Prepared by : HR Tech team.

This document basically gives a Brief overview about HR-Benefits. Contents : Introduction to Enrollment Introduction to Benefit Offer Introduction to Benefit Area Introduction to Benefit Category Introduction to Benefit Plan types Introduction to Benefit Plans Introduction to First Program Grouping Introduction to Second Program Grouping Benefits Eligibility Benefits Participation Benefit Plan Costs Introduction to HR Forms Standard Reports in Benefits Infotypes used in Benefits Transactions Used in Benefits Benefit Plans Specific to USA Benefit Plans Specific to ASIA Prededuction Definitions

Introduction to Benefits

In a competitive employment market, benefits play a significant role in total compensation offers designed to attract and keep the best possible employees. The SAP Benefits (PA-BN) component offers you powerful and comprehensive tools for creating and managing tailor-made benefits packages for your employees. It allows you to administer an extensive range of benefit plans, and its sophisticated configuration options can accommodate complex plan definitions. The Benefits application component offers comprehensive tools for administering employee benefits in an organization. It provides all the concepts and functions that are needed to manage extensive and highly individual benefits packages for the employees of an organization. Benefits integrates to SAP's International Payroll, however, it does not integrate to every SAP Country Payroll version.

If we want to use Benefits for a Country Payroll version that is not integrated, in conjunction with non-SAP payroll software or an external payroll service, we must provide our own interface for the transfer of data. The Benefits Administration component provides the functions needed to handle the organization's benefits administration processes. It enables us to perform the following key activities:
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Enroll employees in benefits plans and terminate enrollments Monitor eligibility View information about current benefit enrollments Print enrollment and confirmation forms Transfer data electronically to plan providers

ENROLLMENT : This is a process of enrolling employees of an organization for Benefit Plans depending on their eligibility.

The Enrollment function enables us to enroll employees and, where possible, make changes to employee benefit elections as required for the following tasks:

Enrollment of employees during an open enrollment period in plans for the coming season Enrollment of new hires in plans that are automatically offered

Enrollment of new hires in default plans as an interim measure, until they have made their benefits choices Adjustment of plan enrollments as a result of employee life or job changes

There are four types of Enrollments. They are 1. Open Enrollment Offer 2. Default Enrollment Offer 3. Automatic Enrollment Offer and 4. Adjusted Enrollment Offer

These Enrollments are also known as Benefit Offers. OPEN ENROLLMENT An open offer is the most unrestricted type of offer. It is generated by the system when you start enrollment for a date that lies within an open enrollment period. Only those plans are available in an open offer for which the employee fulfills certain eligibility criteria, as defined in Customizing. A period of time during which an organization allows its employees to enroll in new benefits plans or change existing benefits elections. The benefits offer set up for open enrollment is valid only during the open enrollment period. Plans available for selection during the open enrollment start on a future date, typically at the beginning of the coming year. Open enrollment is implemented in the USA and Canada. Example A company allows its employees to choose their benefits on an annual basis for the coming year. The open enrollment period is 1 Oct 1999 to 30 Nov 1999, and any new benefits elected by employees are valid from 1 Jan 2000 to 31 Dec 2000. Default A plan in which employees can be enrolled before they communicate their benefits elections to the benefits office.

Default plans are typically used for giving short-term coverage to new hires and therefore often allow little flexibility to the employee regarding the plan terms. Automatic

A plan in which employees are enrolled without the requirement that they consent to the enrollment or make any elections within the plan. An employee is enrolled in all relevant automatic plans at all times. Automatic plans are often provided at no extra cost to the employee and often allow little flexibility to the employee regarding the plan terms. Adjusted A personal or organizational change experienced by an employee, as a result of which the employee is allowed to change his/her current benefit elections. In the SAP System, the adjustment reason is a user-defined parameter to which certain adjustment permissions are assigned for different types of benefit plan. The following are examples of adjustment reasons:
• • • •

Marriage New dependent Hiring (initial enrollment) Job change

Benefit Area Benefit areas allow you to have separate administration of different benefit plan pools. This division is primarily for administrational purposes and would not normally be used

for eligibility. This is a primary subdivision of plan set up within the benefits component. Benefit areas are set up and function completely independently of each other. Typically, employees will be enrolled in a benefit area that groups them according to common attributes such as country or organizational assignment. Below mentioned are some of the Benefit Areas : Benefit Area 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 Name of HR country Germany Switzerland Austria Spain The Netherlands France Canada Great Britain Denmark USA Ireland Belgium Australia Malaysia Italy South Africa Venezuela Czech Republic Portugal Norway Hungary Japan

Benefit Category : Benefit Category is the broadest classification of a benefits. Categories are maintained by SAP . The following plan categories are provided by SAP:
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Health Plans Insurance Plans Savings Plans Stock Purchase Plans Flexible Spending Accounts Credit Plans Miscellaneous Plans

These categories are predefined because the system handles each differently. In order to reflect your own requirements regarding the categorization of plans, you define plan types within these categories. Benefit Category is the highest level in the Benefit Plan structure . Benefit Categories are again divided into Plan types . Every Category may consist of one or more Benefit Plan types .

Benefit Plan Types Benefit Plan types are the logical grouping of different benefit plans. Each Plan type is identified by a unique identifier which is a maximum of four characters.

Ex : MEDI - Comes under Health Plan Category ( MEDI => Medical ) DCAR - Comes under Flexible spending Accts ( DCAR => Dependent Care Spending ) LIFE - Comes under Insurance Plans Category ( LIFE => Life Insurance ) SAVE - Comes under Savings Plans Category ( SAVE => Savings ) STPC - Comes under Stock Option Category ( STPC => Stock Purchase ) CAR - Comes under Miscellaneous Plans Category ( CAR => Company Car ) CRED - Comes under Credit Plans Category ( CRED => Flex Credit )

Plan types are a control mechanism for enrollment, since the system does not allow an employee to enroll in more than one benefit plan per plan type. This allows you, for example, to offer a choice of regular health care from different providers under one plan type, without the risk of accidentally enrolling an employee in more than one of these benefit plans. Within each plan category (for example, Insurance Plans) you should define one plan type for each sort of benefit plan that the employee is likely to elect (for example, Life Insurance, Spousal Life, Supplemental Life). Thus an employee can elect a plan from the Life Insurance as well as from the Spousal Life plan type. Example The following are examples of plan types for each of the plan categories:

Health Plans
• • •

General medical care Dental care Vision care plan

Insurance Plans
• • •

Basic life insurance Dependent life insurance Supplemental life insurance

Savings Plans
• •

Retirement plan Savings plan

Stock Purchase Plans

Own company stock plan

Flexible Spending Accounts
• •

Health care spending account Dependent care spending account

Credit Plans

Cafeteria plan

Miscellaneous Plans
• Company car

Benefit Plans The Granularity level in the Benefit Plans Structure is identified by Benefit Plans. Many Benefit plans may be grouped together under a particular plan type.The benefit Plans are also identified by a unique identifier which is of a maximum of four characters. Ex : MEDI , DENT , VISI for Health Plans Category ( MEDI Plan Type )

Benefit plans within the health plan category cover the basic health needs of an employee. A typical health plan might provide the employee with medical, dental or vision coverage. Insurance plans provide monetary amounts of coverage payable to the employee or designated beneficiaries.

A savings plan allows an employee to accumulate capital within a company sponsored benefit plan. A spending account provides an employee with the opportunity to establish account balances to meet anticipated spending needs during the course of the employee's benefit plan year. These needs are most often associated with health, dependent care or legal benefits. Benefit first program grouping The first program grouping is a method of grouping employees for purposes of macro eligibility. The second program grouping is a second, identical method of grouping employees into other macro eligibility groups. The cross reference of these two groupings places every employee into a benefit program. First program groupings are a means of identifying a group of employees who share a common set of benefits and eligibility criteria. 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. Benefit second program grouping The second program grouping is a method of grouping employees for purposes of macro eligibility. The first parameter grouping is a second, identical method of grouping employees into other macro eligibility groupings. The cross reference of these two groupings places every employee into a benefit program.

Second program grouping is a means of subdividing your first program groupings depending upon their employment status. Example An organization offers one set of benefit plans for full-time employees and a different set for part-time employees. Full-time employees may enroll in medical, dental and life insurance plans after a four month waiting period. Part-time employees may enroll in medical, dental, life and vision plans after a one month waiting period. Eligibility The important part in the Benefits is Identifying the all the Eligible Employees for a given Benefit Plan . This can be achieved using function module ‘HR_BEN_CHECK_MICRO_ELIGIBILITY’. This function module determines whether a person is eligible or not . Similarly to determine the Eligibility date and the Participation date of an employee for a benefit plan we can use the function module(s) ‘HR_BEN_CALC_ELIGIBILITY_DATE’ for eligibility and ‘HR_BEN_CALC_PARTICIPATION_DATE’ for participation date .

Infotypes used in Benefits Here below is the most commonly used Infotypes. Health Plans Insurance Plans Savings Plans Spending Accounts Credit Plans Stock Plans Miscellaneous Plans (Infotype 0167) (Infotype 0168) (Infotype 0169) (Infotype 0170) (Infotype 0236) (Infotype 0375) (Infotype 0377)

General Benefits Data Family/Related Person External Organization Date Specifications Monitoring of Dates COBRA Qualified Beneficiary

(Infotype 0171) (Infotype 0021) (Infotype 0219) (Infotype 0041) (Infotype 0019) (Infotype 0211)

Control Tables / Catalog Tables Control tables are master table,here below is some control tables used. T5UBA --- Benefit Plans T5UB1 --- Benefit Plan type T5UBU --- Benefit Program T5UB3 --- Benefit Area

Benefits Specific to USA : The Benefits which are specific to USA are COBRA plans Flexible Spending Accounts and Tax Sheltered Annuity Plans, The Benefit Plans specific to ASIA are Cloth reimbursements COBRA : Consolidated Omnibus Budget Reconciliation Act of 1985 This Plan requires the vast majority of employers to offer continuation of coverage to covered employees and their dependents who, due to certain COBRA qualifying events, lose group health plan coverage.

COBRA Events This component enables you to identify employees who are COBRA-qualified beneficiaries and their qualified dependents. Depending on your customizing settings, you can collect individuals for some or all of the following COBRA qualifying events:
• • • • • • • •

Termination of employment Death of employee Reduction in work hours Entitlement to Medicare Divorce Legal separation Loss of dependent status Bankruptcy of employer

The collection of COBRA events is the first step in the COBRA administration process. You typically run the collection for all your employees in the background.

Standard Reports in Benefits Eligible Employees (Report RPLBEN01) Participation (Report RPLBEN02) Health Plan Costs (Report RPLBEN03) Insurance Plan Costs (Report RPLBEN04) Savings Plan Contributions (Report RPLBEN05) Vesting Percentages (Report RPLBEN06) Changes in Benefits Elections (Report RPLBEN07) Flexible Spending Account Contributions (Report RPLBEN08) Changes in Eligibility (Report RPLBEN09) Employee Demographics (Report RPLBEN11) Changes in Default Values for General Benefits Info (Report RPLBEN13)

Costs/Contributions for Miscellaneous Plans (Report RPLBEN15) Stock Purchase Plan Contributions (Report RPLBEN16) Benefit Election Analysis (Report RPLBEN17) Contribution Limit Check (Report RPLBEN18) Enrollment Statistics (Report RPLBEN19) Create Payment List Report (RPUBENPAYRQ) Actual Hours report (RPUBEN47) HR Benefits transaction list Transaction Code Description

HR00 HRBEN0000 HRBEN0001 HRBEN0003 HRBEN0004 HRBEN0005 HRBEN0006 HRBEN0007 HRBEN0008 HRBEN0009 HRBEN0011 HRBEN0012 HRBEN0013 HRBEN0014 HRBEN0015

HR Report Selection Benefits Application Menu Enrollment Eligibility Monitor EOI Monitor Enrollment Form Benefits Employee Overview General Employee Data Report Selection Benefits - Plan Overview Benefits Cost Overview Enrollment Automatic Plans Enrollment - Default Plans Termination of Participation Confirmation Form


Jump from IMG into Maintenance Views Configuration Consistency Check Copy Benefit Area Delete Benefit Area Benefit Area Currency Conversion Cost Overview Check Actual Working Hours Currency Conversion Benef. Infotypes Copying templates in BDS Maintenance of templates in BDS IDoc Data Transfer Copy Benefit Plan Delete Benefit Plan Adjustment Authorizations Overview Standard Plans Overview Eligible Employees Participation Health Plan Costs Insurance Plan Costs Savings Plan Contributions Vesting percentage rate Changes in Benefits Elections FSA Contributions Changes in Eligibility


Employee Demographics Change in general benefits Miscell. Plan Costs/Contributions Stock Purchase Plan Contributions Benefit election analysis Contribution Limit Check Enrollment Statistics Create Payment Requests Benefits: COBRA Administration FSA claim Collect COBRA Events Create COBRA Letters COBRA Participation COBRA Payments COBRA Cost Overview COBRA Enrollment Form COBRA Election Period COBRA Invoice COBRA Confirmation Form Data Transfer to Provider (COBRA) Claims processing data entry Claims processing Account records Jump from IMG to maintenence views Details of Entitlementsand Claims


Enrollment Claims Compensation management Compensation Administration Compensation Adj. Reasons (Tree) Comp. Adjustment over Org. Structure Compensationi Adj.: Employee Selec. Submit Compensation Adjustments Approve Compensation Adjustments Reject Compensation Adjustments Activate Compensation Adjustments Compensation Management: Budgeting Budget Structure Maintenance: Create Budget Structure Maintenance: Displ. Budget Structure Maintenance: Change Budget Administration: Display Budget Administration: Change Report selection HR PA-CM: Access Ad HocQuery HR PA-CM: SAP Query Access Change Matrix Catalog Display Matrix Catalog Pay scale Increase Pay Scale Reclassification Pay Scale Reclassification by Hours


Job Pricing Maintain Job (Compensation Mgmt) Maintain Position (Comp. Mgmt) Long-term incentives: granting Long-term incentives: Exercising Life events for long-term incentives Expiration/forfeiting of ltis Cancellation of long-term incentives Workflow Custom. Comp. Adjustment Customizing HR Organizational Management reports Construction: Display Const.Sites Construction; Maintain Cons.Sites Commuting allowance management Commuting allowance management dis.


External HR Master Data Customizing RSM Maintain number range: HRSM_SEQNR External HR Master DataParameters Set Up and Maintain ESSUsers

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