SAP BPP Benefit Administration

EHP3 for SAP ERP 6.00

June 2009

English

Benefits Administration (575)

SAP AGDietmarr-Hopp-Allee 1669190 WalldorfGermany

Business Process Documentation

SAP Best Practices Benefits Administration (575): BPD

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ContentsBenefits Administration........................................................................................................................ 5

1 Purpose........................................................................................................................................ 5

2 Prerequisites................................................................................................................................ 5

2.1 Master Data........................................................................................................................... 5

2.2 Business Conditions..............................................................................................................6

2.3 Roles..................................................................................................................................... 6

3 Process Overview......................................................................................................................... 7

4 Process Steps.............................................................................................................................. 8

4.1 Generation of Adjustment Reason........................................................................................8

4.2 Group Processing................................................................................................................10

4.3 Benefits Maintenance – Participation Monitor.....................................................................11

4.4 Benefits Administration – Insurability...................................................................................14

4.5 Benefits Enrollment and Termination..................................................................................15

5 Follow-up Processes.................................................................................................................. 16

5.1 Reporting for HCM..............................................................................................................16

5.2 Payroll Processing...............................................................................................................16

6 Appendix.................................................................................................................................... 17

6.1 SAP ERP Reports...............................................................................................................17



Benefits Administration

1 PurposeThis document describes the typical processes performed by the Human Resources department Benefits Administrator to modify and monitor an employee’s Benefit Plans information.

2 Prerequisites

2.1 Master DataSAP Best Practices Standard Values

Essential master and organizational data was created in your ERP system in the implementation phase, such as the data that reflects the organizational structure of your company and master data that suits its operational focus, for example, master data for employees.

This master data consists of standardized SAP Best Practices default values, and enables you to go through the process steps of this scenario.

Employees must be hired before enrolling in a Benefits Program and must hold the following infotypes:

Infotype 0171 General Benefits Information

Infotype 0378 Adjustment Reason

Additional infotypes that could be maintained if your company monitors this type of information are:

Infotype 0376 Benefits Medical Information (to mark if the employee is a smoker)

Infotype 0375 HCE Information (Highly Compensated Employee)

Infotype 0167 Insurance Plans (on the Administration tab mark if the employee met the EOI requirements)

If the employee has dependents and/or beneficiaries the following infotype must also be maintained:

Infotype 0021 Family Member/Dependents (this is also the infotype where you mark if the dependent is a smoker, or a student, etc.

Additional Master Data

For more information on how to create master data, see the New Hire/Rehire Administration (563) and the Maintain Employee Information (570) documentation.

You have entered the master data required to go through the procedures of this scenario. The following master data exists for you to test in this scenario:



Employee Master Data Active: 91000060, 91000064, 91000065, 91000067, 91000070, 91000075, 91000078,

91000080 - 91000083, 91000086, 91000088 - 91000090, 91000092, 91000096, 91000098, 91000102, 91000104, 91000109, 91000112, 91000123, 91000132

Inactive: 91000113

Terminated: 91000114

Retired: 91000119, 91000120, 91000130

2.2 Business ConditionsThe business process described in this document is part of a bigger chain of integrated business processes or scenarios. As a result, you must have completed the following processes and fulfilled the following business conditions before you can start any activities in this scenario:

Business condition Scenario

You have completed the hiring and enrollment steps described in the Business Process Documents for Personnel Master Data and Benefits Enrollment. These process steps include the steps for initial enrollment into a benefit plan and also mapping dependents and beneficiaries depending upon your criteria.

New Hire/Rehire Administration (563)

Benefits Enrollment and Termination (565)

2.3 Roles

UseThe following roles must have already been installed to test this scenario in the SAP Netweaver Business Client (NWBC). The roles in this Business Process Procedure must be assigned to the user or users testing this scenario. You only need these roles if you are using the NWBC interface. You do not need these roles if you are using the standard SAP GUI.

PrerequisitesThe business roles have been assigned to the user who is testing this scenario.

Business role Technical name Process step

Benefits Administrator (HCM) SAP_BPR_BENADMIN_HCM-E All



3 Process Overview

Process step

External process reference

Business condition

Business role

Trans-action code

Expected results

Generation of Adjustment Reason

– – Benefits Administrator (HCM)

HRBEN00ADJRSN Infotype 0378 is created

Group Processing


HRBEN0012 (Automatic Plans)

HRBEN0013 (Default Plans)

–

Participation Monitor


HRBEN0003 –

Insurability – – Benefits Administrator (HCM)

HRBEN0004 –

Benefits Enrollment and Termination

Benefits Enrollment and Termination (565)

See result from referenced process

See scenario no. 565





4 Process Steps

4.1 Generation of Adjustment Reason

UseAnother option (rather than maintaining individual employee’s infotype 0378 Adjustment Reason as done through a new hire action) is to run a mass generation of the infotype for large groups or even all of the employees within one transaction. For example, during open enrollment time, it is necessary to assign the open enrollment adjustment reason to all employees. Use this activity to generate a Benefits Adjustment Reason in infotype 0378 for all eligible employees within the company.

Once the adjustment reason has been created, the benefits administrator can maintain the Benefits plans using the Benefits Enrollment transaction (transaction code HRBEN0001). This is the same transaction that appears during the enrollment process when hiring an employee in the step following the creation of the Infotypes 0171 and 0378.

The Adjustment Reason triggers what Possible Offers are available during Enrollment, this reflects what plans are allowed to be changed during an event. In addition to the original Adjustment Reason of “HIRE” which triggered an offer of “New Hire Enrollment” there are also reasons configured for the following:

“FAM” Family status change

“JOB” Job change

Possible Offers available could include the “ANY” Anytime changes, “ORG” Change of Org/Reloc, or “RET” Retirement, along with the plans that were designated to be included in the Automatic and/or Default offers.

The Adjustment Reason entered because of a Life Event triggers offers that allow for certain plans to be modified according to what was configured for each plan. For more information, see the Configuration Guide entitled - Benefits (556)

For example, a “FAM” event may require the adding or changing of the original entries made in your Dental, Vision, Medical, Dependent Life, or Flexible Spending Accounts due to a:

Birth/Adoption

Marriage

Change in Spouse’s employment

Adding Smoking or Non Smoking (create an Infotype 0376 for the employee or choose “smoker” in the Infotype 0021 for the dependent)

Child status change into a student or adult dependant (create and/or change the Infotype 0021 for the dependent)

Plans that have been configured to allow changes to be made at “ANY” time include the Savings, Stock Purchase (applicable only to Private Sector companies), Optional Life Insurance, Retiree Life Insurance, and Vacation Day Purchase which would allow:

Changing your contribution and/or coverage amount/percentage

Adding a plan in which you were not originally participating

A Job or Organizational change may also trigger that the employee is now eligible for different plans or allowed to change their original selections for their existing plans.



The Life Events examples of a divorce or a change in a spouse’s employment may require the deletion of Benefits plans which is covered below in section - Termination of Benefit Plans.

When creating an infotype the end date should usually be the high date of 12/31/9999 unless you know of a specific date in which that particular entry (plan) should stop being active.

Prerequisites Employee must be hired before maintaining employee data and must have an infotype 0171 General Benefits Information record assigned.

Procedure1. Access the transaction choosing one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC Menu Human Resources Personal Management Benefits Group Processing Adjustment Reason

Transaction code

HRBEN00ADJRSN

Option 2: SAP NetWeaver Business Client (SAP NWBC) via business role

Business role Benefits Administrator (HCM) (SAP_BPR_BENADMIN_HCM-E)

Business role menu Benefits Create adjustment reasons

2. On the Generation of Adjustment Reasons screen, enter the following data:

Field name Description User action and values

Key date Effective date of the benefits selections that you wish to view.

Select the effective date of when the record should be created

Personnel Number

Enter or search for and select the Employee’s Personnel Number

Select the employees which should be assigned with the adjustment reason

Benefits Area Choose from a pick list to select a Benefits Area from which you select all employees

The Benefits area is the primary subdivision of plans set up for benefits. Benefits areas are maintained and operate independently of one another. Benefits areas group employees according to common characteristics like country or org unit.

Select 10 for the US HCM Benefits area

Benefits 1st program

Choose from a pick list to select a Benefits 1st program grouping from which you select all

Leave blank to select all values



Field name Description User action and values

grouping employees

This groups employees for macro eligibility purposes. It is used in combination with the second program grouping. Together these groupings place every employee into a Benefits Program.

Benefits 2nd program grouping

Choose from a pick list to select a Benefits 2nd program grouping from which you select all employees

This groups employees for macro eligibility purposes. It is used in combination with the first program grouping. Together these groupings place every employee into a Benefits Program.

Leave blank to select all values

Adjustment Reason

A user-defined parameter to which certain adjustment permissions are assigned for different types of Benefits plan.

Select the adjustment reason from the dropdown list

3. Choose the Execute button. A list of employees is displayed.

4. Select the employees that should be assigned to the adjustment reason and choose the Execute button to create the record.

5. The Status column should display a green check mark confirming the creation of the record.

Result Mass generation of adjustment reasons in infotype 0378 in each of the employee master data records.

4.2 Group Processing

UseAutomatic plans can be defined as benefit plans employees are enrolled into as long as they are eligible for these plans. The employee is not required to enroll or submit enrollment forms in order for the administrator to enroll the employee into these plans. For example a basic life insurance plan or an Employee Assistance Plan may be plans the employee is entitled to without the need for submitting enrollment forms.

Default plans can be defined as plans the employee is enrolled into unless the employee submits enrollment forms for enrollment into another plan within the same category. For example, if there are multiple Health plans available, but one is designated as the basic or standard plan into which everyone would be defaulted unless a more extensive plan is chosen.





SAP ECC menu Human Resources Personal Management Benefits Group Processing Automatic Plans

or

Human Resources Personal Management Benefits Group ProcessingDefault Plans

Transaction code

HRBEN0012 (Automatic Plans)

HRBEN0013 (Default Plans)



Business role menu Benefits Automatic Plan Enrollment



Business role menu Benefits Default Plan Enrollment

2. On the Group Enrollment screen, specify the key date for which you want to process the enrollment.

3. Specify the employee group for whom you want to make enrollments

For the selection, you can use either personnel numbers or the criteria in the Additional data area.

You may also elect to Exclude Enrolled Employees, so that a new record is not created with the same data since the employee was already previously enrolled into the existing plan.

4. Choose the Execute button. A list of the selected employees for which an automatic/default offer is available is displayed

5. Select the employees who you want enroll and choose Enroll.

ResultThe employees are enrolled in the predefined automatic or default plans. Successful enrollments are marked Employee enrolled. Enrollment errors are marked.

To display the long text of an error message, double-click the short text of the message.

4.3 Benefits Maintenance – Participation Monitor

UseDuring enrollment processing, the system offers only those plans for enrollment for which employees are eligible. It also performs extensive checks to ensure that the employee plan elections are consistent with the setup of plans and flexible administration settings in Customizing. After enrollment, however, inconsistencies in plan participation can occur as a result of the following:

Changes in Customizing

o Plan definitions

o Flexible administration settings



Changes in an employee's organizational assignment or home/office locations

If an employee falls into a different eligibility grouping for any plan-related or administrative settings in Customizing, she/he may become ineligible for the plans in which she/he is currently participating.

Manual adjustments made directly on infotype records

Although you can change employee elections directly on plan infotypes, this procedure does not guarantee consistency, because the HR Master Data transaction cannot perform all of the Benefits-specific checks. We therefore recommend that, whenever possible, you use the Enrollment transaction (HRBEN0001) to make enrollment changes to change the benefit plans infotypes.

The Participation Monitor enables you to detect employees who are no longer eligible for plans in which they are participating and find any inconsistencies in plan elections. Furthermore, it enables you to both check and correct some inconsistencies from within a single tool.

To correct all other inconsistencies, go to step 4.5 Updating Employee’s Benefit Information to fix the problem, then return to this step and run it again.



SAP ECC Menu Human Resources Personal Management Benefits Participation Monitor

Transaction code

HRBEN0003



Business role menu Benefits Participation Monitor

2. On the Participation Monitor screen, specify the key date for which you want to check the eligibility and validity of the plan elections.

3. Specify the employees for whom you want to run the check, or leave it blank to have all employees checked.

4. Enter the Benefit Area 10 in the Additional data area.

5. Choose Execute.

6. A list of employees who are ineligible for the plans in which they are enrolled or whose plan elections are no longer valid is displayed. The reason for employee ineligibility/invalidity of elections is displayed for each relevant plan.

7. The next steps describe how to correct inconsistencies in plan participation

8. To withdraw an employee, select the appropriate plans and choose Stop participation. A list of system actions appears for you to confirm by choosing Execute. The relevant plan

infotypes are delimited on the day before the selection date. Any infotype records for future participation in plans within the same plan type remain unchanged.



If a termination rule is assigned to the plan and specifies a coverage continuation period, this period is not taken into consideration as it would be in regular Termination.

9. To change an employee's elections, position the cursor on the appropriate employee name,

choose Change plan elections, and continue as you would for regular enrollment.

10. To check participation on a different date, choose and change the selection date.

11. If the Error List button is active, view those errors by choosing that button. A list of employee numbers along with some text describing the error will appear.

From the master data load some examples of errors have been included, listed here are some samples of errors you may see on the monitor:

Employee is eligible as of the 01/20/2009 (after the evaluation date): Change the employee’s enrollment date to a date that falls within the correct range according to that plan’s rules.

No entry for program groupings Y100/Y201 / plan 403B: This indicates that according to the employee’s IT0171, this employee is not entitled to this particular plan.

No entry for program groupings Y140/Y203 / plan RMED: This indicates that according to the employee’s IT0171, this employee is not entitled to this particular plan

No entry for program groupings Y140/Y207 / plan RLIF: This indicates that according to the employee’s IT0171, this employee is not entitled to this particular plan

No entry for program groupings Y100/Y201 / plan OLFE: This indicates that according to the employee’s IT0171, this employee is not entitled to this particular plan

Make your determinations regarding what corrections are needed and go to the enrollment transaction (HRBEN0001) and/or master data maintenance transaction (PA30) to make the necessary adjustments. The values defaulted into the employee’s infotype 0171 are only used as a general guideline for the enrollment process. Therefore other entries can be made and payroll will calculate according to the active data within the individual benefit infotypes.

ResultAfter all entries have been corrected, running the participation monitor again will yield no results or only show those entries of which have been approved by your review.


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4.4 Benefits Administration – Insurability

UseFor certain coverage options in health plans and levels of coverage in insurance plans, employees are required to provide documents that prove their insurability. The coverage allowed for a plan without provision of evidence of insurability (EOI), and the grace period for the provision of EOI are specified in Customizing, as is the grace period for the provision of EOI.

Provision of evidence is not a prerequisite for the process of enrolling. However, actual participation may not be possible without EOI, depending on Customizing settings. You must periodically monitor the status of EOI to detect any failure to provide EOI within the grace period for a plan.

An example of a need for an EOI is for levels of life insurance where a medical clearance is needed, or requirements for birth certificates/marriage license to enroll a dependent into a health plan.

To create data for examples on this functionality, create an infotype 0378 for “FAM” – Family Status Change for any employee who has already enrolled in the “GTL” - Group Term Life Insurance plan. For more information on how to maintain employee information using the PA30 transaction refer to the business process documentation, Maintain Employee Information (570.) Then proceed into the enrollment screen and choose a large amount of life insurance, but in the pop-up screen to mark the insurability proven, do not check the GTL plan. Complete the enrollment, then return to complete this process step.



SAP ECC Menu Human Resources Personal Management Benefits Insurability

Transaction code

HRBEN0004



Business role menu Benefits EOI Monitor

2. On the Insurability screen, specify the key date for which you want to monitor the EOI status or register provision of EOI.

3. Specify the employees for whom you want to run the check or from whom you have received EOI.

4. For the selection, you can use either personnel numbers or the criteria in the Additional data area.

5. Choose Execute .

6. If the EOI is still outstanding, a list of the selected employees is displayed. For each employee, the plans requiring EOI are shown with their options/coverages, the status of EOI provision, and the end date the grace period.

7. You can perform the following activities from within the monitor:

Register receipt of EOI, by selecting the appropriate plans and choosing Insurability proven.



The employee is automatically enrolled in the desired plan with the option/coverage level that he/she elected.

Withdraw employees from plans for which they have failed to provide EOI within the grace period, by selecting the appropriate employees and choosing Stop participation.

If the relevant plan infotypes are current, they are delimited on the day before the selection date. Plan infotypes for future participation are deleted.

If a termination rule is assigned to the plan and specifies a coverage continuation period, this period is not taken into consideration as it would be in regular Termination.

8. To select employees on different date, choose and change the selection date.

9. Correct all inconsistencies by updating the employee’s information as necessary.

10. Repeat this section until there is no longer any output; this indicates that all data is clean.

4.5 Benefits Enrollment and Termination

External Process

UseYou have finished all activities that are a part of the business process described in this document.

As a result, you may have to update the employee’s records according to what these administrative processes have revealed. To accomplish subsequent activities of this business process, carry out the process steps described in the referenced scenario, using the outcome from this document.

This document describes the typical processes performed by the Human Resources department to update, create, or terminate an employee’s benefit record.

ProcedureComplete all activities described in the Business Process Procedure of the scenario:

Benefits Enrollment and Termination (565),

5 Follow-up Processes

5.1 Reporting for HCM

External Process




To accomplish subsequent activities of this business process, carry out the process steps described in the referenced scenario, using the master data from this document.

The reporting tools and existing reports can be used to satisfy reporting requirements in most cases. In the area of HCM, various reports can be used to acquire information about all fields of HR Master Data.

SAP HCM Best Practices delivers many standard reports for Employee Data, Organizational Management, Payroll, Benefits, and Time. This document outlines the most commonly used reports, and how to access and generate these reports.


SAP ERP Reporting for HCM (559)

5.2 Payroll Processing

External Process


To accomplish subsequent activities of this business process, carry out the process steps described in the referenced scenario, using the master data from this document.

The SAP Payroll process runs at a specific point in time, not only to calculate an employee’s basic remuneration but also any special payments, overtime payments, or bonuses that must take effect in the period in question.

This scenario describes the typical processes to process payroll for employees using data from SAP Personnel Administration, Benefits, and Time Administration. The payroll process covers the steps from running payroll to printing employee checks and pay stubs.


Payroll and Post Payroll Processing (566)

6 Appendix

6.1 SAP ERP Reports

Use



The table below lists the most frequently used reports that help you to obtain additional information on this business process.

You can find detailed descriptions of the individual reports in the following BPD documents, which provide a comprehensive compilation of all important reports:

Human Capital Management: SAP ERP Reporting for HCM (559)

ReportsReport title Transaction code Comment

Participation HRBEN0072

Eligible Employees HRBEN0071

Change of Eligibility Status HRBEN0083

Cost and Contribution - Health Plan Costs HRBEN0073

Cost and Contribution - Insurance Plan Costs HRBEN0074

Cost and Contributions - Savings Plan HRBEN0075

Cost and Contributions - FSA Plan HRBEN0078

Contributions - Stock Purchase HRBEN0086

Costs/Contributions for Misc. Plans HRBEN0085

Changes in Benefits Elections HRBEN0077

Changes in General Benefits Information HRBEN0083

Payroll Journal S_ALR_87014259

Wage Type Reporter S_PH9_46000232

Payroll Reconciliation Report PC00_M10_REC

Garnishment Detail Report S_AHR_61016146
