For spending account plans--or other plans that offer reimbursements or distributions--you can set up Oracle HRMS so that a participant's unspent contributions or credits are forfeited back to your enterprise.

At the end of a plan year (or similarly defined period), Oracle Advanced Benefits customers schedule the Process Forfeitures concurrent request to calculate and record the total forfeited amount for each participant in a spending account plan.

You set up benefits balances--maintained manually using the Benefits Balances window--or use defined balances maintained by Oracle Payroll to record participant contributions and distributions.

Follow this process to set up a reimbursement plan for forfeiture processing. As a prerequisite, you should have already defined the plan using the Plans window.

   To set up reimbursement plans for forfeitures:

1. Set up your contribution and distribution balances.

   To process forfeitures, each participant must have a separate contribution and distribution balance. Oracle Payroll customers can use defined balances to record totals automatically.

   If you do not use Oracle Payroll, you must manually maintain a contribution and distribution benefits balance for each participant.

   See: Defining a Benefit Balance for information on setting up a benefits balance.

   See: Defining Person Benefit Balances for information on recording benefits balances for a participant.

2. Define a derived compensation level factor for each contribution and distribution balance.

   You link the derived factors to the standard contribution and distribution rates you define in step 4.

   See: Defining Derived Factors: Compensation Level

3. Set up a spending account plan that enables forfeitures.

   Use the fields available on the Forfeiture tabbed region of the Plan Reimbursement window to define forfeiture requirements.

   See: Defining a Reimbursement Plan (Advanced Benefits)

4. Define the standard contribution and distribution rates.

   • For contributions, select an activity type of Employee Payroll Contribution

     • In the Total Rate field of the Calculation Method tabbed region, select the derived compensation level factor for the contribution that you defined in step 2

   • For distributions, select one of the following activity types: Participant Expense Reimbursement, Participant Payroll Reimbursement, or Participant Reimbursement

     • In the Total Rate field of the Calculation Method tabbed region, select the derived compensation level factor for the distribution that you defined in step 2

   See: Defining Activity Rates for a Standard Contribution/Distribution

5. After the plan year has ended, run the Process Forfeitures concurrent request for a single plan to calculate participant forfeitures.

   Note: As a prerequisite, update the balances to make sure that contribution and distribution totals are current and accurate.

   See: Running the Process Forfeitures Concurrent Request (Advanced Benefits)

6. View the results of the Process Forfeitures request.

   • View the Process Forfeitures Audit Log and the Process Forfeitures Summary Report for information about errors and process totals

   • Open the Plan Reimbursement window and choose the Forfeiture tab to see the total forfeitures for a plan

   • Open the View Enrollment Results window, query a person, and choose the Rates button to see forfeiture results for a participant