ABAP HR

                      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:
  • 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    Name of
Area       HR country

01           Germany                  
02           Switzerland              
03           Austria                  
04           Spain                    
05           The Netherlands          
06           France                   
07           Canada                   
08           Great Britain            
09           Denmark                  
10           USA                      
11           Ireland                  
12           Belgium                  
13           Australia                
14           Malaysia                 
15           Italy                    
16           South Africa             
17           Venezuela                
18           Czech Republic           
19           Portugal                 
20           Norway                   
21           Hungary                  
22           Japan       

Benefit Category:
               
Benefit Category is the broadest classification of benefits. Categories are maintained by SAP.
The following plan categories are provided by SAP:

  • 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                                       (Infotype 0167)
Insurance Plans                                  (Infotype 0168)
Savings Plans                                     (Infotype 0169)
Spending Accounts                            (Infotype 0170)
Credit Plans                                       (Infotype 0236)
Stock Plans                                        (Infotype 0375)
Miscellaneous Plans                          (Infotype 0377)
General Benefits Data                       (Infotype 0171)
Family/Related Person                      (Infotype 0021)
External Organization                       (Infotype 0219)
Date Specifications                           (Infotype 0041)
Monitoring of Dates                          (Infotype 0019)
COBRA Qualified Beneficiary         (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
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