Objective
Open Enrollment is a time period in which employees enroll in benefits for a particular cycle period (usually a year) or change their existing benefits. As an employer, you can modify plans, start new benefits, end existing benefits, and update rates.
Using the Open Enrollment feature, an employee selects multiple benefits made available to them on the open enrollments screen. Selected benefits are added to a cart from where the employee can enroll in bulk to all the chosen benefits.
In this exercise, you will configure the open enrollment for the employees of Ace USA for 2025.
Create a new open enrollment configuration with the following details:
| Field | Value |
|---|---|
| Open Enrollment ID | 2025OPENENROLL |
| Effective From | 01/01/2025 |
Use the Admin Search to navigate to the Benefits Admin Overview.
Select Create New → Benefit Open Enrollment Configuration.
Enter the details given in the table above.
Create the Benefit Enrollment Schedule for 2025, using the following details:
| Field | Value |
|---|---|
| Schedule ID | 2025ENROLLSCHED |
| Schedule Name | 2025 Benefit Enrollment Schedule |
Next to the Open Enrollment Schedule field, select Add Benefit Schedule (+).
Enter the values given in the table above.
Create the Benefit Enrollment Schedule Period for 2025 using the following details:
| Field | Value |
|---|---|
| Period ID | 2025ENROLLMENTPERIOD |
| Period Name | 2025 Enrollment Period |
| Enrollment Opens | 01/01/2025 |
| Enrollment Closes | 12/31/2025 |
| Enrollment Effective From | 01/01/2025 |
| Enrollment Valid Until | 12/31/2025 |
| Claim Starts | 01/01/2025 |
| Claim Ends | 12/31/2025 |
In the Schedule Period field, select Add Benefit Schedule Period (+).
Enter the details given in the table above.
Choose Close.
Select the newly created schedule period from the Schedule Periods list.
Choose Save.
Choose Close.
Populate the Open Enrollment Configuration with the information in the following table.
| Open Enrollment Schedule | 2025 Benefit Enrollment Schedule |
| Legal Entity | Ace USA |
| Benefits | Ace Medical |
Save the record.
A Legal Entity refers to an organizational unit that represents a company or part of a company that is legally recognized. It is used to ensure that employees are paid accurately and on time while meeting necessary legal requirements. Legal entities are crucial for managing compliance with local regulations, payroll processing, and other HR-related functions.
Every benefit must be associated with at least one Legal Entity. Legal Entities can be managed in the Benefits Admin Overview tool.
The image below shows the details for the legal entity Ace USA that we will be using throughout this course.
Create a legal entity called Ace USA based on the company of the same name.
Use the admin search to open Manage Data.
Select Create New→Legal Entity for Benefit.
Select the company Ace USA.
Select Save.
A Benefit Schedule determines the validity of enrollments and claims.
Typically, each benefit will have its own benefit schedule. For example, an organization may create a benefit for dental care that is valid from January 1 through December 31, and another benefit for life insurance that is valid from October 1 through September 30.
The benefit schedule only contains the definition of the schedule, not the dates themselves. The date range is defined in the Benefit Schedule Period.
The image below shows an example of a benefit schedule and its associated period. Both objects can be created in the Benefits Admin Overview tool.
A Pay Component is the building block of an employee's compensation package. It represents a specific type of earnings, deductions, or contributions that collectively make up an individual’s pay.
A Pay Component contains a lot of information, such as the pay frequency, pay component type, pay component group, and currency. You can also define how each component can behave; for example, if it is taxable or not, if it includes workers' compensation, and other rules and conditions.
Pay Components define the pay structure of each employee and are crucial for payroll calculations. In other words, Pay Components are the specific line items that comprise the total compensation being given to an employee.
Pay Components can be Amount Based or Percentage Based.
When you create an Amount-based pay component, define the fixed amount in the Pay Component Value field.
When you create a Percentage-based pay component, select the relevant option in Base Pay Component Group field and enter the percentage value in Pay Component Value field. The Base Pay Component field lists all the available pay components.
The system calculates the contribution based on the value in Pay Component Value field and the pay component that you have selected in Base Pay Component field. For example: You select Basic Salary in the Base Pay Component Group field and enter 10 in Pay Component Value field. In this case, the contribution is 10% of Basic Salary.
Use the Action Search and search for Manage Organization, Pay, and Job Structures.
Under Create New, select Pay Component.
Enter all the required field entries.
Select Save.
Note
Whenever you maintain a new pay component, you must also maintain the permissions for it in Manage Permissions Roles.
The eligibility rule determines if an employee is eligible for a benefit and also determines his or her entitlement amount. Using the rule engine, you can set up a rule that is specific to your company, based on criteria such as pay grade and location. To determine the employees’ eligibility, the rule engine reads the employee- related information and executes the rule.
While creating the rule, you maintain certain conditions in it. Based on these conditions the rule determines the entitlement amount:
If the condition maintained in the rule matches with the employee data, the rule sets the entitlement amount.
If the condition does not match with the employee data, the entitlement amount is derived based on the Entitlement Amount field maintained in the Benefit MDF object.
Admins can now check where a rule has been assigned if it was created using Benefits Rule scenario.
Administrators can create workflows to improve efficiency by automating certain processes. For example, you can create a workflow that requires a manager to approve an employee benefit claim.
You can define different workflows based on the context, and your organization can choose different workflows for different transactions.
Workflows ensure that everyone involved in the transaction knows that an enrollment or claim is taking place. Individuals involved in the workflow process are notified via e-mail that an approval is pending. When logged in to the system, a notification displays on the home page and on the users’ To Do List.
To view the request, the approver must choose the notification to see the approval request page. The Approval Request page includes much of the information that the approver needs to make an informed decision, including:
Request Information–The event reason (Data Change) and who the request effects.
View Workflow Participants–View others in the approval workflow.
Job Relationships–The employee’s current information and proposed new information.
Response–The approver can approve, comment, and send back the request.
Recent Activity–Actions taken on the request so far, including the initiator and other approvals.
There can be times when the workflow must be circumvented. SAP SuccessFactors Employee Central uses dynamic groups to grant permission to circumvent the normal approval process.
Use the Action Search to open Manage Organization, Pay, and Job Structures.
Select Create New→Workflow Configuration.
Enter the following information:
In Step 1, select the Approver Type.
Select Save.
Benefit Exceptions allow employees to enroll in a benefit outside of the normal enrollment window. Some examples of the need for benefit exceptions include:
Employees hired after the annual enrollment window has closed.
Employees who experience an allowed life event, such as marriage, birth of a child, or the change in a partner's benefits.
A change in the employee's grade or job level which makes him or her eligible for a benefit.
To meet any of these contingencies, the administrator can provide an exception to employees which opens the system for them to enroll in benefits or submit a claim for a fixed period.
You can grant an exception to an employee in the following scenarios:
Enrollment- Some benefits require an employee to enroll in a benefit in order to use it. If the enrollment window is closed, an exception allows the system to open an enrollment window.
Adjustment Amount- An employee can have a change in eligible amount for a particular claim or enrollment. In this case, the adjustment amount is added to or deducted from the entitlement amount.
To create a new benefit exception, perform the following steps:
Use the Action Search to open the Benefits Admin Overview tool.
Select Create New→Benefits Exception.
Enter the data in the following fields:
Worker ID: Enter the employee's ID for whom you want to grant the exception.
Exception For: Select Enrollment or Claim.
New Exception Window Required: Select either Yes or No.
If you select Yes, the system displays two more fields, Exception Start Date and Exception End Date that you must maintain. In this case, the exception given to benefit is valid only during this period.
If you select No, the system calculates the exception based on the existing benefit schedule.
Exception Start Date: Enter the date from which the exception is valid for enrolling in the benefit.
Exception End Date: Enter the date until which the exception is valid for enrolling in the benefit.
Note
Currently the system displays this field only if you have selected Yes in New Exception Window Required field.
In the Benefit Program Exception Details section, enter the details for the benefit.
Benefit Program: Select the Benefit.
Relevant for Benefit Period: Select the schedule.
Selected Period: Displays the schedule that you have selected in Relevant for Benefit Period field.
Adjustment Amount: Specify the amount that you want to adjust against the program entitlement amount.
In addition to allowing employees to enroll in a benefit outside the enrollment window, the administrator can allow employees to modify their benefits as well. Administrators can set up benefit exceptions for life events, control the level of exception permissions, and control the effective date of the exception.
Some examples of modifications that an employee can make outside the enrollment window include:
If an employee opts out of a benefit in which they had previously enrolled, they can re-enroll into the same benefit as per their eligibility and the enrollment schedule. When the enrollment window is open, they can enroll without an exception. When the enrollment window is closed, an administrator must create an exception for the employee to re-enroll.
There are two ways to allow employees to edit their current enrollments: during the configuration of a benefit, or by creating a benefit exception.
To enable exceptions when configuring a benefit, set the Enrollment Edit Allowed field in the Enrollment Details section to Yes. You can then select whether to allow enrollment edits only during open enrollment, or outside the active enrollment window. In addition, you can select whether employees are allowed to opt-out of an enrollment.
Note
An employee must be enrolled in a benefit before he or she can edit the enrollment.
To create a benefit exception, open the Manage Data tool and select the Create New→Benefits Exception. Then set the Exception For field to Edit of Exception.
A common reason for a benefit exception is when an employee experiences an event that affects their eligibility for benefits. This may include changing to a new position or changing their marital status. The Benefit Work/Life Event Configuration object allows the administrator to configure how each benefit work/life event is executed. Benefit Work/Life Events can be used for all kinds of exceptions, including enrollments, enrollment edits, claims, or opt-out of enrollment.
Create an Enrollment Duration Rule using the rule scenario Configure Benefits Enrollment Window Rule via Exception.
Create an Enrollment Effective From rule using the rule scenario Configure Benefits Enrollment Effective From Rule via Exception.
You can create a rule scenario to determine when the enrolled benefits become effective. For example, you can opt to have the event take effect during the next pay period or the following month.
The image below shows a rule that determines the benefit enrollment is effective starting in the next pay period, using the Get Start Date of Next Pay Period scenario.
You can specify special instructions for employees while they're reporting a life event. A new field, Instructions for Employee, is added to the Define Life Events for Benefits object. This field allows you to provide any additional information that an employee requires while reporting a life event.
The instructional text that you define displays inside the Report a Life Event section on the Benefits tab in the employee profile page.
Employees can submit future-dated life events using the Report a Life Event page. For example, if an employee plans to get married and add their spouse to their health insurance policy, they can submit the life event in advance. You can allow or prevent reporting future-dated life events with a business rule by assigning the new rule to the BenefitEmployeeLifeEventDeclarationForm object definitions in the Save Rules section.
When a benefit exception is created, an e-mail notification is sent to the employee with details, such as exception start date, exception end date, and so on.
With this feature, employees are notified by an e-mail whenever a benefit exception is created for any benefit for which they are eligible. It enables employees to act, if required, within the specified time frame.
Ensure that you have the User→Miscellaneous Permissions→Benefits Email Configuration permission.
For manual exceptions, set the Enable E-mail Notification field to Yes when creating the benefits exception.
For automatic exceptions, set Enable Email Notification field to Yes in the Benefit Work/Life Event Configuration.
Create an e-mail template using Document Generation Template for category Benefits Email Notification.
Create the Benefits Email Configuration object for the relevant Legal Entity. Assign the Email template created in the preceding step.
In some cases, the selection of a benefits plan creates a change to other benefit options. This can be managed in Global Benefits using the Benefit Dependencies option. Using this option, the administrator can add dependencies between benefit types or within insurance types and plans. Both benefits (leading and dependent) are visible, but if the employee wishes to enroll in the dependent benefit, an error message advises the employee to first enroll in the leading benefit. This is important as in many jurisdictions, this is a legal requirement for some types of companies, such as insurance.
The following are some examples of scenarios in which benefits are contingent on other benefits for enrollment:
Scenario | Leading Benefit | Leading Benefit Plan | Condition | Dependent Benefit |
|---|---|---|---|---|
1 | Medical Insurance | MediSure High Deductible 90/10 | Enrolled | HSA |
2 | Medical Insurance | MediSure High Deductible 80/20 | Not Enrolled | FSA |
3 | Travel Insurance | TravelCare | Enrolled | Fuel Allowance |
In scenario 1, an employee must be enrolled into the leading benefit plan MediSure High Deductible 90/10 before becoming eligible for the dependent benefit plan HSA.
In scenario 2, an employee must not be enrolled into the leading benefit plan MediSure High Deductible 80/20 to be eligible for dependent benefit plan FSA.
In scenario 3, an employee must be enrolled into the leading benefit Travel Insurance, to be eligible for dependent benefit Fuel Allowance.
The following procedure describes how-to create benefit dependencies:
Use the Action Search and navigate to the Manage Benefit Dependencies tool.
Choose the + symbol in Dependency Sets on the left-side of the screen.
In Benefit Dependency Name, enter a name for this dependency set.
In the Effective Start Date, choose a date from when this dependency must be applied.
Choose Add. Now, you can see this is added under Dependency Sets.
Choose Add New Dependency. A new row is added to the dependency set.
Choose a Leading Benefit, Leading Benefit Plan, Enrollment Option, Dependent Benefit, and Dependent Benefit Plan.
You can choose any benefit, that has Enrollment Required set to Yes and Enrollment Type as Manual, to be a Leading Benefit and Dependent Benefit.
However, Leading Benefit Plan and Dependent Benefit Plan are applicable only when the chosen Leading Benefit and Dependent Benefit are of type Insurance.
Choose Add New Dependency to add another dependency rule, if required.
Choose Save to save your entries.
The Benefits Overview Hyperlink object can be used to maintain hyperlinks to benefit information and provider directories. In the People Profile page, generic hyperlinks can be added for those benefits not configured in the system. It provides an access point to third party providers. These hyperlinks are displayed under Benefits Overview→My Active Enrollments.
Use the Action Search and navigate to Benefits Admin Overview.
Select Create New Benefits Overview Hyperlink.
Enter the following details:
Hyperlink Configuration ID: Choose Benefit Hyperlink Configuration.
Hyperlink Configuration Name: Enter a name for the configuration.
URL: Enter a valid URL. For instance, https://www.example.com.
Label: Enter a name to be displayed under My Active Enrollments page.
Hyperlink Eligibility Rule: Create or choose an eligibility rule for this hyperlink. The hyperlinks are displayed as per this eligibility rule.
Note
Note: Only the top three eligible hyperlinks are displayed.
Save the object.