Compensation and Hours Tracking User Guide

Transcription

1 Schwab Retirement Technologies, Inc. Schwab Automated Retirement Processing (SchARP) Compensation and Hours Tracking User Guide For use with SchARP Payroll and Compliance

2 User Guide (June, 2011) The material contained herein is proprietary to Schwab and for informational purposes only. The information is not intended to provide tax, legal or investment advice. Schwab does not guarantee the suitability or potential value of any particular information source. Certain information presented herein may be subject to change. The information or material contained in this document may not be copied, assigned, transferred, disclosed or utilized without the express written approval of Schwab. The Charles Schwab Corporation provides services to retirement plans and participants through its subsidiaries: Charles Schwab & Co., Inc. (Member SIPC), Charles Schwab Bank, Schwab Retirement Plan Services, Inc., Schwab Retirement Plan Services Company and Schwab Retirement Technologies, Inc. (Schwab RT). Schwab RT is engaged in developing and licensing proprietary retirement plan recordkeeping systems to independent Third Party Administrators. For further information, contact Schwab Retirement Technologies, Inc. at 4529 Sharon Road, Charlotte, NC 28211, USA. Web site: schwabrt.com Schwab Retirement Technologies, Inc. All rights reserved. The Compliance Management Automation (CMA) system is designed to provide compliance testing and tracking capabilities for Employee Benefit Plans based on plan criteria and information inputted by the user. Schwab does not provide tax, legal, regulatory or compliance advice or oversight to plan sponsors.

3 Contents Table of Contents Introduction...5 User Scenarios...6 Fast Track...7 Applications Affected by CHT...9 System Settings...11 Defining Compensation Types...11 Define Compensation Formulas...13 Select Compensation Formulas for the System...15 Plan Settings...18 Enabling CHT Options for the Plan...18 Migration Options...19 Select Compensation Formulas and Cycles for the Plan...22 Participant Settings...27 Automated Data Translation Settings...29 Reporting...37 Compensation and Hours Tracking Report...37 Compensation Amounts Worksheet...41 Purging Records...44 Appendix A: Migrating Salary Fields and Hours...46 Migrating Compensation Records...47 Migrating Hours Records...48 Migration Scenarios...49 Scenario 1: Migrating Salary Fields for Calendar Year Plan...49 Scenario 2: Migrating Salary Fields for Non-Calendar Year Plan...56 Scenario 3: Migrating the Latest Salary Record (Balance Load Comp. Record)...59 Scenario 4: Migrating Current Hours to New Hours Records Per Payroll...62 Scenario 5: Migrating YTD Hours to New Hours Records Per Payroll...64 Appendix B: Salary Field & Hours Modifications...67 June 20, 2011 Schwab Retirement Technologies Page 3 of 68

4 The SchARP User Library June 20, 2011 Schwab Retirement Technologies Page 4 of 68

5 Introduction Compensation and Hours Tracking (CHT) is one component of Schwab RT s ongoing initiative to enhance the efficiency and functionality of SchARP Payroll and Compliance Management Automation (CMA) processes. CHT allows you to componentize your compensation money by creating and maintaining Compensation Types that represent the various types of compensation in your system, such as Gross Compensation, Overtime, Bonus, and so on. Compensation is tracked in conjunction with the ADT Financial process. Compensation Types serve as the building blocks used to create Compensation Formulas, which, in turn, can be applied at the plan level for Compliance, Allocation, Matching, Data Validation, and other processes, as demonstrated below: In addition to providing Compensation Formulas, CHT allows you to track hours by payroll for better eligibility/vesting determination. Hours are tracked in conjunction with the ADT Financial process. You can choose to enable either or both CHT features (Compensation Formulas and Track Hours by Payroll) at the plan level. All CHT features are turned off by default. Use of both features is optional. Clients who don t want to change the way they currently manage their compensation and hours records can choose to leave the CHT options disabled. When you enable CHT features, the system offers to migrate your existing Salary and/or Hours records to CHT, ensuring that the appropriate information is automatically loaded with payroll data and reflected in reports and extracts. After the CHT migration process is complete, you can access participant compensation and hours information on the Compensation and Hours window, located in the Census folder in Participant Maintenance/C004 and Participant Inquiry/C071. Using CHT, groups of Compensation and Hours records can be imported through ADT Financial with other payroll information, or individually through Participant Maintenance. If you are currently using the Participant Salary Field Method for your compensation records, please see the Appendix to this document for a summary of enhancements made in conjunction with the release of CHT. June 20, 2011 Schwab Retirement Technologies Page 5 of 68

6 User Scenarios CHT is designed for flexibility in meeting the needs of different recordkeeping environments. Clients who use Participant Salary fields to capture compensation amounts can choose to continue using that method alone, map Salary Fields to CHT Compensation Types, or use CHT only. CHT and Salary Fields If you are currently using Salary Fields, and require the use of that data for future Compliance and Allocations, we recommend that you map one or more of the Salary Fields to CHT Compensation Types and migrate the corresponding historical records to the new system. Follow the Fast Track. CHT Only If you are a new client or an existing client who does not require the use of Salary Field data for Compliance or Allocation, you can implement CHT without regard to historical salary records. When you enable CHT in Plan Maintenance, decline the offer to migrate Salary Fields. Follow the Fast Track. Salary Fields Only No action is required if you want to continue using Salary Fields as the sole compensation method. The CHT options in Plan Maintenance are disabled by default. For a review of Salary Field and Hours enhancements made in conjunction with the release of CHT, see the Appendix to this document. June 20, 2011 Schwab Retirement Technologies Page 6 of 68

7 Fast Track The following Fast Track provides a high-level procedural roadmap for configuring CHT options on your system. For details on each step, click the corresponding page link in the last column. Client Services Evaluation & Planning System Options Contact Schwab RT Client Services and request the database upgrade required to enable CHT on your system, as well as best practice recommendations. If you are currently using Salary Fields, take time up front to evaluate the types of compensation associated with those fields and plan what CHT Compensation Types, if any, you want to create to represent that data going forward. In RK SQL System Maintenance/C282, do the following 1. Define Compensation Types: On the Compensation Settings > Compensation Types window, define the compensation types that will be used later to build compensation formulas. Best Practice: We recommend that you create at least one Compensation Type for any data currently held in Salary Fields. You ll have an option to migrate this historical data later in the setup procedure. 2. Define Compensation Formulas: On the Compensation Settings > Compensation Formulas window, define the compensation formulas, each of which consists of one or more Compensation Types. (Optional) Select Limit Compensation from Participation/Eligibility if you want to restrict Compensation records from the Date of Eligibility or Date of Participation. Otherwise, all records within the cycle are used. 3. Select Compensation Formulas for System Level Settings (as needed): - On the SchARP Settings > Compliance Settings > Share Data Settings window, select the Compensation Formulas to use for each test. - On the Category Setup > Data Validation window, select the Compensation Formula to use for data validation. - On the Category Setup > General System Options window, select the Plan Year Gross Compensation Formula and Plan Year Testing Compensation Formula June 20, 2011 Schwab Retirement Technologies Page 7 of 68

8 Plan Options Participant Options ADT Options In Plan Maintenance/C001, do the following for plans that will use CHT: 1. Enable CHT Options for the Plan and Migrate Plan Records: On the Plan Level Settings > Activity Controls > Activity Settings window, do the following: a. Under Compensation and Hours Tracking, select these options: 1) Use Compensation Formulas and/or Track Hours by Payroll 2) YTD cycle (Calendar Year or Plan Year). b. The first time you enable CHT for a plan, the system automatically prompts you to migrate your existing Salary and/or Hours records to CHT. (See Appendix A for important migration details). 2. Select Compensation Formulas and Cycles for Plan Settings (as needed): - On the Plan Level Settings > Activity Controls > Data Validation Settings window, select the Compensation Formula to use for data validation. - On the Plan Level Settings > Compliance > SchARP Settings > Share Data Settings window, select the Compensation Formulas to use for each Compliance test. - On the Plan Level Settings > Other Plan Features window, select the Plan Year Gross Compensation Formula and Plan Year Testing Compensation Formula to use for the plan (or use system settings). - On the Source Level Settings > Match Provisions window, select the Compensation Formula to use for company matching and the Compensation Cycle that determines the compensation records that are available for match calculation. (Optional) Select Limit Hours from Participation/Eligibility if you want to restrict Hours records from the Date of Eligibility or Date of Participation. Otherwise, all records within the cycle are used. - On the Source Level Settings > Allocation Specifications window, select the Compensation Formula to use for allocations (Contributions and Forfeitures). (Optional) Select Limit Hours from Participation/Eligibility. To add Compensation and Hours records into the system manually, go to Participant Maintenance/C004 and use the options on the Census > Compensation and Hours window. Financial Template In order to import records through Automated Data Translation/C150, you must add the following data elements (Current or YTD) to your Financial template: CURRENT PERIOD COMPENSATION AMOUNT CURRENT PERIOD HOURS OR YTD COMPENSATION AMOUNT YTD HOURS Synoptic Template (Optional but recommended) remove SALARY FIELD, and/or CURRENT HOURS/YTD HOURS data elements Admin Options In Schwab RT Admin, go to Plan Options/Reporting Options and select the Salary Field and/or Compensation Formula to use for the Plan Sponsor Salary Demographics Report. June 20, 2011 Schwab Retirement Technologies Page 8 of 68

9 Applications Affected by CHT The following Recordkeeping modules are impacted by CHT processing. Compliance Module Name Folder Location ADP/ACP Test/C401 Compliance 415 Test/C415 Compliance Determine Highly Compensated/C414 Compliance CMA Share Data Utility/C287 Favorites Allocations Module Name Contributions and Forfeiture Allocations/C017 Age Weighting/C035 Permitted Disparity/C009 Matching Contributions (Historic)/C021 Matching Contributions (Pending)/C047 Stock Allocations/C080 Maintenance Module Name Participant Maintenance/C004 Plan Maintenance/C001 RK SQL System Maintenance/C282 Plan Inquiry/C070 Participant Inquiry/C071 Automated Data Translation/C150 (Financial) Miscellaneous Module Name Utility Reporting/CP23 (Participant Master Report) Plan Digest/CP07 Allocation Report/CP03 Cross Reference Report/CP06 RK SQL Report Generator/CP50 SQL Extract/CSQL Statement Generator/CP20 Data Validation and Extract/CP22 Participant Data Extract/C158 Post Hours/Clear Participant Data/C093 Salary Posting/C042 Purge Utilities/C999 Participant Data Validation/C280 Participant Performance Benchmarking/C286 Folder Location Allocations Allocations Allocations Allocations Allocations Stock Allocations Folder Location Maintenance/Participant Maintenance/Plan Utilities Inquiry Inquiry Automated Data Translation Folder Location Reporting/Other Reporting/Plan Reporting>Plan Reporting>Participant Custom Reporting Custom Reporting Custom Reporting Custom Reporting Custom Reporting Posting Posting Utilities Utilities Favorites June 20, 2011 Schwab Retirement Technologies Page 9 of 68

10 The following SchARP processes are impacted by CHT processing. Payroll Eligibility Data Validation Compliance Management Automation Reporting estatement Processing June 20, 2011 Schwab Retirement Technologies Page 10 of 68

11 System Settings This section identifies required CHT system settings, located in RK SQL System Maintenance/C282. Defining Compensation Types You can use the Compensation Settings > Compensation Types window to create and maintain Compensation Types that represent the various types of compensation in your system, such as Gross Compensation, Overtime, Bonus, and so on. The Compensation Types defined here will serve as the building blocks used later to create Compensation Formulas. Compensation Formulas, in turn, are used selectively throughout the system for Data Validation, Compliance, Allocation, Matching, and other processes. You can create a Compensation Type to represent one or more existing Salary Fields, if you previously used that method, and you can create other Compensation Types for new types of compensation. Best Practice: We recommend that you create at least one Compensation Type for any data currently held in Salary Fields. You ll have an option to migrate this historical data later during the plan configuration process. Once created, a Compensation Type cannot be deleted if either of the following is true: One or more system or plan settings are currently using a Compensation Formula that includes that Compensation Type. A participant CHT record has been created for that Compensation Type. June 20, 2011 Schwab Retirement Technologies Page 11 of 68

12 Sample Compensation Types settings appear below. June 20, 2011 Schwab Retirement Technologies Page 12 of 68

13 Define Compensation Formulas You can use the Compensation Settings > Compensation Formula window to create and maintain Compensation Formulas that can be selected for Data Validation, Compliance, Allocation, Matching, and other processes. A Compensation Formula consists of one of more Compensation Types (e. g., Gross Compensation, Overtime, Bonus Comp). The Compensation Types within the formula can be added or subtracted to produce the appropriate result. Compensation Formulas defined at the system-level are available for selection at the plan level for all CHT-enabled plans. Once created, a Compensation Formula cannot be deleted if one or more system or plan settings are currently using that formula. Sample Compensation Formulas appear below. June 20, 2011 Schwab Retirement Technologies Page 13 of 68

14 Adding a Formula To create a new formula, do the following: 1. On the Compensation Formula window, click Add Formula. The Compensation Formula Setup window appears. 2. Type a name for the formula in the Formula Name field. This is the name that will appear on the drop down list when you select formulas for Allocation, Compliance, Matching, and other processes. 3. To create the actual formula, you must select a Compensation Type from the Compensation Type field and click Add to Formula. The selected type is added to the Formula field. 4. Before adding any additional Compensation Types to the formula, you must select one of the operator symbols (add or subtract). 5. Add any additional Compensation types to the formula, using the Clear Last or Clear All buttons to remove unwanted elements. 6. (Optional) Select Limit Compensation from Participation/Eligibility if you want to restrict Compensation records from the Date of Eligibility or Date of Participation. Otherwise, all records within the cycle are used. Note: The system uses the Date to Use in Comparison setting from the Eligibility window in Plan Maintenance to determine whether to use the Date of Participation or the Date of Eligibility 7. Click OK to save the new formula and add it to the list. Note: If you are using the Compensation and Hours Tracking feature, you must define and select at least one system-level Compensation Formula before you can generate the Salary Demographic Report, which is available for Plan Sponsors and Financial Advisors. June 20, 2011 Schwab Retirement Technologies Page 14 of 68

15 Select Compensation Formulas for the System After defining the required system-level Compensation Types and Formulas, you can then choose which formulas to use for various Recordkeeping processes. System level formula selection fields are identified below. Compliance Management Automation On the SchARP Settings > Compliance Settings > Share Data Settings window, select the Compensation Formulas to use for each Compliance test. June 20, 2011 Schwab Retirement Technologies Page 15 of 68

16 Data Validation On the Category Setup > Data Validation window, select the Compensation Formula to use for data validation. June 20, 2011 Schwab Retirement Technologies Page 16 of 68

17 General System Options On the Category Setup > General System Options window, select the Plan Year Gross Compensation Formula and Plan Year Testing Compensation Formula. June 20, 2011 Schwab Retirement Technologies Page 17 of 68

18 Plan Settings This section identifies plan level setting for CHT, located in Plan Maintenance/C001 and Plan Inquiry/C070 (view only). Enabling CHT Options for the Plan To enable CHT options for a plan, do the following: 1. Go to Plan Level Settings > Activity Controls > Activity Settings window in Plan Maintenance. 2. Under Compensation and Hours Tracking, select one or both of the following options: Use Compensation Formulas Select this option to enable CHT Compensation functionality for the plan. If the Compensation option is selected, all Salary Fields are disabled. This option is turned OFF by default. Track Hours by Payroll Select this option to enable CHT Hours functionality for the plan. If the Hours option is selected, the Hours window in Participant Maintenance is disabled. The First Years Hours and Cumulative Hours fields are moved to the Compensation and Hours Records window. First Year Hours will be calculated based on the new Hours records. 3. Choose the appropriate YTD cycle (Calendar Year or Plan Year), which is used by various modules throughout the system to determine YTD begin and end dates to use when calculating Compensation and/or Hours. June 20, 2011 Schwab Retirement Technologies Page 18 of 68

19 Migration Options The first time you enable CHT for a plan and save the settings, the system automatically prompts you to migrate your existing Salary and/or Hours records to CHT. Migration ensures that compensation and hours information is automatically loaded with payroll data and reflected in reports and extracts. Migration prompts correspond to the CHT options you enabled for the plan: If the Use Compensation Formulas option is selected for the plan, you ll have the option to migrate current and historical salary fields to Compensation Type records. If the Track Hours by Payroll option is selected for the plan, you ll have the option to migrate existing hours from current and historical participant records to the payroll hour records. If you decline the option to migrate records, the prompt will continue to appear until you accept the prompt and migrate the records OR if one or more Compensation and Hours records is added to the system, either through ADT/C150 or Participant Maintenance/C004 (Compensation and Hours window). If you decide later that you need to migrate historical records, you must purge all Compensation and Hours records using the Purge Utility/C999 to reactivate the migration prompt in Plan Maintenance. Best Practice: We recommend that you migrate the last plan year s worth of historical records, with the following exception: If you load participant compensation and hours only once a year with the year-end census, we recommend that you do not migrate this information. If you still need to access this information in Recordkeeping, you can easily re-import the compensation and hours records through ADT using the new CHT data elements, remembering to specify the Compensation and Hours As of Date before processing. The migration process for each option is summarized below. June 20, 2011 Schwab Retirement Technologies Page 19 of 68

20 Migrating Compensation Records After enabling the Use Compensation Formulas option for a plan, the system automatically presents the following migration prompt. If you click Yes, the following window allows you to map the existing Salary Fields to Compensation Types. Only the Salary Fields used by the plan should be mapped. At least one Salary Field must be mapped to a Compensation Type. The Compensation Types must be previously defined at the system level. You must also select a Beginning Date to use for the migration. The migration starts with the specified Beginning Date and ends with the current process date. The migration process moves salary data from Periodic Participant Maintenance/C039 to Participant Maintenance/C004 (Compensation and Hours window). For more details on migration, including various migration scenarios, see Appendix A. June 20, 2011 Schwab Retirement Technologies Page 20 of 68

21 Migrating Hours Records After enabling the Track Hours by Payroll option for a plan, the system automatically presents the following migration prompt. If you click Yes, the following window allows you import historical hours for Current or YTD data and to select a Beginning Date. During the migration process, the system writes the current or YTD hours from the PPF record to the Hours table in the database using the specified beginning date. For more details on migration, including various migration scenarios, see Appendix A. June 20, 2011 Schwab Retirement Technologies Page 21 of 68

22 Select Compensation Formulas and Cycles for the Plan After enabling CHT options for the plan and migrating the appropriate records, you can then choose which formulas to use for various Recordkeeping processes. Only plan level formula selection fields are shown below; see System Settings for information on CHT options at the system level. Data Validation On the Plan Level Settings > Activity Controls > Data Validation Settings window, select the Compensation Formula to use for data validation. June 20, 2011 Schwab Retirement Technologies Page 22 of 68

23 Compliance Management Automation On the Plan Level Settings > Compliance > SchARP Settings > Share Data Settings window, select the Compensation Formulas to use for each Compliance test. June 20, 2011 Schwab Retirement Technologies Page 23 of 68

24 Other Plan Features On the Plan Level Settings > Other Plan Features window, select the Plan Year Gross Compensation Formula and Plan Year Testing Compensation Formula to use for the plan, if different from system level settings. June 20, 2011 Schwab Retirement Technologies Page 24 of 68

25 Matching On the Source Level Settings > Match Provisions window, select the Compensation Formula to use for company matching. Optionally, you can select Limit Hours from Participation/Eligibility if you want to restrict Hours records from the Date of Eligibility or Date of Participation. Otherwise, all records within the cycle are used. Note: The system uses the Date to Use in Comparison setting from the Eligibility window in Plan Maintenance to determine whether to use the Date of Participation or the Date of Eligibility. Select the Compensation Cycle that determines the compensation records that are available for match calculation. The following cycle options are available: Plan Annual Plan Year-to-Date Calendar Annual Calendar Year-to-Date June 20, 2011 Schwab Retirement Technologies Page 25 of 68

26 Allocations On the Source Level Settings > Allocation Specifications window, select the Compensation Formula to use for allocations (Contributions and Forfeitures). Optionally, you can select Limit Hours from Participation/Eligibility if you want to restrict Hours records from the Date of Eligibility or Date of Participation. Otherwise, all records within the cycle are used. June 20, 2011 Schwab Retirement Technologies Page 26 of 68

27 Participant Settings After the CHT migration process is complete, you can access participant compensation and hours information on the Compensation and Hours Records window, located in the Census folder in Participant Maintenance/C004 and Participant Inquiry/C071 (view only). The number of Hours for a specified date appear in the Hours column. The Hours column only appears if the Track Hours by Payroll option is enabled in Plan Maintenance. The other columns in the table reflect the Compensation Types defined in System Maintenance. The amount of compensation for a specified date appears under the corresponding Compensation Type. The compensation columns only appear if the Use Compensation Formulas option is enabled in Plan Maintenance and the Compensation Types are defined in System Maintenance. You can use the Add button to enter a new record in the table, or you can import records through ADT/C150. Only one record can be entered for a given date. You can choose a date range in the date fields at the top of the screen. The date range defaults to the Calendar YTD range. June 20, 2011 Schwab Retirement Technologies Page 27 of 68

28 First Year Hours and Cumulative Hours When you enable the Track Hours by Payroll option in Plan Maintenance, the following changes automatically occur in Participant Maintenance: The Hours window is disabled because the Current and Year to Date fields are not used by CHT. The First Years Hours and Cumulative Hours fields are moved from the Hours window to the Compensation and Hours Records window, consolidating all CHT fields on the same window. When Track Hours by Payroll is enabled, the system calculates the First Year Hours based on the new Hours records. The system calculates a year s worth of hours based on the participant s date of service and displays it in the First Year Hours field. With CHT, First Year Hours is a calculated, read-only value and cannot be modified. Cumulative Hours continues to be a maintainable field. Cumulative Hours will continue to be updated by 1000 hours when YTD hours reach June 20, 2011 Schwab Retirement Technologies Page 28 of 68

29 Automated Data Translation Settings The import process for CHT uses the Automated Data Translation/C150 Financial process. Using the Financial template makes CHT compensation and hours information available to the SchARP Payroll process. In order to import records through ADT Financial for CHT-enabled plans, you must add the following data elements to the appropriate Financial template: CURRENT PERIOD COMPENSATION AMOUNT CURRENT PERIOD HOURS OR YTD COMPENSATION AMOUNT YTD HOURS Note: If CHT is not enabled for the plan, do not add these data elements to your Financial template as they will generate errors during processing. ADT Synoptic If you are currently importing salary/hours information through ADT Synoptic, no changes are required to the Synoptic template in order to begin using CHT. During Synoptic processing of CHT-enabled plans, the SALARY FIELD, and/or CURRENT HOURS/YTD HOURS data elements will be skipped and an error will be returned for each participant (see examples below). Best Practice: To avoid generating error reports during Synoptic processing, remove these data elements from the Synoptic template for CHT-enabled plans. The following error is generated if the Use Compensation Formulas option is enabled for the plan and the Synoptic template still references Salary Fields. The rest of the Data Record is processed. June 20, 2011 Schwab Retirement Technologies Page 29 of 68

30 This error is returned if the Track Hours by Payroll option is enabled for the plan and the Synoptic template still references Current or YTD Hours. The rest of the Data Record is processed. Compensation and Hours As Of Date The ADT Financial uses the Compensation and Hours As Of Date on the Payroll Transactions window to determine which records to process. This date only applies to the CHT Data Elements used in the Payroll (Current or YTD Compensation Amount and Current or YTD Hours). You can also use this date to backdate your Compensation or Hours records. June 20, 2011 Schwab Retirement Technologies Page 30 of 68

31 Importing Current Compensation and Hours When importing current Compensation or Current Hours through ADT, if there is an existing record in the system the exisiting record is replaced by the imported record. Importing YTD Compensation To demonstrate how YTD Compensation is handled by ADT, we ll use the following example: Participant A has $ YTD compensation to be imported Participant B has $ YTD compensation to be imported Prior to running ADT, the Compensation record in Participant Inquiry looks like this: BEFORE ADT IMPORT (01/21/2011) Participant A Participant B June 20, 2011 Schwab Retirement Technologies Page 31 of 68

32 AFTER ADT IMPORT (01/21/2011) Participant A Participant B For Participant A, the system brought in YTD Compensation of $ and he had $ in that Compensation Type, so the system automatically decreases the 1/21 record by $ ( = 800). For Participant B, the system brought in YTD Compensation of $ and he had $ in that Compensation Type, so the system automatically increases the 1/21 record by $ ( = ). June 20, 2011 Schwab Retirement Technologies Page 32 of 68

33 Importing YTD Hours The following example demonstrates how YTD Hours are handled by ADT. Participant A has 300 YTD hours to be imported Participant B has 400 YTD hours to be imported Prior to running ADT, the Hours record in Participant Inquiry looks like this: BEFORE ADT IMPORT (3/25/2011) Participant A Participant B June 20, 2011 Schwab Retirement Technologies Page 33 of 68

34 AFTER ADT IMPORT (3/25/2011) Participant A Participant B For Participant A, the system brought in 300 YTD hours and he had 325 hours, so the system automatically decreases the 3/25 record by 25 hours (65-25 = 40). For Participant B, the system brought in 400 YTD Hours and he had 375 hours so the system automatically increases the 3/25 record by 25 hours ( = 100). June 20, 2011 Schwab Retirement Technologies Page 34 of 68

35 Cumulative Records 1000 Hour Threshold When a record is imported that causes the Total Hours to exceed 1000, the system automatically adds 1000 hours to the Cumulative Hours field. In the following example, the participant has 2000 cumulative hours. When the record for 3/15 is added, increasing his YTD hours from 900 to 1025, his cumulative hours are increased by 1000 hours to 3000 hours. Similarly, if a record is added that causes the YTD hours to decrease below 1000, the system would decrease his cumulative hours by BEFORE AFTER June 20, 2011 Schwab Retirement Technologies Page 35 of 68

36 Add/Replace Disabled On the Set Data Elements window in ADT Financial, the Add/Replace option is disabled for all COMPENSATION AND HOURS data elements to prevent double-posting of hours and compensation if a payroll file needs to be reprocessed, as shown below. June 20, 2011 Schwab Retirement Technologies Page 36 of 68

37 Reporting Compensation and Hours Tracking Report The Compensation and Hours Tracking Report is available through Report Generator/CP50 or through SchARP Generate Reports business activity. A sample report appears below. Using Report Generator/CP50 To configure and generate the report via Report Generator/CP50, do the following. 1. Add the report (CompensationAndHours.rpt) to your report directory. 2. On the Choose Report window, click the Report Configuration INI button and add the report to the text file using the following format: <report name as it appears on CP50 selection list>=<path and report filename>. 3. To generate the report, select it from the Choose Report field and click the Load Report button at the right. Click the Submit button in the toolbar. 4. On the Select Plan window, choose one or more plans to include in the report. 5. On the Select Compensation Parameters window, select Formulas or Types and then choose which Compensation Formulas or Compensation Types to include in the report. Due to page size restrictions, you cannot exceed 10 items/columns per report. You cannot include both Compensation Formulas and Types in the same report. 6. On the Parameters window, select the options for report totals and/or detail, and specify the date range. 7. Click the Print button in the toolbar. June 20, 2011 Schwab Retirement Technologies Page 37 of 68

38 The Choose Report and Select Compensation Parameters windows are shown below: Choose Report Window Select Compensation Parameters Window June 20, 2011 Schwab Retirement Technologies Page 38 of 68

39 Using SchARP Generate Reports Business Activity To generate the Compensation and Hours Tracking Report through SchARP, you must schedule the Generate Reports business activity to run and define the report parameters. The report selection list in SchARP Scheduler appears below. June 20, 2011 Schwab Retirement Technologies Page 39 of 68

40 The parameters for the SchARP Compensation and Hours Tracking report are shown below. Note: Due to page size restrictions, you cannot exceed 10 Compensation Formulas or Compensation Types per report. You cannot include both Compensation Formulas and Types in the same report. Configuring New Reports in SchARP To make a new report available for SchARP processing, place it in the Custom RPT or System RPT folders, then do the following: 1. Log on to Schwab RT Admin. 2. From the Report Options menu, select Reports. 3. On the Report Wizard page, click Create New Report. 4. In the Report Info section, enter the appropriate information. Required fields are indicated by a red asterisk. 5. In the Categories section, select one or more categories to which the report is assigned. To facilitate your search, enter part or all of a name in the Filter field. To select all systems in the list, click Select All. 6. Click Finish. June 20, 2011 Schwab Retirement Technologies Page 40 of 68

41 Compensation Amounts Worksheet The Compensation Amounts worksheet is available from the View Participant s Compensation Based on Plan Formula link at the top of the Compensation and Hours window in Participant Inquiry. The worksheet shows all Compensation Formulas and Compensation Types that apply to the selected participant during the selected date range. The Compensation and Hours window appears below. June 20, 2011 Schwab Retirement Technologies Page 41 of 68

42 A sample worksheet follows. June 20, 2011 Schwab Retirement Technologies Page 42 of 68

43 Page 2 June 20, 2011 Schwab Retirement Technologies Page 43 of 68

44 Purging Records If you need to purge Compensation and Hours records for any reason, you can do so using the Purge Utility/C999. On the History > Compensation and Hours Records window, you can purge records using the Activity Batch ID or a specified date range. To purge compensation and/or hours records, do the following: 1. Select a plan. 2. Select a Purge Option. You can purge by Activity Batch Id, which is included on the Migration Report, or you can specify a date range. 3. Under Purge Selection, select the Compensation Types to be purged. 4. If you want to purge hours, select Purge Hours. 5. Select the plan division(s) to include in the purge. Purging to Restore Inactive Migration Prompt Once a single Compensation and Hours record has been added through ADT/C150 or Participant Maintenance/C004 (Compensation and Hours window), the automatic migration prompt will no longer appear. If you decide later that you need to migrate historical records, you must purge all Compensation and Hours records using the Purge Utility/C999 to reactivate the migration prompt in Plan Maintenance. June 20, 2011 Schwab Retirement Technologies Page 44 of 68

45 The Purge Utilities window appears below: June 20, 2011 Schwab Retirement Technologies Page 45 of 68

46 Appendix A: Migrating Salary Fields and Hours The first time you enable CHT for a plan and save the settings, the system automatically prompts you to migrate your existing Salary and/or Hours records to CHT. Migration ensures that compensation and hours information is automatically loaded with payroll data and reflected in reports and extracts. Migration prompts correspond to the CHT options you enabled for the plan: If the Use Compensation Formulas is selected for the plan, you ll have the option to migrate current and historical salary fields to Compensation Type records. If the Track Hours by Payroll option is selected for the plan, you ll have the option to migrate existing hours from current and historical participant records to the payroll hour records. If you decline the option to migrate records, the prompt will continue to appear until you accept the prompt and migrate the records OR if one or more Compensation and Hours records is added to the system, either through ADT/C150 or Participant Maintenance/C004 (Compensation and Hours window). If you decide later that you need to migrate historical records, you must purge all Compensation and Hours records using the Purge Utility/C999 to reactivate the migration prompt in Plan Maintenance. Best Practice: We recommend that you migrate the last plan year s worth of historical records. The migration process for each option is outlined below. June 20, 2011 Schwab Retirement Technologies Page 46 of 68

47 Migrating Compensation Records After enabling the Use Compensation Formulas option for a plan, the system automatically presents the following migration prompt. If you click Yes, the following window allows you to map the existing Salary Fields to Compensation Types. Only the Salary Fields used by the plan should be mapped. At least one Salary Field must be mapped to a Compensation Type. The Compensation Types must be previously defined at the system level. You must also select a Beginning Date to use for the migration. The migration starts with the specified Beginning Date and ends with the current process date. The migration process moves salary data from Periodic Participant Maintenance/C039 to Participant Maintenance/C004 (Compensation and Hours window). June 20, 2011 Schwab Retirement Technologies Page 47 of 68

48 Migrating Hours Records After enabling the Track Hours by Payroll option for a plan, the system automatically presents the following migration prompt. If you click Yes, the following window allows you import historical hours for Current or YTD data and to select a Beginning Date. During the migration process, the system writes the current or YTD hours from the PPF record to the Hours table in the database, and backdates each by one day. For example, 01/01/2011 is dated 12/31/2010 because that is the actual data it represents. June 20, 2011 Schwab Retirement Technologies Page 48 of 68

49 Migration Scenarios This section presents the following migration scenarios: 1. Migrating Salary Fields for Calendar Year Plan 2. Migrating Salary Fields for Non-Calendar Year Plan 3. Migrating the Latest Salary Record (Balance Load Compensation Record) 4. Migrating Current Hours to New Hours Records Per Payroll 5. Migrating YTD Hours to New Hours Records Per Payroll Scenario 1: Migrating Salary Fields for Calendar Year Plan This scenario shows two examples (A and B) of the migration of Salary Fields for a Calendar Year Plan. Translating YTD Salary Data When migrating Year-To-Date salary data from PPF records, the system translates the cumulative YTD to a current period record entry that reflects the difference between the current month s salary and the previous month s salary. This translation ensures that the total amount after migration is equal to the cumulative total before migration. This method applies that both Calendar Year and Non-Calendar Year Plans. Month YTD Salary from PPF Record Migrated Amount (CHT) Compensation Type Date January $2000 $2000 Migrated Base Wages January 31 February Migrated Base Wages February 28 March Migrated Base Wages March 30 Example A: Migration Prompt The migration process begins with acceptance of the migration prompt. June 20, 2011 Schwab Retirement Technologies Page 49 of 68

50 Example A: Salary Field Map The Salary Fields used by the plan are mapped to CHT Compensation Types, with a start date of 01/01/2011: Example A: Migration Report After migration is complete, the system generates a salary migration report that shows the date range of data migrated and the Activity Batch ID, which can be used to purge records, if needed. June 20, 2011 Schwab Retirement Technologies Page 50 of 68

51 Example A: Periodic Participant File (PPF) In this scenario, the participant PPF records shown below were migrated. Example A: Participant Maintenance After migration, the migrated participant records appear in the Compensation and Hours window in Participant Maintenance. June 20, 2011 Schwab Retirement Technologies Page 51 of 68

52 Example B: Migration Prompt The migration process begins with acceptance of the migration prompt: Example B: Salary Field Map The Salary Fields used by the plan are mapped to CHT Compensation Types. June 20, 2011 Schwab Retirement Technologies Page 52 of 68

53 Example B: Migration Report When migration is complete, the system generates the following report: Example B: Periodic Participant File (PPF) In this scenario, the participant PPF records shown below are migrated. June 20, 2011 Schwab Retirement Technologies Page 53 of 68

54 Example B: Participant Maintenance Following migration, the participant record for the completed year of 2010 looks like this on the Compensation and Hours window in Participant Maintenance. June 20, 2011 Schwab Retirement Technologies Page 54 of 68

55 Migrated records for the current year of 20ll are shown in this view: June 20, 2011 Schwab Retirement Technologies Page 55 of 68

56 Scenario 2: Migrating Salary Fields for Non-Calendar Year Plan This scenario shows migration of salary for a Non Calendar Year Plan (06/30). The plan s process date is 5/17/2011. Note: For Non Calendar Year Plans, only the current salary migrated. For this reason, the date field on the Salary Map window is disabled and automatically defaults to the beginning of the year. Migration Prompt The migration process begins with acceptance of the migration prompt. Salary Field Map The Salary Fields used by the plan are mapped to CHT Compensation Types. June 20, 2011 Schwab Retirement Technologies Page 56 of 68

57 Migration Report When migration is complete, the system generates the following report: Periodic Participant File (PPF) In this scenario, the participant PPF records shown below are migrated. June 20, 2011 Schwab Retirement Technologies Page 57 of 68

58 Participant Maintenance After migration, the migrated participant records appear in the Compensation and Hours window in Participant Maintenance. June 20, 2011 Schwab Retirement Technologies Page 58 of 68

59 Scenario 3: Migrating the Latest Salary Record (Balance Load Compensation Record) This scenario shows migration of the latest salary record, which creates a balance load compensation record. The plan s process date is 5/17/2011. The date to begin migration is 5/17/2011. The system finds the most recent salary record on or before 5/17/2011 and create a compensation record for that. In essence, it will act like a balance load for compensation. Migration Prompt The migration process begins with acceptance of the migration prompt. Mapping Salary Fields The Salary Fields used by the plan are mapped to CHT Compensation Types. June 20, 2011 Schwab Retirement Technologies Page 59 of 68

60 Migration Report When migration is complete, the system generates the following report: Periodic Participant File (PPF) This participant s latest PPF Salary record is on 5/1/2011 for the amount of $ , which represents his YTD compensation so far for June 20, 2011 Schwab Retirement Technologies Page 60 of 68

61 Participant Maintenance After migration, the migrated participant records appear in the Compensation and Hours window in Participant Maintenance. June 20, 2011 Schwab Retirement Technologies Page 61 of 68

62 Scenario 4: Migrating Current Hours to New Hours Records Per Payroll This scenario demonstrates migration of Current Hours records. Migration Prompts The migration process begins with acceptance of the migration prompt. On the next window, the Current Hours option is selected, with a begin date of 01/01/2011. Migration Report When migration is complete, the system generates the following report: June 20, 2011 Schwab Retirement Technologies Page 62 of 68

63 Periodic Participant File (PPF) In this scenario, the participant PPF records shown below are migrated. Participant Maintenance After migration, the migrated participant records appear in the Compensation and Hours window in Participant Maintenance. June 20, 2011 Schwab Retirement Technologies Page 63 of 68

64 Scenario 5: Migrating YTD Hours to New Hours Records Per Payroll This scenario demonstrates migration of YTD Hours records. Translating YTD Salary Data When migrating Year-To-Date Hours from PPF records, the system translates the cumulative YTD to a current period record entry that reflects the difference between the current month s hours and the previous month s hours. This translation ensures that the total amount after migration is equal to the cumulative total before migration. This method applies to both Calendar Year and Non-Calendar Year Plans. Migration Prompts The migration process begins with acceptance of the migration prompt. On the next window, the YTD Hours option is selected, with a begin date of 01/01/2011. June 20, 2011 Schwab Retirement Technologies Page 64 of 68

65 Migration Report When migration is complete, the system generates the following report: June 20, 2011 Schwab Retirement Technologies Page 65 of 68

66 Periodic Participant File (PPF) In this scenario, the participant PPF records shown below are migrated. Participant Maintenance After migration, the migrated participant records appear in the Compensation and Hours window in Participant Maintenance. : June 20, 2011 Schwab Retirement Technologies Page 66 of 68

67 Appendix B: Salary Field & Hours Modifications In conjunction with the release of CHT tracking, the following changes to have been made to the Salary Fields in Schwab RT Recordkeeping: A new Salary Field Names window is added to RK SQL System Maintenance. You can use this window to add descriptive names to Salary Fields. These system-level descriptions will appear on the selection lists for all Salary Fields in the system. Salary Field Names can be changed as often as needed. To avoid confusion with the new CHT Compensation Types and Compensation Formulas, the word compensation is changed to salary wherever it appeared on salary windows and fields. Anywhere in the system where there is a Salary field, you can now select a Compensation Formula instead, if the CHT compensation option is enabled. Salary fields are disabled when CHT compensation is enabled. After enabling CHT options for a plan, you ll be given the opportunity to migrate existing salary and hours data to the new system. After the CHT migration process is complete, you can access participant compensation and hours information on the new Compensation and Hours window, located in the Census folder in Participant Maintenance/C004 and Participant Inquiry/C071 (view only). June 20, 2011 Schwab Retirement Technologies Page 67 of 68

68 First Year Hours and Cumulative Hours When you enable the Track Hours by Payroll option in Plan Maintenance, the following changes automatically occur in Participant Maintenance: The Hours window is disabled because the Current and Year to Date fields are not used by CHT. The First Years Hours and Cumulative Hours fields are moved from the Hours window to the Compensation and Hours Records window, consolidating all CHT fields on the same location. When Track Hours by Payroll is enabled, the system calculates the First Year Hours based on the new Hours records. The system calculates a year s worth of hours based on the participant s date of service and displays it in the First Year Hours field. With CHT, First Year Hours is a calculated, read-only value and cannot be modified. Cumulative Hours continues to be a maintainable field. Cumulative Hours will continue to be updated by 1000 hours when YTD hours reach ADT Financial Replaces Synoptic for CHT Plans If you are currently importing salary/hours information through ADT Synoptic, no changes are required to the Synoptic template in order to begin using CHT. During Synoptic processing of CHT-enabled plans, the SALARY FIELD, and/or CURRENT HOURS/YTD HOURS data elements will be skipped and an error will be returned for each participant. Best Practice: To avoid generating error reports during Synoptic processing, remove these data elements from the Synoptic template for CHT-enabled plans. ADT Financial For CHT-enabled plan, the following data elements must be added to the Financial template: CURRENT PERIOD COMPENSATION AMOUNT CURRENT PERIOD HOURS OR YTD COMPENSATION AMOUNT YTD HOURS Note: If you are not using CHT for the plan, do not add these data elements to your Financial template as they will generate errors during processing. June 20, 2011 Schwab Retirement Technologies Page 68 of 68