Paradigm Business Solutions, LLC

Denver Public SchoolsCreative Flex Plan Setup

Presented to ROMLUGSeptember 12, 2002

Presenters

Lita Weinstein, Denver Public Schools

Lisa Schroeder, Paradigm Business Solutions, LLC

Paradigm Business Solutions, LLC

Combined service organization consisting of Paradigm Business Solutions, LLC established in 1998 and Bails and Associates, Inc. established in 1997

Lawson endorsed merger effective 9/1/02 Existing Lawson business partner offering

full solutions: HR Suite, Financials, Procurement, Supply Chain and Technical Resources

Paradigm Differentiators Paradigm is majority female owned Paradigm resources are 100% highly

skilled, senior level, heavily experienced and many maintain “Top Secret” clearance

Paradigm is 100% dedicated to Lawson

Paradigm resources reside in more than nineteen states across the U.S.

Paradigm Differentiators contd.

Paradigm is small and flexible - management decision makers are easily accessible

Paradigm has a client base of 100% reference-able clients including many vocal supporters in Public Sector, Healthcare, Retail and Professional Services

Paradigm has a proven track record as a business partner working with other partners and vendors

Flex Benefits Overview

• DPS Flex Plan Design• Advantages of DPS Flex

Plan• Example Setup• Considerations• Questions

DPS FLEX PLAN HISTORY

Original Flex Plan for Administrators only

Utilized Lawson’s Flex Plan Setup Total Manual Process July 2002- Flex Plan included 4500

Teachers Manual Process had to be

eliminated

DPS Flex Plan Design

Not Setup as a “Flex Plan”

The only plans that are “flex plans” are Spending Accounts (Plan Type RS). These are flagged on BN08 as spending account only.

Design Overview Cont.

Standard Time Record for Flex Dollars

• Flex Dollars are after-tax. Deductions for Health, Dental,

Vision, TSA, and Flex spending accounts are pretax.

After-tax deductions can also be made from flex dollars e.g. Disability, Employee Life, and Dependent Life.

Extra flex dollars would be paid on an after-tax basis.

Example 1

All Flex Credits spent on Health, Vision, and Dental

• EE receives $232.28 flex credits based on employee group through a standard time record.

Monthly Salary = $3000 Health Pretax Ded = $200

Monthly Flex $ = $232.28 Dental Pretax Ded = $26.07

Total Earnings = $3232.28 Vision Pretax Ded = $6.21

Total Pretax = $232.28

Example 2

All Flex Credits Are Not spent on HealthVision and Dental, but used in TSA or

FSA• EE receives $232.28 flex credits based on

employee group through a standard time record.

Monthly Salary = $3000 Health Pretax Ded = $200

Monthly Flex $ = $232.28 Dental Pretax Ded = $0Total Earnings = $3232.28 Vision Pretax Ded = $0

Health FSA Ded= $32.28

Total Pretax = $232.28

Example 3

All Flex Credits Are Not Spent• EE receives $232.28 flex credits based on

employee group through a standard time record.

Monthly Salary = $3000 Health Pretax Ded = $0Monthly Flex $ = $232.28 Dental Pretax Ded = $0Total Earnings = $3232.28 Vision Pretax Ded = $0

Health FSA Ded= $208.33

Total Pretax = $208.33

Employee receives $23.95 Flex CashTaxable Wages = $3023.95

Advantages

• DPS setup is independent of Lawson’s “Flex Plan” design

• Less Data Entry• No Multiple Flex Period Issues• Do not have to Stop Date Benefits • No additional rate tables required• Flex dollars are driven by

paycode

Advantages Continued

• No required benefit enrollment order

• Employee Self Service Compatible

• Automation Rules work well• Can use same benefit plan for

both employees who receive and who do not receive flex credits

Set Up Tasks

1) PR20 – Flex Pay Code2) HR55 – Flex Employee Group3) PR30 – Standard Time

Record4) Benefit Plan Modification or

New Plan Set up.

Flex Pay Code1) Set up Pay Summary Group

Pay Code Set Up2) Set up Pay Code

Employee Group1) Define Group

Employee Group2) Define Group Criteria3) Run HR155 to Update Group

Set Up Standard Time Record

Benefit Plan Set Up

• Benefit Plan is not flagged as flex plan on BN15

• Flex plan is not set up on BN08• Employees are not set up for flex credits

on BN45 • One rate table is used for all employees

Benefits Enrollment Notes

• New Enrollment - Enter Benefits on BN31.2

• It is not necessary to re-enroll each year• Life Event – Change only effected

benefit(s) on BN32• Self Service Open Enrollment –will guide

employees through their current benefits. Employees will only need to re-enroll in benefits they want to change or add.

Considerations

• Amount of Flex Dollars can be different for each Employee Group

• Cash back option • Flex Dollars will not show on

employee self service without modification

Questions?

Thank You