
The building blocks are all set up in the Miscellaneous Plans section of the Benefits IMG.
(C) SAP AG
HR325 9-5
Define Miscellaneous Plan General Data

Change View Benefit Miscellaneous Plan General Data: Details
Start
Benefit plan
CAR
End
31.12.9999
01.01.1900
Company Car
General data
Plan type
CAR
Plan status
OP
Company Car
Open
Plan number
18897734
Short text
CompCar
Assign
Assign dependent/
dependent/
beneficiary
beneficiary group
group
Provider
MIscellaneous plan attributes

Dependent relevant
Benefic. relevant
Selection groups
Contingency benefic.
Contr. relevant
Cost/credit rel.
Cover. variant
Pre-tax allowed
EE contr. relevant
Cost variant
Post-tax allowed
ER contr. relevant
Credit variant
Credits allowed
Investments
Service
Service plan
plan
Set
Set up
up dependent/
dependent/
beneficiary
beneficiary group
group
feature
feature (RLPGR)
(RLPGR)
Vesting rule
Financial
Financial plan
plan
SAP AG 1999
Here, you define the name and the characteristics of a miscellaneous plan. You decide if the plan is:
- cost/credit-relevant (providing a service)
- contribution-relevant (a financial plan)
This defines which sections of miscellaneous plans must be set up in the Benefits IMG.
In the case of a cost/credit-relevant plan, you can define
y coverage/cost/credit variants and rules
In the case of a cost/credit-relevant plan, you can define
y employee / employer contribution variants and rules
y investments and investment groups
y vesting rules and vested portions
You specify if dependents, beneficiaries and/or contingency beneficiaries are relevant to the plan. You
can also restrict the number of possible dependents/beneficiaries by assigning a dependent/beneficiary
group to the plan. For this group, you then have to set up the RLPGR feature to dynamically sort
family/related persons (infotype 0021) into the correct group at enrollment. This has been explained in
detail in the Basic Settings & Common Concepts unit.
(C) SAP AG
HR325 9-6
Two kinds of miscellaneous plans
Credit by length of service

at 5 years, 10 years, ...
Coverage by amount ...
Flat Cost for club
membership ...
2% to 5% of salary
50% match, 100% match ...
Vesting at 25% after 2 years, 50%
after 4 years, 100% after 6 years
Savings investments in Equity
plan, Fixed Income plan, etc.
Cost/credit
> cost
> credit
> coverage
Contribution relevant
> employee contribution
> employer contribution
> vesting
> investments
SAP AG 1999
Other system parameters are set up in a similar way in following steps to permit maximum flexibility in
accommodating the wide variety of benefit plans:
- Define credit formulas and rules to determine what factors influence the credit allocated to an
employee.
- Define coverage formulas to determine what factors influence the amount of coverage an employee
receives.
- Define Employee contribution rules and rule criteria to determine how much the employee
contributes to contribution relevant plans.
- Define Employer contribution rules and rule criteria to determine how much the employer
contributes to contribution relevant plans.
- Define vesting rules and schedule.
- Determine investment options allowed.
(C) SAP AG
HR325 9-7
Miscellaneous Plans - Example
Far
over 20 miles from work
Define cost groupings,

by zip code (NEAR and FAR)
Near
20 miles or less from work
Define cost variants

(STRD and LUXY)
SAP AG 1999
The Company Car plan has two plan options: standard and luxury car. Each option has a flat monthly
cost, which varies according to how far employees live from their place of work.
The cost grouping feature is set up dividing employees by zip code for this plan:
y NEAR - employees living up to 20 miles from work
y FAR - over 20 miles from work
The 3 cost variants for the plan are set up as follows:
y STRD - Standard Car
period 'monthly' and cost grouping selected
y LUXY - Luxury Car
period 'monthly' and cost grouping selected
(C) SAP AG
HR325 9-8
Miscellaneous Plans - Example (Cont.)
Define cost rules
Cost variant
Cost grouping
160 UNI
180 UNI
300 UNI
330 UNI
SAP AG 1999
In the cost rule, you define the actual costs for a miscellaneous plan. For every possible combination of
criteria that you have defined in the cost variant, you enter the actual costs.
Example:
y The cost rules are set up as follows:
y STRD - NEAR: 160 UNI
y STRD - FAR: 180 UNI
y LUXY - NEAR: 300 UNI
y LUXY - FAR: 330 UNI
(C) SAP AG
HR325 9-9
Assign Miscellaneous Plan Attributes

Assign miscellaneous plan attributes
For
Forcost/credit-relevant
cost/credit-relevantplans,
plans,you
youcan
canassign:
assign:
cost variants
credit variants
coverage variants
For
Forcontribution-relevant
contribution-relevantplans,
plans,you
youcan
canassign:
assign:
EE contribution variants
ER contribution variants
investment groups
vesting rules
SAP AG 1999
In the final IMG step for Miscellaneous Plans, you define the plan's options and bring together all the
building blocks you have already defined before.
Depending on what kind of miscellaneous plan it is, the system only allows you to assign the correct
variant and rules:
- If the plan is cost/credit-relevant, you can assign cost, credit and coverage variants.
- If the plan is contribution-relevant, you can assign employee and employer contribution variants,
vesting rule and investment group.
(C) SAP AG
HR325 9-10
Miscellaneous Plans: Unit Summary
z Describe the different kinds of
miscellaneous plans:
Cost/credit-relevant (providing a service)
Contribution-relevant (a financial plan)
z Set up a miscellaneous plan that
includes
Cost variant
SAP AG 1999
(C) SAP AG
HR325 9-11
Contents:
z
Pre- and corequisite plans
Benefit programs
Eligibility and termination
Standard plans
Adjustment reasons
Administrative parameters
Forms
SAP AG 1999
(C) SAP AG
HR325 10-1
Flexible Administration: Unit Objectives

z Set up prerequisite and corequisite plans.
z Set up benefit programs.
z Set up eligibility and termination variants and rules.
z Define standard plans (default/automatic).
z Define adjustment reasons and permissions.
z Set up administrative parameters.
z Describe how to set up benefit
forms.
SAP AG 1999
All the settings made in this unit, can be found in the Benefits IMG under Flexible Administration.
(C) SAP AG
HR325 10-2
Flexible Administration: Course Overview Diagram
Benefits
Overview
Basic
Settings &
Common
Concepts
Health
Plans
Stock
Purchase
Plans
Flexible
Spending
Accounts
(North
America)
Credit
Plans
COBRA
(USA)
Benefits
Processing
Benefits
Processing
(North
America)
Insurance
Plans
Savings
Plans
Administration
Plans
Reporting &
Customizing
Tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 10-3
Pre- and Corequisite Plans: Topic Objectives
At the conclusion of this topic, you will be able to:

z Define and set up pre- and corequisite plans.
z Explain the difference between the every and any
requirements.
SAP AG 1999
All the settings made in this topic, can be found in the Benefits IMG under Flexible Administration
Prerequisites and corequisites.
(C) SAP AG
HR325 10-4
Pre- and Corequisite Plans: Business Scenario
z Certain insurance plans that your company offers

require the employee to be covered by other plans:
Under the terms of the Life Insurance Contract, in

your company an employee is required to have been
enrolled in the Basic life insurance plan before they
are permitted to enroll in the Supplemental life plan.
Under the terms of the Medical/Dental Insurance

Contract, your company cannot permit anyone to
enroll into the Dental plan without either first being
enrolled, or elect at the same time, the medical
coverage.
SAP AG 1999
(C) SAP AG
HR325 10-5
Prerequisite and Corequisite Plans
Prerequisite
Plan
Plan A
A
Corequisite
Plan
Plan A
A
Validity
begin
date
-1
Plan
Plan B
B
Prerequisite Plan B enrolled
in one day before validity
begin date of Plan A
Plan
Plan B
B
Corequisite Plan B enrolled
in or selected at the begin
date of the validity period of
Plan A
SAP AG 1999
For certain plans in which employees may enroll, you can define other prerequisite and/or corequisite
plans:
Example:
y Prerequisite plan B is a plan an employee must already be enrolled on the day before the validity begin
date of plan A. This condition is checked in enrollment.
y Corequisiste plan B is a plan which the employee must have selected or be enrolled in at the begin
date of the validity period of plan A. This condition is checked in enrollment. Checks that the
corequisite plan condition is still fulfilled at later points in time during the validity period of plan A
can be carried out using the Eligibility Monitor.
(C) SAP AG
HR325 10-6
Define Prerequisite and Corequisite Plan

Change View Benefit Prerequisite Plan: Overview
SLIF
Benefit plan
Supplemental Life Insurance
Plan
Plan is
is firmly
firmly required.
required. There
There is
is
no
other
plan
the
employee
can
no other plan the employee can
choose
choose as
as prepre- or
or corequisite.
corequisite.
Benefit Prerequisite Plan

PrereqPlan Text
DEPL
Dependent Life Insurance
ALIF
Additional Life Insurance
LIFE
Standard Life Insurance
Every plan required Any plan required
Plan
Plan belongs
belongs to
to aa group
group of
of
plans
of
which
an
employee
plans of which an employee
must
must choose
choose or
or have
have at
at least
least
one.
one.
Change View Benefit Corequisite Plan: Overview
DENT
Benefit plan
Benefit Corequisite Plan

Coreq.plan Text
STMD
Standard Medical Plan
MED2
Medical Plan 2
Every plan required Any plan required
SAP AG 1999
Define prerequisite plans:

y In the example shown above, for the employee to be able to enroll in the Supplemental Life Insurance
plan, he/she must already be enrolled in the Life Insurance plan and either Additional or Dependent
Life Insurance plan.
Define corequisite plans:
y In the example shown above, an employee wants to participate in Standard Dental plan. He/she must
also have selected either Medical Plan 1 or Medical Plan 2 at the time of enrollment into Standard
Dental.
(C) SAP AG
HR325 10-7
Programs, Eligibility, Termination: Topic Objectives

z Group employees into benefit programs.
z Interpret the features BENGR and BSTAT.
z Create a benefit program for a group of employees.
z Create eligibility and termination rules.
z Interpret the eligibility feature ELIGR and the
termination feature TRMTY.
z Define zip code groups as eligibility criteria.
z Describe actual hours used as an
eligibility criterium.
z Assign eligibility and termination
rules to plans within programs.
SAP AG 1999
Programs.
(C) SAP AG
HR325 10-8
Programs, Eligibility, Termination: Business Scenario
z Your company offers different benefit plans

depending on the type of employee.
z A particular plan is shared by different groups of
employees. Full time employees are eligible
immediately and part time employees have a
waiting period of 6 months until they are eligible.
Termination is in both cases immediate.
SAP AG 1999
(C) SAP AG
HR325 10-9
First Program Grouping Feature - BENGR

Employee
First Program Grouping

1st Program grouping
EXEC
1st PrGrp. text

Executives
SLRY
Salaried employees
HRLY
Hourly paid
Benefit
Benefit
area
area
Benefit
Benefit
plan
plan
Zip
Zip code
code
A
A
B
B
Benefit
Benefit
plan
plan
Employee
subgroup
Employee
subgroup
EXEC
EXEC SLRY
SLRY
HRLY
HRLY
Employee
Employee
subgroup
subgroup
Retired
Retired
Early
Early
retired
retired
SAP AG 1999
The first program grouping feature's technical name is BENGR.

The first program grouping allows you to sort employees into different groups, depending on which
plans you offer to different groups of employees.
The first program grouping is one dimension of the benefit program definition.
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.
(C) SAP AG
HR325 10-10
Define First Program Grouping & Set up Feature

Change View Benefit First Program Grouping
1st Program grouping 1st PrGrp. text
EXEC
Executives
SLRY
Salaried employees
HRLY
Hourly paid
Feature
Process feature BENGR: decision tree

BENGR
After defining a first program

the BENGR feature.
BENGR First program grouping

BAREA Benefit area
X1 Hourly rate/wage
HRLY
SLRY
otherwise
EXEC
SAP AG 1999
This is how a feature can actually be set up in the system.

In this example, the feature is making decisions on benefit area, employee group and employee
subgroup.
The first program groupings being assigned here are HRLY, SLRY and EXEC.
(C) SAP AG
HR325 10-11
Second Program Grouping Feature - BSTAT

Employee
Benefit Second Program Grouping

2nd Program group.
FULL
2nd PrGrp. text

Full Time
PART
Part Time
TEMP
Temporary
Company
Company
code
code
Employee
Employee
subgroup
subgroup
Hours per
week
Union
Union
A
A
Employee
Employee
subgroup
subgroup
B
B
FULL
FULL
PART
PART
Hours per
week
TEMP
TEMP
Employment
Employment
contract
contract
Clerical
Clerical Executive
Executive
SAP AG 1999
The second program grouping feature's technical name is BSTAT.

The second program grouping allows you to sort employees into different groups, depending on which
plans you offer to different groups of employees.
The second program grouping is one dimension of the benefit program definition.
(C) SAP AG
HR325 10-12
Define Second Program Grouping & Set up Feature

Change View Benefit Second Program Grouping
2nd Program group.
FULL
2nd PrGrp. text

Full Time
PART
Part Time
Feature
Process feature BSTAT: decision tree

After defining a second program
the BSTAT feature.
BSTAT
BSTAT Second program grouping

BAREA Benefit Area
WOSTD ? 20 Hours per week compared
with 20
< (smaller)
PART
otherwise
FULL
SAP AG 1999

In this example, the feature is making decisions on benefit area and hours per week.
The second program groupings being assigned here are PART and FULL.
(C) SAP AG
HR325 10-13
Macro Eligibility: Programs

Display IMG
First program grouping
Second program
program grouping
grouping
Second
EXEC
SLRY
HRLY
Basic Settings
Plans
Define administrative parameters
Prerequisites and corequisites
FULL
FULL
Programs
Define first program grouping
Define second program grouping
Employee eligibility
PART
PART
Participation termination
Define benefit programs
TEMP
TEMP
Program
Plan Var.
DENT ELI1
INS1 ELI1
LIFE ELI2
MED1 ELI2
...
...
SAP AG 1999
A program is a restricted list of plans available to a specific group of employees.

The features first program grouping and second program grouping place an employee into a particular
program.
You do not have to define a program for every combination of first program grouping and second
program grouping.
(C) SAP AG
HR325 10-14
Micro Eligibility: Variant and Grouping Definitions

Eligibility grouping
Employee
Group.
ALN
Description
Alien
CTZN
Citizen
NCTZ
No Citizen
Benefit
Benefit
area
area
Job
Job
key
key
Union
Union
number
number
Employee
group
Job
Job
key
key
Employee
group
Employee
Employee
group
group
Eligibility variant
Eligibility variant
ELI1
Description
Eligibility 1
ELI2
Eligibility 2
ELI3
ELI4
Eligibility 3
Eligibility 4
Eligibility rule
Waiting period
Minimum working time
Restrictions
SAP AG 1999
The benefit program gives the plans an employee is eligible for. This is macro eligibility.
The eligibility variants are applied to plans within a program to provide the micro eligibility.
Each employee can have a different eligibility rule depending on the combination of his or her eligibility
grouping and eligibility variant.
The eligibility grouping feature enables you to group employees according to their personal data.
The eligibility grouping feature's technical name is ELIGR.
(C) SAP AG
HR325 10-15
Define Eligibility Grouping & Set Up Feature

Change View Benefits Eligibility Grouping
Grouping
ALN
Description
Alien
CTZN
Citizen
NCTZ
No Citizen
Feature
Process feature ELIGR: decision tree

ELIGR
After defining an eligibility

the ELIGR feature.
ELIGR Eligibility grouping

BAREA Benefit area
RESIS Residence status
C
CTZN
N
NCTZ
otherwise
ALN
otherwise
SAP AG 1999

In this example, the feature is making decisions on benefit area (BAREA) and residence status (RESIS).
The eligibility groupings being assigned here are CTZN, NCTZ and ALN.
(C) SAP AG
HR325 10-16
Eligibility Rule
Eligibility
Eligibility variant
variant
grouping
Eligibility
ELI1
ELI1
CTZN
CTZN
ELI2
ELI2
ELI3
ELI3
Waiting period
Waiting period
Waiting period
Minimum
work hours
Minimum
work hours
Minimum
work
Restrictions
Restrictions
ELI4
ELI4
Display IMG
Waiting period
NCTZ
NCTZ
Waiting period
Waiting period
Minimum
work hours
Minimum
work hours
Restrictions
Restrictions
Minimum
working time
Restrictions
ALN
ALN
Wait
Minimum
work hours
Restrictions
Basic Settings
Plans
Display IMG
Programs
Define second program group.
Define eligibility groupings
Define eligibility variants
Actual hours
Define date types
Assign act. hours cond. to
Zip codes
Define zip code groups
Assign zip codes to groups
SAP AG 1999
Define eligibility rules
You have to define eligibility rules for every possible combination of eligibility variant and eligibility
grouping.
The eligibility rule consists of:
- waiting period
- minimum working hours
- age and zip code restrictions
Each eligibility variant must incorporate at least one eligibility grouping.
The eligibility variants are later assigned to plans in the benefit program. From there, the variant points
to different eligibility criteria, depending on the employees eligibility grouping. If the eligibility rules for
a particular eligibility variant and grouping combination has not been defined, then the employee is not
eligible for the plan.
(C) SAP AG
HR325 10-17
Macro Eligibility Linked to Micro Eligibility
Benefit Program
Plan
Variant
Variant
DENT
ELI1
Grouping ALN
INS1
LIFE
ELI1
ELI2
MED1
ELI2
...
...
ELI2
Waiting period
Variant
ELI2
Grouping CTZ
Waiting period
Hire date override
Enrollment
Minimum working time
Restrictions
SAP AG 1999
Within a program, you can use the eligibility variant to further restrict who may enroll in a particular
plan.
The eligibility variant is the link between macro and micro eligibility.
(C) SAP AG
HR325 10-18
Termination is Eligibilitys Mirror Image ...
Eligibility
Eligibility
Termination
Termination
SAP AG 1999
Termination is the mirror image of eligibility.

Just as eligibility determines when an employee starts participating in a benefit plan, termination defines
when he or she stops.
Major parts of the eligibility concept are also used for termination.
(C) SAP AG
HR325 10-19
Termination: Variant and Grouping Definitions
Employee
Termination grouping
Termination grouping Description
DTH
Death
EETM
ERTM
RETI
TTYP
Employee termination
Employer termination
Benefit
Benefit
area
area
Retirement
Standard Type
Action
Action
type
type
Employee
Employee
status
status
Action
reason
Action
Action
type
type
Action
reason
Action
Action
reason
reason
Termination variant
Termination variant
TRM1
Description
Termination 1
TRM2
Termination 2
TRM3
Termination 3
Termination rule
Coverage continuation period
Termination
SAP AG 1999
Termination and eligibility are set up symmetrically in the benefits system. Where an eligibility variant
specifies the waiting period before an employee may start participating in a benefit plan, termination
specifies when the employee stops participating.
The termination grouping feature enables you to group employees according to their personal data. The
termination grouping feature's technical name is TRMTY.
The termination variants are applied to plans.
Each employee can have a different termination rule depending on the combination of his or her
termination grouping and termination variant.
(C) SAP AG
HR325 10-20
Define Termination Grouping & Define Feature

Change View Benefits termination grouping
DTH
Description
Death
EETM
Employee termination
ERTM
RETI
Employer termination
Retirement
Standard Type
TTYP
Feature
Process feature TRMTY: decision tree

TRMTY
TRMTY Feature for Termination Type

BAREA Benefit area
MASSN Action type
After defining a termination

the TRMTY feature.
10
Leaving
MASSG Reason for action
01 Notice of termination by EE
EETM
02
Notice of termination by ER
ERTM
09 Death of employee
DTH
14
Early retirement
MASSG Reason for action
otherwise
RETI
SAP AG 1999

In this example, the feature is making decisions on benefit area (BAREA), action (MASSN) and action
reason (MASSG).
The termination groupings being assigned here are EETM, ERTM, DTH, and RETI.
(C) SAP AG
HR325 10-21
Termination Rule
Display IMG
Basic Settings
Plans
EETM
ERTM
DTH
RETI

Programs
Termination variant
variant
Termination
TRM1
TRM1
Coverage
continuation
Coverage
continuation
Coverage
continuation
Termination on
Termination on
Termination on
Coverage
continuation
Define second program group.

Termination on
Define termination groupings
Cov. continuation
TRM2
TRM2
Coverage
continuation
TRM3
TRM3
Coverage
continuation
Termination on
Termination on
Coverage
continuation
Coverage
continuation
Termination on
Termination on
Termination on
Define termination variants

Define termination rules
Coverage
continuation
Termination on
Coverage
continuation
Termination on
SAP AG 1999
For every possible combination of termination grouping and termination variant, you must define a
termination rule.
(C) SAP AG
HR325 10-22
Termination Variant in the Program
Benefit Program
Plan
Variant
DENT
INS1
TRM1
TRM1
LIFE
TRM2
MED1
...
TRM2
...
Term. variant
TRM2
Term. grouping EETM

Term. variant
TRM2
Term. grouping ERTM

Termination date override
Termination
SAP AG 1999
Within a program, you can use the termination variant to define when the plan participant terminates
enrollment.
(C) SAP AG
HR325 10-23
Eligibility and Termination Variants in the Program

Display IMG
Second program
program grouping
grouping
Second
EXEC
SLRY
Basic Settings
Plans
HRLY
FULL
FULL

Programs
Define second program grouping
PART
PART
Program
Plan Elig Term
TEMP
TEMP
DENT
INS1
LIFE
MED1
...
ELI1
ELI2
ELI1
ELI1
...
TRM1
TRM1
TRM2
TRM2
...
Define termination groupings
Define termination variants
SAP AG 1999
A benefit program is a list of benefit plans in which a member of a first program grouping and second
program grouping can participate, if they fulfill the eligibility rule requirements associated with the plan.
The program also displays the eligibility and termination variants associated with the plan.
(C) SAP AG
HR325 10-24
Standard Plans: Topic Objectives

z Describe the difference between automatic and
default plans.
z Define standard plans (automatic or default) for
each category.
z Display an overview of all standard plans per
benefit area and plan category/type.
SAP AG 1999
Standard selections.
(C) SAP AG
HR325 10-25
Standard Plans: Business Scenario
z Your company enrolls employees in the Standard

Medical, Standard Dental and Standard Insurance
plan by default, if they do not select an option by
the last day of the first month of employment.
SAP AG 1999
(C) SAP AG
HR325 10-26
Standard Plans
Automatic Coverage
Time
No consent or election
required
Default Coverage
Time
Temporary,
pre-election choice
SAP AG 1999
You can enroll employees in two varieties of Standard plans: automatic and default.
- Automatic plans refers to those plans you enroll an employee in, without requiring the person to
make any decision to enroll, or make any option choices. These plans are typically provided at no
extra cost to the employee, although this is not exclusively the case.
- Default plans are those the employee is enrolled in, typically before the Benefits office has received
the employee's enrollment form with his or her benefits choices. Default plans are particularly
useful for giving short-term coverage to new hires.
Both automatic and default plans can be changed in the open offer or in an adjustment offer.
(C) SAP AG
HR325 10-27
Define Standard Plan and Standard Plans Overview

Display IMG
Change View Benefits Standard Health Selection
Basic Settings
1stProgrGrp.
HRLY Hourly
2ndProgGrp.
FULL Full-time
Plan type
MEDI Medical
Benefit plan
MED1 Medical Plan 1
Option
OPT1 Option 1
Plans
Programs
Standard selections
Define standard health selections
Define standard insurance selections
Dependent cov.
EE
Processing type
Automatic plan
Employee only
Default plan
Define standard savings selections

Define standard stock purch. selections
Define standard spending acc. selections
Define standard credit selections
Define standard miscellaneous selections
Overview of standard selections
Standard Plans Overview

Standard plans
Benefit area
Plan category
A Health plan
1stProGrp
2ndProGrp
Plan type
Plan
EXEC
FULL
DENT
DENT Default plan OPT1
EE
MEDI
MED1 Default plan OPT1
EE
EE
DENT
DENT Default plan OPT1
EE
MEDI
EE
PART
EE
FULL
EE
PART
EE
PART
per
per benefit
benefit area
area and
and
plan
category/type
plan category/type to
to check
check
that
that your
your entries
entries for
for automatic
automatic
and
and default
default plans
plans are
are correct.
correct.
SLRY
HRLY
FULL
Enrol.type
Option Dep.cover.
SAP AG 1999
You can define standard plans for every combination of first and second program grouping, just as the
programs are defined.
Then you enter the plan and plan attributes in which the employee is enrolled during standard plan
processing. Here, you have to decide, whether it is an automatic or a default plan.
The Standard Plans Overview report gives you an overview of customized Standard Plans. You can use
it to check that the entries for default and automatic plans, under each benefit plan category are correct.
(C) SAP AG
HR325 10-28
Adjustment Reasons: Topic Objectives

z Give examples of life or work-related changes that
trigger benefit adjustment reasons.
z Give examples of ways employees may be grouped
into benefit adjustment groupings for processing of
benefit adjustment reason.
z Interpret the adjustment grouping feature EVTGR.
z Set up the permissions for a benefit
adjustment reason.
z Display an overview of all adjustment
permissions per benefit area
and plan category/type.
SAP AG 1999
Benefits adjustment reasons.
(C) SAP AG
HR325 10-29
Adjustment Reasons: Business Scenario
z Your company decides to define the following

adjustment reasons to trigger enrollment or changes
to enrollment:
Hiring
New dependent
Marriage
SAP AG 1999
(C) SAP AG
HR325 10-30
Adjustment Reasons and Adjustment Offer
Changes to enrollments for each adjustment reason:

z Life Event
z Work Event
Examples: Birth of a child, Marriage

Examples: Hiring, Organizational Reassignment
SAP AG 1999
Adjustment processing
y This functionality allows you to process changes to employee enrollments depending on the
permissions granted for each adjustment reason.
y An adjustment reason is a change in the employee's circumstances, that require changes to his or her
benefits elections. The adjustment might be a life change such as a new baby, or a work-related
change such as being hired in a new company or being promoted.
y Adjustment reasons allow you to track these occurrences, and make only those changes to employee
elections which are permitted according to company policy.
Before you begin this processing, an Adjustment reasons record (infotype 0378) must exist for the
employee. This might have already been created during HR Personnel Administration processing, or you
can create one manually in Managing Employee Master Data. This record is not required only if the
adjustment reason is defined in Customizing as an anytime adjustment reason, which permits changes
within no time limit.
(C) SAP AG
HR325 10-31
Adjustment Grouping Feature - EVTGR

Employee
Define Adjustment grouping
Adjustment grouping Text
FULL
Full time employees
OTHR
All other employees
Benefit
Benefit
area
area
Employee
Employee
group
group
Employment Employment
contract
contract
Union
Union
A
A
Employee
Employee
group
group
B
B
FULL
FULL
OTHR
OTHR
...
...
Employment
contract
...
...
...
...
SAP AG 1999
The adjustment grouping feature's technical name is EVTGR.

The adjustment grouping feature enables you to group employees according to their personal data.
For each combination of adjustment grouping and adjustment reason, you can later specify a set of
adjustment permissions.
This means that for different groups of employees who might, for example, experience the adjustment
reason New child', you can specify different event permissions.
(C) SAP AG
HR325 10-32
Event group feature
Employee
Benefit event group

Evtg. Text
FULL
Full time EEs
OTHR All other EEs

Benefit
Benefit
area
area
...
Employee
Employee
group
group
Employment Employment
contract
contract
Union
Union
A
A
Employee
Employee
group
group
B
B
FULL
FULL
OTHR
OTHR
...
...
Employment
contract
...
...
...
...
SAP AG
The event group feature's technical name is EVTGR.

The event group feature enables you to group employees according to their personal data.
The for every event group and every defined event, you later specify a set of event permissions.
This means that for different groups of employees who might, for example, experience the event New
child', you can specify different event permissions.
(C) SAP AG
HR325 10-33
Define Adjustment Grouping & Set Up Feature

Benefits Adjustment Grouping
Adjustment grouping Text
FULL
Full time employees
OTHR
All other employees
Feature
Process feature EVTGR: decision tree

EVTGR
EVTGR Adjustment grouping

BAREA Benefit area
After defining an adjustment

the EVTGR feature.
WOSTD ? 20Hours per week compared with 20
< (smaller)
OTHR
otherwise
FULL
SAP AG 1999

In this example, the feature is making decisions on benefit area (BAREA) and hours per week
(WOSTD).
The adjustment groupings being assigned here are FULL and OTHR.
(C) SAP AG
HR325 10-34
Adjustment Permissions
FULL
Adjustment
Adjustment
grouping
grouping
PART
Adjustment
Adjustment
permissions
permissions
TEMP
Display IMG
Adjustment
Adjustment
reason
reason
ORGC
Basic Settings
CHILD
MEDI
DENT
Plan
Plan type
type
Plans
Programs
Standard selections
Benefits adjustment reasons
Define ben. adj. groupings
Define ben. adj. reasons
Define adjustment permissions
Health plans
Insurance plans
...
Overview of adj. permissions
SAP AG 1999
The dark box represents a set of adjustment permissions applicable to employees who:
- are in adjustment grouping FULL
- have had a new child
- want to change a plan under plan type Medical Plan
(C) SAP AG
HR325 10-35
Define Adjustment Permissions
Adjust. reason
CHIL
New child born
Adj. grouping
FULL
Full time employees
Plan type
MEDI
Medical
Change
Add
Delete
Change
Increase
Decrease
Benefit plan
Depending
Depending on
on the
the plan
plan category,
category,
the
the relevant
relevant plan
plan building
building blocks
blocks
and
and fields
fields appear
appear on
on the
the screen
screen
and
are
ready
for
input
or
and are ready for input or not.
not.
Option
Dependent cov.
Dependents
Adjust. reason
CHIL
New child born
Adj. grouping
FULL
Full time employees
Plan type
LIFE
Life Insurance
Pre-tax ind.
Change
Add
Delete
Change
Increase
Decrease
Benefit plan
Insur. option
Addtl. units
Beneficiaries
Pre-tax ind.
SAP AG 1999
The permissions can be defined for each combination of adjustment reason, adjustment grouping and
plan type.
Depending on the plan category, the following permissions are possible:
y Substitute current plan with a plan of this plan type
y Enroll in a plan
y Terminate participation in a plan
y Change
- plan option
- dependent coverage
- dependents/beneficiaries
- investments
- from pre-tax to post-tax contributions and vice versa
- the indicator for start post-tax immediately
y Decrease or increase
- pre-/post-tax contributions
- additional units
(C) SAP AG
HR325 10-36
Administrative Parameters: Topic Objectives

z Explain what the following administrative
parameters do:
Open enrollment period
Infotype validity for

open enrollment
adjustment/standard plan processing
Years in advance
Age limits for dependents
Actual hours
SAP AG 1999
Define administrative parameters.
(C) SAP AG
HR325 10-37
Administrative Parameters: Business Scenario
z Your companys open enrollment period is 1st to

30th of November.
z Employees are enrolled for the coming year, 1st
January to 31st December.
z Dependents may be enrolled up to the age
of 18, or 22 if a full-time student.
SAP AG 1999
(C) SAP AG
HR325 10-38
Parameters for open and event offers

z Open enrollment:
regular period when employees
are allowed to select new benefit
plans.
z Event enrollment:
changes because of specific
changes in employees
circumstances.
z The system calculates an offer,
which lists the plans an employee
is eligible to enroll in.
SAP AG
Open offer
This is an offer of all benefits the employee is eligible for at open enrollment. The system automatically
calculates and presents the options, so that the employee can then make benefits choices.
Event offer
This can be identical to (in the case of a new hire) or a restricted version (as in a new baby) of the open
offer. In principle the event offer works the same way, except the choices the employee is given can be
restricted by permissions defined in the event customizing.
(C) SAP AG
HR325 10-39
Administrative Parameters for Benefit Area
Benefit
Benefit area
area
Is
Is there
there an
an open
open enrollment
enrollment period?
period?
No
Yes
Define
Define validity
validity
of
of records
records
created
created during
during
adjustment/standard
adjustment/standard
plan
plan processing
processing
Define
Define window
window
of
of open
open
enrollment
enrollment
Define
Define validity
validity
of
of records
records
created
created during
during
open
open enrollment
enrollment
Define
Define length
length of
of notice
notice
given
given for
for future
future plans
plans
Define
Define age
age limits
limits for
for
dependents
dependents
SAP AG 1999
If your company has no open enrollment period, you do not define any details for the open enrollment.
Open offer is an offer of all benefit plans the employee is eligible for at open enrollment. The systme
automatically calculates and presents the options, so that the employee can then make benefit plan
choices.
Adjustment offers can be identical to or a restricted version of the open offer. In principle, the
adjustment offer works the same way, except the choices the employee is given can be restricted by
permissions defined in the Adjustment reason section of the Benefits IMG.
Standard plans are default and automatic plans.
Automatic plans are those which employees are enrolled in, without the requirement that they consent or
make any elections within the plan.
Default plans are those which employees are temporarily enrolled in, before they have handed back in
their election choices. Default plans are useful for giving short-term coverage to new hires.
(C) SAP AG
HR325 10-40
Flexible Administration: Unit Summary
You are now able to set up:

z Prerequisite and corequisite plans
z Administrative parameters
z Benefit programs
z Eligibility and termination rules
z Standard plans
z Adjustment reasons
z Forms
SAP AG 1999
(C) SAP AG
HR325 10-41
COBRA (USA)
Contents:
z
COBRA plans
Qualifying events
Event coverage periods
Notification and payment intervals
Processing parameters
Early termination reasons
SAP AG 1999
(C) SAP AG
HR325 11-1
COBRA: Unit Objectives

z Define COBRA plans.
z Define qualifying event coverage periods.
z Assign COBRA events to personnel actions.
z Define notification and payment intervals.
z Define processing parameters.
z Define early termination reasons.
z Describe how COBRA forms are set up.
SAP AG 1999
All the settings made in this topic, can be found in the Benefits IMG under COBRA.
(C) SAP AG
HR325 11-2
COBRA: Course Overview Diagram (USA)
Benefits
Overview
Basic
Settings &
Common
Concepts
Health
Plans
Stock
Purchase
Plans
Flexible
Spending
Accounts
(North
America)
Credit
Plans
COBRA
(USA)
Benefits
Processing
Benefits
Processing
(North
America)
Insurance
Plans
Savings
Plans
Administration
Plans
Reporting &
Customizing
Tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 11-3
COBRA: Business Scenario
z By law, your company must offer continuation of

health benefits to employees who have
experienced a COBRA qualifying event.
z By law, your company must also
send a letter notifying the individual
of qualification for COBRA.
SAP AG 1999
(C) SAP AG
HR325 11-4
COBRA Qualifying Event System Criteria
COBRA
Qualifying Event
Master Data Record

in Selection Period
Termination of
employment
Personnel action (0000)

e.g. termination
Death of employee
Personnel action (0000)

e.g. termination
Reduction in
work hours
1. Planned working time (0007)

reduction in hours or
2. Personnel action (0000)
e.g. reduction in hours
Additional personal data (0077)
Medicare checkbox - change
from blank to checked
Entitlement to
Medicare
Divorce
Legal separation
Current Health COBRA Setup

Plan Records
in IMG
Termination +
reason death
Termination +
reason = death
2. Reduced
1. Eligibility rule
for existing health hours personnel
action (optional
plan - req. hours
above employee's setup)
Family/related person (0021)

new subtype 10 divorced spouse,
subtype 1 delimited
Legal separation (0021/0106)
Loss of
dependent status
Family/related person (0021/0106)

birthday of dependent: user defined
during qualifying event collection
Bankruptcy of
employer
Employment status 2 (Retiree)

on personnel action infotype record
SAP AG 1999
A COBRA qualifying event is legally pre-defined.

The system looks at the employee's master data records to establish if a COBRA qualifying event has
occurred.
The system looks for COBRA valid plans in which the employee is enrolled.
The system distinguishes between death of employee and termination of employment via the set-up of
COBRA qualifying event and reason in the IMG.
(C) SAP AG
HR325 11-5
Assign COBRA Events to Personnel Actions
Change View COBRA Events / Personnel Action Assignment

Act.
Name of action type
ActR
Name of reason for action
Event type Text
10
Leaving
02
Notice of termination by ER
01
Termination of employment
10
Leaving
03
Dismissal
01
10
Leaving
09
Death of employee
03
Death of employee
10
Leaving
20
Immediate termination
01
30
Change in employ...
02
Full-time to part-time
01
Reduction in work hours
...
...
...
...
...
...
SAP AG 1999
Here, you define how the system recognizes COBRA-qualifying events from employee Personnel events
(Infotype 0000) records. In principle, you assign COBRA event types to Personnel events. The COBRAqualifying event types that you assign in the example shown above are:
y Termination
y Death of employee
y Reduction in work hours
(C) SAP AG
HR325 11-6
Choose COBRA Plans
Change View Benefit Plan COBRA Relevancy

Plan
Extension period
Start date
End date
DENT
07.04.1986
31.12.9999
MED1
Medical Plan 1
07.04.1986
31.12.9999
MED2
Medical Plan 2
07.04.1986
31.12.9999
MEDS
Medical for Singles
07.04.1986
31.12.9999
SDNT
Suppl. Dental Plan
07.04.1986
31.12.9999
VISI
Vision Plan
07.04.1986
31.12.9999
COBRA applicability
SAP AG 1999
In this step, you select those health plans that you have already defined in the system, that are COBRArelevant.
This means that when a Human Resources Representative collects COBRA Qualified Beneficiaries, the
system will only consider employee enrollments in the plans you select here, as legitimate cases where
COBRA must be offered to the employee.
Only the plans selected here will be available for election in the COBRA offer.
(C) SAP AG
HR325 11-7
Define Qualifying Event Coverage Periods
Change View COBRA Maximum Coverage Period

Event type
Start date
End date
01
07.04.1986
31.12.9999
18
11
02
Reduction in work hours
07.04.1986
31.12.9999
18
11
03
Death of employee
07.04.1986
31.12.9999
36
04
Entitlement to Medicare
07.04.1986
31.12.9999
36
05
Type
Period
Extension period
Divorce
07.04.1986
31.12.9999
36
06
Legal separation
07.04.1986
31.12.9999
36
07
Loss of dependent status
07.04.1986
31.12.9999
36
08
Bankruptcy of employer
07.04.1986
31.12.9999
36
...
...
...
...
...
SAP AG 1999
Here, you define the events which qualify an individual for COBRA enrollment and the period of
permitted coverage depending on the qualifying event type.
There are 8 legally defined qualifying event types. The SAP standard system contains those 8 standard
qualifying event types and the legally required minimum coverage for each. You are responsible for
maintaining these entries.
The regular 18-month continuation coverage period can be extended for up to 11 months if a qualified
beneficiary is determined disabled under the Social Security Act at any time during the first 60 days of
COBRA coverage. The 11-month extension is available to all individuals who are qualified beneficiaries
due to the COBRA qualifying event. The disabled individual can be a covered employee or any other
qualified beneficiary.
(C) SAP AG
HR325 11-8
Define Notification and Payment Intervals

State Description
Start date
End date
07.04.1986 31.12.9999
CA
California
District of Columbia 07.04.1986 31.12.9999
DC
Change View COBRA Administrative Data

Start
State
DC
District of Columbia
07.04.1986
End
31.12.9999
Payments
Notification periods
Election period
60
Days
Payment grace period
45 Days
Employer
30
Days
Monthly payments
30 Days
Administration
14
Days
Payment due date
Beneficiary
60
Days
Notification of disability
of month
Fees
Disability
60
Days
End of disability
30
Days
Regular period
102
Disability extension
150
SAP AG 1999
This information can be defined for each US state, since state law regarding COBRA may vary.
The entry for DC is delivered in the standard and is also the default entry for states not defined here.
(C) SAP AG
HR325 11-9
Define Processing Parameters
Change View Benefit area COBRA processing parameter
Benefit area
99
Internation. Basic
For COBRA-relevant event types

End of employment
Work reduction
Death of employee
Medicare
Divorce
Legal separation
Loss depend. status
ER bankruptcy
Cutoff date bankrupt
Other data - COBRA Administration

Residence status that excludes COBRA
Start COBRA when loss of coverage
SAP AG 1999
Here, you define the COBRA qualifying event that you want to collect on a regular basis. Typically a
Human Resources Representative will collect all COBRA qualified beneficiaries, who have experienced
any COBRA event except Bankruptcy of employer.
You can also define a residence status of individuals who are not eligible for COBRA. These individuals
must have a Residence status (Infotype 0094) record, of the type defined here in this view.
You define when the COBRA eligibility period starts. This can start once the event has occurred, or once
regular coverage has stopped. The COBRA event date and the end date of the regular health plan can
differ if the termination rule associated with the health plan allows for continuation of regular coverage
beyond the COBRA event date (e.g. until the end of the current month).
(C) SAP AG
HR325 11-10
Define Early Termination Reasons

Change View COBRA Early Termination Reason
Reason
Text
01 Dependent makes no payment
02 Obtained other coverage
COBRA Qualified Beneficiary (Infotype 0211)

Personal data
Beneficiary
Type of person
SSN
D.o.birth
Participation data
Administrative date
COBRA status
Reason
Reply date
BenArea
Dependent makes no payment
Obtained other coverage
1stProGrp
2ndProGrp
State
Event data
Event type
Event occured
2nd event
Notification
SAP AG 1999
Early termination reasons can be stored in the COBRA infotype (0211).

This is to record why enrollment in COBRA was terminated, if this was before the normal coverage
period was over.
(C) SAP AG
HR325 11-11
COBRA: Unit Summary

z Define COBRA plans.
z Define qualifying event coverage periods.
z Assign COBRA events to personnel
actions.
z Define notification and payment intervals.
z Define processing parameters.
z Define early termination reasons.
z Describe how COBRA forms are set up.
SAP AG 1999
(C) SAP AG
HR325 11-12
Benefits Processing
Contents:
z Enrollment
z Eligibility
z Insurability
z Termination
z Benefits ESS Scenarios
z Data transfer to provider
z Benefits payments report
SAP AG 1999
(C) SAP AG
HR325 12-1
Benefits Processing: Unit Objectives

z Enroll employees in benefit plans.
z Monitor employee eligibility.
z Process evidence of insurability
(EOI).
z Terminate employee enrollments.
z Describe the Benefits ESS scenarios.
z Describe the data transfer to
providers.
z Describe the benefits payments
report.
SAP AG 1999
(C) SAP AG
HR325 12-2
Benefits Processing: Course Overview Diagram
Benefits
Overview
Basic
Settings &
Common
Concepts
Health
Plans
Stock
Purchase
Plans
Flexible
Spending
Accounts
(North
America)
Credit
Plans
COBRA
(USA)
Benefits
Processing
Benefits
Processing
(North
America)
Insurance
Plans
Savings
Plans
Administration
Plans
Reporting &
Customizing
Tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 12-3
Benefits Processing: Business Scenario
z A new employee is hired and must be enrolled in a

health plan.
z You need to verify the employee is still eligible for
his/her current benefit plans.
z You need to record EOI in the system.
z You need to terminate an employees participation
in a benefit plan.
SAP AG 1999
(C) SAP AG
HR325 12-4
Enrollment II
System
checks
...
Maintain Health Plan
Pers.no.
4401
Miss Rose Salizar
Plan
Medical for Singles
From
01.01.2000 - 31.12.2000
Stop participation in period
Doubleclick on
plan you
wish to
enroll in
Option
Plan options
Option
Special Option
Dependent cov.
Employee only
Costs UNI Semi-monthly

Employee
541.67
Employer
108.33
Accept
Deducs.pre-tax
Election of plan option, dependents, etc.
Plan dialog box
EOI
EOI
Pre
Pre &
& corequisites
corequisites
Combined
Combined
contributions
contributions
Combined
Combined
coverages
coverages
...
...
Employee
enrolled in plans
Credit plan
(Infotype 0236)
Insurance plan
(Infotype 0168)
Health plan
(Infotype 0167)
Plan option
Dependents
Costs
SAP AG 1999
From the plan list, you choose one or several plans you want to enroll your employee in. For each plan,
you receive a plan dialog box, where you make elections like plan option, costs, dependents etc.
The system carries out different checks and creates the corresponding infotypes.
In the case of an adjustment offer, the system checks that the employee has a valid Adjustment reason
record (infotype 0378) and creates a unique adjustment offer, for every employee according to their
eligibility and the adjustment permissions.
Under Benefits Group enrollment, you can enroll a group of employees in automatic and default
plans.
(C) SAP AG
HR325 12-5
Open offer processing

Benefits
Current benefits
Open offer
Event offer
Eligibility
Insurability
Open offer created System

all changes permitted checks
General ben. data
(Infotype 0171)
Open
Open Enrollment
Enrollment
period
period
EOI,
EOI,
Pre
Pre &
& corequisites,
corequisites,
Combined
Combined
contributions
contributions and
and
coverages.
coverages.
Employee
enrolled in plans
Credit plan
(Infotype 0236)
Insurance plan
(Infotype 0168)
Health plan
(Infotype 0167)
Plan option
Dependents
Costs
SAP AG
The Open offer button allows you to enroll employees during your company's open enrollment period.
The system checks that processing is taking place in the open enrollment period, and creates a unique
open offer for every employee, according to their eligibility.
The system carries out its normal checks and enrolls employees according to their benefits choices.
(C) SAP AG
HR325 12-6
Eligibility
Benefits
Enrollment
Termination
Eligibility
Credit plan
(Infotype 0236)
Insurance plan
(Infotype 0168)
Health plan
(Infotype 0167)
System
checks
Plan option
Dependents
Costs
Benefit
Benefit area
area
1st
1st program
program
grouping
grouping
2nd
2nd program
program
grouping
grouping
Eligibility
Eligibility rule
rule
Corequisites
Corequisites
...
...
Plans listed for

which employee
no longer eligible
and reasons for
ineligibility
Eligibility check
8.9.99
Validity
Reason for
ineligibility
Employee
enrollments
terminated
Credit plan
(Infotype 0236)
Health plan
(Infotype 0167)
Plan option
Dependents
Costs
SAP AG 1999
The Eligibility Monitor allows you to find employees that are no longer eligible for the plans they are
participating in.
The system checks that the employee's plan is in the program defined for her benefit area/first and
second program grouping combination, stored on her General Benefits Data (infotype 0171) record.
Then the system checks that the employee fulfills the plan's eligibility rule and that the corequisite plan
requirements are fulfilled.
The system displays the reason for ineligibility for each plan an employee is no longer eligible for.
The default date for the termination of enrollments is the day before the date of processing, but you can
overwrite this date.
(C) SAP AG
HR325 12-7
Insurability
Benefits
Enrollment
Termination
Eligibility
Insurability
Plans requiring EOI

Insurance plan
(Infotype 0168)
Health plan
(Infotype 0167)
Insurability proven
Stop participation
Status Option
Insurability on 08.09.1999
4401 Rose Salizar
Medical Plan 2
4411 Chris Smith
Standard Life Ins.
Medical Plan 2
4412 Alan Miller
Altern. Life Ins.
4413 Peter Banks
Stand. Life Ins.
Altern. Life Ins.
End of grace period
Stop participation
or
Option 2
09.05.1999
Coverage Level 1
Proven
Option 2
09.05.1999
Coverage Level 2
01.12.1999
Coverage Level 1
01.08.1999
Coverage Level 2
01.10.1999
Provide EOI
Insurance plan
(Infotype 0168)
Health plan
(Infotype 0167)
Plan option
Record is locked
Dependents
Active
Pending
Costs
Plan option
Dependents
Costs
Insurability proven
Grace period expired
Insurability not proven
x
Statement required
Insurability proven
x
x
Statement required
Insurability proven
SAP AG 1999
For certain levels of plan coverage, employees are required to provide proof of their insurability. This is
usually done in the form of a document called Evidence of Insurability (EOI).
The EOI Monitor allows you to keep track of employees who have not yet provided this evidence to the
employer.
You can confirm that EOI has been provided and if necessary activate pending enrollments.
You can further manage EOI by terminating employee enrollment, when the employee has not provided
EIO within the grace period.
(C) SAP AG
HR325 12-8
Termination
Benefits
Enrollment
Termination
Plans listed in which

the employee is
participating
4401
Savings plan
(Infotype 0169)
Insurance plan
(Infotype 0168)
Health plan
(Infotype 0167)
Plan option
Dependents
Costs
Employee
participation
terminated
01.10.1999 - 27.12.1999
Termination for
Rose Salizar
on
08.09.1999
Valid from
Dental
Action
01.01.2000-31.12.2000 Terminate on
08.09.1999
01.01.2000-31.12.2000 Terminate on
30.12.2000
Standard Life Insurance 01.01.2000-31.12.2000 Terminate on
31.01.2000
Medical
Medical Plan 1 Plan
Life Insurance
Savings
Standard Savings Plan 01.01.2000-31.12.2000 Terminate on
08.09.1999
Savings plan
(Infotype 0169)
Health plan
(Infotype 0167)
Plan option
Dependents
Costs
Change Selection Date

Selection date
31.05.2000
Default termination date

can be overwritten
SAP AG 1999
Participations are selected according to employee and you can terminate individual participations or
many for groups of employees.
The default termination date is the date defined by the termination rule for the plan. This date can also be
overwritten.
(C) SAP AG
HR325 12-9
Benefits Processing: Unit Summary
You are now able to :

z Enroll employees in benefit plans.
z Monitor employee eligibility.
z Process evidence of insurability (EOI).
z Terminate employee enrollments.
z Describe the Benefits ESS Scenarios.
z Describe the data transfer to providers.
z Describe the benefits payments report.
SAP AG 1999
(C) SAP AG
HR325 12-10
Benefits Processing (North America)
Contents:
z FSA processing (North America)
z COBRA processing (USA)
SAP AG 1999
(C) SAP AG
HR325 13-1
Benefits Processing (North America): Unit Objectives

z Enroll an employee in a Flexible Spending
Account (FSA).
z Enter an FSA claim.
z Terminate an employee and collect
the COBRA event.
SAP AG 1999
(C) SAP AG
HR325 13-2
Benefits Processing (North America):

Benefits
Overview
Basic
Settings &
Common
Concepts
Health
Plans
Stock
Purchase
Plans
Flexible
Spending
Accounts
(North
America)
Credit
Plans
COBRA
(USA)
Benefits
Processing
Benefits
Processing
(North
America)
Insurance
Plans
Savings
Plans
Administration
Plans
Reporting &
Customizing
Tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 13-3
Benefits Processing (NA): Business Scenario
z Some of your employees are enrolled in a

dependent care FSA. As claims are submitted,
you process them weekly, and then employees
are reimbursed through payroll in the next payroll
run for their payroll area.
z In order to ensure swift processing of COBRA
qualified beneficiaries, you collect COBRA
qualifying events on a weekly basis.
SAP AG 1999
(C) SAP AG
HR325 13-4
Flexible Spending Accounts (North America)
z Process employee claims on money

saved in FSAs.
z Monitor the balance on the
accounts.
z Allow a grace period to submit
claims for expenses incurred in the
preceding year.
SAP AG 1999
The money set aside in an employee's Flexible Spending Account (FSA) must also be accessible for
costs that occur during the course of the year. The FSA component allows you to process the claims
employees make on the money saved in FSAs. You can monitor the balance on the account and also
allow a grace period during which employees are still allowed to submit claims for expenses incurred in
the preceding year.
Processing allows you to look at FSA plan enrollments and display the balance on the account.
(C) SAP AG
HR325 13-5
FSA Claims Processing I
Employee has
spending
account
Employee
brings claim to
benefits office
Flexible Spending
Account
(Infotype 0170)
FSA Claims
record created
Payment records
can be accessed
by payroll
FSA Claims
(Infotype 0172)
Annual
contribution
Claim amount
Payroll
Payroll
Receipt type
Validity dates
Receipt
Receipt
SAP AG 1999
You find this function in the Benefits menu under Benefits Administration Flexible spending
account claims.
Within FSA claims processing, you can do the following;
- Display and change the employee contribution (Infotype 0170)
- Enter a claim (Infotype 0172)
- Cancel a claim
- Register an employee's agreement
- Display the balance on the employee's account.
The payroll then processes this information.
(C) SAP AG
HR325 13-6
FSA Claims Processing II
Create Spending Account Claims

Personnel no
4401
Name
Rose Salizar
...
Plan type
Dependent Care
Benefit plan
Claim data
Claim date
15.12.1999
Date cost incurred
09.12.1999
Cancellation
Claim cancelled
300.00 UNI
Claim
Agreement to cancellation
Claim on hold
Receipt type
Daycare
Receipt number
Provider name
SAP AG 1999
This is where the FSA claim (infotype 0172) is entered.

The Claim date is the date on which the employee submits the claim to the Benefits office.
The Date cost incurred is the date the cost was incurred. This is often the date on the receipt.
The Claim on hold flag shows whether a claim has the status pending, e.g. if an employees claim
needs further investigation before it can be accepted and processed.
(C) SAP AG
HR325 13-7
COBRA Administration I
z Qualifying event collection

z COBRA letter generation
z Participation
z Payments
z Cost summary
z Election period monitor
...the company offers you three plans

for the continuation of your health
coverage after termination...
SAP AG 1999
COBRA processing consists of four clearly demarcated areas:

- Event collection
- Letter generation
- Participation in COBRA health plans
- Registering of payments
Now you can modify COBRA notices and even replace the SAP Standard COBRA letter generation with
a user exit. The user exit (PCOB0001 - COBRA letter) enables you to enter your own code to manage
your unique COBRA letters. You can generate correspondence for new COBRA events only or for all
COBRA events.
(C) SAP AG
HR325 13-8
COBRA Administration II
...
COBRA
Collect events
Create letters
Participation
Payments
Cost summary
Qualifying
Qualifying
event
event
occurs
occurs
Election period monitor
...
Create
Create Infotype
Infotype
...
Family/related person
(Infotype 0021)
Events
(Infotype 0000)
Personnel event
Status
COBRA
(Infotype 0211)
Qualifying event
collection
Event Data
COBRA data
Print
Print COBRA
COBRA letter
letter
Organizational
assignment
SAP AG 1999
COBRA qualifying events may occur, which cause employees to lose group health care coverage.
The system identifies the employees who have experienced COBRA qualifying events.
You can print COBRA letters which consist of a notice of continuation rights, COBRA election and
COBRA enrollment forms, which can be sent out to the qualified beneficiaries concerned.
The system simultaneously and automatically creates a COBRA infotype record (0211) record for each
beneficiaries concerned.
While the system prints the COBRA letters, it also delimits existing health plans, according to the
termination variant associated with the plan in the benefit program.
In addition, the system transfers the possible dependents of each COBRA qualified beneficiary from
infotpye 0021 to the COBRA Dependent of Qualified Beneficiary table. Later on, it is possible to add
persons to the list of COBRA dependents (e.g. new spouse of an employees former spouse).
(C) SAP AG
HR325 13-9
COBRA Administration III

...
COBRA
Collect events
Create letters
Participation
Payments
Cost summary
Election period monitor
Forms
Enrollment
Confirmation
Invoice
Register COBRA
payments
Qualified beneficiary
in the system
COBRA Qualified
Beneficiary
(Infotype 0211)
Event Data
COBRA data
COBRA Payments
(Infotype 0270)
Enroll in
COBRA
COBRA Health
Plan (Infotype 0212)
Beneficiary
Payment amount,
date and method
Plan Data
IT 0211 updated
Costs
SAP AG 1999
The Participation function allows you to enroll COBRA qualified beneficiaries and their dependents in
COBRA plans. You can also:
- Delimit COBRA health plans upon early termination of COBRA coverage.
- Display qualified beneficiaries current election of COBRA health plans.
- Update the COBRA Qualified Beneficiary infotype (0211) with this new information.
The Payments function allows you to manually record COBRA payments in the system (infotype 0270)
as they come into the benefits office.
The Election period monitor displays a list of COBRA qualified beneficiaries whose election period
have expired.
Here you can reject these individuals, because they have forfeited their COBRA rights.
Under Forms, you can print out enrollment, confirmation and invoice forms.
(C) SAP AG
HR325 13-10
COBRA Administration Menu

COBRA Administration
Letter generation
Events
Participation
Payments
Qualifying
Qualifying
Event
Event
occurs
occurs
Create
CreateInfotype
Infotype
...
Family/related person
(Infotype 0021)
Events
(Infotype 0000)
Personnel event
Status
Organizational
assignment
COBRA
(Infotype 0211)
Event
Collection
Register COBRA
payments
Event Data
COBRA data
Print
Print letters
lettersand
andforms
forms
COBRA Payments
(Infotype 0270)
Enroll in
COBRA
Beneficiary
COBRA Health
Plan (Infotype 0212)
Payment amount,
date and method
Plan Data
Costs
R
SAP AG
The COBRA menu logically takes you through the four steps of COBRA processing:
Events:
y Identifies COBRA qualified beneficiaries.
Letter generation:
y Prints letters of notification, COBRA election and COBRA enrollment forms.
y Delimits existing health plan records (Infotypes 0167).
y Automatically creates COBRA qualified beneficiary (Infotype 0211) records
Participation :
y Enrolls COBRA qualified beneficiaries in COBRA health plans (Infotype 0211)
y Updates the COBRA qualified beneficiary (Infotype 0211) with this new information
Payments:
y Allows manual creation of COBRA payments (Infotype 0270) records
(C) SAP AG
HR325 13-11
Benefits Processing (NA): Unit Summary

z Enroll an employee in an FSA.
z Enter an FSA claim.
z Terminate an employee and collect
the COBRA event.
SAP AG 1999
(C) SAP AG
HR325 13-12
Reporting & Customizing Tools
Contents:
z Benefit reports
z Customizing tools
z User exits
z Benefits queries in the Business Information
Warehouse
SAP AG 1999
(C) SAP AG
HR325 14-1
Reporting & Customizing Tools: Unit Objectives

z Run different kinds of reports to display
employee, participation and plan data as well as
statistics.
z Run the configuration consistency check and
describe the use of other Customizing tools.
z Describe why you might use a user exit.
z List the Benefits queries in the Business
Information Warehouse.
SAP AG 1999
(C) SAP AG
HR325 14-2
Reporting & Customizing Tools:

Benefits
Overview
Basic
Settings &
Common
Concepts
Health
Plans
Stock
Purchase
Plans
Flexible
Spending
Accounts
(North
America)
Credit
Plans
COBRA
(USA)
Benefits
Processing
Benefits
Processing
(North
America)
Insurance
Plans
Savings
Plans
Administration
Plans
Reporting &
Customizing
Tools
Payroll
Integration
SAP AG 1999
(C) SAP AG
HR325 14-3
Reporting & Customizing Tools:

Business Scenario
z Your company uses standard benefits reports to

track benefits costs and perform different kinds of
evaluations and the standard benefits tools to check
the configuration of the benefits system.
SAP AG 1999
(C) SAP AG
HR325 14-4
Two types of Benefits reports

Credit plan
(Infotype 0236)
Insurance plan
(Infotype 0168)
Health plan
(Infotype 0167)
Plan option
Dependents
Costs
Employee data
analysis
Project: 325 Benefit Administration
+ Personnel management
Benefits
+ Basic Settings
+ Plans
+ Health Plans
+ Insurance Plans
+ Savings Plans
+ Flexible Spending Accounts
+ Credit Plans
+ Miscellaneous Plans
Pre-requisites and co-requisites
+
+
Programs
+
Standard Plans
Benefits Events
+
+ COBRA
+ Toolset
IMG analysis
R
SAP AG
There are two types of Benefits reports:

y Benefits IMG set up analysis reports, which are found in the toolset in the benefits IMG. These
reports analyze the customized settings for specific information, such as consistency of the set up,
cost of plans, overview of plans.
y Employee data analysis reports, which are accessed from the Benefits menu. The employee data
analysis reports are in the benefits menu. These reports analyze employee infotypes and produce lists
for example showing plan costs, vesting percentages, benefit change etc.
(C) SAP AG
HR325 14-5
Employee data analysis reports

z Change of
General Benefits Data
z Participation
z Eligible Employees
z Eligibility Change
z Employee Demographics
z Spending Premiums (USA)

z Health Premiums
z Insurance Premiums
z Savings Premiums
z Miscellaneous Premiums
z Vesting Percentage
z Benefit Change
SAP AG
The employee data analysis reports are found in the Benefits menu.
See the Benefits online help for more information. Search for Reporting.
(C) SAP AG
HR325 14-6
Example: Insurance Plan Costs Report
Insurance Plan Costs
SAP AG 1999
The Insurance plan costs report (RPLBEN04) gives an overview of how much employee pays per pay
period for each insurance plan.
(C) SAP AG
HR325 14-7
Plan Overview
Overview of benefit plans
By
By clicking
clicking on
on
the
the individual
individual
building
building blocks/
blocks/
attributes
attributes of
of the
the
plan,
plan, you
you can
can
directly
directly navigate
navigate
to
to the
the respective
respective
IMG
IMG view.
view.
Jump
Jump to
to feature
feature
structure.
structure.
SAP AG 1999
The Plan overview report (RPUBEN09) can be found in the Benefits IMG, under Toolset.
Plan overview report example: After setting up a benefit area for your company, you can use this report
to look at the complete setup of plans within it.
The system displays a tree, within which you can find all benefit plans that you selected. Where features
are used, you can jump to these from the tree. You can also navigate by clicking on parts of the tree to
display the implemented views.
(C) SAP AG
HR325 14-8
Plan Cost Summary

Plan Cost Summary
99 (International)
SAP AG 1999
The Plan cost summary report (RPLBEN46) can be found in the Benefits IMG, under Toolset.
Plan cost summary report example: This report gives an overview of Health, Insurance and
Miscellaneous plans and their various options and how much the employee and employer pay in each
separate case.
After setting up a benefit area for your company, you can use this report to look at the costs of plans
within it.
(C) SAP AG
HR325 14-9
Configuration Consistency Check

Benefit Configuration Consistency Check
SAP AG 1999
The Configuration consistency check report (RPUBEN42) can be found in the Benefits IMG, under
Toolset.
This report checks the consistency of the data in one benefit area, that you have entered in the benefits
Customizing steps. For example: If you have defined a benefit plan type, in view Benefit plan type, and
you have not defined any plans under this plan type in view Benefit plan, the report identifies the
inconsistency.
The report detects inconsistencies between only two views, not a set up concerning several. This gives
you a starting point for problem solving. For example, the report finds that an investment group is not
used by any savings plan. You decide the investment group is not needed and delete it. You run the
report again, and now find that there are investment options assigned to an investment group that no
longer exists. For this reason, it is important to be aware of the interdependency of the view entries.
You run the report from a graphic display which allows you to select the sections of the benefit area the
report will check.
- The report displays a list of errors in the benefit area setup.
(C) SAP AG
HR325 14-10
Copy/Delete Benefit Area/Benefit Plan

z Copy benefit area/benefit plan
Copies all customizing entries related to a benefit area/

benefit plan
Benefit area X
Plan X
Benefit area Y
Plan Y
ZGR
Definition
1 ZGR
1
ZGR
Definition
1 ZGR
1
z Delete benefit area/benefit plan
Deletes all customizing entries related to a benefit area/

benefit plan
Benefit area Z
Plan Z
ZGR
Definition
1 ZGR
1
SAP AG 1999
The Copy benefit area report (RPUBEN43) copies a complete benefit area within a client. The report
copies all view entries under one benefit area and duplicates them under a new benefit area.
The Delete benefit area report (RPUBEN44) deletes complete benefit areas within a client. It deletes all
view entries under the benefit area you specify.
WARNING:
If you use this report, you are not just deleting the entry in the view Define benefit area, but all
customized entries for this benefit area. This means potentially entries in ALL views in the Benefits
IMG. Only start this report, if you are certain the benefit area you are about to delete is not required at
all.
The Copy benefit plan report (RPUBEN53) copies a benefit plan, complete with all Customizing entries
defined specifically for this plan. The report duplicates the plan under a new name.
The Delete benefit plan report (RPUBEN54) deletes complete benefit plans within a benefit area. It
deletes all view entries under the benefit plan you specify.
WARNING:
If you use this report, you are not just deleting the entry in the view Define general plan data, but all
customized entries for this benefit plan. Only start this report, if you are certain the benefit plan you are
about to delete is not required at all.
(C) SAP AG
HR325 14-11
User Exits
Attention!
User Exit
WARNING! Use only if...

z The SAP standard processes do not suit your needs.
z You are a competent ABAP/4 programmer
SAP AG 1999
You can access the Benefits user exits in Benefits IMG, under Toolset.
WARNING: Employ user exits only if both of the following points apply:
- The SAP standard processes do not suit your needs.
- You are a competent ABAP/4 programmer.
From the IMG, you can implement benefits user exits.
All user exits are listed in the appendix of this training material.
If you need to implement any of these User exits, you first create a project for the user exit, then assign
the user exit(s) to your project. Then you write the coding for the user exit, and finally activate the
project.
For general information on user exits, in the SAP Library, go to Basis Components ABAP Workbench
BC - Changing the SAP Standard.
(C) SAP AG
HR325 14-12
Reporting & Customizing Tools: Unit Summary

z Run different kinds of reports to
display employee, participation and
plan data as well as statistics.
z Run the configuration consistency
check and describe the use of other
Customizing tools.
z Describe why you might use a user exit.
z List the Benefits queries in the Business
Information Warehouse.
SAP AG 1999
(C) SAP AG
HR325 14-13
Payroll Integration: Contents

z Providers
z Wage types
SAP AG
(C) SAP AG
HR325 15-1
Payroll integration: Unit Objectives

At the conclusion of this unit,
you will be able to:
z Identify the places in benefits where
information is provided to payroll.
SAP AG
(C) SAP AG
HR325 15-2
Course Diagram
Benefits
Overview
Credit
plans
Customizing
Benefits
Health
Plans
Miscellaneous
Administration
plans
Insurance
plans
Savings
plans
Benefits
processing
Reports
and tools
Benefits
integration
to Payroll
R
SAP AG
(C) SAP AG
HR325 15-3
Payroll integration: Business Scenario

z Your company uses SAP R/3 Payroll, and
you must ensure that benefits information
is provided to the payroll.
SAP AG
(C) SAP AG
HR325 15-4
Points of Integration to Payroll

z Benefit plan
z Benefit providers
z Cost formulas
z Contribution limits
z Credit formulas
z Employee and employer

contributions
z Wage types
z Plan status
z Excess credit
SAP AG
The Payroll retrieves benefit related information from the Benefits administration module:
y Benefit plan - contains the wage type assignments which specify the employee contribution,
employer contribution and wage base.
y Cost and credit formulas - used to calculate premiums.
y Plan status - stores whether the plan is active, locked or closed.
y Benefits provider - is the creditor defined using vendor information from FI.
y Contribution limits used by savings plans.
y Employer matching - used by savings plans.
y Excess credit - information used to reimburse employee appropriately.
y Imputed income rates (USA only) used by group term life insurance plans.
(C) SAP AG
HR325 15-5
Remittance to Benefit Providers
HR creditor
00000002
Blue Cross & Blue Shield
Number
0000000000000000002
Vendor
VEND1
SAP AG
Vendor information is set up in FI and referenced within the Benefits IMG.
(C) SAP AG
HR325 15-6
Wage Types - health plans

Benefit plan STMD
STANDARD MEDICAL
01.01.1900
31.12.9999
General data
Type
MEDI
MEDICAL
Plan status
OP
OPEN
EE contribution
BE10
Medical deduction
ER post-tax deducs
BE10
Medical deduction
ER contribution
BR10
Medical contribution
Provider wage type
BSAL
Benefit-based salary
Wage types
SAP AG
Wage types are set up in the payroll and simply selected from within the benefits configuration.
(C) SAP AG
HR325 15-7
Wage Types - insurance plans

Benefit plan STLF
STANDARD LIFE
01.01.1900
31.12.9999
General data
Type
LIFE
LIFE INS
Plan status
OP
OPEN
EE contribution
BE20
Life insurance deduction
ER post-tax deducs
BE20
Life insurance deduction
ER contribution
BR20
Life insurance contrib.
Provider wage type
BR21
LTD insurance contr.
Wage types
SAP AG
(C) SAP AG
HR325 15-8
Wage Types - savings plans

Benefit plan STSV
STANDARD SAVINGS
01.01.1900
31.12.9999
General data
Type
SAVE
SAVINGS
Plan status
OP
OPEN
EE contribution
BE30
Savings deduction
ER post-tax deducs
BE30
Savings deduction
Wage types
SAP AG
(C) SAP AG
HR325 15-9
Wage Types - FSAs (USA only)

Benefit plan DPSD DEPENDENT CARE SPENDING ACCT
01.01.1900
31.12.9999
General data
Type
DSPD
DEPEND CARE
Plan status
OP
OPEN
BR41
Dependent care contrib.
Wage types
EE contribution
SAP AG
(C) SAP AG
HR325 15-10
Wage Types - credit plans

Benefit plan FLEX
01.01.1900
FLEXIBLE
31.12.9999
General data
Type
CRED
CREDIT
Plan status
OP
OPEN
ER contribution
BR50
(ER) Flexible Credits
Calculation base
BSAL
Benefit-based salary
Wage types
SAP AG
(C) SAP AG
HR325 15-11
Wage Types - miscellaneous plans

Benefit plan CAR
COMPANY CAR
01.01.1900
31.12.9999
General data
Type
CAR
COMPANY CAR
Plan status
OP
OPEN
BE30
Savings deduction
Wage types
EE post-tax deducs
SAP AG
(C) SAP AG
HR325 15-12
Payroll integration: Unit Summary

z The most important point of Benefits
integration to Payroll is in the wage type

views for each plan category.
SAP AG
(C) SAP AG
HR325 15-13
R/3 System
Release 4.0
HR325
Exercises
Note: There may not be enough time to do all the exercises during
the course. The exercises are intended to be additional examples
that are dealt with during the course if required. Participants can
also use them to deepen their knowledge after the course.
(C) SAP AG
HR325 16-1
Data to be Used
Benefit Area
Employee
Spouse
Child
Step-Child
Father
Mother
(C) SAP AG
HR325 16-2
Unit: Customizing Benefits

At the conclusion of this exercise, you will be able to:
Organize a benefit program according to R/3 benefit category, type and

plan
You are planning the set up of your benefits plans and you need to
categorize them for configuration.
1-1
(C) SAP AG
Non-system (paper) exercise: Assign the following list of your companys plans to the
benefits categories and types in the structure below. Two have already been done for
you.
ID
Long Text
STMD
Standard Medical
HMO
Health Maintenance
Organization
DENT
Standard Dental
LIF1
Basic Life
ACCS
Access Savings
STSV
Standard Savings
STLF
Standard Life
ALIF
Additional Life
401K
401K Savings Plan
FLEX
Flexible Credit
CAR
Company Car
CLUB
Country Club membership
HR325 16-3
Fill in the structure below:
Health
STMD
Standard Medical
401K
401K Savings
Insurance
Savings
Credit
Miscellaneous
(C) SAP AG
HR325 16-4
Now go to the IMG

1-2
Set current benefit area

Set the current benefit area. (Your benefit area will be assigned to you by your
instructor.) All the work you do as of now, will be done in your benefit area.
1-3
Define dependents and beneficiaries (Assigned by instructor)

Using sub-types, define individuals as dependents and beneficiaries:
A spouse as a beneficiary and dependent.
A child as a beneficiary and dependent.
A step-child as a beneficiary and dependent.
A father as a beneficiary
A mother as a beneficiary
1-4
Define benefit plan types

You define the benefit plan types within the pre-defined benefit plan categories. When
you later define the plans themselves, you assign these to a type. Define the following
benefit plan types and enter the appropriate category:
Categories: A for medical, B for Insurance, C for Savings, D for Spending, and E for
Miscellaneous
Type Type name
MEDI Medical
DENT Dental
LIFE Life Insurance
SPLF Supp. Life
AD&D AD&D
SAVE Standard Saving
LTSV Long Term Save
DPSP Dep Spend Acc
HCSP Health Sp Acc
CAR Company Car
LEIS Leisure
CLUB Cntry Club Mem
CRED Credit
(C) SAP AG
HR325 16-5
1-5
Define benefit plan status

Define the following statuses:
OP (Open
) for active status and enrollment (Active enrollment allowed,

contains participants)
CL (Closed) as inactive (Inactive - no enrollment, no-one participating)

LO (Locked) as active but no enrollment. (Locked no enrollment but can have
participants)
(C) SAP AG
HR325 16-6
Unit: Health Plans

Set up a health plan that includes the following:

Options
Dependent
Cost
coverages
formulas
Evidence
of Insurability (EOI)
You need to set up two health plans for your benefit area.
Standard Medical has two options: a deductible and a non-deductible.
Cost of the plan depends on which option the employee chooses and
whether family members are included in the plan. Also whether the
employee is salaried or hourly paid affects the cost of the plan
2-1
Define health plan general data

For Standard Medical, enter the following data:
2-2
Benefit plan
SM## (## = group number) / Standard Medical
From/to
01.01.1900-31.12.9999
Type
MEDI
Plan status
OP
Provider
Standard Life
Dependent relevant, Credits, Pre-tax allowed and

post tax allowed
Define options for health plans

Enter the two options for the Standard Medical health plan.
NODT no deductible
YSDT deductible
2-3
Define dependent coverage options

Define the dependent coverage options as follows:
(C) SAP AG
HR325 16-7
EE- Employee only, with 0 dependents allowed

EE1 -Employee plus one, with 1 dependent allowed
EEF -Employee plus family , with up to 20 dependents allowed
2-4
Define cost formulas

A cost formula is the means of determining the cost of a health plan. The cost of a plan
is defined in two steps. In the first step, you identify the cost formula name and the cost
criteria. In the second step, you define the cost itself in the cost formula calculation
rule.
Enter the six cost formulas for each combination of option and dependent coverage.
All cost formulas for Period 1 and Variable Selected.
DEE
Deductible EE only
DEE1 Deductible EE plus one

DEEF Deductible EE plus family
NDEE No deductible EE only
NDE1 No deductible EE plus one
NDEF No deductible EE plus family
2-5
Define cost formula calculation rules

Use the same validity dates for all rules: 01.01.1900-31.12.9999
For each rule, make two cost groups (HRLY and SLRY), with total costs the same as
provider costs for both groups. Employer costs for the HRLY and SLRY cost groups
will differ as indicated below.
Rule: DEE - Deductible EE only
Total and provider costs for both groups: $200
Employer costs
HRLY $175, SLRY $190
Rule: DEE1 - Deductible EE plus one
Employer costs
Rule: DEEF - Deductible EE plus family
Employer costs
(C) SAP AG
HR325 16-8
Rule: NDEE No Deductible EE only

Employer costs
Rule: NDE1 No Deductible EE plus one
Employer costs
Rule: NDEF No Deductible EE plus family
Employer costs
2-6
Assign health plan attributes

Assign all the attributes for health plans, by assigning options and dependent coverage
choices to cost formulas, all with validity date 01.01.1900-31.12.9999.
2-7
Option
Dependent coverage
Formula
YSDT
EE
DEE
YSDT
EE1
DEE1
YSDT
EEF
DEEF
NODT
EE
NDEE
NODT
EE1
NDE1
NODT
EEF
NDEF
Define additional documents for health.

Define health plan SMxx as requiring Evidence of Insurability(EOI). All options
(YSDT and NODT) require it upon initial enrollment in the plan. The action the system
should take is create a pending record for the desired option, and allow a grace period
of 1 month from enrollment date.
2-8
Assign wage types
(C) SAP AG
HR325 16-9
BE10 to EE pre-tax contribution

BE10 to EE posttax contribution
BR10 to ER contribution
BSAL to Provider cost
2-9
Now set up the second health plan in your benefit area.

Standard Dental has only one option. Cost of the plan depends solely on whether the
employee is salaried or hourly paid
For Standard Dental, enter the following data:
2-10
Benefit plan
SD## (## = group number) / Standard Dental
From/to
01.01.1900-31.12.9999
Type
DENT
Plan status
OP
Provider
Standard Life
Dependent relevant, Credits, Pre-tax allowed and Post tax

allowed

Enter the option for the Standard Dental health plan.
Health plan options
2-11
OPT1 Option 1

rule.
Enter the cost formula ALL (All costs) that will be used for all combinations of option
and dependent coverage as follows to the Standard Dental health plan. For Period 01
and Variable selected.
2-12
Define cost formula calculation rules with validity dates 01/01/1900-31/12/9999 for
two cost groups (HRLY and SLRY) with total costs ($100) the same as provider costs
for both groups
Employer costs for the HRLY and SLRY cost groups will differ as indicated below
Employer costs: HRLY $90, SLRY $80
(C) SAP AG
HR325 16-10
2-13

Assign attributes to the Standard Dental health plan for the options and dependent
coverage choices. All with validity dates 01.01.1900-31.12.9999 and formula ALL.
There is only one option (OPT1) with three different dependent coverage choices:
EE
EE1
EEF
2-14
Assign wage types.

Assign wage types to benefit plan SD##.
Assign wage type BE11 to EE pre-tax contribution and EE posttax contribution.
Assign wage type BR11 to ER contribution.
Assign wage type BSAL to Provider Cost.
(C) SAP AG
HR325 16-11
Unit: Insurance plans

Set up an insurance plan to include the following:

Coverage
and cost formulas
EOI
Combined
Coverage Limits
Set up two insurance plans for your benefit area.

Basic Life has two flat coverage options, however the actual amount of
coverage differs depending on the employee's personnel group. Cost of
the plan depends on the employee's personnel group and age.
The plan is considered imputed income and the employee can pay for it
using credit allocated in a credit plan.
3-1
Define insurance plan general data

For Basic Life, enter the following data:
3-2
Benefit plan
BL## (## = group number) / Basic Life
From/to
01.01.1900-31.12.9999
Type
LIFE
Plan status
OP
Provider
Legal and General
Beneficiaries and Contingency beneficiaries relevant.

Pre and post tax premium payments are allowed.
Credit and imputed income relevant.
Group Term
1 (Employee Group Term)
Define coverage formula

Enter the two coverage formulas for Basic Life: LEV1 (Level One) and LEV2 (Level
Two), indicating coverage for both.
3-3
Define coverage formula calculation rules

Define the four coverage formula calculation rules as follows. Use validity dates
01.01.1900-31.12.9999.
(C) SAP AG
HR325 16-12
Use Coverage Formula LEV1 for Coverage Group COG1 with Salary factor: 1 and
Coverage Group COG2 with Salary factor: 2.
Use Coverage Formula LEV2 for Coverage Group COG1 with Amount: $80,000 and
Coverage Group COG2 with Salary factor: 3.
A cost formula is the means of determining the cost of an insurance plan. The cost of a
plan is defined in two steps. In the first step, you identify the cost formula name and
the cost criteria. In the second step, you define the cost itself in the cost formula
calculation rule.
In the Basic Life plan, cost is directly proportional to how much coverage the
employee chooses. Thus only one cost formula is required.
3-4
Define criteria identifiers

Define criteria ID in the basic settings for the employee group US (Universal):
3-5
Define age groups

Define age groups in the basic settings for the employee groups.
An age group is associated with a criteria identifier. The age group defines a specific
age span by associating high and low values with an age group.
Define <35 (Less than 35 years) and >35 (More than 35 years)
3-6

Define cost formulas for the Basic Life Insurance plan
Define Cost Formula ALL (All) for a Monthly period usiong the US criteris ID and
select Age and Variable indicators.
3-7

Define the four cost formula calculation rules for the cost formula ALL as follows:
All groups have the same Base Unit amount ($1000) and validity dates (01.01.190031.12.9999). Cost factors for Total and Provider costs will be the same within each
age group.
For Age Group <35
Cost Group HRLY, Total/Provider costs cost factor is $0.25
Cost Group SLRY, Total/Provider costs cost factor is $0.25
For Age Group >35
3-8
(C) SAP AG
Assign insurance plan attributes

HR325 16-13
Assign the attributes for Basic Life, by defining two options and assigning the cost and
coverage formulas you have already defined. Use Validity dates 01.01.190031.12.9999 and Cost Formula ALL for both.
Option 1 use Coverage Formula LEV1
Option 2 use Coverage FormulaLEV2
3-9
Assign wage types

Assign the wage types to Basic Life as follows:
Assign Wage Type BE20 to EE contribution and EE posttax contribution
Assign Wage Type BR20 to Provider wage type
Assign Wage Type BSAL to Calculation base
Now set up the second insurance plan in your benefit area.
Additional Life has only one option, however the actual amount of coverage differs
depending on the employee's personnel group (salaried or hourly paid). Cost of the
plan also depends on whether the employee is salaried or hourly paid.
3-10

For Additional Life, enter the following data:
3-11
Benefit plan
AL## (## = group number) / Additional Life
From/to
01.01.1900-31.12.9999
Type
SPLF
Plan status
OP
Provider
Prudential
Beneficiaries and Contingency beneficiaries are

relevant.. Pre and post tax premium payments are
allowed. Credit and imputed income are relevant.
Group Term

Enter the coverage formula for Additional Life. With the coverage formula ALL (all
coverages) as a coverage group.
3-12

Define the two coverage formula calculation rules as follows. Both use Coverage
Formula ALL:
(C) SAP AG
HR325 16-14
Coverage group COG1 uses Basis amount $10,000, with additional coverage unit
$1,000 and 90 maximum units.
Coverage group COG2 uses Basis amount $25,000, with additional coverage unit
$5,000 and 20 maximum units.
calculation rule. In the Additional Life plan, cost is directly proportional to how much
coverage the employee chooses. Thus only one cost formula is required.
3-13

Enter the cost formula ALL (All) for the Additional Life insurance plan, with a
monthly period and Variable selected.
3-14

Define the cost formula calculation rules for the cost formula ALL as follows:
Define the two cost formula calculation rules for cost groups HRLY and SLRY for the
cost formula ALL as follows:
Both groups have the same Base Unit amount ($1000) and validity dates (01.01.190031.12.9999). Cost factors for Total and Provider costs will be the same within each
cost group.
3-15

Assign the attributes for Additional Life, by defining the one option (Option 1) and
assigning the cost (ALL) and coverage (ALL) formulas you have already defined for
the validity dates 01.01.1900-31.12.9999.
3-16
Define additional documents for Insurance

Define this plan as requiring Evidence of Insurability(EOI) upon initial enrollment in
the plan, an increase of $25,000 or more, or when a total of $100,000 coverage or more
is chosen. The action the system should take is create an active record for the desired
option, and allow a grace period of 1 month from enrollment date.
Benefit plan
AL## (## = group number) / Additional Life
Initial enrollment $0.01

Change of coverage
$24,999
Enrollment any time
$100,000
Action Create active record for desired option

(C) SAP AG
HR325 16-15
3-17
Grace period
1 month from enrollment date
Validity dates
01.01.1900-31.12.9999
Assign wage types

Assign the wage types to Additional Life as follows:
Assign Wage Type BE20 to EE contribution and EE posttax contribution
Assign Wage Type BR20 to Provider wage type
(C) SAP AG
HR325 16-16
Unit: Savings Plans

Set up a savings plan to include the following:

Employee
contributions for pre and post tax
Employer
contributions
Vesting
rules
Investment
options
Set up two savings plans for your benefit area.

In the Standard Savings, the employee may contribute pre-tax up to $500
and post tax up to $1000 per month. The plan is a guaranteed annuity
plan.
4-1
Define savings plan general data

For Standard Savings, enter the following data:
4-2
Benefit plan
SS## (## = group number) / Standard Savings
From/to
01.01.1900-31.12.9999
Type
SAVE
Plan status
OP
Provider
Merrill Lynch
Savings plan attributes
Beneficiaries, Contingency beneficiaries and Investments

relevant.
Regulatory reports
Non-deferred
Define employee contribution rules

Define employee contribution rules for the Standard savings plan.
Employee contribution rule: ALL
Description: All
Period: Monthly
(C) SAP AG
HR325 16-17
4-3
Define employee contribution rule criteria

Define employee contribution rule criteria for the Standard savings plan for the ALL
employee contribution rule for validity dates 01.01.1900-31.12.9999
Select Amount and Pre-Tax. with a $100 minimum and a $500 maximum
Also select Post Tax. with a $100 minimum and a $1000 maximum
4-4
Define investments
Investments for savings plans are the options available to employees participating in
the benefit program. Investment options are available to savings plan participants.
Define the following investments for your savings plans:
ANNU: Guaranteed annuity
BLFD: Balanced fund
COMP: Company stock
4-5
Define investment groups

Investment groups are used to associate several investment options with a benefit plan.
A benefit plan then has an investment group consisting of several options.
SAV (Savings) and 401K (401K)
4-6
Assign investments to groups

Individual options are associated with investment groups:
For investment group SAV, investment ANNU and for investment group 401K,
investments BLFD and COMP.
4-7

The attributes of the savings plan are assigned to the plan itself, as follows:
Benefit plan
SS##
Employee contribution rule ALL
4-8
Investment group
SAV
Validity dates
01.01.1900-31.12.9999
Assign wage types

Assign the wage type to Standard Savings as follows:
Wage Type B30 for EE contribution and EE posttax deducs.
(C) SAP AG
HR325 16-18
Now set up the second savings plan in your benefit area.

In the Standard 401K, employees may contribute pre-tax up to 15% and post-tax up to
10% of their income per month. The employer matches 10% up to different maximum
limits, depending on the length of service of the employee.
4-9

For Standard 401K, enter the following data:
4-10
Benefit plan
S4## (## = group number) / Standard 401K
From/to
01.01.1900-31.12.9999
Type
LTSV
Plan status
OP
Provider
Prudential
Beneficiaries, Contingency beneficiaries and

Investments relevant
Regulatory reports
Non-deferred

Define employee contribution rules for the Standard 401k plan.
4-11
Employee contribution rule
ALL
Description
All
Period
Monthly

Define employee contribution rule criteria for the Standard 401k plan for the ALL
employee contribution rule. Set validity dates 01.01.1900-31.12.9999.
Select Percent and Pre-Tax with a minimum of 1% and a maximum of 15%
Select Post-Tax with a minimum of 1% and a maximum of 10%.
Pre-tax contribution limit of $10,000.
4-12
Define employer contribution rules

For the Standard 401k plan, define employer contribution rule ALL with a monthly
period using the Universal criteria ID with Length of Service (LOS) indicated
4-13
(C) SAP AG
Define length of service groups in the basic settings for the employee groups for the
Universal criteria ID. Create two LOS groups:
HR325 16-19
<10 (Less than 10 years) with the lowest value 1 and the maximum value 9, and >10
(More than 10 years) with the lowest value 10 and the maximum value 99
4-14
Define employer contribution rule criteria

Define employer contribution rule criteria for the Standard 401k plan for the ALL
employer contribution rule. Set Sequence number 1 and validity dates 01.01.190031.12.9999 for both groupd.
For LOS group <10 set a 10% employee contribution with a limit of $10,000.
For LOS Group >10 set a 10% employee contribution with a limit of $15,000.
4-15
Define vesting rules.

A vesting rule defines a particular schedule. Define your vesting rule as:
5YR (5 Year Vesting)
4-16
Define vesting schedules

Define vesting schedules for the 5YR vesting rule.
20 percent after
1 Year
40 percent after 2 Years

4-17

The attributes of the 401k savings plan are assigned to the plan itself, as follows:
Benefit plan
S4##
EE contr. Rule
ALL
ER contr. Rule
ALL
Vesting rule
5YR
Investment group 401K

Validity dates
4-18
01.01.1900-31.12.9999
Assign wage types

Assign the wage types to Standard 401K as follows:
Wage type BE31 for EE contribution and EE posttax deducs.
(C) SAP AG
HR325 16-20
Wage type BR31 for ER contribution.

Wage type BSAL for Calculation Base and Technical Base.
(C) SAP AG
HR325 16-21
Unit: Flexible Spending Accounts (US only)

Set up an FSA to include:

employee
contribution
employer
contribution rule
Set up two FSAs for your benefit area.

In the Health Care FSA, the employee may contribute pre-tax up to
$10,000 annually.
5-1
Define FSA general data

For Health Care FSA enter the following data:
Benefit plan
From/to
HF## (## = group number) / Health Care FSA
01.01.1900-31.12.9999
Type HCSP
Plan status OP
Provider
5-2
Merrill Lynch
Assign spending account attributes

Enter the details of the Health Care FSA plan as follows:
5-3
Minimum amount
$100
Maximum amount
$10,000
Validity period
01.01.1900 31.12.9999
Benefit plan
HF## (## = group number)
Reimbursement of claims wage types
BE40
Minimum reimbursement amount
$100
01 March
Annual contribution
Assign wage types

Enter the wage type BR40 for the Health Care FSA plan: EE contribution
(C) SAP AG
HR325 16-22
Now enter the details of the other FSA in your benefit area.
In the Dependent Care FSA, the employee may contribute pre-tax up to $15,000
annually.
5-4

For Dependent Care FSA enter the following data:
5-5
Benefit plan
DF## (## = group number) / Dependent

Care FSA
From/to
01.01.1900-31.12.9999
Type
DPSP
Plan status
OP
Provider
Prudential

Enter the details of Dependent Care FSA as follows:
Benefit plan
DF## (## = group number)
Minimum amount
$100
Maximum amount
$15,000
Reimbursement of claims wage types BE41

Minimum reimbursement amount
$100
01 March
Validity period
01.01.1900 31.12.9999
Current account balance
5-6
Assign employee contribution wage types BR41 for the Dependent Care FSA plan.
5-7
Define FSA claim receipt types

Enter the receipt types: DAYC (Day care) and HOSP (Hospital visit)
(C) SAP AG
HR325 16-23
Unit: Credit Plans

Set up a credit plan to include a credit formula and wage types.
Set up a credit plan for your benefit area.

In the Flexible Credit plan the employees receive an amount of credit,
depending on whether they are salaried or hourly paid employees. This
credit can then be used to pay for other benefit plans.
6-1
Define credit plan general data

For Flexible Credit, enter the following data:
6-2
Benefit plan
FCXX (XX = group number) / Flexible Credit
From/to
01.01.1900-31.12.9999
Type
CRED
Plan status
OP
Define credit formulas

A credit formula is the means of determining the amount of money an employer will
distribute to employees in order to pay for their other benefit plans. The cost formula is
defined in two steps. In step one, you identify the credit formula name and the credit
criteria. In step two you specifically define the credit criteria.
Define the credit formula for Flexible Credit as follows:

Credit formula
SIMP
Description
Simple credits
Period
Monthly
Select Credit group

6-3
Define credit formula calculation rules

Define credit formula calculation rules for the Flexible Credit plan for credit formula
SIMP with validity period 01.01.1900 31.12.9999
Set Rounding Rule A and Rounding Divisor 100 for both Credit Groups.
(C) SAP AG
HR325 16-24
Credit Group HRLY with Credit factor 2.5, minimum amount $20 and maximum
amount $300.
Credit Group SLRY with Credit factor 5.0, minimum amount $50 and maximum
amount $500.
6-4
Assign credit plan attributes

Assign credit plan attributes for the flexible credit plan.
6-5
Validity dates
01.01.1900 31.12.9999
Credit formula
SIMP
Excess %
50
Assign wage types

Assign the wage types to Flexible Credit as follows:
Assign wage type BR50 to ER contribution, and wage type BSAL to Calculation base.
(C) SAP AG
HR325 16-25
Unit: Miscellaneous Plans

At the conclusion of this exercise, you will be able to set up miscellaneous
plans to include
Cost
formula
Cost
formula calculation rules
Set up two miscellaneous plans for your benefit area.

The Company Car plan offers two types of car, luxury and sport.
Employees pay a higher premium if they live beyond a 20 mile radius of
the office.
7-1
Define miscellaneous plan general data

7-2
Benefit plan
CC## (## = group number) / Company Car
From/to
01.01.1900 31.12.9999
Type
CAR
Plan status
OP
Plan attributes
Cost/credits relevant
Cost formula
Post tax allowed
Define cost formula

For the Company Car define two cost formulas, both with monthly periods and
variable:
7-3
LUXY
Luxury car
SPRT
Sports car

Define the two cost formula calculation rules for each cost formula. All with the
validity period 01.01.1900 31.12.9999:
For cost Formula LUXY:
Cost Group FAR with a Total Cost of $330
Cost Group NEAR with a Total Cost of $300
(C) SAP AG
HR325 16-26
For cost Formula SPRT:

Cost Group FAR with a Total Cost of $220
Cost Group NEAR with a Total Cost of $200
7-4

Assign the attributes for Company Car for validity dates 01.01.1900 31.12.9999, by
defining options and assigning the cost formulas you have already defined:
For LUXY (Luxury car option), cost formula LUXY.
For SPRT (Sports car option), cost formula SPRT.
7-5
Assign wage types

Assign the wage types to Company Car as follows:
Wage type BE30 for EE posttax deducs
Now set up the second miscellaneous plan in your benefit area.

The Health Club plan offers membership in the club for a flat monthly cost. The cost is the
same for all employees.
7-6

For Health Club, enter the following data:
7-7
Benefit plan
HC## (## = group number) / Health Club
From/to
01.01.1900-31.12.9999
Type
LEIS
Plan status
OP
Plan attributes
Cost formula selected
Post tax allowed
Define cost formula

For the Health Club cost formula, define Cost Formula CLUB (Club Membership) with
a monthly period.:
7-8

Define the cost formula calculation rule for the health club plan and the CLUB cost
formula with validity dates 01.01.1900 31.12.9999 and total costs of $100.
7-9
(C) SAP AG

HR325 16-27
Assign the attributes for Health Club, by defining the option CLUB and assigning the
cost formula you have already defined.
7-10
Assign wage types

Assign the wage type BE30 to the Health Club plan: EE posttax deducs
(C) SAP AG
HR325 16-28
Unit: Benefits Administration

At the conclusion of this exercise, you will be able to set up:
Pre-requisites
Benefit
and co-requisites
programs
Eligibility
Standard
and termination rules
plans
Benefit
events
Benefit
parameters
Set up the administration of the benefit plans you have defined for your
benefit area.
8-1

For your administrative parameters, enter the following data:
Is an Open Enrollment period
offered?
Yes
Open enrollment validity
01.11.19YY 30.11.19YY
(YY is current year)
Validity of records for open

enrollment
01.01.19ZZ 31.12.19ZZ (
ZZ is current year +1)
Validity of records for

event/standard plans
31.12.19YY (YY is current year)
Maximum permitted age of

dependents
Non student: 18
Student: 21
No maximum age if physically

challenged
Prerequisite plans are those plans the employee must be enrolled in before it is possible
to enroll in another particular plan. An employee can enroll a particular plan and its
corequisite plans all at the same time.
(C) SAP AG
HR325 16-29
8-2
Define prerequisite plans

For plan Additional Life (AL## ## is your group number), define the prerequisite
plan:
BL## Basic Life
8-3
Define corequisite plans

For plan Standard Dental (SD## ## is your group number), define the following
corequisite plan.:
SM## Standard Medical
Set up the benefit programs for your employees. First you define benefit groups and
employee statuses. Next you define eligibility and termination rules. Lastly for each
combination of benefit group and employee status, you define the program of plans for
which they are eligible, and attach the eligibility and termination rules to the plans.
8-4
Define employee benefit groups

Define the following employee benefit groups:
8-5
EXEC
Executive employees
EXMT
Exempt employees
HRLY
Hourly employees
Define employee status

Define the following employee statuses:
FULL
Full time employees
PART
Part time employees
TEMP
Temporary employees
Now define the eligibility groups, rules and rule criteria.

8-6
Define eligibility groups

An eligibility group is a means of identifying groups of employees possessing common
characteristics relevant to the eligibility requirements of the benefits offered by your
organization. The eligibility group allows you to include supplementary eligibility
criteria that are not included in the standard eligibility criteria.
Define the following eligibility group: EGR1 (Eligibility group 1)
8-7

Define the following eligibility rule: IMMD (Immediately eligible)
(C) SAP AG
HR325 16-30
8-8
Define eligibility rule criteria

Define the following eligibility rule criteria for eligibility rule IMMD and eligibility
group EGR1 with
8-9
Validity dates
01.01.1900 31.12.9999
Enrollment
Immediate
Define termination types

A termination type is a means of identifying types of employees possessing common
characteristics relevant to the termination requirements of your organization. The
termination type allows you to include supplementary criteria that are not included in
the standard termination criteria.
Define the following termination types:
TTYP
8-10
Standard termination

Define the following termination rules:
8-11
IMMD
Immediate termination.
RUL1
Rule 1
RUL2
Rule 2
Define termination rule criteria

Define the following termination rule criteria for each combination of termination rule
and termination type. All have the validity dates 01.01.1900 31.12.9999 and
Termination Type TTYP.
For Termination Rule IMMD, no coverage continuation period (blank) for termination
immediately.
For Termination Rule RUL1, 4 months coverage continuation period for termination
on day31 or end of the month.
For Termination Rule RUL2, 1 month coverage continuation period for termination
immediately.
8-12

Define the benefit program for employees who fall into the benefit group EXMT and
the employee status FULL termination type. Eligibility ruke IMMD applies to all
plans.
(C) SAP AG
Plan
Description
Termination rule
SM##
Standard medical
RUL1
HR325 16-31
SD##
Standard Dental
RUL1
BL##
Basic Life
RUL2
AL##
Additional Life
RUL2
SS##
Standard Savings
IMMD
S4##
Standard 401K
IMMD
FC##
Flexible Credit
IMMD
CC##
Company Car
IMMD
HC##
Health Club
IMMD
HF##
Health Care FSA
RUL1
DF##
Dependent Care FSA
RUL1
US only:
8-13
Define standard health plans

Define the following plans as default health plans, for EXMT and FULL employees,
both with dependent coverage.
For Plan Type MEDI, Plan SM##, set option NODT.
For Plan Type DENT, Plan SD##, set option OPT1.
8-14
Define standard insurance plans

Define the following plans as default insurance plans, for EXMP and FULL
employees:
Plan Type LIFE, Plan BL##, option OPT1, with no additional units.
A Benefit event is when an employee wants to make changes to enrollments due to a life or
organizational change. You can define the events and specify permissions for change in each
case. You can also define benefit event groups to allocate different permissions to different
groups of employees.
8-15
Define benefit event groups

Define the following benefit event group:
STRD Standard event group
8-16
(C) SAP AG
Define benefit events

HR325 16-32
Define the benefit event CHIL New child:

Changes anytime, not allowed.
Total event process duration one month..
Start of records is the event date and end of records is the Default date (31.12.19YY
YY = current year)
Define the benefit event NRES No reason:
Changes anytime, allowed.
Total event process duration not defined..
Start of records is the event date (31.12.19YY YY = current year) and end of records
is the Default date (31.12.19YY YY = current year)
Define the benefit event INIT Initial enrollment:
Total event process duration six weeks. Event process duration after first choice six
weeks.
YY = current year)
Define the benefit event MARR Marriage:
Total event process duration two months. Event process duration after first choice one
month.
YY = current year)
Define the benefit event ORGC Organizational change:
Total event process duration six weeks. Event process duration after first choice not
allowed.
Start of records is the event date (31.12.19YY YY = current year) and end of records
is the Default date (31.12.19YY YY = current year)
Define the permitted changes for the health and savings plans in your benefit area.
(C) SAP AG
HR325 16-33
8-17
Define permitted changes for events for Health plans

Go to -> Health plans. Define changes by plan type.
8-18
Event
Event
group
Plan type
Selected
INIT
STRD
MEDI
Create
INIT
STRD
DENT
Create
CHIL
STRD
MEDI
Change: option
dependent coverage
dependents
CHIL
STRD
DENT
Change: option
dependent coverage
dependents
Define permitted changes for events for Insurance plans.

Go to -> Insurance plans
8-19
Event
Event
group
Plan
type
Selected
INIT
STRD
LIFE
Create
CHIL
STRD
LIFE
Change: option beneficiaries

Create: plan
CHIL
STRD
SPLF
Change: option beneficiaries

Create: plan
Define permitted changes for events for Savings plans.

Go to -> Savings plans
(C) SAP AG
Event
Event
group
Plan
type
Selected
INIT
STRD
SAVE
Create
INIT
STRD
LTSV
Create
CHIL
STRD
SAVE
Change: Beneficiaries
Increase: Pre-tax contribution and
Post-tax contribution
CHIL
STRD
LTSV
Change: Beneficiaries
HR325 16-34
Increase: Pre-tax contribution and

8-20
Define permitted changes for events for Credit plans.

Go to -> Credit plans
8-21
Event
Event
group
Plan
type
Selected
INIT
STRD
CRED
Create
Define permitted changes for events for Miscellaneous plans.

Go to -> Miscellaneous plans
8-22
Event
Event
group
Plan
type
Selected
INIT
STRD
CAR
Create
INIT
STRD
LEIS
Create
CHIL
STRD
CAR
Change: option
CHIL
STRD
LEIS
Change: plan
Create: plan
USA Only: Define permitted changes for events for Flexible Spending accounts.
Go to -> Flexible spending accounts
(C) SAP AG
Event
Event
group
Plan
type
Selected
INIT
STRD
DPSP
Create
INIT
STRD
HCSP
Create
CHIL
STRD
DPSP
Change: benefit plan

Create: benefit plan
Delete: benefit plan
Increase: contribution
Decrease: contribution
CHIL
STRD
HCSP
Change: benefit plan

Create: benefit plan
Delete: benefit plan
HR325 16-35
Increase: contribution
Decrease: contribution
(C) SAP AG
HR325 16-36
Unit: COBRA (US Only)

Identify plans that are valid for COBRA
When US employees leave the company, they may be eligible to continue

their benefits under COBRA provisions. You need to flag plans valid for
COBRA.
Choose the plans valid for COBRA from those health plans you have already set up.
9-1
Choose COBRA plans

Select the SM## (Standard Medical plan as COBRA valid. But not the dental plan.
(C) SAP AG
HR325 16-37
Unit: Benefits Processing

Enroll a newly hired employee in benefits plans
Hire an employee in Personnel Administration, then enroll the employee

in Benefits for benefit plans. Use the benefits event Initial enrollment to
enroll the employee. Then carry out EOI processing using the HR325
hiring action.
10-1
In Personnel Administration hire the employee

Personnel Action screen
Personnel number
325## (## is your group number)
From
HR325 Hiring
Selected
Enter the data for each infotype for the action HR325 Hiring as follows:
Actions (Infotype 0000)
Position
Blank
Personnel area
3000
Employee group
Employee subgroup
U4
Personal Data Infotype (0002)
(C) SAP AG
Last name
Your choice
First name
Your choice
SSN
Your choice
HR325 16-38
Birth date
03.04.1968
Gender
Your choice
Marital status
Marr
Family/related person (Infotype 0021)

First name
Your choice
SSN
Your choice
Organizational assignment (Infotype 0001)

Payroll subarea
0001
Payroll area
US
Note: Select the Cancel icon on the Enter Position Assignment pop-up box
Address (Infotype 0006)
Address line 1
44## Oak Lane
City
SAPBerg
State/zip code
OH/44574
Select the Cancel icon in the Tax area pop-up box.

Select the Cancel icon in Residence Tax Area (Infotype 0207).
Planned Working Time (Infotype 0007)

Work Schedule Rule
NORM
Basic pay (Infotype 0008)

Payscale group
GRD01
Annual salary
30,000
Family/Related Person (Infotype 0021)

(C) SAP AG
HR325 16-39
First name
Your choice
SSN
Your choice
Gender
Your choice
General benefits data (Infotype 0171)

Benefit area
Override with your benefit area
Benefit group
EXMT (default)
Employee status
FULL (default)
Event: permissions (Infotype 0378)
10-2
Benefit event
INIT Initial enrollment
Validity dates
01.01.19YY 12.02.19YY (YY is current

year)
In Benefits enroll the employee in benefit plans

In the Benefits screen
Choose the Event offer function.
In the Benefits - Main Program pop-up box enter the following:
Personnel number
Other period
Choose Execute.
Click on the Enroll icon next to the line Initial enrollment.
In the Benefits offer screen select the following plans:
(C) SAP AG
Plan
Other data
Flexible credit
None
Standard Dental
Option 1
Employee only
Standard Medical
With deductible
Employee only
HR325 16-40
Basic Life
Option 2
Standard Savings
Pre-tax contribution $100
Company Car
Sports car option
Health Club
None
Choose Enroll.
In the EOI pop-up box leave the checkbox blank to indicate that EOI had not yet been
provided by the employee.
Choose Enroll.
Choose Enroll again to confirm your enrollments.
Choose Enroll.
The employee is enrolled in the chosen benefit plans.
10-3
In Benefits process the employee's EOI.

You have just enrolled your employee in Standard Medical. However since EOI had
not at that time been provided, the system created the plan as pending only.
It is now two weeks later and the employee has just delivered the EOI to the benefits
office. You should now record this in the system.
In the Benefits Main Program
Choose the Insurability function.
In the Benefits - main program pop-up box enter the following:
Personnel number
Other date
Choose Execute.
Select the plan Standard Medical and then the EOI provided function.
The employee's Standard Medical plan is now active and the record states that EOI has
been provided.
(C) SAP AG
HR325 16-41
Unit: Processing (USA Only)

Topic: FSA Processing
Enroll an employee in an FSA.
Your company offers Flexible Spending Accounts,and you want to enroll

an employee.
11-1
In Benefits enroll the employee in an FSA benefit plan.

Benefits screen
Personnel number
Other date
Choose Execute.
Click on the enroll icon next to the line Initial enrollment.
Health Care FSA
$1000 annual contribution
Dependent Care FSA $1000 annual contribution

Choose Enroll.
Choose Continue.
11-2
Process a check your employee has brought to the benefits office for processing.
Benefits screen
Choose the Administration -> Spending accounts claims.
Personnel number
And select Today.

Choose Execute.
(C) SAP AG
HR325 16-42
Put your cursor on the Dependent Care spending account and select the
Claims icon.
In the pop-up box select Create.
In the FSA Claims (Infotype 0172) enter the following:
Benefit plan type
DPSP
Claim submitted on
Enter today's date
Date cost incurred
Enter yesterday's date
Claim
$100
Receipt type
DAYC
Save your entries.

Return to the screen FSA: Administration and Balancing.
A claim now exists in the system and can be accessed by Payroll processing.
(C) SAP AG
HR325 16-43

Topic: Cobra Processing
Terminate an employee and collect the COBRA event
Now terminate your employee's employment contract and collect this as a

COBRA qualifying event.
11-3
In Personnel Administration terminate the employee

Personnel Actions screen
Personnel number
From
Enter 01.06.19YY (YY is current year)
Leaving
Selected
1. In the Actions (Infotype 0000) screen accept the defaults by selecting Save twice.
2. In the Basic Pay (Infotype 0008) screen select the basic pay record then Delimit.
11-4
In Benefits collect the termination as a COBRA qualifying event.

1.
Choose Administration -> COBRA administration.
2.
Select Events.
3.
In the Collection of qualifying COBRA events pop-up box enter the following:
4.
Personnel number
Other period
Choose process.
The COBRA qualifying event Termination is now collected for your employee. The
system stores this information in a buffer, that it then accesses via letter printing for
COBRA.
(C) SAP AG
HR325 16-44
Unit: Reports and Tools
Run a report to display employee health plan costs.
You need to run the following reports and examine the results.
12-1
Health care premiums
Overview of Benefits Plans
Run the Health care premiums report

Choose Reporting -> Premiums -> Health
In the Health premiums report screen enter the following:
Personnel number
Other period
Choose Execute.
12-2
Run the Plan overview report

In the Benefits IMG
Choose the Plan overview IMG node
In the Overview of Benefit Plans report screen enter the following:
Benefit area
Enter your benefit area
Choose Execute.
Open out the tree and examine the benefit plan set up that you have created.
(C) SAP AG
HR325 16-45
R/3 System
Release 4.0
HR325
Solutions
Note: There may not be enough time to do all the exercises during
the course. The exercises are intended to be additional examples
that are dealt with during the course if required. Participants can
also use them to deepen their knowledge after the course.
(C) SAP AG
HR325 17-1
Unit: Customizing Benefits

Organize a benefit program according to R/3 benefit category, type and

plan
You are planning the set up of your benefits plans and you need to
categorize them for configuration.
1-2
(C) SAP AG
Non-system (paper) exercise: Assign the following list of your companys plans to the
benefits categories and types in the structure below. Two have already been done for
you.
ID
Long Text
STMD
Standard Medical
HMO
Health Maintenance
Organization
DENT
Standard Dental
LIF1
Basic Life
ACCS
Access Savings
STSV
Standard Savings
STLF
Standard Life
ALIF
Additional Life
401K
401K Savings Plan
FLEX
Flexible Credit
CAR
Company Car
CLUB
Country Club membership
HR325 17-2
Fill in the structure below:
STMD
Standard Medical
HMO
Health Maintenance
Organization
DENT
Standard Dental
STLF
Standard Life
LIF1
Basic Life
ALIF
Additional Life
ACCSA
Access Savings
STSV
Standard Savings
401K
401K Savings
Credit
FLEX
Flexible Credit
Miscellaneous
CAR
Company Cra
CLUB
Country Club
Membership
Health
Insurance
Savings
(C) SAP AG
HR325 17-3
(C) SAP AG
HR325 17-4
Now go to the IMG

1-2
Set current benefit area

Set the current benefit area. (Your benefit area will be assigned to you by your
instructor.) All the work you do as of now, will be done in your benefit area.
1-3
Define dependents and beneficiaries

Define the following individuals as dependents and beneficiaries:
(Assigned by instructor)
1-4
Subtype
Name of subtype
Spouse
Child
Step-child
11
Father
12
Mother
Dependent
Beneficiary
Define benefit plan types

You define the benefit plan types within the pre-defined benefit plan categories. When
you later define the plans themselves, you assign these to a type. Define the following
benefit plan types and enter the appropriate category:
(C) SAP AG
Type
Type name
Category
MEDI
Medical
DENT
Dental
LIFE
Life Insurance
SPLF
Supp. Life
AD&D
AD&D
SAVE
Standard Saving
LTSV
Long Term Save
HR325 17-5
1-5
DPSP
Dep Spend Acc
HCSP
Health Sp Acc
CAR
Company Car
LEIS
Leisure
CLUB
Cntry Club Mem
CRED
Credit
Define benefit plan status

Define the following statuses:
(C) SAP AG
Status
Status name
OP
Open
Active enrollment
allowed, contains
participants
CL
Closed
Inactive - no
enrollment, no-one
participating
LO
Locked
Locked no
enrollment but can
have participants
HR325 17-6
Active
Enroll
Description (not used

as input data)
Unit: Health Plans

Set up a health plan that includes the following:

Options
Dependent
Cost
coverages
formulas
Evidence
of Insurability (EOI)
You need to set up two health plans for your benefit area.
Standard Medical has two options: a deductible and a non-deductible.
Cost of the plan depends on which option the employee chooses and
whether family members are included in the plan. Also whether the
employee is salaried or hourly paid affects the cost of the plan
2-1

For Standard Medical, enter the following data:
(C) SAP AG
Field
Input data
Benefit plan
SM## (## = group number) / Standard Medical
From/to
01.01.1900-31.12.9999
Type
MEDI
Plan status
OP
Provider
Standard Life
Health plan
attributes

post tax allowed
HR325 17-7
2-2

Enter the two options for the Standard Medical health plan.
Field
Input data
Health plan options
NODT no deductible
YSDT deductible
2-3
Define dependent coverage options

Define the dependent coverage options as follows:
2-4
Dependent
coverage
Text
Maximum dependents
EE
Employee only
EE1
Employee plus one
EEF
Employee plus family
20

rule.
Enter the six cost formulas for each combination of option and dependent coverage as
follows:
(C) SAP AG
Cost
formula
Description
Period
Variable
DEE
Deductible EE only
01
Selected
DEE1
Deductible EE plus one
01
Selected
DEEF
Deductible EE plus family
01
Selected
NDEE
No deductible EE only
01
Selected
NDE1
No deductible EE plus one 01
Selected
HR325 17-8
NDEF
2-5
No deductible EE plus
family
01
Selected

DEE - Deductible EE only
Cost
group
Validity dates
Total
costs
Employer
costs
Provider
costs
HRLY
01.01.190031.12.9999
$200
$175
$200
SLRY
01.01.190031.12.9999
$200
$190
$200
DEE1 - Deductible EE plus one

Cost
group
Validity dates Total costs
Employer
costs
Provider
costs
HRLY
01.01.190031.12.9999
$200
$150
$200
SLRY
01.01.190031.12.9999
$200
$170
$200
DEEF - Deductible EE plus family

Cost group
Validity dates
Total costs
Employer
costs
Provider
costs
HRLY
01.01.190031.12.9999
$200
$100
$200
SLRY
01.01.190031.12.9999
$200
$125
$200
Total costs
Employer
costs
Provider
costs
NDEE No Deductible EE only

Cost group
(C) SAP AG
HR325 17-9
Validity dates
HRLY
01.01.190031.12.9999
$400
$365
$400
SLRY
01.01.190031.12.9999
$400
$390
$400
NDE1 No Deductible EE plus one

Cost group
Validity dates
Total costs
Employer
costs
Provider
costs
HRLY
01.01.190031.12.9999
$400
$350
$400
SLRY
01.01.190031.12.9999
$400
$390
$400
NDEF No Deductible EE plus family
2-6
Cost group
Validity
dates
Total costs
Employer
costs
Provider
costs
HRLY
01.01.190031.12.9999
$400
$200
$400
SLRY
01.01.190031.12.9999
$400
$250
$400

Assign all the attributes for health plans, by assigning options and dependent coverage
choices to cost formulas:
(C) SAP AG
Option
Dependent
coverage
Form.
Validity dates
YSDT
EE
DEE
01.01.1900-31.12.9999
YSDT
EE1
DEE1
01.01.1900-31.12.9999
YSDT
EEF
DEEF
01.01.1900-31.12.9999
NODT
EE
NDEE
01.01.1900-31.12.9999
NODT
EE1
NDE1
01.01.1900-31.12.9999
HR325 17-10
NODT
2-7
EEF
NDEF
01.01.1900-31.12.9999
Define additional documents for health.

Define health plan SMxx as requiring Evidence of Insurability(EOI). All options
require it upon initial enrollment in the plan. The action the system should take is
create a pending record for the desired option, and allow a grace period of 1 month
from enrollment date.
Options which
require proof
Initial
enrollment?
YSDT and
NODT
2-8
Action
Grace
period
Validity
dates
Create
pending
record for
desired
option
1 month
from
enrollment
date
01.01.190031.12.9999
Assign wage types

Field
Wage type
EE pre-tax contribution
BE10
EE posttax contribution
BE10
ER contribution
BR10
Provider cost
BSAL
Now set up the second health plan in your benefit area.

Standard Dental has only one option. Cost of the plan depends solely on whether the
employee is salaried or hourly paid.
2-9

For Standard Dental, enter the following data:
(C) SAP AG
Field
Input data
Benefit plan
SD## (## = group number) / Standard Dental
From/to
01.01.1900-31.12.9999
HR325 17-11
(C) SAP AG
Type
DENT
Plan status
OP
Provider
Standard Life

Post tax allowed
HR325 17-12
2-10

Enter the option for the Standard Dental health plan.
2-11
Field
Input data
Health plan options
OPT1 Option 1

rule.
Enter the cost formula that will be used for all combinations of option and dependent
coverage as follows to the Standard Dental health plan:
2-12
Cost
formula
Description
Period
Variable
ALL
All costs
01
Selected

ALL All costs
(C) SAP AG
Cost
group
Validity dates
Total
costs
Employer
costs
Provider
costs
HRLY
01/01/190031/12/9999
$100
$90
$100
SLRY
01/01/190031/12/9999
$100
$80
$100
HR325 17-13
2-13

Assign attributes to the Standard Dental health plan for the options and dependent
coverage choices.
2-14
Option
Dependent
coverage
Form.
Validity dates
OPT1
EE
ALL
01.01.1900-31.12.9999
OPT1
EE1
ALL
01.01.1900-31.12.9999
OPT1
EEF
ALL
01.01.1900-31.12.9999
Assign wage types.

Assign wage types to benefit plan SD##.
(C) SAP AG
Field
Wage type
EE pre-tax contribution
BE11
BE11
ER contribution
BR11
Provider cost
BSAL
HR325 17-14
Unit: Insurance plans

Set up an insurance plan to include the following:

Coverage
and cost formulas
EOI
Combined
Coverage Limits
Set up two insurance plans for your benefit area.

Basic Life has two flat coverage options, however the actual amount of
coverage differs depending on the employee's personnel group. Cost of
the plan depends on the employee's personnel group and age.
The plan is considered imputed income and the employee can pay for it
using credit allocated in a credit plan.
3-1

Field
Input data
Benefit plan
BL## (## = group number) / Basic Life
From/to
01.01.1900-31.12.9999
Type
LIFE
Plan status
OP
Provider
Legal and General
Insurance plan
attributes
Beneficiaries and Contingency

beneficiaries relevant.
Pre and post tax premium payments
are allowed.
Group Term
(C) SAP AG
HR325 17-15
3-2

Enter the two coverage formulas for Basic Life.
3-3
Coverage formula
Description
LEV1
Level One
LEV2
Level Two
Coverage group

Define the four coverage formula calculation rules as follows. Use validity dates
01.01.1900-31.12.9999.
Coverage
formula
Coverage group
Basic amount
LEV1
COG1
Salary factor: 1
LEV1
COG2
Salary factor: 2
LEV2
COG1
Amount: $80,000
LEV2
COG2
Salary factor: 3
calculation rule.
In the Basic Life plan, cost is directly proportional to how much coverage the
employee chooses. Thus only one cost formula is required.
3-4
Define criteria identifiers

Define criteria ID in the basic settings for the employee groups:
3-5
Criteria ID
Text
US
Universal
Define age groups

Define age groups in the basic settings for the employee groups.
An age group is associated with a criteria identifier. The age group defines a specific
age span by associating high and low values with an age group.
(C) SAP AG
HR325 17-16
3-6
Age group
Text
Minimum
age
Maximum
age
<35
Less than 35 years
34
>35
More than 35 years
35
99

Define cost formulas for the Basic Life Insurance plan
Field
Data
Cost formula
ALL
Description
All
Period
Monthly
Criteria ID
US
Age
Variable
3-7

Define the four cost formula calculation rules for the cost formula ALL as follows:
(C) SAP AG
Age
group
Cost
group
Validity
dates
Base
unit
Total
costs
cost
factor
Provider
costs cost
factors
<35
HRLY
01.01.190031.12.9999
$1000
$0.25
$0.25
<35
SLRY
01.01.190031.12.9999
$1000
$0.25
$0.25
>35
HRLY
01.01.190031.12.9999
$1000
$0.50
$0.50
>35
SLRY
01.01.190031.12.9999
$1000
$0.20
$0.20
HR325 17-17
-8

Assign the attributes for Basic Life, by defining options and assigning the cost and
coverage formulas you have already defined:
3-9
Description
Cost
formula
Coverage
formula
Validity dates
Option 1
ALL
LEV1
01.01.190031.12.9999
Option 2
ALL
LEV2
01.01.190031.12.9999
Assign wage types
Assign the wage types to Basic Life as follows:

Field
Wage type
EE contribution
BE20
BE20
Provider wage type
BR20
Calculation base
BSAL
Now set up the second insurance plan in your benefit area.

Additional Life has only one option, however the actual amount of coverage differs
depending on the employee's personnel group (salaried or hourly paid). Cost of the
plan also depends on whether the employee is salaried or hourly paid.
3-10

For Additional Life, enter the following data:
(C) SAP AG
Field
Input data
Benefit plan
AL## (## = group number) / Additional

Life
HR325 17-18
From/to
01.01.1900-31.12.9999
Type
SPLF
Plan status
OP
Provider
Prudential
Beneficiaries and Contingency

beneficiaries relevant.
Pre and post tax premium payments
are allowed.
Group Term
3-11

Enter the coverage formula for Additional Life.
3-12
Coverage formula
Description
ALL
All coverages
Coverage group

Define the two coverage formula calculation rules as follows.
Coverage
formula
Coverage
group
Basis
amount
Additional
coverage
unit
Maximum units
ALL
COG1
$10,000
$1,000
90
ALL
COG2
$25,000
$5,000
20
calculation rule. In the Additional Life plan, cost is directly proportional to how much
coverage the employee chooses. Thus only one cost formula is required.
(C) SAP AG
HR325 17-19
3-13

Enter the coverage formula for the Additional Life insurance plan.
Field
Data
Cost formula
ALL
Description
All
Period
Monthly
Variable
3-14

Define the cost formula calculation rules for the cost formula ALL as follows:
Cost group
3-15
Validity
dates
Base unit
Total costs
Provider
costs
Cost
Factor
Cost Factor
HRLY
01.01.190031.12.9999
$1000
$0.35
$0.35
SLRY
01.01.190031.12.9999
$1000
$0.25
$0.25

Assign the attributes for Additional Life, by defining the one option and assigning the
cost and coverage formulas you have already defined:
(C) SAP AG
Descriptio
n
Cost formula
Coverage
formula
Validity dates
Option 1
ALL
ALL
01.01.190031.12.9999
HR325 17-20
3-16
Define additional documents for Insurance

Define this plan as requiring Evidence of Insurability(EOI) upon initial enrollment in
the plan, an increase of $25,000 or more, or when a total of $100,000 coverage or more
is chosen. The action the system should take is create an active record for the desired
option, and allow a grace period of 1 month from enrollment date.
3-17
Field
Data
Benefit plan
AL## (## = group number) / Additional

Life
Initial enrollment
$0.01
Change of coverage
$24,999
Enrollment any time
$100,000
Action
Grace period
1 month from enrollment date
Validity dates
01.01.1900-31.12.9999
Assign wage types

Assign the wage types to Additional Life as follows:
(C) SAP AG
Field
Wage type
EE contribution
BE20
BE20
Provider wage type
BR20
HR325 17-21
Unit: Savings Plans

Set up a savings plan to include the following:

Employee
contributions for pre and post tax
Employer
contributions
Vesting
rules
Investment
options
Set up two savings plans for your benefit area.

In the Standard Savings, the employee may contribute pre-tax up to $500
and post tax up to $1000 per month. The plan is a guaranteed annuity
plan.
4-1

For Standard Savings, enter the following data:
(C) SAP AG
Field
Input data
Benefit plan
SS## (## = group number) / Standard

Savings
From/to
01.01.1900-31.12.9999
Type
SAVE
Plan status
OP
Provider
Merrill Lynch
Beneficiaries, Contingency beneficiaries

and Investments relevant.
Regulatory reports
Non-deferred
HR325 17-22
4-2

Define employee contribution rules for the Standard savings plan.
4-3
Field
Data
ALL
Description
All
Period
Monthly

Define employee contribution rule criteria for the Standard savings plan for the ALL
employee contribution rule.
Field
Data
Amount
Pre-tax
Pre-tax minimum
$100
Pre-tax maximum
$500
Post-tax
4-4
Post-tax minimum
$100
Post-tax maximum
$1000
Validity dates
01.01.1900-31.12.9999
Define investments
Investments for savings plans are the options available to employees participating in
the benefit program. Investment options are available to savings plan participants.
Define the following investments for your savings plans:
(C) SAP AG
Investment
Text
ANNU
Guaranteed annuity
BLFD
Balanced fund
COMP
Company stock
HR325 17-23
4-5
Define investment groups

Investment groups are used to associate several investment options with a benefit plan.
A benefit plan then has an investment group consisting of several options.
4-6
Investment group
Text
SAV
Savings
401K
401K
Assign investments to groups

Individual options are associated with investment groups:
4-7
Investment group
Investment
SAV
ANNU
401K
BLFD, COMP

The attributes of the savings plan are assigned to the plan itself, as follows:
4-8
Field
Data
Benefit plan
SS##
ALL
Investment group
SAV
Validity dates
01.01.1900-31.12.9999
Assign wage types

Assign the wage types to Standard Savings as follows:
(C) SAP AG
Field
Wage type
EE contribution
BE30
EE posttax deducs
BE30
HR325 17-24
Now set up the second savings plan in your benefit area.

In the Standard 401K, employees may contribute pre-tax up to 15% and post-tax up to
10% of their income per month. The employer matches 10% up to different maximum
limits, depending on the length of service of the employee.
4-9

For Standard 401K, enter the following data:
4-10
Field
Input data
Benefit plan
S4## (## = group number) / Standard 401K
From/to
01.01.1900-31.12.9999
Type
LTSV
Plan status
OP
Provider
Prudential
Savings plan
attributes
Beneficiaries, Contingency beneficiaries and

Investments relevant
Regulatory reports
Non-deferred

Define employee contribution rules for the Standard 401k plan.
4-11
Field
Data
ALL
Description
All
Period
Monthly

Define employee contribution rule criteria for the Standard 401k plan for the ALL
employee contribution rule.
Field
Data
Percent
Pre-tax
Pre-tax minimum
(C) SAP AG
HR325 17-25
1%
Pre-tax maximum
15%
Post-tax
4-12
Post-tax minimum
1%
Post-tax maximum
10%
Pre-tax contribution limit
$10,000
Validity dates
01.01.1900-31.12.9999
Define employer contribution rules

Define employer contribution rules for the Standard 401k plan.
Field
Data
ALL
Description
All
Period
Monthly
Criteria ID
Universal
LOS
4-13
(C) SAP AG
Define length of service groups in the basic settings for the employee groups for the
Universal criteria ID.
Field
Data
LOS group
<10 Less than 10 years
Lowest value
Max. value
LOS group
>10 More than 10 years
Lowest value
10
Max. value
99
HR325 17-26
4-14
Define employer contribution rule criteria

Define employer contribution rule criteria for the Standard 401k plan for the ALL
employer contribution rule.
4-15
LOS
Group
Sequ.
No.
Contribution
definition
Contributio
n limit
Validity dates
<10
10% ee contribution
$10,000
01.01.190031.12.9999
>10
10% ee contribution
$15,000
01.01.190031.12.9999
Define vesting rules.

A vesting rule defines a particular schedule. Define your vesting rule as follows:
4-16
Field
Data
Vesting rule
5YR
Description
5 Year Vesting
Define vesting schedules

Define vesting schedules for the 5YR vesting rule.
(C) SAP AG
Percent
Number
Unit
20
Years
40
Years
60
Years
80
Years
100
Years
HR325 17-27
4-17

The attributes of the 401k savings plan are assigned to the plan itself, as follows:
4-18
Field
Data
Benefit plan
S4##
EE contr. Rule
ALL
ER contr. Rule
ALL
Vesting rule
5YR
Investment group
401K
Validity dates
01.01.1900-31.12.9999
Assign wage types

Assign the wage types to Standard 401K as follows:
(C) SAP AG
Field
Wage type
EE contribution
BE31
EE posttax deducs
BE31
ER contribution
BR31
Calculation base
BSAL
Technical base
BSAL
HR325 17-28
Unit: Flexible Spending Accounts (US only)

Set up an FSA to include:

employee
contribution
employer
contribution rule
Set up two FSAs for your benefit area.

In the Health Care FSA, the employee may contribute pre-tax up to
$10,000 annually.
5-1

For Health Care FSA enter the following data:
(C) SAP AG
Field
Input data
Benefit plan
HF## (## = group number) / Health Care FSA
From/to
01.01.1900-31.12.9999
Type
HCSP
Plan status
OP
Provider
Merrill Lynch
HR325 17-29
5-2

Enter the details of the Health Care FSA plan as follows:
Field
Input data
Minimum amount
$100
Maximum amount
$10,000
Validity period
01.01.1900 31.12.9999
Benefit plan
HF## (## = group number)
wage types
BE40
Minimum reimbursement
amount
$100
01 March
5-3
Annual contribution
Assign wage types

Enter the following wage type for the Health Care FSA plan:
Field
Input data
EE contribution
BR40
Now enter the details of the other FSA in your benefit area.
In the Dependent Care FSA, the employee may contribute pre-tax up to $15,000
annually.
5-4

For Dependent Care FSA enter the following data:
(C) SAP AG
Field
Input data
Benefit plan
DF## (## = group number) / Dependent

Care FSA
From/to
01.01.1900-31.12.9999
Type
DPSP
Plan status
OP
HR325 17-30
Provider
5-5
Prudential

Enter the details of Dependent Care FSA as follows:
Field
Input data
Benefit plan
DF## (## = group number)
Minimum amount
$100
Maximum amount
$15,000
wage types
BE41
Minimum reimbursement
amount
$100
01 March
Validity period
01.01.1900 31.12.9999
5-6
Current account balance
Assign wage types for the Dependent Care FSA plan.

Enter the following wage type:
5-7
Field
Input data
EE contribution
BR41
Define FSA claim receipt types

Enter the following receipt types:
(C) SAP AG
Receipt type
Text
DAYC
Day care
HOSP
Hospital visit
HR325 17-31
(C) SAP AG
HR325 17-32
Unit: Credit Plans

Set up a credit plan to include a credit formula and wage types.
Set up a credit plan for your benefit area.

In the Flexible Credit plan the employees receive an amount of credit,
depending on whether they are salaried or hourly paid employees. This
credit can then be used to pay for other benefit plans.
6-1
Define credit plan general data

For Flexible Credit, enter the following data:
6-2
Field
Input data
Benefit plan
FCXX (XX = group number) / Flexible Credit
From/to
01.01.1900-31.12.9999
Type
CRED
Plan status
OP
Define credit formulas

A credit formula is the means of determining the amount of money an employer will
distribute to employees in order to pay for their other benefit plans. The cost formula is
defined in two steps. In step one, you identify the credit formula name and the credit
criteria. In step two you specifically define the credit criteria.
Define the credit formula for Flexible Credit as follows:
(C) SAP AG
HR325 17-33
Field
Data
Credit formula
SIMP
Description
Simple credits
Period
Monthly
Credit group
6-3
Define credit formula calculation rules

Define credit formula calculation rules for the Flexible Credit plan for credit formula
SIMP.
Credit
group
Credit
factor
Roundin
g rule
Rounding
divisor
Min.
amount
Max.
amount
HRLY
2.5
100
$20
$300
SLRY
5.0
100
$50
$500
Validity period
6-4
01.01.1900 31.12.9999
Assign credit plan attributes

Assign credit plan attributes for the flexible credit plan.
6-5
Field
Data
Validity dates
01.01.1900 31.12.9999
Credit formula
SIMP
Excess %
50
Assign wage types

Assign the wage types to Flexible Credit as follows:
(C) SAP AG
Field
Wage type
ER contribution
BR50
Calculation base
BSAL
HR325 17-34
Unit: Miscellaneous Plans

At the conclusion of this exercise, you will be able to set up miscellaneous
plans to include
Cost
formula
Cost
formula calculation rules
Set up two miscellaneous plans for your benefit area.

The Company Car plan offers two types of car, luxury and sport.
Employees pay a higher premium if they live beyond a 20 mile radius of
the office.
7-1

Field
Input data
Benefit plan
CC## (## = group number) / Company

Car
From/to
01.01.1900 31.12.9999
Type
CAR
Plan status
OP
Plan attributes
7-2
4
Cost formula
Post tax allowed
Define cost formula

For the Company Car cost formulas, enter the following data:
Cost
formula
(C) SAP AG
HR325 17-35
Description
Period
Variable
7-3
LUXY
Luxury car
Monthly
SPRT
Sports car
Monthly

Define the two cost formula calculation rules for each cost formula as follows:
7-4
Cost formula
Cost group
Validity dates
Total costs
LUXY
FAR
01.01.1900 31.12.9999
$330
LUXY
NEAR
01.01.1900 31.12.9999
$300
SPRT
FAR
01.01.1900 31.12.9999
$220
SPRT
NEAR
01.01.1900 31.12.9999
$200

Assign the attributes for Company Car, by defining options and assigning the cost
formulas you have already defined:
7-5
Option
Description
Cost formula
LUXY
Luxury car option LUXY
01/01/190031/12/9999
SPRT
Sports car option
01.01.1900
31.12.9999
SPRT
Validity dates
Assign wage types

Assign the wage types to Company Car as follows:
Field
Wage type
EE posttax deducs
BE30
Now set up the second miscellaneous plan in your benefit area.
(C) SAP AG
HR325 17-36
The Health Club plan offers membership in the club for a flat monthly cost. The cost is the
same for all employees.
7-6

For Health Club, enter the following data:
Field
Input data
Benefit plan
HC## (## = group number) / Health Club
From/to
01.01.1900-31.12.9999
Type
LEIS
Plan status
OP
Plan attributes
7-7
4
Cost formula
Post tax allowed
Define cost formula

For the Health Club cost formula, enter the following data:
7-8
Cost formula
Description
Period
CLUB
Club membership
Monthly

Define the cost formula calculation rule for the health club plan and the CLUB cost
formula as follows:
7-9
Cost formula
Validity dates
Total costs
CLUB
01.01.1900 31.12.9999
$100

Assign the attributes for Health Club, by defining the option and assigning the cost
formula you have already defined:
(C) SAP AG
Option
Description
Cost formula
Validity dates
CLUB
Club
CLUB
01.01.1900
HR325 17-37
membership
7-10
31.12.9999
Assign wage types

Assign the wage types to the Health Club plan as follows:
Field
Wage type
EE posttax deducs
BE30
Unit: Benefits Administration

At the conclusion of this exercise, you will be able to set up:
Pre-requisites
Benefit
and co-requisites
programs
Eligibility
Standard
and termination rules
plans
Benefit
events
Benefit
parameters
Set up the administration of the benefit plans you have defined for your
benefit area.
8-1

For your administrative parameters, enter the following data:
Field
Is an Open Enrollment period
offered?
(C) SAP AG
Input data
Yes
Open enrollment validity
01.11.19YY 30.11.19YY
(YY is current year)
Validity of records for open

enrollment
01.01.19ZZ 31.12.19ZZ (
ZZ is current year +1)
Validity of records for

event/standard plans
HR325 17-38
Maximum permitted age of

dependents
Non student: 18
Student: 21
No maximum age if physically

challenged
Prerequisite plans are those plans the employee must be enrolled in before it is possible
to enroll in another particular plan. An employee can enroll a particular plan and its
corequisite plans all at the same time.
8-2
Define prerequisite plans

For plan Additional Life (AL## ## is your group number), define the following
prerequisite plan:
8-3
Prereq.
Description
BL##
Basic Life
Prerequisite
Any plan
Define corequisite plans

For plan Standard Dental (SD## ## is your group number), define the following
corequisite plan:
Coreq. plan Description
SM##
Corequisite
Any plan
Standard Medical
Set up the benefit programs for your employees. First you define benefit groups and
employee statuses. Next you define eligibility and termination rules. Lastly for each
combination of benefit group and employee status, you define the program of plans for
which they are eligible, and attach the eligibility and termination rules to the plans.
8-4
Define employee benefit groups

Define the following employee benefit groups:
8-5
Benefit group
Text
EXEC
Executive employees
EXMT
Exempt employees
HRLY
Hourly employees
Define employee status

Define the following employee statuses:
(C) SAP AG
HR325 17-39
Benefit group
Text
FULL
Full time employees
PART
Part time employees
TEMP
Temporary employees
Now define the eligibility groups, rules and rule criteria.

8-6
Define eligibility groups

An eligibility group is a means of identifying groups of employees possessing common
characteristics relevant to the eligibility requirements of the benefits offered by your
organization. The eligibility group allows you to include supplementary eligibility
criteria that are not included in the standard eligibility criteria.
Define the following eligibility group:
8-7
Eligibility group
Text
EGR1
Eligibility group 1

Define the following eligibility rule:
8-8
Eligibility rule
Text
IMMD
Immediately eligible
Define eligibility rule criteria

Define the following eligibility rule criteria for eligibility rule IMMD and eligibility
group EGR1:
Eligibility group
Text
Elig. Group
EGR1
Field
Data
Validity dates
01.01.1900 31.12.9999
Enrollment
(C) SAP AG
HR325 17-40
Immediate
8-9
Define termination types

A termination type is a means of identifying types of employees possessing common
characteristics relevant to the termination requirements of your organization. The
termination type allows you to include supplementary criteria that are not included in
the standard termination criteria.
Define the following termination types:
8-10
Termination type
Text
TTYP
Standard termination

Define the following termination rule:
8-11
Termination rule
Text
IMMD
Immediate termination.
RUL1
Rule 1
RUL2
Rule 2
Define termination rule criteria

Define the following termination rule criteria for each combination of termination rule
and termination type:
8-12
Term.
rule
Term.
type
Validity
dates
Cov. Cont.
period
IMMD
TTYP
01.01.1900 blank
31.12.9999
RUL1
TTYP
01.01.1900 4 months
31.12.9999
RUL2
TTYP
01.01.1900 1 month
31.12.9999
Termination
Immediately
Day 31
month
Immediately

Define the benefit program for employees who fall into the benefit group EXMT and
the employee status FULL termination type:
(C) SAP AG
Plan
Description
Eligibility rule
Termination rule
SM##
Standard medical
IMMD
RUL1
HR325 17-41
SD##
Standard Dental
IMMD
RUL1
BL##
Basic Life
IMMD
RUL2
AL##
Additional Life
IMMD
RUL2
SS##
Standard Savings
IMMD
IMMD
S4##
Standard 401K
IMMD
IMMD
FC##
Flexible Credit
IMMD
IMMD
CC##
Company Car
IMMD
IMMD
HC##
Health Club
IMMD
IMMD
HF##
Health Care FSA
IMMD
RUL1
DF##
Dependent Care FSA
IMMD
RUL1
US only:
8-13
Define standard health plans

Define the following plans as default health plans, for EXMT and FULL employees:
8-14
Type
Plan
Option
Dependent
coverage
Processing
type
MEDI
SM##
NODT
EE
Default plan
DENT
SD##
OPT1
EE
Default plan
Define standard insurance plans

Define the following plans as default insurance plans, for EXMP and FULL
employees:
Type
Plan
Option
Additional units
LIFE
BL##
OPT1
blank
Processing type
Default plan
A Benefit event is when an employee wants to make changes to enrollments due to a life or
organizational change. You can define the events and specify permissions for change in each
case. You can also define benefit event groups to allocate different permissions to different
groups of employees.
8-15
(C) SAP AG
Define benefit event groups

HR325 17-42
Define the following benefit event group:
8-16
Event group
Text
STRD
Standard event group
Define benefit events

Define the benefit event CHIL New child:
End of records
Default date (31.12.19YY YY =

current year)
Define the benefit event NRES No reason:

Field
Data
Event
NRES No reason
Changes anytime
Total event process duration
Blank
Event process duration after first

choice
Blank
Start of records
:
Event date (31.12.19YY YY
= current year)
End of records

current year)
Define the benefit event INIT Initial enrollment:
(C) SAP AG
Field
Data
Event
Changes anytime
Blank
6 weeks
HR325 17-43

choice
6 weeks
Start of records
End of records

current year)
Event date
Define the benefit event MARR Marriage:

Field
Data
Event
MARR Marriage
Changes anytime
Blank
2 months

choice
1 month
Start of records
End of records
Event date
current year)
Define the benefit event ORGC Organizational change:
(C) SAP AG
Field
Data
Event
ORGC Org. change
Changes anytime
Blank
6 weeks

choice
Blank
Start of records
Event date (31.12.19YY YY

= current year)
End of records

current year)
HR325 17-44
Define the permitted changes for the health and savings plans in your benefit area.
8-17
Define permitted changes for events -> Health plans

Define changes by plan type.
8-18
8-19
Event
Event
group
Plan type
Selected
INIT
STRD
MEDI
Create
INIT
STRD
DENT
Create
CHIL
STRD
MEDI
Change:
option
dependent coverage
dependents
CHIL
STRD
DENT
Change:
option
dependent coverage
dependents
Define permitted changes for events -> Insurance plans

Event
Event
group
Plan
type
Selected
INIT
STRD
LIFE
Create
CHIL
STRD
LIFE
Change:
option
beneficiaries
Create:
plan
CHIL
STRD
SPLF
Change:
option
Create:
plan
Define permitted changes for events -> Savings plans

Event
(C) SAP AG
beneficiaries
Event
HR325 17-45
Plan
Selected
8-20
8-21
8-23
group
type
INIT
STRD
SAVE
Create
INIT
STRD
LTSV
Create
CHIL
STRD
SAVE
Change:
Beneficiaries
Increase:
Pre tax contrib
Post tax contrib
CHIL
STRD
LTSV
Change:
Beneficiaries
Increase:
Pre-tax contribution
Define permitted changes for events -> Credit plans

Event
Event
group
Plan
type
Selected
INIT
STRD
CRED
Create
Define permitted changes for events -> Miscellaneous plans

Event
Event
group
Plan
type
Selected
INIT
STRD
CAR
Create
INIT
STRD
LEIS
Create
CHIL
STRD
CAR
Change:
option
CHIL
STRD
LEIS
Change:
plan
Create:
plan
USA Only: Define permitted changes for events -> Flexible spending accounts
Event
(C) SAP AG
Event
HR325 17-46
Plan
Selected
group
type
INIT
STRD
DPSP
Create
INIT
STRD
HCSP
Create
CHIL
STRD
DPSP
Change:
benefit plan
Create:
benefit plan
Delete:
benefit plan
Increase:
contribution
Decrease:
contribution
CHIL
STRD
HCSP
Change:
benefit plan
Create:
benefit plan
Delete:
benefit plan
Increase:
contribution
Decrease:
contribution
Unit: COBRA (US Only)

Identify plans that are valid for COBRA
When US employees leave the company, they may be eligible to continue

their benefits under COBRA provisions. You need to flag plans valid for
COBRA.
Choose the plans valid for COBRA from those health plans you have already set up.
9-1
Choose COBRA plans

Enter the following data:
(C) SAP AG
HR325 17-47
Plan
COBRA valid
SD## (Standard dental)
blank
SM## (Standard medical)
(C) SAP AG
HR325 17-48
Unit: Benefits Processing

Enroll a newly hired employee in benefits plans
Hire an employee in Personnel Administration, then enroll the employee

in Benefits for benefit plans. Use the benefits event Initial enrollment to
enroll the employee. Then carry out EOI processing using the HR325
hiring action.
10-1
In Personnel Administration hire the employee

Personnel Action screen
Field
Data
Personnel number
From
HR325 Hiring
Enter the data for each infotype for the action HR325 Hiring as follows:
Actions (Infotype 0000)
Field
Data
Position
Blank
Personnel area
3000
Employee group
Employee subgroup
U4
Personal Data Infotype (0002)

Field
(C) SAP AG
HR325 17-49
Data
Last name
Your choice
First name
Your choice
SSN
Your choice
Birth date
03.04.1968
Gender
Your choice
Marital status
Marr
Family/related person (Infotype 0021)

Field
Data
First name
Your choice
SSN
Your choice
Organizational assignment (Infotype 0001)

Field
Data
Payroll subarea
0001
Payroll area
US
Note: Select the Cancel icon on the Enter Position Assignment pop-up box
Address (Infotype 0006)
Field
Data
Address line 1
44## Oak Lane
City
SAPBerg
State/zip code
OH/44574
Select the Cancel icon in the Tax area pop-up box.

Select the Cancel icon in Residence Tax Area (Infotype 0207).
(C) SAP AG
HR325 17-50
Planned Working Time (Infotype 0007)

Field
Data
Work Schedule Rule
NORM
Basic pay (Infotype 0008)

Field
Data
Payscale group
GRD01
Annual salary
30,000
Family/Related Person (Infotype 0021)

Data
First name
Your choice
SSN
Your choice
Gender
Your choice
General benefits data (Infotype 0171)

Field
Data
Benefit area
Override with your benefit area
Benefit group
EXMT (default)
Employee status
FULL (default)
Event: permissions (Infotype 0378)
10-2
Field
Data
Benefit event
Validity dates
01.01.19YY 12.02.19YY (YY is current

year)
In Benefits enroll the employee in benefit plans

(C) SAP AG
HR325 17-51
In the Benefits - Main Program pop-up box enter the following:
Field
Data
Personnel number
Other period
Choose Execute.
Click on the Enroll icon next to the line Initial enrollment.
Plan
Other data
Flexible credit
None
Standard Dental
Option 1
Employee only
Standard Medical
With deductible
Employee only
Basic Life
Option 2
Standard Savings
Pre-tax contribution $100
Company Car
Sports car option
Health Club
None
Choose Enroll.
In the EOI pop-up box leave the checkbox blank to indicate that EOI had not yet been
provided by the employee.
Choose Enroll.
Choose Enroll.
10-3
In Benefits process the employee's EOI.

You have just enrolled your employee in Standard Medical. However since EOI had
not at that time been provided, the system created the plan as pending only.
(C) SAP AG
HR325 17-52
It is now 2 weeks later and the employee has just delivered the EOI to the benefits
office. You should now record this in the system.
In the Benefits Main Program
Choose the Insurability function.
Field
Data
Personnel number
Other date
Choose Execute.
Select the plan Standard Medical and then the EOI provided function.
The employee's Standard Medical plan is now active and the record states that EOI has
been provided.
(C) SAP AG
HR325 17-53

Topic: FSA Processing
Enroll an employee in an FSA.
Your company offers Flexible Spending Accounts,and you want to enroll

an employee.
11-1
In Benefits enroll the employee in an FSA benefit plan.

Benefits screen
Field
Data
Personnel number
Other date
Choose Execute.
Click on the enroll icon next to the line Initial enrollment.
Plan
Other data
Health Care FSA
Dependent Care FSA
Choose Enroll.
Choose Continue.
11-2
Process a check your employee has brought to the benefits office for processing.
Benefits screen
Choose the Administration -> Spending accounts claims.
(C) SAP AG
HR325 17-54
Field
Data
Personnel number
Today
Choose Execute.
Put your cursor on the Dependent Care spending account and select the Claims icon.
In the pop-up box select Create.
In the FSA Claims (Infotype 0172) enter the following:
FSA Claims (Infotype 0172)
Field
Data
Benefit plan type
DPSP
Claim submitted on
Enter today's date
Date cost incurred
Enter yesterday's date
Claim
$100
Receipt type
DAYC
Save your entries.

Return to the screen FSA: Administration and Balancing.
A claim now exists in the system and can be accessed by Payroll processing.
(C) SAP AG
HR325 17-55

Topic: Cobra Processing
Terminate an employee and collect the COBRA event
Now terminate your employee's employment contract and collect this as a

COBRA qualifying event.
11-3
Personnel Actions screen

Field
Data
Personnel number
From
Enter 01.06.19YY (YY is current year)
Leaving
3. In the Actions (Infotype 0000) screen accept the defaults by selecting Save twice.
4. In the Basic Pay (Infotype 0008) screen select the basic pay record then Delimit.
11-4
In Benefits collect the termination as a COBRA qualifying event.

(C) SAP AG
1.
Choose Administration -> COBRA administration.
2.
Select Events.
3.
In the Collection of qualifying COBRA events pop-up box enter the following:
Field
Data
Personnel number
HR325 17-56
Other period
4.
Choose process.
The COBRA qualifying event Termination is now collected for your employee. The
system stores this information in a buffer, that it then accesses via letter printing for
COBRA.
(C) SAP AG
HR325 17-57
Unit: Reports and Tools
Run a report to display employee health plan costs.
You need to run the following reports and examine the results.
12-1
Health care premiums
Overview of Benefits Plans
Run the Health care premiums report

Choose Reporting -> Premiums -> Health
In the Health premiums report screen enter the following:
Field
Data
Personnel number
Other period
Choose Execute.
12-2
Run the Plan overview report

In the Benefits IMG
Choose the Plan overview IMG node
In the Overview of Benefit Plans report screen enter the following:
Field
Data
Benefit area
Enter your benefit area
Choose Execute.
Open out the tree and examine the benefit plan set up that you have created.
(C) SAP AG
HR325 17-58
Appendix
z This section contains supplementary material
to be used as reference
z This material is not part of the standard
course
z Therefore, the instructor might not cover this
during the course presentation
SAP AG
(C) SAP AG
HR325 18-1
Main Benefits IMG Paths in 4.6

Prerequisite and Corequisite Plans
Personnel Management > Benefits > Flexible Administration > Prerequisites and corequisites > Define prerequisite
plans
Personnel Management > Benefits > Flexible Administration > Prerequisites and corequisites > Define corequiste
plans
Evidence of Insurability (EOI)

Benefits > Plans > Health Plans > Define evidence of insurability conditions
Benefits > Plans > Insurance Plans > Define evidence of insurability conditions

Benefits > Plans > Savings Plans > Combined contribution > Define combined contribution limits
Benefits > Plans > Savings Plans > Combined contribution > Define combined contribution limit expressions
Combined Coverage for Insurance

Benefits > Plans > Insurance Plans > Combined coverage > Define combined coverage for insurance
Benefits > Plans > Insurance Plans > Combined coverage > Define combined coverage limit expressions
Credit Plans - Excess

Benefits > Plans > Credit Plans > Assign credit plan attributes
Miscellaneous Plans
Benefits > Plans > Miscellaneous Plans >
Administrative Parameters
Benefits > Flexible Administration > Define administrative parameters
Standard Plans
Benefits > Flexible Administration > Standard selections
User Exits
Benefits > Toolset > User exits
COBRA
Benefits > COBRA
(C) SAP AG
HR325 18-2
Benefits Infotypes
International:
0167
Health Plans
0168
Insurance Plans
0169
Savings Plans
0379
0236
Credit Plans
0377
Miscellaneous Plans
0171
General Benefits Data
0376
Medical Data
0378
Adjustment Reasons
North America/USA only:

0211
COBRA Qualified Beneficiary

(USA)
0212
COBRA Health Plans (USA)
0270
COBRA Payments (USA)
0170
Flexible Spending Accounts

(North America)
0172
FSA Claims (North America)
0375
HCE Information
(C) SAP AG
HR325 18-3
Change in Benefits Terminology as of Release 4.6A

The Benefits Component has undergone some terminology changes, to bring transparency and symmetry to the
product. All changes are in keeping with HR terminology standards. The changes concern the following areas:
Customizing:
o names of views
o column headers within views
o field labels within views
Reporting:
o texts and field labels on selection screens
o texts and field labels for lists
o documentation
Dialog:
o field labels
o group boxes
o column headers
o help texts
ABAP Dictionary
o domains
(long name)
o data elements (long name and documentation)

o structures
(long name)
o tables
(long name)
o views
(long name)
o funtion modules (long name)

o user exits
(long name)
Further Repository Objects:

o transactions (long name)
o features
(documentation)
o messages
Please note the following significant changes:
(C) SAP AG
HR325 18-4
Up to Release 4.0x
As of Release 4.6A
Adjustment group
Adjustment grouping
Adjustment permission
Adjustment permission
Adjustment reason
Adjustment reason
Dependent/Dependant
Dependent
Beneficiary
Beneficiary
Benefit group
Benefits information
Benefits information
Benefit status
Second program grouping
Calculation rule
Rule
Calculation rule for employee contribution
Calculation rule for employer contribution
Employer contribution rule
COBRA Reason for Early Termination
COBRA early termination reason
Combined contribution limit
Combined contribution limit
Combined coverage limit
Combined coverage limit
Cost formula
Cost (rule) variant
Cost formula calculation rule
Cost rule
Cost group
Cost grouping
Coverage
Coverage
Coverage formula
Coverage (rule) variant
Coverage formula calculation rule
Coverage rule
Coverage group
Coverage grouping
Credit
Credit
Credit formula
Credit (rule) variant
Credit formula calculation rule
Credit rule
Credit group
Credit grouping
Criteria ID/Criteria identifier
Parameter group
Dependent option
Dependent coverage
Eligibility group
Eligibility rule
Eligibility (rule) variant
Eligibility rule criteria
Eligibility rule
Employee contribution group
Employee contribution (rule) variant
Employee contribution formula
Employee contribution (rule) variant
Employee contribution rule criteria
Employee group
Employee group criteria ID
Parameter group
(C) SAP AG
HR325 18-5
Employee status
Employer contribution group
Employer contribution grouping
Employer contribution (rule) variant
Employer contribution formula
Employer contribution (rule) variant
Employer contribution rule criteria
Event
Adjustment reason
Event assigned permissions
adjustment permission
Event group
Adjustment grouping
Formula
(Rule) variant
Health plan
Health plan
Health plan option
Health plan option
Insurance level
Option insurance plan
Insurance option
Option insurance plan
Interim
Default
Investment
Investment
Investment group
Investment group
Investment program
Investment/investment group assignment
Length of service
Seniority
Miscellaneous plan
Miscellaneous plan
Permission
Eligibility
Plan type
Plan type
Proof of insurability
Program
Program
Related person group
Dependent/beneficiary group
Rule
(Rule) variant
Rule criteria
Rule
Spending account
Flexible spending account
Standard plan
Standard selection
Termination group/ Termination type
Termination rule
Termination (rule) variant
Termination rule criteria
Termination rule
Vesting plan
Vesting portion
Vesting rule
Vesting rule
Vesting schedule
Vested portion
Workflow event assignment
Adjustment reason/event assignment
(C) SAP AG
HR325 18-6
User Exits related to Benefits
User Exit
Replaces
PBEN0001
Feature BAREA
PBEN0002
Feature BENGR
PBEN0003
Feature BSTAT
PBEN0004
Feature CSTV1
PBEN0005
Feature CRDV1
PBEN0006
Feature ELIGR
PBEN0007
Feature TRMTY
PBEN0008
Function HR_BEN_CALC_BENEFIT_COST
PBEN0009
Function HR_BEN_CALC_BENEFIT_CREDIT
PBEN0010
Function HR_BEN_CALC_BENEFIT_SALARY
PBEN0011
Function HR_BEN_CALC_COVERAGE_AMOUNT
PBEN0012
Form CALC_ELIG_DATE
PBEN0013
Form CALC_TERM_DATE
PBEN0014
Function HR_BEN_CALC_BENEFIT_ER_CONTRIB
PBEN0015
Form CHECK_ELIG_SERVICE
PBEN0016
Function HR_BEN_CALC_PARTICIPATION_DATE
PBEN0017
Feature EVTGR
PBEN0018
Feature COVGR
PBEN0019
Feature EECGR
PBEN0020
Feature ERCGR
PBEN0022
Function HR_BEN_GET_PROCESS_DATES
PBEN0023
Function HR_BEN_CALC_CUTOFF_AGE
PBEN0024
Function HR_BEN_CALC_CUTOFF_LOS
PBEN0025
Function HR_BEN_CALC_CUTOFF_SAL
PBEN0027
Feature LDAYW
PBEN0028
Function HR_BEN_CALC_Benefit_EE_CONTRIB
PBEN0029
Feature RLPGR
PBEN0030
Function HR_BEN_CALC_LENGTH_OF_SERVICE
PBEN0033
Function HR_BEN_GET_IDOC_EVENTS
PBBENUS01
Years of service calculation (403b)
PBBENUS02
Service date calculation (403b)
PCOB0001
COBRA Letter
PCOB0004
Form HR_BEN_COB_GET_TOTAL_COSTS
(C) SAP AG
HR325 18-7
BAPIs for Benefits Administration in Release 4.6A

The Benefits component contains Business Application Programming Interfaces (BAPIs). These
allow other application systems to integrate with SAP R/3 data and processes, using standard
interfaces.
Benefits contains the following BAPIs:
EmployeeBenAdjReason.CalculateEndDate
EmployeeBenAdjReason.Delimit
EmployeeBenAdjReason.GetList
EmployeeBenefit.CheckSelection
EmployeeBenefit.CreateOffer
EmployeeBenefit.CreatePlans
EmployeeBenefit.DeletePlans
EmployeeBenefit.GetCorequisitePlans
EmployeeGenBenInfo.GetOpenEnrollmentPeriod
EmployeeBenefit.GetParticipation
EmpBenefitHealthPlan.GetDependents
EmpBenefitHealthPlan.GetPossDependents
EmpBenefitInsurePlan.GetBeneficiaries
EmpBenefitInsurePlan.GetPossBeneficiarie
EmpBenefitSavingPlan.GetBeneficiaries
EmpBenefitSavingPlan.GetPossBeneficiarie
EmpBenefitSavingPlan.GetInvestments
EmpBenefitSavingPlan.GetPossInvestments
EmpBenefitStockpPlan.GetBeneficiaries
EmpBenefitStockpPlan.GetPossBeneficiaries
EmpBenefitMiscelPlan.GetDependents
EmpBenefitMiscelPlan.GetPossDependents
EmpBenefitMiscelPlan.GetBeneficiaries
(C) SAP AG
HR325 18-8
EmpBenefitMiscelPlan.GetPossBeneficiaries
EmpBenefitMiscelPlan.GetInvestments
EmpBenefitMiscelPlan.GetPossInvestments
(C) SAP AG
HR325 18-9
Benefits Features
Benefits features are all found at the relevant point in the Benefits IMG.
Technical name
Text
BAREA
Benefit area
BSTAT
BENGR
COVGR
Coverage grouping
EECGR
ERCGR
Employer contribution grouping
EVTGR
Adjustment grouping
CSTV1
Cost grouping
CRDV1
Credit grouping
ELIGR
TRMTY
RLPGR
Dependent/beneficiary group
(C) SAP AG
HR325 18-10

HR325 Administration

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HR 325 Benefits Administration

R/3 System Release 46C 05/02/2001

HR 325 Benefits Administration...................................................................................................................................0-1

Category, Type and Plan in the Infotype.............................................................................................................3-10

Define Cost Variant ............................................................................................................................................5-17

FSA Setup .............................................................................................................................................................7-5

Programs, Eligibility, Termination: Topic Objectives ........................................................................................10-8

Assign COBRA Events to Personnel Actions.....................................................................................................11-6

Copy/Delete Benefit Area/Benefit Plan ............................................................................................................14-11

HR 325 Benefits Administration

Copyright 1999 SAP AG. All rights reserved.

The R/3 Integration Model

Human Resources (1)

HR050 Human Resources Management

HR305 Configuration of Master Data

z Benefits implementation project team

This course will enable you to:

accommodate your Benefits business processes.

At the conclusion of this course, you will be able to:

Basic Settings and

Stock Purchase Plans

Contents (North America)

Basic Settings and

Stock Purchase Plans

Course Overview Diagram

Course Overview Diagram (North America)

Main Business Scenario

z Your company is implementing new benefit plans to

make the company more attractive to prospective

in the SAP Benefits system.

administrator how SAP Benefits can streamline work

Benefits Overview: Unit Objectives

At the conclusion of this unit, you will be able to:

Benefits Overview: Course Overview Diagram

Benefits Overview: Business Scenario

z Your company is implementing new benefit

Training and events

Open offer for

Please choose an offer:

Always avail. offer

Benefits Infotypes in Enrollment

What Happens During the Enrollment Process?

Benefit plan DENT

Benefit plan LIFE

Benefit plan MED1

Master Data Infotype Requirements

New slide to replace this one follows (still screen

250.00 USD monthly

33.33 USD monthly

The current benefits display the enrollment of an employee.

Monitoring of Eligibility During Participation

Reason for ineligibility

Address (type Home address) of employee does not exist

Employee 4411 is not enrolled in all corequisite plans for DENT

Employee 4411 is not enrolled in all corequisite plans for MED1

Required number of actual working hours for eligibility not reached

Stand. Dental Plan

Employee 4411 is not enrolled in all corequisite plans for DENT

Employee 4411 is not enrolled in all corequisite plans for MED1

End of grace period Period

Altern. Life Ins.

Benefits Overview: Unit Summary

You are now able to: