When Do I Use Change Rules?

You define change rules for personnel actions that affect an employee's current benefits. An employee's current benefits are affected by the following changes:

  • The employee's membership in an employee group changes, making him or her eligible for different coverage, contributions or general ledger overrides

  • The employee's salary changes. Salary changes include changes made to the employee's job code, FTE (Full-Time Equivalent), rate of pay, step, grade, schedule, salary class, or benefit salaries

  • The employee's pay frequency changes

Example 1

The Perox Oil Company's health plan HL1 has different contribution amounts for salaried and hourly employees. Perox Oil maintains employee information through personnel actions. Only a JOBCHG personnel action can change the employee from hourly to salaried. The benefit change date and the personnel action date should be the same date. A change rule is defined for the JOBCHG action and the HL1 benefit plan using the personnel action date as the effective date for benefits automatically updated.

Example 2

The Perox Oil Company offers only two employee Life plans, both are a multiple of salary plan. The employee's coverage amount increases when an employee receives an increase in pay. Both a PROMOTION and SALINC personnel action can increase the employee's pay. The Benefit change should be effective the following pay period. Two change rules are defined, one for each action, identifying the next pay period as the effective date used for benefit changes.