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Administrator Guide
Last Updated: 2023-06-23
Create Rules for Allocating Retirement Savings Contributions

Create Rules for Allocating Retirement Savings Contributions

  • Create retirement savings plans.
  • Security:
    Set Up Benefits: Retirement Savings Allocation Across Multiple Providers
     domain in the Benefits functional area.
Create the coverage types that enable employees to allocate their retirement savings contribution to more than 1 retirement plan within a coverage type.
If you use allocation of retirement savings plans, you can't use benefit defaults or cross plan prerequisites.
To
Complete the Employee Contribution Allocation Section
Complete the Employer Contribution Allocation Section
Set the Employer Allocation Rules
Allocate both employee and employer contributions.
Yes
Yes
Employee can always allocate.
Allocate only employee contributions. Can’t allocate employer contributions.
Yes
No
Allocate only employer contributions. Can’t allocate employee contributions.
No
Yes
Don’t select.
Allocate both employee and employer contributions. Workday allows allocation of employer contribution only if the employee doesn't contribute to any plans.
No
Yes
Employee can allocate only if they don’t contribute to any plan.
  1. Access the
    Maintain Retirement Savings Allocation Across Multiple Providers
     task.
  2. As you complete both the employee and employer
    Employee/Employer Contribution Allocation Across Multiple Providers
     sections, consider:
    Option Description
    Retirement Savings Coverage Type
    Select the coverage types to which employees can allocate contributions.
    Employer Contribution Allocation Rules
    Select either:
    • Employee can always allocate
       if you want the
      Employer Allocation
       on the enrollment form available for entry.
    • Employee can allocate only if they do not contribute to any plans
      . If you want the
      Employer Allocation
       on the enrollment form available for entry only when the employee hasn't selected to contribute to any plans within that coverage type.
    Priority
    Enter a number that Workday uses to determine which retirement plans receive the default Employer Contribution Percent.
    Workday applies only the highest priority to plans for which the worker is eligible. If the worker is eligible for multiple plans with different priority defaults, Workday applies only the default with the highest priority. The lower priority plan doesn't receive a default Employer Contribution Percent.
    Allocation
    Enter the percentage amount that you want as a default in the
    Employer Contribution Allocation
     field on the enrollment form.
    The total employer contribution allocation for all benefit plans must total 100%.
    On the enrollment form, the
    Employer Contribution Allocation
     automatically populates with this value.
On the
Retirement Savings Enrollment
 form for the benefit coverage types you added, you see a separate page for each coverage type.
  • Start an open enrollment.
  • Initiate a change in retirement savings task.
  • Initiate a passive event process.