Internal

Defining Benefit Plans

To set up a benefit plan:
1. Identify the benefit provider for the benefit plan and enter the benefit provider in the Vendor Table
page.
2. Enter the detail information for the benefit plan on the Benefit Plan Table.
3. Repeat this process for each benefit plan you will offer to your employees.

Page Used to Define Benefit Plans

 Use this page to define benefit plans.

Page Name Object Name Navigation

Benefit Plan BENEFIT_PLAN_TABLE Set Up HRMS, Product Related, Base Benefits, Plans and
Table Providers, Benefit Plan Table

Entering Benefit Plan Information

Access the Benefit Plan Table page.

Benefit Plan Table page

SetID Select a set ID for the vendor to be used.

Vendor ID If the provider is not on the list, use the Provider/Vendor Table to add it.
Group Number Defined on the Provider Policy Table.
SPD URL ID PeopleSoft eBenefits application to provide access to the summary plan
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description on the Provider Policy Table.

Default Deduction Code (Optional.) Entering a default code saves you from typing the deduction
code each time that you associate this benefit plan with a benefit
program on the Benefit/Deduction Program Table. (Deduction codes
are created on the Deduction Code Table.)
Minimum Spousal Allocation Certain qualified plans in the life, savings, or pension category have
% (minimum spousal allocation mandated lower limits on the percentage amount that must be assigned
percentage) to a spouse. Enter that amount here and the system enforces or
monitors compliance with this beneficiary right.
Include in Nondiscrimination Available only to plan types in the 40-series (savings plans).
Testing
Pay Mode Complete if you are using PeopleSoft Payroll for North America with
PeopleSoft Payables.
Select when the vendor will be paid:
Pay as Deducted: Pay the vendor each time payroll calculates this
deduction.
Pay at Specified Date: Specify the date in the AP Payment Date Type
field.
Pay when Collection Complete: Pay the vendor only when the goal
amount or deduction end date has been reached. (This pay mode is
valid for general deductions and garnishments.)
Separate AP Payment Select to create a separate voucher for each deducted amount payable
to the vendor.
Self-Service Plan Description Used only for health (1x), disability (3x), leave (5x), and retirement (7x)
plans. Enter text describing the benefit plan, to appear on PeopleSoft
eBenefits application pages.

Setting Up Health Plans

 Enter health plan details.

 Set up health plans for domestic partners.

Page Used to Set Up Health Plans

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 Define basic attributes that control enrollment validation and processing.

Page Name Object Name Navigation

Health Plan HEALTH_PLAN_TABLE Set Up HRMS, Product Related, Base Benefits, Plan
Table Attributes, Health Plan Table

Entering Health Plan Details

Access the Health Plan Table page.

Health Plan Table page

Setting Up Health Plans for Domestic Partners

If you offer health coverage for domestic partners, their children, and other dependents defined as
nonqualified dependents by IRS Section 152, you'll need to set up separate health plans and identify
them as nonqualified health plans. Nonqualified plans should be identical as far as the benefits they offer
and the provider they're linked with, although their deductions and costs will probably be different.
PeopleSoft delivers the following three nonqualified dependent plans:

Plan Type Description

15 NQ Medical (Nonqualified Medical)

16 NQ Dental (Nonqualified Dental)

17 NQ Vision (Nonqualified Vision)

To cover nonqualified dependents, employees need to be enrolled in a regular health plan for themselves
and any qualified dependents and in a corresponding nonqualified health plan for nonqualified
dependents. So if an employee wants to enroll a domestic partner in health insurance, he or she needs to
be enrolled in a plan type 10 medical plan for individual coverage and plan type 15 medical plan for the
domestic partner.
There are also tax consequences for nonqualified dependent health benefits, as all employer-paid
benefits for nonqualified dependent health plans are considered taxable income for the employee by the
IRS under IRS Section 152

Setting Up Life Insurance and Accidental Death Plans

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 Enter life insurance and AD/D plan details.

 (USF) Understand Option A - standard FEGLI plan calculations.

Page Used to Set Up Life Insurance and AD&D Plans

 Calculate coverage for a life or AD/D plan.

Page Name Object Name Navigation

Life/Accidental LIFE_ADD_TABLE Set Up HRMS, Product Related, Base Benefits, Plan Attributes,
Life and AD/D Plan Table

Entering Life Insurance and AD&D Plan Details

Access the Life/Accidental page.

Life/Accidental page

Coverage Select the appropriate coverage.

Flat Amount Only: Calculates coverage according to a flat amount. The amount can be
negative.
Note. (USF) Option A - Standard and Option C - Family FEGLI plans include a flat amount
of $10,000 and $5,000, respectively.
Factor x Benefits Base + Flat Amount: Calculates coverage based on an employee
benefits base and a factor, or a factored base and an amount. The amount can be
negative.
Note. FEGLI basic life plans use a factor plus an amount.
Specified in Employee Record: Uses the amount of coverage that you specify when you
enroll an employee.
Note. FEGLI living benefits plans use this level of coverage.
Special Calculation Routine: Uses a custom routine not supported by the standard
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system. You need to modify your SQR and COBOL programs accordingly.
Sum of Dependent Coverage: Uses the sum of the dependent coverage amounts that
you enter when you enroll an employee.
Many dependent life plans use this type of coverage.
Coverage (Optional.) Enables you to define a maximum benefit amount for a group of life and AD/D
Group Code plan types. Coverage group codes are defined on the Coverage Group Table.
You might do this if employees can choose more than one life plan type—perhaps life and
AD/D—but the total benefit for the combined plans cannot exceed a specific amount. The
coverage group code maximum applies to all the life and AD/D benefit plans that you
associate with a coverage group code and one benefit program.

Setting Up Life Plans for Domestic Partners

Dependent life plans can be used to cover domestic partners, their children, and other dependents
classified as nonqualified by IRS Section 152. No special plan types are required for nonqualified
dependents.
The imputed income rules for domestic partners are different from those for qualified dependents.
Imputed income is calculated for the full value of nonqualified dependent life coverage, whether or not it
exceeds 2000 USD. (Qualified dependent coverage is exempt from imputed income calculation if it is
under that amount.)
Calculating Insurance Coverage
When you associate calculation rules that include coverage minimum and maximum amounts with a life
benefit program and benefit plan combination, the system verifies that coverage for participants doesn’t
exceed those minimums and maximums, regardless of the coverage that you enter on the Life and AD/D
Plan Table.
For example, you define a coverage group code with a 500,000 USD maximum, then enter that coverage
group code for a supplemental life plan and a group life plan, and associate both benefit plans with a
benefit program. If you enrolled an employee in both of those plans, the system would ensure that the
employee's total coverage by both plans does not exceed 500,000 USD.
If the maximum is exceeded, the system reduces the total coverage to meet the coverage maximum. As
the system processes deductions, it accumulates the coverage amounts and begins reducing coverage
when the coverage group maximum is reached. The system processes plans in order of deduction
priority. If more than one plan has the same priority, it processes in increasing plan type order.