Enhance Benefits Plan Eligibility with a User Exit

  • by Clay Molinari, SAP HR Consultant, C&C Savant, Inc.
  • August 15, 2003
The R/3 benefits module provides a variety of ways to configure eligibility for benefits plans. Macro-eligibility is determined by the first and second program groups, which prior to Release 4.5 were known as "benefit group" and "benefit status." Micro-eligibility is controlled through eligibility rules. Common criteria such as age, zip code, and number of scheduled hours can be used in eligibility rules, but many companies find that a criterion dictated by their company policy is not available in the configuration. This article explains the implementation of an eligibility rule that combines standard configuration and user exit programming that the author wrote to exactly model a complex company policy.

The R/3 benefits module provides a variety of ways to configure eligibility for benefit plans. Macro-eligibility is determined by the first and second program groups, which prior to Release 4.5 were known as “benefit group” and “benefit status.” Micro-eligibility is controlled through eligibility rules. Common criteria, such as age, zip code, and number of scheduled hours can be used in eligibility rules, but many companies find that a criterion dictated by their company policy is not available in the configuration.

I’ll explain the implementation of an eligibility rule that combines standard configuration and user exit programming that I wrote to exactly model a complex company policy.

A Complex Eligibility Rule

The challenge illustrated in this article involves the optional life insurance plan offered at a company I’ll call Company X. In 1998, the company changed the optional life insurance plan from a flat rate structure (OPT1) to an age-based rate structure (OPT2). It also changed the available options. Company directors decided that employees who were age 50 or older at the time would retain eligibility for the old plan. All employees hired after 01/01/1998, along with employees hired prior to 01/01/1998 who were not 50 years old on 01/01/1998, are eligible for the new plan only.

The eligibility rule modeled in this article is complex but not uncommon. The “divide and assign” approach I’ll show you can be used to automate many complex eligibility scenarios. In the user exit, you collect the required master data information and assign employees to either an “eligible” group or a “not eligible” group. In the configuration for eligibility rules, you assign an impossible rule to the “not eligible” group, thereby making them ineligible. You then configure the standard eligibility rule for the “eligible” group.

Clay Molinari

Clay Molinari has 20 years of experience in the IT industry and has been working as an SAP HR consultant since 1997. He is currently president of C&C Savant, Inc., an SAP consulting firm that specializes in combining standard SAP configuration and custom ABAP programming to help its clients solve unique or complicated requirements.

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Comments

6/3/2013 3:23:40 PM
Renee

Clay,

I have read both of your articles that referenced Life Insurance and was hoping that you might have some ideas regarding the way my company handles life insurance.

We offer voluntary life insurance based on 1X, 2X, ect base salary amount. This is simple enough, but we also offer new employees a guaranteed amount of $300K. If an employee's salary is $110K and they elect to get 4X their salary amount, they are still guaranteed for $300K, even if they are declined for the 4X salaray amount. We can setup a new Insurance Option, but I am stuck on trying to get that option to be an amount instead of something times the salary.

Any idease?

Thanks

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