Paradigm Business Solutions, LLC Denver Public Schools Creative Flex Plan Setup Presented to ROMLUG September 12, 2002

Presenters Lita Weinstein, Denver Public Schools Lisa Schroeder, Paradigm Business Solutions, LLC

Paradigm Business Solutions, LLC Combined service organization consisting of Paradigm Business Solutions, LLC established in 1998 and Bails and Associates, Inc. established in 1997 Lawson endorsed merger effective 9/1/02 Existing Lawson business partner offering full solutions: HR Suite, Financials, Procurement, Supply Chain and Technical Resources

Paradigm Differentiators Paradigm is majority female owned Paradigm resources are 100% highly skilled, senior level, heavily experienced and many maintain “Top Secret” clearance Paradigm is 100% dedicated to Lawson Paradigm resources reside in more than nineteen states across the U.S.

Paradigm Differentiators contd. Paradigm is small and flexible - management decision makers are easily accessible Paradigm has a client base of 100% reference- able clients including many vocal supporters in Public Sector, Healthcare, Retail and Professional Services Paradigm has a proven track record as a business partner working with other partners and vendors

Flex Benefits Overview DPS Flex Plan Design Advantages of DPS Flex Plan Example Setup Considerations Questions

DPS FLEX PLAN HISTORY Original Flex Plan for Administrators only Utilized Lawson’s Flex Plan Setup Total Manual Process July Flex Plan included 4500 Teachers Manual Process had to be eliminated

DPS Flex Plan Design Not Setup as a “Flex Plan” The only plans that are “flex plans” are Spending Accounts (Plan Type RS). These are flagged on BN08 as spending account only.

Design Overview Cont. Standard Time Record for Flex Dollars Flex Dollars are after-tax.  Deductions for Health, Dental, Vision, TSA, and Flex spending accounts are pretax.  After-tax deductions can also be made from flex dollars e.g. Disability, Employee Life, and Dependent Life.  Extra flex dollars would be paid on an after-tax basis.

Example 1 All Flex Credits spent on Health, Vision, and Dental EE receives $ flex credits based on employee group through a standard time record. Monthly Salary = $3000 Health Pretax Ded = $200 Monthly Flex $ = $ Dental Pretax Ded = $26.07 Total Earnings = $ Vision Pretax Ded = $6.21 Total Pretax = $232.28

Example 2 All Flex Credits Are Not spent on Health Vision and Dental, but used in TSA or FSA EE receives $ flex credits based on employee group through a standard time record. Monthly Salary = $3000 Health Pretax Ded = $200 Monthly Flex $ = $ Dental Pretax Ded = $0 Total Earnings = $ Vision Pretax Ded = $0 Health FSA Ded= $32.28 Total Pretax = $232.28

Example 3 All Flex Credits Are Not Spent EE receives $ flex credits based on employee group through a standard time record. Monthly Salary = $3000 Health Pretax Ded = $0 Monthly Flex $ = $ Dental Pretax Ded = $0 Total Earnings = $ Vision Pretax Ded = $0 Health FSA Ded= $ Total Pretax = $ Employee receives $23.95 Flex Cash Taxable Wages = $

Advantages DPS setup is independent of Lawson’s “Flex Plan” design Less Data Entry No Multiple Flex Period Issues Do not have to Stop Date Benefits No additional rate tables required Flex dollars are driven by paycode

Advantages Continued No required benefit enrollment order Employee Self Service Compatible Automation Rules work well Can use same benefit plan for both employees who receive and who do not receive flex credits

Set Up Tasks 1) PR20 – Flex Pay Code 2) HR55 – Flex Employee Group 3) PR30 – Standard Time Record 4) Benefit Plan Modification or New Plan Set up.

Flex Pay Code 1) Set up Pay Summary Group

Pay Code Set Up 2) Set up Pay Code

Employee Group 1) Define Group

Employee Group 2) Define Group Criteria 3) Run HR155 to Update Group

Set Up Standard Time Record

Benefit Plan Set Up Benefit Plan is not flagged as flex plan on BN15 Flex plan is not set up on BN08 Employees are not set up for flex credits on BN45 One rate table is used for all employees

Benefits Enrollment Notes New Enrollment - Enter Benefits on BN31.2 It is not necessary to re-enroll each year Life Event – Change only effected benefit(s) on BN32 Self Service Open Enrollment –will guide employees through their current benefits. Employees will only need to re-enroll in benefits they want to change or add.

Considerations Amount of Flex Dollars can be different for each Employee Group Cash back option Flex Dollars will not show on employee self service without modification

Questions?

Thank You