ORACLE CORPORATION Human Resources Management System Oracle Advanced Benefits Reinstatement Creation Date: 1-Aug- 2005 Last

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Purpose.................................................................................................................................1 Audience..............................................................................................................................2 New Reinstatement Codes...............................................................................................2 General Reinstatement Codes..........................................................................................3 Override Reinstatement Codes........................................................................................7 Intervening Reinstatement Scenarios.............................................................................10 Glossary.............................................................................................................................13 Purpose This document details the enhanced reinstatement functionality available in Oracle Advanced Benefits, phase 1 of which is available with Family Pack K June 2005. Reinstatement functionality applies only to Oracle Advanced Benefits and does not apply to core HR Standard Benefits functionality. Using new reinstatement codes, the application now has the flexibility to allow users to configure how it reinstates elections when you back out and reprocess a life event. Reinstatement codes are defined at the life event level so you can take advantage of different reinstatement logic by life event. The Reinstatement functionality handles two scenarios a) backing out a life event and making plan design changes (i.e. open enrollment), and b) managing elections for intervening events that have been backed out, and that have no explicit election changes. If the intervening event has explicit changes in elections or new certifications created, the reinstatement code is not evaluated and defaults are utilized. NOTE: The contents of this document are deemed to be correct and accurate at time of publication. Reinstatement code enhancement provides the additional setup required to meet complex reinstatement scenarios so please test your setup thoroughly to ensure desired results. Please provide feedback to Lynda.Tollefson@oracle.com

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Here is an example of how the new reinstatement process can work. 1. 2. 3. 4. 5. 6. Administrator processes open enrollment. Mr. Smith enrolls in Medical EE only Administrator backs out the open enrollment event for Mr. Smith Administrator makes changes to the rates associated with Medical EE only Administrator reprocesses open enrollment for Mr. Smith The system evaluates the reinstatement code to determine how the original open enrollment elections are to be restored

Additional examples are included that illustrate the usage of each new reinstatement code. Audience This document is intended for Oracle Advanced Benefits users that have completed basic plan design. It references the Metalink Note: 205561.1 Oracle Compensation and Benefits Implementation Steps and Case Study. The following sections describe and provide examples of each of the codes. This document is grouped into three sections: General Reinstatement Codes, Override Reinstatement Codes, and Intervening events. New Reinstatement Codes The reinstatement code is a new field. You can select from one of six reinstatement code values at the program or plan not in program levels. Navigate to either: Program Enrollment Requirements > Timing -> Scheduled & Life Event > Alternate region -> Reinstate Or Plan Enrollment Requirements > Timing-> Scheduled & Life Event > Alternate region-> Reinstate for Plans Not in Program. The values for the code are: 1. Reinstate all if no electability change for life event (existing functionality, used as default even when no value is specified) 2. Reinstate if no change for backed out enrollment 3. Reinstate if electability exists for backed out result 4. Never Reinstate 5. Override the rates if no change 6. Always use overridden rates Page 2 1/12/2012

You are not required to specify a value for the reinstatement code. If a value is not populated in the reinstatement field, the application defaults to reinstate all if no electability change for life event, which is the current functionality. General Reinstatement Codes The first four codes are considered general reinstatement codes and this section will provide an example for each of the codes. The example is for a person who experiences a life event and the life event is subsequently backed out and reprocessed. For each code, there will be a scenario of what happens when the backed out life event is reprocessed 1. 2. 3. 4. 1. Reinstate all if no electability change for life event Reinstate if no change for backed out enrollment Reinstate if electability exists for backed out result Never Reinstate Reinstate all if no electability change for life event:

This code reinstates elections if the application detects NO changes to a persons electability when you back out and reprocess a life event. This is how the system currently handles reinstatement. The Participation Process compares all programs and plans not in program that are processed as part of the life event and reinstates elections only if the electability of ALL compensation objects are identical between the backed out and reprocessed event (ie. rates, benefit amounts, dates, dependants, action items, certifications, coverages, plans, and options). This comparison even goes to the detailed level of the definition of the item being compared i.e. not just the rate value but also the rate definition. Example: 1. The employee experiences Open Enrollment life event for the plan year 01-Jan2006. 2. The open enrollment period is 01-Nov-2005 to 31-Dec-2005. 3. The employee receives the following electable choices: Medical HMO ($200), Dental DMO ($20), and Employee Life (1X salary = 50,000). 4. On 15-Nov-2005, the employee enrolls in the Medical HMO for the price of $200 effective for 01-Jan-2006. 5. On 30-Nov-2005, the administrator backs out the open enrollment life event and makes a rate change. 6. On 30-Nov-2005, the Open enrollment life event is reprocessed.

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Reinstatement Scenarios for code Reinstate all if no electability change for life event Scenario 1- The electable choices for the reprocessed open enrollment life event are Medical HMO ($200), Dental DMO ($20), and Employee Life (1X salary = 50,000). All electable choices remain the same. Results: The application reinstates the employees elections. Scenario 2- The electable choices for the reprocessed open enrollment life event are Medical HMO ($250), Dental DMO ($25), and Employee Life (1X salary = 50,000). The compensation objects offered are the same, but the rates have changed. Results: The application does not reinstate the employees elections. Scenario 3- The electable choices for the reprocessed open enrollment life event are Medical HMO ($200), Dental Plan B ($25), and Employee Life (1X salary = 50,000). The dental plan offering has changed. Even though the employee did not originally enroll in the dental plan, the plan change represents a change in electable choices. Results: The application does not reinstate the employees elections. Scenario 4- The electable choices for the reprocessed open enrollment life event are Medical HMO ($200), Medical PPO ($350), Dental DMO ($20), and Employee Life (1X salary = 50,000). The original compensation objects are still electable and the rates are the same, but there is a new electable choice - Medical PPO ($350). Results: The application does not reinstate the employees elections. Note: Use this reinstatement code if you think that any change in electable choices may influence the employees election decisions, and you want the employee to review new electable choices and make new elections as a fully informed consumer of benefits. This is a consumer centric view. 2. Reinstate if no change for the backed out enrollment. This code reinstates elections if the person maintains electability for the backed out elections, provided that activity rates, coverage amounts, and dependent designation information has not changed based on the new life event. With this reinstatement code, the Participation Process reinstates elections if the person has an electable choice and the backed out and current election data are identical. This code only validates against the participants original elections and does not reference the other electable choices for the life event, unlike the Reinstate all if no electability change for life event code where the application validates all electable choices.

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Example: 1. The employee experiences Open Enrollment life event for the plan year 01-Jan2006. 2. The open enrollment period is 01-Nov-2005 to 31-Dec-2005. 3. The employee receives the following electable choices: Medical HMO ($200), Dental DMO ($20), and Employee Life (1X salary = 50,000). 4. On 15-Nov-2005, the employee enrolls in the Medical HMO for the price of $200. 5. On 30-Nov-2005, the user backs out the open event and makes a rate change. 6. On 30-Nov-2005, the Open enrollment life event is reprocessed Reinstatement Scenarios for code: Reinstate if no change for the backed out enrollment. Scenario 1- The electable choices for the reprocessed open enrollment life event are Medical HMO ($200), Medical PPO ($300), Dental DMO ($20), and Employee Life (1X salary = 50,000). The employee has a new electable choice (Medical PPO). Result: The application reinstates the employees elections since the reinstatement code only validates against the employees original electable choices. I.e.) Medical HMO ($200) remained the same Scenario 2- The electable choices for the reprocessed open enrollment life event are Medical HMO ($250), Dental DMO ($25), and Employee Life (1X salary = 50,000). Result: The application does not reinstate the employees election. The originally elected choice of Medical HMO($200) went from ($200) to ($250) therefore the election is not restored. Scenario 3- The electable choices for the reprocessed open enrollment life event are Medical HMO ($200), Dental DMO ($25), and Employee Life (1X salary = 50,000). Result: The application reinstates the employees elections. The employee has no new electable compensation objects but one of the original electable choices has a different rate, but because the employee did not originally enroll in Dental DMO the application restores elections. Note: Use this reinstatement code if you think that new electable choices or changes to electable choices in which the employee is not enrolled will not change the employees original election decisions. As long as electable choices remain the same for the elections the employees originally choose, the application reinstates the original elections. This is an enrollment centric view 3. Reinstate if electability exists for the backed out result This code reinstates elections if the person maintains electability for the backed out enrollment results, even if activity rates, coverage amounts, and dependent designations change when you process the subsequent life event. Page 5 1/12/2012

Example: 1. The employee experiences Open Enrollment life event for the plan year 01-Jan2006. 2. The open enrollment period is 01-Nov-2005 to 31-Dec-2005. 3. The employee receives the following electable choices: Medical HMO ($200), Dental DMO ($20), and Employee Life (1X salary = 50,000). 4. On 15-Nov-2005, the employee enrolls in the Medical HMO for the price of $200. 5. On 30-Nov-2005, the user backs out the open event and makes a rate change. 6. On 30-Nov-2005, the Open enrollment life event is reprocessed. Reinstatement Scenarios for code: Reinstate if electability exists for the backed out result Scenario 1- The electable choices for the reprocessed open enrollment life event are Medical HMO ($250), Dental DMO ($25), and Employee Life (1X salary = 50,000). The original elections have different rates. Results: The application reinstates the employees elections with new rates. The application creates no new electable choices, but the original elections have different rates, which is acceptable with this code. Scenario 2- The electable choices for the reprocessed open enrollment life event are Medical HMO ($250), Medical PPO ($350), Dental DMO ($25), and Employee Life (1X salary = 50,000). There is a new electable choice and the original choices have different rates. Result: The application reinstates the employees elections with the new rates. Scenario 3- The electable choices for the reprocessed open enrollment life event are Medical PPO ($350), Dental DMO ($25), and Employee Life (1X salary = 50,000). The employees original enrollment (Medical HMO) is no longer an electable choice and the original choices have different rates. Result: The application does not reinstate the employees elections. The application creates new electable choices and the original elections are not eligible or electable to the employee any longer so they are not be reinstated. Note: Use this code when you want to disregard new electable choices and electable choice changes to the participants original elections, and you think that, no matter what the nature of the change that occurred, the employee will be comfortable with the changes to their original elections. Use this code with caution, since, if an activity rate increases, the employees election will automatically increase in cost and they may not have an opportunity to reevaluate their elections. This is an administration centric view.

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4. Never Reinstate This code indicates that the Participation Process should never reinstate backed out enrollment results. Example: 1. The employee experiences Open Enrollment life event for the plan year 01-Jan2006. 2. The open enrollment period is 01-Nov-2005 to 31-Dec-2005. 3. The employee receives the following electable choices: Medical HMO ($200), Dental DMO ($20), and Employee Life (1X salary = 50,000). 4. On 15-Nov-2005, the employee enrolls in the Medical HMO for the price of $200. 5. On 30-Nov-2005, the user backs out the open event and makes a rate change. 6. On 30-Nov-2005, the Open enrollment life event is reprocessed Reinstatement Scenarios for code: Never Reinstate Scenario 1- The electable choices for the reprocessed open enrollment life event are Medical HMO ($200), Medical PPO ($300), Dental DMO ($20), and Employee Life (.25 per $1000). Result: The application does not reinstate the elections based on reinstatement code. Scenario 2- The electable choices for the reprocessed open enrollment life event are Medical HMO ($250), Dental DMO ($25), and Employee Life (.27 per $1000) Result: The application does not reinstate the elections based on reinstatement code. Scenario 3- The electable choices for the reprocessed open enrollment life event are Medical HMO ($200), Dental DMO ($25), and Employee Life (.27 per $1000). Result: The application does not reinstate the elections based on reinstatement code. Note: Use this code for specific life events where you do not want to restore a participants record of electable choices i.e.) an administrative event to make adjustments or corrections. Override Reinstatement Codes The last two codes are used when an enrollment rate has been overridden and this section will provide an example for each of the codes. The example is for a person who experiences a life event and an override is performed on a rate, and the life event is subsequently backed out and reprocessed. For each code, there will be a scenario of what happens when the backed out life event is reprocessed Page 7 1/12/2012

The last two codes: 5. Override the rates if no change 6. Always use overridden rates Override codes are related to enrollments that have overridden rates and these codes apply to overridden RATES only. These codes are not required and if no override code is populated the default is override the rates if no change. The following scenarios are related to when a change is made to plan design i.e.) Override reinstate code is evaluated when the process computes a different rate than was in the original process. I.e.) New Hire has a rate of $100 for Medical employee only; you enrolled, and close the life event. An override of $150 is entered and then a change is made to the standard rate to make it $125. You back out and when reprocessing the new hire the codes are evaluated. To test you will need to use both codes, for example general reinstate code of Reinstate if electability exists for backed out result AND one of the Override codes. Also, please note that if you use code 1(Reinstate all if no electability change for life event) or 2(Reinstate if no change for backed out enrollment), or 4(Never Reinstate), you will not have reinstated overridden rates. To test the reinstate override codes, you need to use reinstate code which 3(Reinstate if electability exists for backed out result) as it will reinstate the result if the rates change occurs. 5. Override the rates if no change This code reinstates any overridden rates from backed out results only if there is no change in the backed out and current electable choice data. For example, a benefits administrator processes an election and overrides the activity rate, then backs out the enrollment. During re-processing if the enrollment rate for the reprocessed life event is different than the rate for the backed out life event; the Participation Process reinstates the election using the newly calculated enrollment rate and ignores the overridden value. If there is no change in the data, the Participation Process reinstates the prior election and applies the override value. This is the default code for reinstatement override. Example: 1. The employee experiences Open Enrollment life event for the plan year 01-Jan2006. 2. The open enrollment period is 01-Nov-2005 to 31-Dec-2005. 3. The employee receives the following electable choices: Medical HMO ($200), PPO ($300), Dental DMO ($20), and Employee Life (1X salary = 50,000). 4. On 15-Nov-2005, the employee enrolls in the Medical HMO for the price of $200. 5. On 20-Nov-2005, an executive override changes the Medical HMO rate to $250. 6. On 30-Nov-2005, the user backs out the open event and makes a rate change. 7. On 01-Dec-2005, the administrator reprocesses the open life event. Page 8 1/12/2012

General Reinstatement Scenarios code: Reinstate if electability exists for the backed out result Reinstatement Scenarios for code: Override the rates if no change Scenario 1- The reprocessed life events electable choices are Medical HMO ($200), Medical PPO ($300), Dental DMO ($20), and Employee Life (1X salary = 50,000). Result: The application reinstates the executive override rate of $250 for the medical plan, as there is no change in the original enrollment result rates and the re-processed enrollment result rates. Scenario 2- The reprocessed life events electable choices are Medical HMO ($275), Medical PPO ($300), Dental DMO ($20), and Employee Life (1X salary = 50,000). Result: The application does not reinstate the executive override rate of $250 for the medical plan because the rate has changed from the original run to the reprocessed run. 6. Always use overridden rates This code reinstates any overridden rates from backed out enrollment results even if there is a change in the backed out and current electable choice data. For example, a benefits administrator processes an election and overrides the activity rate, then backs out the enrollment. When you reprocess the backed out event, the Participation Process reinstates the election using the newly calculated enrollment rate, then applies the overridden value even if the original and re-processed rates differ. Example: 1. The employee experiences Open Enrollment life event for the plan year 01-Jan2006. 2. The open enrollment period is 01-Nov-2005 to 31-Dec-2005. 3. The employee receives the following electable choices: Medical HMO ($200), PPO ($300), Dental DMO ($20), and Employee Life (1X salary = 50,000). 4. On 15-Nov-2005, the employee enrolls in the Medical HMO for the price of $200. 5. On 20-Nov-2005, an executive override changes the Medical HMO rate to $250. 6. On 30-Nov-2005, the user backs out the open event and makes a rate change. 7. On 01-Dec-2005, the administrator reprocesses the open life event. General Reinstatement Scenarios code: Reinstate if electability exists for the backed out result Override Reinstatement code of Always use overridden rates Scenario 1- The reprocessed life event electable choices are Medical HMO ($200), Medical PPO ($300), Dental DMO ($20), and Employee Life (1X salary = 50,000). Result: The application reinstates the executive override rate of $250 for the medical plan. Page 9 1/12/2012

Scenario 2- The reprocessed life event electable choices are Medical HMO ($275), Medical PPO ($300), Dental DMO ($20), and Employee Life (1X salary = 50,000). Result: The application reinstates the executive override rate of $250 for the medical plan. Scenario 3- The reprocessed life event electable choices are Medical PPO ($375), Dental DMO ($20), and Employee Life (1X salary = 50,000). Result: The application does not reinstate the executive override rate since the compensation object is no longer electable. Intervening Reinstatement Scenarios To illustrate the second scenario where reinstatement codes are evaluated we will provide several examples below. This section will provide an example for each of the codes when and intervening event backs out a life event. The example is for a person who experiences a life event and the life event is subsequently backed out due to an intervening event. For each code, there will be a scenario of what happens when the backed out life event is reprocessed. Note as discussed in opening paragraph reinstatement codes are not evaluated during an intervening event unless there is NO explicit electable choice CHANGES or new certifications created in the intervening event. Example: 1. The employee experiences life event #1 (the Open Enrollment life event) for the plan year 01-Jan-2006. 2. The open enrollment period is 01-Nov-2005 to 31-Dec-2005. 3. The employee receives the following electable choices: Medical HMO ($200), Dental DMO ($20), and Employee Life (1X salary = 50,000). 4. On 15-Nov-2005, the employee enrolls in the Medical HMO for the price of $200. 5. On 30-Nov-2005, and Life event # 2 occurs as an intervening life event that backs out the open event 6. Reinstatement code used is Reinstate if electability exists for the backed out result 7. Open enrollment life event is reprocessed. Reinstatement Scenarios for code: Reinstate if electability exists for the backed out result Scenario 1- The participant makes no explicit elections or changes to elections in the intervening event. The electable choices for the reprocessed open enrollment life event are Medical HMO ($200), Dental DMO ($25), and Employee Life (1X salary = 50,000). Page 10 1/12/2012

Results: The application reinstates the employees election based on the reinstatement code. Scenario 2- The participant makes no explicit elections or changes to election in the intervening event. The electable choices for the reprocessed open enrollment life event are Medical HMO ($250), Medical PPO ($350), Dental DMO ($25), and Employee Life (1X salary = 50,000). The application creates new electable choices, and the original elections have different rates. The participant makes no explicit elections or changes to election in the intervening event Result: The application reinstates the employees elections based on reinstatement code. Scenario 3- The participant makes explicit elections or changes to elections in the intervening event. The electable choices for the reprocessed open enrollment life event are Medical HMO ($250), Medical PPO ($350), Dental DMO ($25), and Employee Life (1X salary = 50,000). The application creates new electable choices, and the original elections have different rates. The participant makes explicit elections or changes to elections in the intervening event ie) changes to Medical PPO ($350) Result: The application does not reinstate the employees elections based on reinstatement code as employee has made different elections in intervening event. Scenario 4- The user voids the intervening event and reprocesses the original event. The electable choices for the reprocessed open enrollment life event are Medical HMO ($250), Medical PPO ($350), Dental DMO ($25), and Employee Life (1X salary = 50,000). The application creates new electable choices, and the original elections have different rates. Result: The application reinstates the employees elections based on reinstatement code. Scenario 5- The participant makes no explicit elections or changes to election in the intervening event. The electable choices for the reprocessed open enrollment life event are Medical HMO ($250), Medical PPO ($350), Dental DMO ($25), and Employee Life (1X salary = 50,000). The application creates new electable choices, and the original elections have different rates. The reprocessed event creates NEW action items or certifications. Result: The application does not reinstates the employees elections based on reinstatement code the user receives Note Message: APP-BEN-94226: Note that since there are enrollment results for the intervening life event, enrollment from the backed out life event Open are not being restored and participant will be enrolled into default compensation objects. The reason why this scenario is NOT reinstating is due to receiving new certification on the Life event. It is possible that each subsequent Life Event can have a 'change' due to plans Page 11 1/12/2012

and will be suspended again, therefore Open will not reinstate. Action item creation or certifications are considered an electability change.

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Glossary Action Item-Action items are based on the enrollment requirements for the compensation objects in which the person is enrolling or de-enrolling; Missing data for a SSN, date of birth for designees would create and action item if part of your plan design. Certification- documentation required to enroll or change elections in a benefits plan as a result of a life event, to waive participation in a plan, to designate dependants for coverage, or to receive reimbursement for goods or service under and FSA. Electable Choice- The ability to enroll in a benefit that includes being eligible and being in the correct time period to enroll. Intervening Life Event- A life event that occurs before another processed event or during the enrollment period of another processed event. Life Event-A significant change in a persons life that results in a change in eligibility or ineligibility for a benefit. Overridden Rate-A rate that has been overridden to adjust the value to be different from original processed value. Reprocessed Life Event- A life that has been backed out and reprocessed.

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