Flexible benefit programs offer employees choices among benefits and coverage levels. Participants can receive flex credits for various reasons, such as service credits, health care credits, and credits from vacation sale.
You define flex credits in conjunction with flexible benefit programs so that participants have money to spend on benefits and coverage levels. Flex credits are defined by a special type of activity rate calculation.
You can define flex credits at the following levels in the compensation object hierarchy:
Program
Plan type in program
Plan in program
Option in plan
Combination plan type in program
Combination plans in program
If you are defining a flexible benefits plan, you must create a flex credit program and place the flex credit plan in that program.
Benefit pools define how flex credits are grouped. They restrict the compensation objects that are funded by a flex credit calculation.
You define benefit pools in association with programs that provide flex credits so that when a participant enrolls in a flex program they have flex credits available to spend. You define the amount provided by a benefit pool by creating an activity base rate for the pool object.
Excess treatment codes restrict the distribution of flex credits left unspent by a participant. Excess credits may be rolled over into another compensation object (such as another plan), distributed as cash, or forfeited. You can define minimum and maximum rollover amounts and the order in which excess credits should be distributed.
Benefit pools can be defined at the following levels in the compensation object hierarchy:
Program
Plan Type in Program
Plan in Program
Option in Plan in Program
Combination of Plan Types in Program
Combination of Plans in a Program