This guide provides a comprehensive, hands-on approach to configuring SAP's US Benefits module. It's written for payroll and benefits departments using SAP (power users), project teams, consultants, off-shore and outsourced benefit administrators, and benefit providers interacting with SAP customers. Coverage includes the complete employee lifecycle from enrollment, benefits changes, and FSA and Claims processing to termination and COBRA. In addition, it details the US-specific benefits plans and teaches benefits managers how to configure them. You'll learn about the entire U.S. benefits process for the employee lifecycle from enrollment to Cobra.

About the Author(s)

Highlights

• Teaches users how to configure SAP’s US Benefits module

• Explains the benefits business process within an SAP configuration

• Covers the entire benefits process for the employee lifecycle from enrollment through Cobra

Table of Contents

1 Benefits Processes ... 5
... 1.1 Understanding the Employee Life Cycle ... 6
... 1.2 New Hire Enrollment ... 7
... 1.3 Changes to Benefits ... 8
... 1.4 Terminations ... 9
... 1.5 COBRA Processing ... 9
....... Entitlement for COBRA ... 9
....... Qualified COBRA Events ... 10
....... Qualified Beneficiaries ... 10
....... Process ... 10
... 1.6 Flexible Spending Account and Claims Process ... 10
... 1.7 Summary ... 10

2 Baseline Configuration for Benefits Administration ... 13
... 2.1 Prerequisites ... 13
... 2.2 Benefits Areas and Basic Settings ... 13
....... Benefits Area ... 14
....... Benefit Providers ... 15
....... Plan Types ... 16
....... Plan Status ... 16
... 2.3 First and Second Program Grouping ... 16
....... First Program Grouping ... 16
....... Second Program Grouping ... 17
....... Define Benefit Programs ... 18
... 2.4 Managing Eligibility ... 18
....... Eligibility Groupings ... 18
....... Eligibility Variants ... 19
....... Eligibility Rules ... 19
....... Dynamic Eligibility ... 20
... 2.5 Managing Dependent Eligibility ... 20
....... Dependent Eligibility Variant ... 20
....... Dependent Eligibility Rule ... 20
... 2.6 Termination ... 21
....... Termination Groupings ... 21
....... Termination Variant ... 22
....... Termination Rules ... 22
... 2.7 Adjustment Reasons ... 22
....... Adjustment Reason Groupings ... 22
....... Adjustment Reasons ... 23
....... Linking Plan with Grouping and Reasons ... 23
... 2.8 How It Works ... 24
... 2.9 Summary ... 25

3 Plan Configuration ... 27
... 3.1 Defining Employee Groupings ... 27
....... Define Employee Criteria Groups ... 27
....... Define Cost Groupings ... 28
....... Defining Coverage Groupings ... 29
....... Employee Contribution Grouping ... 29
....... Define Employer Contribution Grouping ... 30
... 3.2 Health Plans ... 30
....... Plan General Data ... 30
....... Options for Health Plans ... 30
....... Dependent Coverage Options ... 31
....... Defining Cost Variants and Rules ... 31
....... Managing Plan Attributes ... 32
....... Testing the Configuration ... 32
... 3.3 Insurance Plans ... 32
....... Plan General Data ... 33
....... Define Coverage Variants and Rules ... 33
....... Define Cost Variants and Rules ... 34
....... Managing Plan Attributes ... 34
....... What is an Imputed Income? ... 34
... 3.4 Savings Plans ... 35
....... Plan General Data ... 35
....... Employee Contribution Variants and Rules ... 35
....... Manage Plan Atrributes ... 37
....... Define Vesting Rule ... 37
....... Managing Investments for Savings Plans ... 37
....... Testing the Configuration ... 38
... 3.5 Flexible Spending Account (FSA) Plans ... 38
....... Plan General Data ... 38
....... Spending Account Attributes ... 38
....... Defining Claim Types ... 39
....... Testing the Configuration ... 39
... 3.6 Miscellaneous Plans ... 40
....... Plan General Data ... 40
....... Defining Cost Variants and Rules ... 40
....... Manage Plan Attributes ... 41
....... Testing the Configuration ... 41
... 3.7 COBRA ... 41
....... Defining Relevance for COBRA ... 42
....... Qualifying Events Management ... 42
....... Assign COBRA Events to Personnel Actions 42
....... Define Processing Parameters for Benefits Area ... 42
... 3.8 Summary ... 42

4 Managing Benefits Administration ... 45
... 4.1 Enrollment Monitor ... 45
....... New Hire Elections / Enrollment ... 46
....... Employee Life Event Changes ... 48
....... Open Enrollment Elections ... 49
... 4.2 Termination Monitor ... 49
... 4.3 Managing COBRA ... 50
... 4.4 Useful Tools ... 51
....... Overview of Plans ... 51
....... Plan Cost Summary ... 51
....... Configuration Consistency Check ... 52
....... Overview of Adjustment Permissions ... 52
... 4.5 Summary ... 53

5 Technical Support ... 55
... 5.1 Forms ... 55
... 5.2 User Exits ... 56
... 5.3 Interfaces ... 57
... 5.4 Data Conversion ... 58
... 5.5 Basics of Employee Self Service (ESS) ... 58
... 5.6 SAP Benefits in an Outsourced Payroll Environment ... 60
... 5.7 Benefits Schemas ... 60
... 5.8 Summary ... 61

A Life Plan Configuration Sheet ... 63
B Model Wage Types for Benefits ... 65
C Typical Benefits Terminology Questions ... 69