Benefits Process Walkthrough

August 29, 2006

Agenda
Objectives of the process walkthrough Glossary of terms Employee life cycle and key HR concepts Integration points and key changes Benefits eligibility and enrollment process A glance into SAP: How to use the concurrent employment workbench to Enroll in benefit plans Enroll dependents Display costs of benefits plans Manual benefits termination Summary of key points to remember Communication and training highlights
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Objectives Communicate the Benefits key change impacts to LAUSD affected end-users Give the end-users a first glance into SAP Encourage end-users to share concerns and ask questions around BTS before they attend training Provide end-users with information around training and communication

SAP Key Terminology

SAP: System Applications and Products. The name of the software vendor and its core integrated product SAP R/3

Infotype: A set of data that is grouped together according to subject matter; a set of related data records. Infotypes are identifiable through a four-character numerical string. Example: Infotype 0171 General Benefits Information
Dynamic Action: Automatic processing triggered when specific infotype records are updated. Example: Infotype 0171 General Benefits Information is automatically created during the hiring action Delimit: A process to shorten the validity period of an object or infotype record by replacing its end date with an earlier date . Example: When an employee terminates, their open-ended date (12/31/9999) is delimited with an end date (i.e., 6/30/2007)

Transaction Code: Sequence of characters that identifies a transaction. Example: PA20 Display HR Master Data
Concurrent Employment Benefits Workbench: Enables the administration and processing of benefits for employees with multiple assignments

Benefit Area: Defines plans available to employees, retirees, and dependents. Example: Benefit Area is 01 for LAUSD
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SAP Key Terminology contd

Program Grouping I: Identifies a group of employees with common characteristics in order to determine on a high level the benefit program. Example: REG (regular) Program Grouping II: Identifies a group of employees with common characteristics on a detailed level. Example: FULL Adjustment Reasons: A personal or organizational change experienced by an employee, as a result of which the employee can change current benefit elections. Example: Birth of a child Benefit Plan Type: General category of benefit plans. Example: Medical, Dental, Vision Benefit Plan Codes: Code assigned to a specific benefit plan. Example: A010 Kaiser Personnel Area: An organizational unit representing a bargaining unit in an enterprise delimited according to personnel administration, time management, and payroll accounting criteria. Example: 2UTK (Teachers) Work Contract: Value assigned to identify benefit eligibility for certain groups. Example: 11 Retiree with benefits Variant: Variants are alternative report displays set up by specifying selection criteria. Variants allow users to create basic criteria that can be used repeatedly Selection Criteria: Selection criteria are fields you use to define the type and amount of information you want a report to process. If no values are entered in the selection criteria, the system uses all data for the type of report being generated when it executes the report. Note: You should never leave all fields blank.
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The Employee Lifecycle

Create Organizational Structure

Create Budget & Position Control

Identify Vacancy in Organizational Structure

Hire Employees

Recruit Candidates

Identify Candidates

Administer Benefits

Report Time

Run Payroll

Post to Finance

Key HR Concepts: Enterprise Structure

Enterprise Structure is used to group employees and apply rules for the processing of time, benefits, and payroll.

Legacy
Bargaining Unit Benefits Eligibility Retirement

SAP
Personnel Area

Impacts
Benefit Eligibility Retirement Eligibility Illness/Vacation Accrual Calendar Options Planned Working Time

Basis School Type (Calendar)

Personnel Sub Area

Pay Frequency Salary Type

Employee Group

Salary Base Pay Tenure Employee Benefits Leave Benefits

Assignment Status Code

Employee Subgroup

Benefits Administration Integration

Benefits Human Resources
Process Rehire /New Hire & Manage Assignment Determine Eligibility Benefits Enrollment Manage Student Verification Maintain&Enroll Retirement Plan Data Terminate Benefits Maintain Eligibility No Deduct Pay Period Benefits Processing

Time
Time Entry

Payroll Payroll Run 3rd Party

Remittances & Interfaces Post to G/L

Manage Employee Separation Manage Long-Term Leaves & Return To Work

SAP Benefits Administration uses information from the following HR components: Personnel Administration, Payroll and Time
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What has Changed?

Current Process Employee benefits are improperly terminated when assignment changes are processed Many manual tasks and/or duplicate reviews are sometimes required to determine eligibility in benefit plans New Process Benefits enrollment will be timely and accurate Integrated SAP system processes assignment terminations as status changes, resulting in improved benefits compliance HR Personnel Actions will be used to administer benefits, determine eligibility and process benefits terminations

What has Changed, cont.?

Current Process

New Process

Legacy system handles direct billing for optional life insurance

No Deduct process includes manual steps and duplicate reviews by multiple departments to determine when an employee on leave should maintain benefits

Direct billing of missed premiums will be outsourced to ING, decreasing the workload in Benefits Administration
Use of HR Personnel Actions in SAP will streamline the 'No Deduct process and eliminate manual effort

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What has Changed, cont.?

Current Process New Process

Retirement plan processing Majority of the retirement manually routed from processing will be various HR locations to automated through HR payroll for data entry Personnel Administration and custom programs. Payroll department verifies Work will be shared STRS membership in the between HR, Payroll and REAP system but often too Benefits late to prevent adjustment Benefits will log on to the REAP system to verify if the newly hired or rehired parttime contract teacher, substitute teacher is already a member of STRS

*Most changes are behind the scenes and not visible in the systems user interface
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Benefits Eligibility and Enrollment

1. Manage Plan Design

2. Determine Eligibility

5. Generate Benefits Reports

3. Plan & Implement Benefits Enrollment

4. Manage Student Verification

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How to Use the Concurrent Employment Workbench

Use Concurrent Employment Benefits Workbench to enter benefit adjustment reasons and enroll employees and dependents (if applicable) into various benefit plans

1 - Enter the Reporting Period

2 - Enter
the Person ID 3 - De-select this box
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How to Use the Concurrent Employment Workbench, cont.

1 - Click on the personnel assignment # to specify the benefit plans which the employee qualifies for

2 - Click Adjustment Reason to capture adjustment history in the benefits system. This is a required step in benefits enrollment

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How to Use the Concurrent Employment Workbench, cont.

1 - Complete the required field by clicking on the tab down arrow to select the appropriate adjustment reason: Example: AA Initial Enrollment

2 - Click to enter information

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How to Use the Workbench to Enroll in Benefit Plans

Click Enrollment to begin benefit plan enrollment

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How to Use the Workbench to Enroll in Benefit Plans, cont.

Click Get offer to begin benefit plans enrollment

Example: Enrollment in Delta Care PMI

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How to Use the Workbench to Enroll in Benefit Plans, cont.

Click on the appropriate plan

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How to Use the Workbench to Enroll in Benefit Plans, cont.

As required, complete/review the appropriate dependent coverage

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How to Use Workbench to Enroll Dependents

1 - Click to enter information 2 - Click to select dependent

3 - Click to accept
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Other Usages of the Benefits Workbench The enrollment process shown in the previous slides (Delta Care PMI example) is also used to enroll in the following benefits:
Dental plan of choice Medical plan of choice Vision plan of choice 403 B contributions 457 B contributions Flexible spending account Basic life insurance Employee Assistance Plan (EAP)

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How to Display Costs of Benefits Plans

Click costs to display an overview of all the selected benefit plans costs/contributions to review before completing the enrollment process

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How to Display Costs of Benefits Plans, cont.

If applicable: Click Cost overview (ER credits) to review the Employer Credits for the misc. plan Employee Assistance Program automatically selected for the employee. Click Cost overview (ER costs) to review the Employer Costs for the various benefit plans. Click 403B contribution to review the Employee monthly contribution. Click STRS Retirement to review the Employee/Employer contribution. Click Employer contribution to review the Employer contribution. Click Dependent Care to review the annual (per plan year) amount. Click Health Care to review the annual (per plan year) amount. Click X to exit window.

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After all Plans have been Selected

Click Enroll after all the appropriate plans have been selected

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Evidence of Insurability

Click the plans to indicate evidence of insurability has been provided

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Confirmation of Benefit Plan Enrollment

1- Click Enroll to complete the enrollment if all the appropriate plans are listed with the correct From and To Dates

2 - Click Confirmation to generate a benefit confirmation form to be mailed to the employee

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Manual Benefits Termination

Determine Does Actionif Auto result in Auto Termination Terminate? Yes

No

Determine if No Deduct Condition Yes

No

Terminate Participants Benefits

Manage COBRA/AB528

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Key Points to Remember

Summary of Key Changes
HR Personnel Actions will have an effect on benefits eligibility (i.e.: hire, leaves, separations) Time, Payroll, HR / Personal Administration and Benefits are closely integrated, users must understand the downstream impact of their actions Direct billing for Optional Life Insurance will be outsourced to ING. Integrated system will provide one single source of data that will automate manual deduction and remittance processing and reconciliation. (i.e. Benefits integrates with Payroll. Payroll integrates with 3rd Party Vendor. Integration effects remittance process and posting to GL) The majority of the retirement processing (PERS, STRS and PARS) will be automated through HR personnel actions and custom programs. Processing will be shared between Benefits, Payroll and HR. 90% of all retirement adjustments will be eliminated

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Communications and Training Highlights

2006 2007

Aug

Sept

Oct.

Nov

Dec

Jan

Process Walkthroughs

On- going specific messages

End User Training*

Go Live Campaign

My Change and Training Guide

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Training Curriculum for Benefits

October - December 2006
Basic Navigation Benefits
BN200 Benefits Eligibility & Enrollment 8 hrs ILT BN210 Benefits Termination 3 hrs ILT BN220 3rd Party Vendor Payment Processing 3 hrs ILT BN230 Retirement Plan Data Maintenance 3 hrs ILT

R3100 Basic Navigation 1 hr WBL HR100 Human Resources Basics 1 hr WBL

* The information on this slide has been updated since its presentation in the Process Walkthrough.

19 Hours
ILT = Instructor Led Training WBL = Web Based Learning

WBL 2 ILT 17
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More project information To learn about the BTS project:

Check out the BTS Website (www.lausd.net/bts) E-mail bts@lausd.net

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Questions

Before leaving the room, please make sure that you have
Signed in Completed the process walkthrough assessment survey
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