INDIVIDUAL ACHIEVEMENT. EDUCATIONAL EXCELLENCE. ADMINISTRATIVE INNOVATION. INSTITUTIONAL PERFORMANCE. PA Bug 2008 User Conference 1 Benefit/Deduction Combined Limits Presented by: Charlie Westfall Banner Human Resources

PA Bug 2008 User Conference 2 Introduction & Agenda New Calculation Rules for Benefit/Deduction Processing Introducing 3 new Calculation Rules Enhancements for Combined Limit Processing Tax-Sheltered Annuity Plans Catch-Up Contribution Monitoring

INDIVIDUAL ACHIEVEMENT. EDUCATIONAL EXCELLENCE. ADMINISTRATIVE INNOVATION. INSTITUTIONAL PERFORMANCE. PA Bug 2008 User Conference 3 New Benefit/Deduction Calculation Rules More Choices! More Flexibility!

PA Bug 2008 User Conference 4 New Calculation Rules - PTRBDCA Three New Calc Rules for a Benefit/Deduction Code 1.Flat Amount with Employer Share and Annual Limit Dollars specified for both Deduction and Benefit No Plan Code! 2.Percent of Gross with Employer Share and Annual Limit Percent specified for both Deduction and Benefit No Plan Code! 3.Percent of Gross (Plan Code) with Employer Share and Annual Limit Deduction & Benefit Percent – directed by Plan Table Does not stop processing, unless Combined or Compensation Limit is met

PA Bug 2008 User Conference 5 Calculation RuleEmployee Deduction Form (PDADEDN)Benefit/Deduction Rule Form (PTRBDCA) CodeDescription Amount Amount Options Amount Amount Flat Amount with Employer Share Employee Deduction Amount Employer Amount Employee Deduction Code Annual Limit Employer Deduction Code Annual Limit 28Percent of Gross Pay with Employer Share Employee Percent of Gross Pay Per Pay Employer Percent of Employee Gross Pay Per Pay Employee Deduction Code Annual Limit Employer Deduction Code Annual Limit 29 Percent of Gross Pay (each plan) with Combined Limits – Employer Match Plan Code Employee Percent of Gross Pay Per Pay Employer Matching Percent of Employee Gross Pay Per Pay Employee Deduction Code Annual Limit Employer Deduction Code Annual Limit Benefit/Deduction Layout

INDIVIDUAL ACHIEVEMENT. EDUCATIONAL EXCELLENCE. ADMINISTRATIVE INNOVATION. INSTITUTIONAL PERFORMANCE. PA Bug 2008 User Conference 6 Combined Limits Processing For Deduction/Benefit Maximum Monitoring

PA Bug 2008 User Conference 7 Tax Deferred Retirement Plans (U.S.) 403(b), 401(k), and 457(b) IRS Rules stipulate maximums on; Elective Deferral Limit Annual Total Contribution Limit Annual Compensation Limit Catch-Up Provisions Age 50+ Catch-Up 15-Year Rule

PA Bug 2008 User Conference 8 Maximum Tracking Figures for 2008 Elective Deferrals (403(b), 401(k), and 457(b) plans)$15,500 Annual Contribution Limit$46,000 Annual Compensation Limit$230, Catch-Up Contributions$5, Year Rule$3,000 yr / $15,000 cap

PA Bug 2008 User Conference 9 Background Considerations Currently, tracking multiple Benefits against maximums require Associations on the rule form No dollar-based Employee/Employer Calc Rules No automated maximum tracking against a combined Employee/Employer total No automated provision for Maximum Compensation tracking Difficult to configure and monitor Catch-Up employees

PA Bug 2008 User Conference 10 Combined Limits Logic! So, we had an idea Went to work on HR 8.0 Built processing rules that will monitor: Combined Employee and Employer totals Compensation maximum (Applicable Gross) Allow switching an employee to Catch-Up rules

PA Bug 2008 User Conference 11 Process Flow Combined Limit Code: Combined Limit Code PTRBDCL Benefit/Deduction Rule PTRBDCA Employee Deduction PDADEDN Benefit Deduction Quick Set-up PDABDSU Payroll Proof & Calculation PHPPROF

PA Bug 2008 User Conference 12 Step 1 – Combined Limit Rule Form (PTRBDCL) Establish code & rule that specifies Employee Limit, Employer Limit, Combined Limit, and Applicable Gross Limit.

PA Bug 2008 User Conference 13 Step 2 – Map Combined Limit Code to Deduction/Benefit Establish code on PTRBDCA for appropriate Deduction/Benefit program(s); Field enterable when the Calculation Rules are 11, 16, 21, 28 or 29.

PA Bug 2008 User Conference 14 Step 3 – Affiliate Combined Limit Codes - PTRBDCA Define all Benefit/Deduction codes that will operate together on the Combined Limit Deduction Group window; Replaces Associated block where maximums are compared across the benefit codes.

PA Bug 2008 User Conference 15 Step 4 – Include the code on Deduction Record Combined Limit Code must be present on the employees deduction record, PDADEDN; Code would be present on each record to which the limit checking should apply; Records should be associated by the new Combined Limit Deduction Group, so all totals would be evaluated together; Combined Limit Code is located on Deduction Detail record, allowing for effective-dated changes.

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PA Bug 2008 User Conference 17 Step 5 – Quick Set-Up Form Change For new employees, Combined Limits Rule can be defaulted or changed on PTRBDSU;

PA Bug 2008 User Conference 18 Step 6 – Combined Limit Code on the History Record Each entry or change is captured on the Deduction History record – displayed on PEIDHIS.

PA Bug 2008 User Conference 19 Step 7 – Verify Consistency during Payroll Processing Edit installed in the Payroll Proof process, PHPPROF, to ensure all Combined retirement deductions carry the same Combined Limit Rule Code; Note: An employee can have multiple Combined Limit Code Deductions processed on the same payroll. Those Benefit/Deductions that are mapped together via the Combined Limit Deduction Group, must carry the same Combined Limit Code.

PA Bug 2008 User Conference 20 Step 8 – Payroll Calculation Processing New processing rules using Combined Limits When a specific Limit is reached, the calculation will verify if any other Limit has been reached. Example: Employee has reached the limit on deduction portion - $15,500; however, has not reached the Combined Limit of $46,000 for Employee + Employer contributions; and If an additional contribution is available under the Employer Limit, the Benefit portion will continue until the Combined Limit is reached.

PA Bug 2008 User Conference 21 Step 9 – Benefit/Deduction Mass Change Process Mass Change rule and process has been enhanced to include the Combined Limit Code – PTRBDMC/PDPBDMC Can assist in migration to Combined Limit Codes when implementing;

PA Bug 2008 User Conference 22 Step 10 – Installation and Activation Scripts Install script for all new tables and columns for 8.0; Migration Alternatives; 1.Manually build Combined Limit Rules for deductions; PTRBDCL 2.Manually populate the appropriate records on PTRBDCA; Combined Limit Code and Combined Limit Group 3.Manually populate the existing records on PDADEDN or use the Benefit/Deduction Mass Change process to update employee records; 4.Manually adjust those employees that should have a 50+ Catch=Up or 15-Year Rule, for higher maximums.

PA Bug 2008 User Conference 23 Summary 3 New Benefit/Deduction Calculation Rule option for additional flexibility; New Combined Limit processing for multiple limit checking.

PA Bug 2008 User Conference 24 Questions & Answers Thank You! Charlie Westfall