This guide demonstrates the process of setting up equivalency calculations in plan provisions using the Stax.ai CX product. Equivalency is essential for ensuring that plan participants meet specific eligibility requirements, even if their direct working hours aren't tracked. Follow the chapters below to efficiently configure these settings.
Understanding Equivalency in Plan Provisions
We can start by understanding what equivalency is in the context of plan provisions. It helps in automatically calculating hours worked for participants based on predefined methods.
Our current integration supports equivalency for FT William plan provision documents.
Reviewing Participant Data
Open the participant data, for example, Ella Glass, to review their gross compensation and hours worked details.
Notice any discrepancies such as zero hours worked despite being a full-time employee.
Full-time employees on salary may not have their hours specifically tracked, leading to zero input in the system.
Configuring Plan Provisions for Equivalency
Navigate to the plan provisions page for your specific plan, like Bright Corp 401k.
Edit the plan provisions, select eligibility service computation rules, and explore the equivalency method options.
For this example, we'll select '45 hours per week' as the equivalency method for employees whose hours are not tracked.
Selecting 'Only employees for whom hours are not tracked' ensures equivalency only applies to those without recorded hours.
Verifying Equivalency Application
Save the changes in the plan provisions to apply the equivalency settings. CX will automatically recalculate the census.
Review the participant's status, ensuring that the equivalency method correctly marked conditions as met.
Equivalency method will not apply if hours are manually overridden, as TPA overrides take precedence.
Troubleshooting and Manual Adjustments
If incorrect hours appear, manually override the hours worked value and recalculate the census to check the application of the equivalency method.
Revert any changes to check for automatic recalculations and verify equivalency applications again.
Equivalency will check against the plan years beginning at the date of hire for the participant. So if the participant has no hours calculated in a year prior, equivalency will use that to determine if the method should apply.
If you encounter any issues or have further questions, feel free to reach out to the support team at [email protected].