Related topics

Setting up benefit savings plans

Rules for benefit plan data and calculations

Automatic benefit calculations

Benefit savings plan groups

Use a savings plan group to combine savings plans so that the employer match contribution is calculated from the combination of the savings plans.

For example, an employer provides a pretax 401(k) plan and a post-tax Roth 401(k) plan. These are combined in a savings plans group with the total employer match to be no more than 7% of the contributions. If an employee contributes 5% of his pay to the pretax plan and 3% to the post-tax plan, the program calculates the total employee contribution and then calculates the total employer match (which is 7% instead of 8%).

Important! Before you set up a savings plans group, you must have already set up the savings plans.

To create a savings plan group:

  1. Select Setup > Employees > Benefits > Savings Plans Group.
  2. On the Benefit Savings Plans Group page for Employer, select the level at which you want to set up the group. Select Enterprise (to be available to all employers) or a specific employer.

  3. The table on the Benefit Savings Plans Group page shows the groups that are already set up.

    Click Add to add a new group.

  4. On the Benefits Savings Plans Groups Detail page:

    1. For Code, type the code you want to use to uniquely identify the group.

      Note: Do not use special characters for the code, such as single quote ( ' ), percentage sign ( % ), or underscore ( _ ).

    2. For Description, type a longer description for the group.
  5. For Employer Contribution Type, choose Amount or Percent. This is used in conjunction with the Maximum Employer Contribution value to determine the maximum employer match for the combined plans in the group.

  6. For Maximum Employer Contribution, enter the maximum amount or percent for the total employer contribution for all plans in the group. The program combines the rate tables for all plans in the group to calculate the total employer contribution, however the resulting employer contribution cannot exceed the maximum set here.

    Note: If you selected Percent in step 5, enter the percent as a decimal. For example, if the maximum amount should be 7%, enter 0.07 for Maximum Employer Contribution.

  7. To add plans to the group, select a plan in the Available Plans list, and then click Select to move the plan to the Plans in Group list.

    You can adjust the calculation priority by dragging the plans up or down in the list.

  8. To save the plan group, click OK.
  9. A message reminds you that you must run the Update Benefits process to adjust the employer contribution amounts for all employees assigned to the savings plans within the group. Click OK to return to the Benefit Savings Plans Group page.
  10. Run the Update Benefits process.