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Former Member

457 enrollment configuration to start beginning of next month

We are wanting to allow employees to sign up or change their deferral election in the 457 plan in ESS but the law requires any enrollments or changes to deferral elections made by the employee can not take effect until the first paycheck of the next month.

Have any other organizations set this up so that employee can enroll or change their elections and still meet the requirement? The adjustment reason configuration does not allow for a 1st of the next month type setup.

Thanks!

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3 Answers

  • Dec 12, 2017 at 03:53 PM

    Hi, usually this is handle via feature ELIGIR and eligibility rule table V_T5UBV. If you make the employee eligible from the 1st of the month then the plan will start on the 1st of the month. If standard is not enough you can also check user exit such as

    Definition Name PBEN0006 - Enhancement for Feature ELIGR (Eligibility Grouping)

    Regards

    Sarah

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    • Former Member

      Hi Sarah. Thanks for the response and info. I've been working with the eligibility feature and rule and I can get the benefit to start the 1st of the next month for a new hire.

      I am having a problem, however, for changes once the initial eligibility is met. If an employee has been enrolled for a year, for example, and then makes a change today to their deferral, I can't get the start date moved to the beginning of the next month. It keeps defaulting to today's date. Do you know if there is a way to have it dynamically use the 1st of the current month for eligibility?


      Regards,

      John

  • Dec 12, 2017 at 01:09 PM

    You could use HCM Processes and Forms to make this possible...then you have complete control and tracking.

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    Former Member
    Jan 02 at 11:00 PM

    Hi John,

    Have you tried the combinations available in employee contribution variant where it has options for 'waiting period before contribution starts'.

    There you have a pay period option as well. I am not sure if it will satisfy your requirement. But worth taking a look.

    Regards

    Sounak Ghosh

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