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FREQUENTLY ASKED QUESTIONSABOUT IMPLEMENTING ORACLE HRMSR11i BENEFITS

Author: Oracle Consulting

Creation Date: May 10, 2000

Last Updated: April 10, 2001

Version: 2.4

Frequently Asked Questions About Implementing Oracle HRMS R11i Benefits

File Ref: R11i Benefits Frequently Asked Questions.doc Document Control ii

Document Control

Change Record

Date Author Version Change Reference

May-10-00 Oracle Consulting 1 No Previous DocumentOct-23-00 Tanie Guy 2.0 Update Existing info and Major AdditionsNov-30-00 Keith Ekiss 2.1 Edited DocumentDec-12-00 Tanie Guy 2.2 Fixed Employer Deduction AnswerDec-18-00 Tanie Guy 2.3 Fixed Change record; Added Performance SectionApr-10-01 Tanie Guy 2.4 Added New FAQ’s Since Last Updated

Reviewers

Name Position

Phil Chapman OAB Product ManagerKeith Ekiss OAB Information Designer

Distribution

Copy No. Name Location

1 2 3 4


File Ref: R11i Benefits Frequently Asked Questions.doc Document Control iii

Contents

Document Control..................................................................................................................................................ii

Introduction............................................................................................................................................................5

Expected Background for the Reader of this Document..........................................................................5

General.....................................................................................................................................................................6

Compensation Object Design ..............................................................................................................................8

Life Events (Triggers)............................................................................................................................................9

Eligibility................................................................................................................................................................11

Electability.............................................................................................................................................................13

Derived Factors ....................................................................................................................................................14

Rates/Coverage....................................................................................................................................................15

Actual Premiums ..................................................................................................................................................16

Communications...................................................................................................................................................17

COBRA / HIPAA (US Customers)....................................................................................................................18

Flex Credit Plans...................................................................................................................................................19

Flexible Spending Accounts ..............................................................................................................................20

`Waive Plans.........................................................................................................................................................21

What-If Modeling................................................................................................................................................22

Elements ................................................................................................................................................................23

Payroll....................................................................................................................................................................27

Batch Processes ...................................................................................................................................................28

Reports ..................................................................................................................................................................29

System Extract ......................................................................................................................................................30

Benefits Self Service............................................................................................................................................31


File Ref: R11i Benefits Frequently Asked Questions.doc Document Control iv

Upgrade / Migration Path...................................................................................................................................32

Benefits and FastFormula ...................................................................................................................................34

Performance Considerations ..............................................................................................................................35


File Ref: R11i Benefits Frequently Asked Questions.doc Introduction 5 of 36

Introduction

Expected Background for the Reader of this Document

This document is written for a reader who currently understands Oracle and Oracle HRMSApplications R11i.

Refer to Managing Total Compensation Using HRMS Release 11i (March 2000), available from OracleDocumentation for further information.


File Ref: R11i Benefits Frequently Asked Questions.doc General 6 of 36

General

What benefit functionality is available in Oracle HR Release 11i?

There are three levels of benefits available, Oracle Basic Benefits, Oracle Standard Benefits and OracleAdvanced Benefits.

• Oracle Basic Benefits (OBB) is part of the core HRMS product and is included in Release10.7, Release 11.x and Release 11i. Oracle Basic Benefits allows for element based benefitprocessing. In this basic model, the element and element link have limited eligibility restrictionsand functionality. The election opportunities or enrollments made under this model are notavailable for display under any enrollment forms in Standard or Advanced Benefits.

• Oracle Standard Benefits (OSB), Release 11i is considerably more powerful than the earlierOracle Basic Benefits. Within this product, clients have the added capability of eligibilitydetermination using profiles with a variety of criteria, and using enrollment forms to enterelection information.

• Oracle Advanced Benefits (OAB), Release 11i contains all the functionality of OracleStandard Benefits plus:

• Life Event Management: Online and Batch

• Flex Credit Calculations and Administration

• Communications triggers

• Reimbursement Requests

• Batch Processing features for Enrollment Management

• What-if Enrollment Eligibility Modeling

• Benefits Service Center Management

R11i Oracle Advanced Benefits is tailored to 3 groups:

1. Employers who administer their benefit programs in-house

2. Companies who administer benefits for other companies

3. Insurance carriers of benefit offerings

Where do I find the latest information regarding Oracle Consulting Tools for R11i Benefits?

Information can be found on the Oracle intranet at the iXchange Portal. http://ixchange.us.oracle.com

Follow this path from the iXchange home page: HRMS Professional Community : ReusableComponents : HRMS Applications : Release 11i Benefits

Do I have to purchase a separate license for Oracle Advanced Benefits if I purchase an HRMSRelease 11i license?

Yes, you must purchase a separate license for Oracle Advanced Benefits in addition to your licensefor Oracle HRMS. Licensing of Oracle Payroll is not a requirement, as the core product contains allthe information necessary to establish your benefit plans.

What languages are available with Oracle Advanced Benefits and Oracle Standard Benefits?

• Presently, Oracle Advanced Benefits is available in English and Canadian French.


File Ref: R11i Benefits Frequently Asked Questions.doc General 7 of 36

• Oracle Standard Benefits is translated into all languages supported by the core HRMSproduct.

Is datetracking available in Standard Benefits and Advanced Benefits?

Yes, over ninety percent of the forms are date tracked in both applications.

What types of plans can be set up in Standard Benefits and Advanced Benefits?

Plans such as Medical, Dental, Life Insurance, Vacation Buy/Sell, Savings Plans, etc. Please refer toManaging Total Compensation Using HRMS Release 11i (March 2000) for more examples. This candocument can be downloaded from the iXchange Portal.

Does Oracle Advanced Benefits provide a user interface for telephone service representatives foronline counseling of employees and other benefits participants?

Yes, Oracle Advanced Benefits has a user interface optimized for environments which supportcounseling to employees and other benefits participants. The Benefits Service Center form providesaccess to a participant’s relevant benefit information.

Do I have to purchase a separate license for Self Service Human Resources (SSHR)?

Yes, you must purchase an additional license for Self Service Human Resources for use with eitherStandard or Advanced Benefits.


File Ref: R11i Benefits Frequently Asked Questions.doc Compensation Object Design 8 of 36

Compensation Object Design

Is there a recommendation on the number of period dates being set up for programs or plans?

Yes, it is recommended that a minimum of 10 years be setup.

Do you need to define Period/dates for both the plan and the program?

Yes, each plan and program must have a 'Year Period' associated to it so that the ParticipantManagement Process will recognize it as an effective compensation object. It also uses these periodsto determine how long the year period is for the plan. Plans can have different year periods than theprogram.

What are Reporting Groups used for?

Reporting Groups are a way of associating programs or plans in groups through data. This way areport or other query has a way of finding groups or set of plans. It could be used to associate all401k plans, or only qualified plans within a Program, e.g. all the pre-tax benefits in the Flex Program.

What do the different 'Program Types' mean?

The Program Types are to be used for reporting or describing the types of plans included in theprogram. Importantly, it is also used for determining which enrollment form the system should use:i.e. Flex Enrollment or Non-Flex Enrollment. If the type has the word FLEX in it - the system allows theFlex Enrollment form to be used and vice versa. This is mainly because one displays flex credit infoand the other doesn't.


File Ref: R11i Benefits Frequently Asked Questions.doc Life Events (Triggers) 9 of 36

Life Events (Triggers)

What are Life Events?

A Life Event is a change in a person’s life that would effect a change to their benefits eligibility,enrollment, or contribution rate, such as Marriage or Termination.

What Life Events are delivered with Oracle Advanced Benefits?

There are 17 Life events “seeded” with the application:

• Age

• Combined Age and Length of Service

• Compensation

• Hours Worked in Period

• Length of Service

• Loss of Eligibility

• Total Percent Full Time

• Enrollment Override

• Reduction of Hours

• Administrative

• Open

• Unrestricted

• Voluntary End of Coverage

• Non or Late Payment

• Maximum Enrollment Period Reached

• Period of Enrollment

• Satisfied Waiting Period

You can create other Life Events with the use of data triggers. A data trigger is caused by a changein a database value. For example, the “Marriage” life event may be defined with a change in maritalstatus from “null” to “Married”.

Why isn’t the New Hire life event predefined in Advanced Benefits?

Employers differ in how they define a New Hire life event in terms of data triggers. For someemployers, the new Hire Date would trigger the event, for other employers, a change from in statusfrom Applicant to New Hire would trigger a New Hire life event.

How is FMLA supported in OAB for US customers?

Once a leave reason is entered into the system, OAB can detect the life event (FMLA-conformingleave) and determine if the participant is eligible for continuing benefits; make them ineligible forthose benefits which the customer doesn't provide for during such leaves; calculate electablechoices; record participant elections; send out literature; and capture the participant's continuingbenefits payment. At this time, the system does not have the ability to automatically determinewhether a leave is FMLA-conforming based upon its type and/or the amount of such leave which the


File Ref: R11i Benefits Frequently Asked Questions.doc Life Events (Triggers) 10 of 36

person has or has not used during the preceding 12 months. This feature is being considered as anenhancement to the product.


File Ref: R11i Benefits Frequently Asked Questions.doc Eligibility 11 of 36

Eligibility

What are Eligibility Profiles?

Eligibility profiles determine whether a person satisfies the rules which govern whether that personcould ever enroll in a program, plan, or a coverage option within a plan. For example, in order to beeligible for the Acme HMO, a person might have to work more than 30 hours a week and be located inNevada. Both Standard and Advanced Benefits give you the flexibility to define eligibility at manylevels within your benefits program.

How do you resolve the following scenario: a Dependent Life plan needs an eligibility profile (theparticipant must be an employee) and a FastFormula rule (the participant must have elected EE Life).Can you use supply both criteria in one profile?

You can create an eligibility profile with multiple criteria and one of those criteria can be a FastFormulaRule. You’ll find this eligibility criteria on the tabbed region labeled “Other” on the ParticipationEligibility Profiles window. The person would have to satisfy all criteria in order to satisfy the criteriaof the profile, including the rule.

However, the above scenerio refers to a Post Enrollment Edit. The system does not know a person’selection until the enrollment is recorded. Eligibility profiles are examined during eligibilitydetermination before electable choices are determined.

In order to allow a participant to enroll in Dependent Life, the participant needs to be found eligiblegiven that the person is an ‘Employee'. You must attach a Rule to the Program EnrollmentRequirements>General>Plan>Post Election Edit Rule that returns a 'Y' or an 'N' for the Dependent Life.This Rule will only allow the person to enroll in Dependent Life if they elect Employee life. The ruletype needed is "Post Election Edit".

According to the Managing Total Compensation user’s guide, when you define eligibility profiles,you can define multiple criteria such as location and organization. The participant then must meetat least one value for each criteria defined. Can you define multiple criteria and have the participantmeet the value of only one of the criteria, that is having an 'OR' condition as opposed to an 'AND'condition? Could this be done without defining a FastFormula rule?

When you attach an eligibility profile to a compensation object (for example, program, plan, plan-in-program), you can specify whether the profile is required. The person processing must satisfy ALLrequired profiles and AT LEAST ONE optional profile.

• If you attach only one profile, the profile is mandatory regardless if the profile is indicated asrequired. The system will read this profile as optional and at least one optional profile must besatisfied.

• If you attach more than one profile and no profile is required, only one profile needs to besatisfied to make the person eligible.

• If you attach more than one profile and all are marked as required, all profiles must be satisfiedto make the person eligible.

• If you attach more than one profile and some profiles are marked as required and some are notmarked as required, all of the required profiles must be satisfied and only one of the non-required profiles must be satisfied to make the person eligible.

You do not have to write a FastFormula rule to accomplish most “and/or” conditions for eligibility.


File Ref: R11i Benefits Frequently Asked Questions.doc Eligibility 12 of 36

How do you access the benefits tab on the People form which has the benefits group field that is usedto attach a Benefits Group to an employee?

This is a secured view (function) that should be available on all of the seeded menus for eachlocalization. The following seeded US navigators have this function: US SHRMS Navigator, USHRMS Navigator, US HR Navigator, US HR + OAB (also called US SHR Navigator). These are themenu structures customers in the US should be using as models for customized menus. This alsoapplies for the UK, Canada, France, Global, and all other menu structures.

The above menus are attached to seeded responsibilities such as US Super HRMS Manager, USHRMS Manager, US HR Manager, and US Benefits Manager. Therefore, when logging on as one ofthe seeded responsibilities, you should have access to the appropriate menu structure.

Note: It is possible to change the menu structure for these seeded responsibilities or tocreate new responsibilities with the incorrect menus. Should either event occur, you canupdate the menu structure to include the Benefits tabbed region. As a systemadministrator, query the BEN_MANAGER menu in the Menus window and add the HRView Benefits function to the menu. The menu should not have a display name.


File Ref: R11i Benefits Frequently Asked Questions.doc Electability 13 of 36

Electability

What is Electability?

Electability determines whether a person can enroll in a plan for which they satisfy the eligibilitycriteria. In order for a benefits choice to be electable, a person must be eligible for it. However, thereare many cases when a person cannot elect a benefit for which they are eligible.

Typically, plan sponsors (and the IRS in the US) place restrictions on when a person can enroll in abenefit plan for which they are eligible. For example, Fred is eligible for all coverage options(Employee Only, Employee Plus Spouse, Family) in the Acme HMO and the Good Health Medical Planand is currently enrolled in Acme HMO Employee Only. If he gets married, Fred receives AcmeEmployee Plus Spouse as an electable choice but the coverage options for the Good Health plan willnot be electable choices.

Medical plans are electable. If Fred moves to a location where Acme HMO plan is not offered, heloses eligibility for that plan and the Good Health Medical Employee Only choice becomes electable.

During open enrollment, a person can typically enroll in all of the electable plans and options forwhich they are eligible. Exceptions to this exist: for example, once a person has enrolled in a givendental plan, often they cannot enroll in a different dental plan (even if they are eligible) until they havesatisfied the minimum enrollment period (often two years) in the original dental plan.


File Ref: R11i Benefits Frequently Asked Questions.doc Derived Factors 14 of 36

Derived Factors

On the Derived Factors window, there is a field labeled "Alternate Value." This field contains a listof values including "Persons Eligibility Value" and “Persons Rate Value". What are these values,where are they defined, and what would trigger their use?

The Alternate Value is the value to use when the system tries unsuccesfully to find a given value.This is more likely to happen in cases of compensation than length of service. The person's eligibilityvalue is the value used to determine whether the person is eligible. This value is recorded on theBEN_ELIG_PER_F or BEN_ELIG_PER_OPT_F table. This value can be viewed on the ParticipationOverride window along with the participant’s rate value.

Note: This functionality is planned for future implementation.

What is the Override Service Date and where is it defined?

The Override Service Date can be entered and viewed on the Participation Override window. It allowsthe user to enter a date to be used in place of the other service dates: original hire date, hire date,adjusted service date. The user can specify that the length of service factor look at any of thesedates. There is a hierarchy in place that checks if the date specified is not available/null. If theservice date is not available or null, the system check for the next available service date in thehierarchy. The hierarchy is:

• Override Service Date

• Adjusted Service Date

• Hire Date

• Original Hire Date


File Ref: R11i Benefits Frequently Asked Questions.doc Rates/Coverage 15 of 36

Rates/Coverage

Which default enrollment code do I use to provide no default elections for a new enrollee, but toretain the existing election for a current participant, while assigning the latest rates?

Use the default enrollment code of 'New Nothing, Current Same, Enrollment and Rates'. The issue youmay be having is around the 'latest rates'. The default process enrolls the person into whatever ratethey previously had ONLY if the rate is defined with 'Enter Value at Enrollment.’

For example, last year a participant elected to contribute $1200 per year to a Health Care spendingaccount. Using the default enrollment code of 'New Nothing, Current Same, Enrollment and Rates'maintains the default enrollment in this plan at the rate of $1200. If you use the code 'New Nothing,Current Same, Enrollments but Default Rates' the system applies the default value defined on theStandard Rates window for the activity base rate when it is 'Enter Value at Enrollment'. Customersmay set up the Health Care spending account with minimum and maxium values, for example Min $120to Max $1200, with a default rate, such as $120. If a specific election is not made, the participantreceives the default min of $120.

For open enrollment, the coverage/rates start the first day of next year and end the last day of thefollowing year. What coverage/rate end date should I use? One day before event?

For open enrollment, you could use a coverage/rate start date of 'Event' and an End date of 'One daybefore Event date'. During open enrollment, we specify the life event occurred on date for the openevent, for example 01-JAN-2001. This is the date you want the system to determine age, length ofservice, salary, etc, and the date you want rates and coverage to begin.

How does Benefits handle arrearages?

Example: New Hire on 08/01/01. Check Date is Semi-Monthly 8/15/01 but New Hire wasn't entereduntil 08/16/01 which is one payroll later.

Benefits doesn't change the way arrearages are handled. This is a payroll function. This featureworks as it has in previous releases of Oracle HRMS and is determined based on how elements aredefined for your implementation.

You should create elements using the Deductions form (template). This form does all of theFastFormula work behind the scenes. Then, if you need to alter anything for arrearages, you wouldalter the formula as you did prior to r11i.

How do I set up the Employer portion of a benefits deduction?

Create another standard rate and check the "Assign on Enrollment" field on the Standard Rateswindow. The person will be assigned this rate (i.e, the system will create a Participant Rate Value).Do not check the "Display on Enrollment" field. This prevents the value from displaying in theenrollment form. If you pass the value to the assignment element entries, you must create an elemententry for the employer liability that will be processed by Oracle Payroll. To accomplish this, check the“Process in Run” field for this rate.

What is the appropriate use of the Parent/Child rate field?

The use of this field is to identify the Parent rate, and additional rates for the same comp object, childrate(s). One of the Calculation Methods available for rates is Multiple of Parent. This allows the userto set up a Parent rate that is perhaps the Total Amount Due, one Child rate that is the Employeeportion, e.g. 60% of Parent, and another that is the Employer portion, e.g. 40% of Parent.


File Ref: R11i Benefits Frequently Asked Questions.doc Actual Premiums 16 of 36

Actual Premiums

To take advantage of the Premium Calculation process, do I need to set up a separate rate for theemployer cost on each option?

The premium is the amount paid by the plan sponsor (employer) to the carrier (Aetna, Kaiser etc).Premiums are usually calculated on a per participant basis for an option in plan. Sometimes premiumsare based on the total number of participants covered in a plan or an option in plan. So, you will wantto consider the premium to be the total cost to the 'Company'. How the company determines what itwill pay versus what the employee pays is accomplished through defining Standard Rates.

Define the premiums on the Actual Premiums window as the total cost of a benefit to the 'Company',usually for an option in plan. Then define a standard rate for the Employee portion and one for theEmployer portion. The two rates should total the premium amount for the option in plan. This is howyou derive the 'Employer' portion of the premium. You can also attach elements that will cost theEmployer portion accordingly if you use Oracle Payroll. Please refer to the Managing TotalCompensation Using Oracle HRMS user’s guide or your online help system for more information.


File Ref: R11i Benefits Frequently Asked Questions.doc Communications 17 of 36

Communications

How is the term “communications” used with the applications?

Generally, communications are the primary means by which you inform employees and otherparticipants of enrollment periods, administrative procedures, and electable choices. Within theapplications, communications refer to the triggers created for a participant under certain conditionsthat are written to the Person Communication table. For example, a communications trigger indicatesthat a New Hire Statement should be generated when certain eligibility requirements are met.

What types of communications triggers are available in Standard Benefits?

Standard Benefits supports manually triggered communications. Because this product does not haveany automatic processes, the communication triggers cannot be created automatically.

What types of communications triggers are available in Advanced Benefits?

Within Advanced Benefits, some examples of the communication triggers that are available to triggerautomatically are: “Pre-Enrollment Literature - Enrollment Window Opened”, “Final ConfirmationLiterature - Close Enrollment”, “Election Modification Literature - Determined First Time Ineligible andDe-Enrolled.”

Does Oracle Standard Benefits or Oracle Advanced Benefits automatically send outcommunications?

No, neither system automatically sends out communications. Within Advanced Benefits, afterrunning a batch process, a communication row is written to the Person Communication table. Usingthe System Extract feature, data from this table may be extracted to a text file and then merged into thebody of your communication.

Do both Oracle Standard Benefits and Oracle Advanced Benefits have the ability to handle targetedmass mailings?

Only Advanced Benefits has the Determine Communications Batch Process. However by using theSystem Extract process, Standard Benefits administrators may create extract files that will functionsimilarly if the proper eligibility is defined.


File Ref: R11i Benefits Frequently Asked Questions.doc COBRA / HIPAA (US Customers) 18 of 36

COBRA / HIPAA (US Customers)

Does Oracle Standard Benefits in R11i assist with the administration of COBRA?

Yes, both Oracle Standard Benefits and Oracle Advanced Benefits help the client administer therequirements imposed by the Consolidated Omnibus Reconciliation Act legislation.

Does Oracle Advanced Benefits assist with the administration of HIPAA?

Yes, both Oracle Standard Benefits and Oracle Advanced Benefits helps the client administer therequirements imposed by the Health Insurance Portability and Accountability Act legislation.

My set up includes one plan that will be used for both an Active Program and a COBRA program. Isit necessary to set up COBRA Regulations? What purpose does this tab serve other than to identifywhat plans are subject to COBRA and to group them for reporting purposes?

The COBRA regulation must be associated for all plans subject to COBRA(US). The Participationprocess looks for this regulation as part of the determination for eligibility within the COBRAprogram.


File Ref: R11i Benefits Frequently Asked Questions.doc Flex Credit Plans 19 of 36

Flex Credit Plans

Can Advanced Benefits handle the distribution of excess credits from a flexible benefits plan?

Yes. Participants may choose to rollover excess credits to another plan, forfeit excess credits, orreceive the credits as cash. This is accomplished through the definition of flex credit benefit pools.

Does Standard Benefits have the same functionality?

No. Only Advanced Benefits has the functionality to automatically define Flex Credit plans and todefine excess credit distribution rules within the application.


File Ref: R11i Benefits Frequently Asked Questions.doc Flexible Spending Accounts 20 of 36

Flexible Spending Accounts

Can Flexible Spending Accounts be defined to process payments to participants?

Yes. Reimbursement requests may be set up to reimburse payments from a spending account whenthe benefits department receives the appropriate paperwork from the participant. Only AdvancedBenefits provided the capability to administer spending accounts with a forms interface.

If you configure reimbursement information after a person is enrolled, can you still processreimbursements for the person?

Yes.

When configuring reimbursements, do you have to provide relationships?

No.

When configuring reimbursements, do you have to provide certificate information?

No.

Do I need a rate set up for the reimbursement amount to work?

Yes. You need to set up a distribution rate for the amount to be paid out that is nonrecurring. We donot yet handle recurring flexible spending account distributions, e.g., for monthly child carepayments.


File Ref: R11i Benefits Frequently Asked Questions.doc Waive Plans 21 of 36

Waive Plans

What is a Waive Plan?

The 'Waive Plan' flag indicates which plan will represent your 'No Coverage' plan. Since the plannames are user defined, the system has no way of knowing which plan represents no coverage. Youwill need to explicitly enroll them into the 'No Coverage' plan (waive plan) if you want to track thisinformation. You would want to track this information if you need to report on the number ofparticipants who explicitly elected NOT to accept provided coverage.

Note: This concept also applies to Options.


File Ref: R11i Benefits Frequently Asked Questions.doc What-If Modeling 22 of 36

What-If Modeling

The What-if Modeling feature in Oracle Advanced Benefits covers employee modeling. Does it alsoinclude employer modeling?

The What-If feature covers only employee life event eligibility modeling. Future plans include theaddition of employer what-if modeling, which would allow the employer to model costs associatedwith different program and plan designs.

Is What-if Modeling included in Oracle Standard Benefits?

No. What-if Modeling is only included in Oracle Advanced Benefits.

Does What-if modeling change information at the database level?

No. What-if modeling does not change database information. This feature examines information for aperson at a specific point in time (snapshot) and allows the participant to model the effect of changesto their benefits. When you exit the form, the data is not saved.


File Ref: R11i Benefits Frequently Asked Questions.doc Elements 23 of 36

Elements

How do you fill out the Element Description form when creating elements for Standard or AdvancedBenefits?

Primary Classification: This only tells Payroll how to tax the element once it comes over to Payroll.Thus, if the primary classification is pretax then make it pretax, if it is after-tax then make it after-tax,etc. This does not change the calculated rate within the benefits module.

Benefit Classification: Leave this field blank. This was used only for basic benefits with Release10.7 and 11.

Recurring vs Non-recurring: Usually, for benefits, the element will be recurring.

Make sure that the Allows Multiple Entries flag is checked to ON.

Make sure that you have chosen the correct ending point, either actual or final close (normally actualtermination).

For imputed income, do not use the payroll seeded element because it may double calculate imputedincome.

Further Information: This is a required field for Oracle payroll field. It is mainly used for Taxpurposes. Select the option that is most relevant (i.e. using Pre-tax 123). This field providesinstruction to payroll regarding how to calculate the element.

Note: Once you define your elements and attach them to your rates, if you go backand change anything to your elements you must unattached them from your rates andthen reattach them. If you do not do this, you will cause problems with your rates.

Note: When linking the elements, in order for costing to work correctly, you need tobe consistent with whatever criteria you link with. For example, consistently linkingyour benefits elements to all payrolls would allow eligibility calculations to workproperly.

When should I use existing elements vs new elements?

Without a clear understanding of existing element setup, it is impossible to know the ramifications ofusing existing elements. Therefore, Oracle development (Payroll and Benefits) strongly encouragescreating new elements when using Standard or Advanced Benefits to capture rates (costs) associatedwith benefit elections.

Oracle Benefits will be authoring a detailed white paper on the subject of using elements. For now,here is a brief explanation of the concepts and the pros and cons of using existing elements vs.creating new elements.

Basic Benefits

The old way of administering benefits, prior to r11i, has not been removed from the product. Elementsand Input Values use benefit tables and FastFormula to derive an amount (Employee or Employercontributions/distributions). Element linking restricts which elements can be assigned to anindividual’s assignment. Once assigned to an individual’s assignment, these amounts can then beprocessed accordingly by Oracle Payroll or a third party payroll.

Standard or Advanced Benefits



Users create a compensation hierarchy of Plans (HCA) or options in plans (Coyote Dental - EE only).The eligibility criteria are attached to the individual compensation objects within the hierarchy todetermine participant eligibility. The coverage amounts, flex credits, premiums, imputed income, andRates (EE/ER contrib/distribs) are also created for each compensation object.

Activity Base Rates (ABRs) are created on the Standard Rate form (imputed income has its own form)for each compensation object for which we calculate costs such as EE/ER contribs/distribs. ForPayroll to process, 1 Element and 1 Input Value is attached to the ABR on the Standard Rate form.We can have multiple ABRs for each comp object. Example, 1 ABR for EE contribs and 1 ABR for ERliabilities.

When a person enrolls in a compensation object, the associated element(s) and input value(s), on theABR, are assigned to the employee’s assignment or benefits assignment element entry. The inputvalue will contain the amount calculated by BEN and will simply need to be added/subtracted/costedby payroll.

Pros and cons for Using Existing Elements:

Pros

1. Already linked for costing

2. No transfer of balances needed

Cons

1. Cannot create new input values for elements that have already been linked

2. Must disable existing benefit tables

3. Must alter ALL existing FastFormula which uses the input value in the element

4. Additional T&E altering old benefit tables and formulas

5. Exposure to errors in changing benefit tables and formulas

Pros and cons for Creating New Elements:

Pros

1. Less setup needed with new elements as BEN is doing all of the calculations

2. Can create new input values to capture calculations from BEN

3. Open link can be used if there is NO costing

4. No manipulation needed for benefit tables or FastFormula, the ‘Amount’ input value willappear correctly on SOE

5. New Input Values are NOT being used by existing benefit tables and FastFormula

6. Can add a new input value to existing FastFormula if needed

Cons

1. Costing - new elements would have to be linked accordingly (however, may have fewer elements)

2. Balances may need to be transferred if converting mid year



3. T&E implementing new elements and removing existing

There may be additional pros and cons under each category depending on the specific conditions ofyour implementation.

How do I setup elements for Benefits and the ADP Connection?

There are 4 different types of elements you might set up when implementing the ADP interface. Youwouldn't normally set up both basic and standard/advanced benefits.

Basic benefits

When creating basic benefit elements, create elements with a a primary element classification of"Voluntary Deductions" and a benefit classification of Medical, Dental or Vision. Set the ADPDeduction flag to Yes. Three input values will automatically be created (for coverage, EE contributionand ER contribution).

When you use basic benefits, deductions relating to non-Medical/Dental/Vision benefits (forexample, savings plans) should be implemented as regular ADP deductions if they are to be interfacedto ADP.

Basic benefit info is interfaced using the hr_adp_benefit_v view.

Standard and Advanced Benefits

Standard and Advanced benefits functionality is new in 11i. The ADP interface will interface employerand employee payroll contributions for benefit plans defined using the new standard and advancedbenefits functionality, providing the following conditions are adhered to:

1) Benefit contribution amounts are calculated by standard/advanced benefits and the results of thecalculations are interfaced to ADP via element entries. So you must associate elements with youractivity rates if you want the contribution amounts to be interfaced to ADP. Check the "Assignon Enrollment" checkbox when you create your activity rates so that the appropriate elemententries are created on enrollment.

The elements that you associate with activity rates do not have to be created as ADP deductionelements. You simply need to create an element with one input value. This input value will holdthe rate. Create a different element for each activity rate.

If you have already created your activity rate elements as ADP deduction elements, this is not aproblem. Use the amount input value to hold the rate, and set the ADP Deduction flag to No.Also set the Units input value to not required. Your activity rate elements will have 3 input valuesinstead of 1, but that will not break the interface.

2) Activity rates should have activity rate types of either "Employer Payroll Contribution" or"Employee Payroll Contribution". If you want to pass both Employee and EmployeeContribution amounts to ADP you should create two activity rates. You should use a differentelement definition for each rate.

3) If you use variable rate profiles, these should also have activity rate types of "Employer PayrollContribution" or "Employee Payroll Contribution" if they map to activity rates that are used inplans whose contribution amounts are to be interfaced to ADP.

4) If you want to interface flat dollar contribution limits, you can do so by setting up period-to-datelimits against your activity rates. Please ensure you create only one period-to-date limit for eachactivity rate.



5) Element definitions that are created as part of your activity rate setup should have the ADPDeduction flag set to No. If this flag is set to Yes it can adversely impact the operation of thestandard/advanced benefits functionality.

Standard/advanced benefits information is interfaced using the hr_adp_oab_benefit_v view.

GTL

There is a GTL specific view called hr_adp_gtl_v that returns GTL info. To interface GTL info to ADP,set up an element called ADP GTL as described in the ADP interface implementation guide.

Regular ADP Deductions

If you want to interface any other deductions that are not returned by the previous three views, setup regular ADP deductions as described below.

These regular deductions are interfaced via the hr_adp_deduction_v view.

1) Set ADP Deduction flag to Yes.

2) Each Element should have the 3 Input Values - Amount (type Money), Units ( type Look-upHR_ADP_DEDUCTION_UNITS and Limit (type Money).

How does the system utilize Deduction Schedules?

The deduction schedules are currently only used for reference or exporting a name to a foreignpayroll. They don't do any calculations. The process that creates element entries does look at theFrequency Rules defined for related Element Types.


File Ref: R11i Benefits Frequently Asked Questions.doc Payroll 27 of 36

Payroll

Do both Oracle Standard Benefits and Oracle Advanced Benefits integrate with Oracle Payroll?

Yes, both products integrate with Oracle Payroll.

Why must you define a default monthly payroll?

A monthly payroll must be determined to be the “default monthly payroll” for non-active employeeswho elect continuing benefits such as COBRA in the US. A monthly payroll must be set up only ifno other monthly payroll exists in the designated Business Group. This allows the administration andcosting of assignments for non-active employees who elect continuing benefits.

Please refer to Managing Total Compensation Using HRMS Release 11i for a further discussion ofbenefits assignments. This user’s guide can be downloaded from the iXchange Portal.

How are element entries created for participants?

Elements are automatically created in Standard and Advanced Benefits after saving the record withinthe enrollment forms as well as through the certain batch processes in Oracle Advanced Benefits.

Must Oracle Payroll be installed if the client purchases an Oracle Advanced Benefits license?

No.

Does Oracle Advanced Benefits utilize any of the Oracle HR and / or Oracle Payroll tables?

Yes, in addition to the newly created benefits tables, Oracle Advanced Benefits utilizes some of theOracle Human Resource and Oracle Payroll tables (shared/core applications tables).


File Ref: R11i Benefits Frequently Asked Questions.doc Batch Processes 28 of 36

Batch Processes

What Benefits Batch Processes are included in Oracle Standard Benefits?

Three batch processes exist in Oracle Standard Benefits, they are:

• Extract Process - creates an extract for an extract definition you have defined.

• Extract Write Process - saves the output from the Extract Process to a file.

• Premium Calculation Process - selects appropriate participants and creates premium results.

What Benefits Batch Processes are included in Oracle Advanced Benefits?

Oracle Advanced Benefits contains the three batch processes that are included with Oracle StandardBenefits. In addition, Oracle Advanced Benefits includes the following seven batch processes:

• Participation Batch Process - determines eligibility and enrollment information for the personsand benefits plans you select.

• Back Out Life Events Process - this process is run when a life event has been started in errorfor a group of persons.

• Default Enrollment Process - automatically enrolls a person into a plan based on predefinedcriteria.

• Close Unresolved Action Items Process - used to close any required or optional Action Itemsthat have not been completed by the participant.

• Close Enrollments - closes a person’s enrollment after elections have been made and resolvesany incomplete election information.

• Temporal Communications.

• Maintain Designee Eligibility.

How frequently should the Oracle Advanced Benefits Participation Batch Process run?

This varies based on the size of the organization. Typically, plan sponsors with large employeepopulations will run the process daily, whereas small employers may run the process once a payperiod, prior to each payroll processing. Depending on client requirement for Life Event detectionand timeliness of life event evaluation, the Participation Process may be run as often as required.

I get an ORA-20001:BEN_91663_BENMNGLE_LOGGING: error when trying to run participantmanagement batch process?

This is because the Audit Log Flag is turned ON and the Audit log tables are running out of space.

Proper procedure should be to keep the Audit Log flag turned OFF. Refer to the report created by theParticipation process for errors and for the number of people processed in the run.

Note: If you receive this error, you need to run the Participation Audit Activity Purgebatch process. This will clean out your Audit log tables.


File Ref: R11i Benefits Frequently Asked Questions.doc Reports 29 of 36

Reports

Are standard benefits reports included in Oracle Advanced Benefits?

There are no standard reports delivered in Oracle Advanced Benefits at this time. Reports may bedeveloped using Oracle Reports, or, ad hoc reports may be developed using Oracle Discoverer. TheOAB System Extract process may be run to extract data in a file that could be imported into anotherexternal report writer product.

Note: Oracle Consulting has developed some custom reports for Oracle AdvancedBenefits. Contact your Oracle Consulting representative for more information.

Why do I see “Benefits Reports” in the Table of Contents of the Managing Total Compensation UserGuide?

This section refers to the capabilities within the product to identify “reporting groups” for selectionwithin the System Extract process.

What are the Summary reports?

These are the activity summary reports generated by the batch processes. They display informationsuch as number of people processed successfully, number of people processed with an errordetected, total processed, etc.

How do I add a Regulator Body to the system?

Use the Organizations window to set up an external organization with a classification of RegulatoryBody. You can then select the Regulatory Body when defining a regulation.


File Ref: R11i Benefits Frequently Asked Questions.doc System Extract 30 of 36

System Extract

Is the System Extract functionality available with Oracle Standard Benefits?

Yes. The System Extract functionality is a part of the core HR product in Release 11i, and as part ofOracle Standard Benefits and Oracle Advanced Benefits. The System Extract functionality can beaccessed from the navigator window.

Is the System Extract an Application Object Library (AOL) function or does it utilize ApplicationData Export (ADE)?

The System Extract function is a part of the core HRMS product. It is not related to the ApplicationObject Library or Application Data Export functionality.

Is the System Extract date tracked?

The System Extract is not date tracked. However, when you submit a job through the ConcurrentManager you are able to enter an effective date for the extract.

Does the System Extract function provide the ability to meet ANSI (American National StandardsInstitute) standards for benefit enrollment and maintenance (834)?

Yes. The System Extract feature allows plan administrators the ability to create field definitions, filelayouts and criteria to meet the U.S standard benefits interface format ANSI 834.

Is the System Extract functionality available with Oracle Basic Benefits?

Yes. The following list of fields do not need any benefits data (OSB or OAB data) to be extracted.

Element NameElement Reporting NameElement DescriptionElement Processing TypeElement Input CurrencyElement Skip RuleElement Input Value NameElement Input Value UnitsElement Entry ValueElement Entry CostingElement Entry Effective End DateElement Entry IdentifierElement Primary ClassificationElement Output CurrencyElement Input Value SequenceElement Entry ReasonElement Entry Effective Start Date

The following list of fields require Enrollment Data to be extracted:

Enrollment Entry Value - Employee Pre Tax ContributionEnrollment Entry Value - Employee After Tax ContributionEnrollment Entry Value - Employee Total ContributionEnrollment Entry Value - Employer Total ContributionEnrollment Entry Value - Employee Total DistributionsEnrollment Entry Value - Employer Total DistributionsEnrollment Entry Value - Total Other Rates


File Ref: R11i Benefits Frequently Asked Questions.doc Benefits Self Service 31 of 36

Benefits Self Service

Can Standard Benefits customers use Self-Service Enrollment?

Standard benefits customers need to be careful about using SS enrollment. Because there is no lifeevent management capability for Oracle Standard Benefits, standard customers must specify that theirbenefits programs and plans use "unrestricted enrollment" (meaning that participants can enter andexit plans at any time). We recommend that you make the SS enrollment user interface available onlyduring the open enrollment period. If the self-service interface is available outside of the openenrollment period, participants will be able to enter and exit plans at will.

How can I see the price tag and taxable benefit on the same row, for the confirmation / overviewpage?

For each option, define two rates. The price tag rate with Tax Type of Pre or After Tax, and activitytype of employee payroll contribution. Hide the column (pre/after tax) that you choose not to use. Ifyou want this to reduce the Used Total amounts when a benefit is selected, then select the rate in theapplication tab of the benefit pool form. The After Tax Total Amount bucket will increment if the pricetag has tax type = After Tax. You may hide any of these totals buckets. The taxable benefit columnshould have an activity type of Self Service Display. This will make it appear in the correct column(same row as price tag). Make both price tag and taxable benefit display on enrollment.


File Ref: R11i Benefits Frequently Asked Questions.doc Upgrade / Migration Path 32 of 36

Upgrade / Migration Path

Is there an upgrade plan or migration path for benefits from Release 10.7 or Release 11.x to Release11i Benefits?

There is a not an upgrade path from prior releases of Oracle HR to Release 11i Benefits. R11i providesa major “paradigm shift” in how benefits were processed from Release 10.7 and Release 11.x to howthey will be processed in Release 11i, thus precluding any automatic migration.

Will any of the new benefits functionality be “back ported” to prior releases?

No. Due to the major change in the database design and how benefits will be administered andprocessed in Release 11i, there will be no “back port” of the new functionality.

Will Oracle 10.7 or 11.x elements migrate to Release 11i?

The older functionality exists, however, due to the new models, prior enrollments made in earlierreleases are not visible under the Release 11i enrollment forms, nor are you able to use the newprofiles for eligibility determination. For clients who are not going to implement Advanced Benefits, itis recommended that they implement Oracle Standard Benefits due to the enhanced functionality.

Moving from Release 10.7 or Release 11.x to R11i Benefits is considered a new implementation of thebenefits portion of the system. It is not recommended that benefits elements defined under earlierversions be migrated and reused in Release 11i. The new model does not use previously defined“benefit tables”. High level upgrade activities include:

• Business Requirements Review - update the business needs impacted by the upgradeproject. Document changes in business processes between the current and newrelease of the application.

• Requirements Mapping Update - evaluate the changes in the new applications releaseagainst the business requirements defined in the Business Requirements Review.

• Application Set-up - document and create new benefit plans

• Data Migration - migrate current system data to the new Oracle Applications tables

• Documentation - update existing or develop new documentation.

• Business System Testing - focus on verifying that the new application releasefunctions meet business objectives.

• Training - educate the project team so they can perform the required analysis andprepare the users to assume the tasks of running the upgraded system.

• Product Migration - move the company, system, and people to the new applicationrelease

Other areas of the applications will be minimally impacted and will be addressed through a normalsystem upgrade path.

Note: There will be a time when the Basic Benefits model (R10.7, 11.x model) will nolonger be supported.

Do the APIs recognize binary files?

No.


File Ref: R11i Benefits Frequently Asked Questions.doc Upgrade / Migration Path 33 of 36

Which version of Datapump does Benefits use?

Same as HR11i.

Note: A detailed document on converting historical benefits elections to the newbenefits tables (including table and column information) has been authored bydevelopment and is available on MetaLink. See the document titled:Implementation Approach, Oracle Applications HRMS: Implementing OracleBenefits in Release 11i.

Data Pump calls the APIs and knows in which order to call the APIs and whichcolumns need data.

Can you convert text notes to OAB?

You cannot convert text files to OAB.

When converting data, do the APIs or Data Pump do any eligibility checking?

No. Using the APIs or Data Pump (which uses the APIs) only enforces the business rules built intothe APIs, (i.e. cannot be enrolled in multiple medical plan types). They do not evaluate records basedon the eligibility criteria profiles that you link to Programs and Plans.


File Ref: R11i Benefits Frequently Asked Questions.doc Benefits and FastFormula 34 of 36

Benefits and FastFormula

Is it possible to add database items to the benefit type FastFormulas?

You can add DBIs in the same manner that you do for Payroll.


File Ref: R11i Benefits Frequently Asked Questions.doc Performance Considerations 35 of 36

Performance Considerations

Which tables are the high volume and need to be watched by the local DBA’s?

The tables that will have the most data are the tables where participant information is stored.

The largest of these are the eligibility tables:

BEN_ELIG_PER_F

BEN_ELIG_PER_OPT_F

The Participation process loads about 100 - 300 rows per participant into these two tables. Thesetables will balloon in size if you have track in-eligibility on your plan design set.

The next in size are the electable choice and enrollment results tables:

BEN_ELIG_PER_ELCTBL_CHC (The Participation process loads about 60 - 100 rows perparticipant life event into this table.)

BEN_PRTT_ENRT_RSLT_F

Other high volume tables would include:

BEN_ENRT_BNFT

BEN_ENRT_RT (The Participation process loads between 20 - 50 rows per participant life eventinto this table).

BEN_PRTT_RT_VAL

BEN_ELCTBL_CHC_POPL

BEN_PER_IN_LER

BEN_PTNL_LER_FOR_PER

BEN_REPORTING (This is a problem if you are running a participation process with audit logon).

BEN_PERSON_ACTIONS (Gets very large if you run batch processes for the population with achunk size of 1).

BEN_BATCH_RANGES (Gets very large if you run batch processes for the population with achunk size of 1).

and look at the other children of:

BEN_ELIG_PER_ELCTBL_CHC

BEN_PRTT_ENRT_RSLT_F


File Ref: R11i Benefits Frequently Asked Questions.doc Performance Considerations 36 of 36

Batch processes are running extremely slow and forms list of values are taking a long time to load.What do I need to check?

The main areas of performance problems are not analyzing the BEN tables and compensation objectdesign.

Starting with 11i we have moved from a rules based optimizer to a cost based optimizer (CBO). TheCBO uses table statistics to determine the least expensive access path to retrieve the requested data.To analyze the BEN tables you will need to submit from the concurrent manager the following:

FND_STATS.GATHER_SCHEMA_STATISTICS(

schemaname VARCHAR2,estimate_percent NUMBER DEFAULT 10,degree NUMBER DEFAULT NULL,internal_flag NUMBER DEFAULT NULL,request_id NUMBER DEFAULT NULL

);

For the schemaname use BEN and for estimate_percent a number from 0-99.

For compensation object design keep in mind the following:

Program/Plan Hierarchy:Try and minimize the number of plans not in program. By putting a plan in a program you canminimize the hits to the database by including business requirements at the program level whichwill cascade to the lower levels.

Eligibility/Electability:Set the track ineligible flag off below the program level. This prevents multiple writes forineligible compensation objects within the same program.Eligibility has a top down hierarchy so by defining the broadest criteria at the top and refining thecriteria as you drill down you can find the highest population ineligible at the highest level in thehierarchy to reduce processing for participants.Electability has a bottoms up determination. Define the most general at highest level and restrictat the lowest levels.

Rates:Define rates at the highest possible common level to minimize calculation and write processing.Avoid option in plan in program (lowest level) as this has the highest processing times.

Rules:Create these at the lowest level possible. A person level rule, i.e. a derived factor, will be fired offfor every person processed verses a rate or coverage rule that would only be fired once for theassociated compensation level.

oab

Documents

frequently

business requirements

participation

service human

compensation

participation

managing total

audit log