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Administrator Guide
Last Updated: 2024-09-20
Create Retirement Savings Plans

Create Retirement Savings Plans

  • Set up benefits.
  • Create one or more deductions or earnings.
  • Security:
    Set Up: Benefits
     in the Benefits functional area.
When you create retirement savings accounts for employees, you can define the:
  • Retirement plan minimum and maximum contribution amounts for employees.
  • Employer contribution amounts.
  • Payroll deductions.
You can allocate retirement savings contributions across multiple plans by creating a separate deduction for each plan.
  1. Access the
    Create Benefit Plan
     task.
  2. Select
    Retirement Savings Plan
     from the
    Benefit Plan Type
     prompt.
  3. As you complete this task, consider:
    Option Description
    Do Not Use
    When selected, Workday appends the
    Do Not Use
     label to the benefit plan name and hides it from
    Benefit Plan
     configuration prompts, as of the effective date. This check box doesn't hide the benefit plan name from configuration prompts in these tasks and business process:
    • Create
       or
      Edit External Payroll Deduction
       tasks.
    • Create
       or
      Edit External Payroll Earning
       tasks.
    • Review COBRA Eligibility Event
       business process.
    External Plan Description
    Create a plan description document and make it available on the enrollment form as an external link.
    Worker Plan Eligibility
    Select an eligibility rule to limit coverage to a subset of eligible workers in the participating benefit groups.
    Currency
    Specifies the currency used to calculate the contribution amount for the benefit plan. Select the same currency used by the benefit groups that can enroll in the plan. Consider creating a separate benefit plan for each currency or country.
    You can only update this field if the
    Usage Count
     is zero.
    Frequency
    Workday uses the frequency in payroll calculations.
    Earnings and Deductions
    Select the deductions Workday Payroll uses to calculate employee and employer contributions to retirement plans.
  4. In the
    Expanded Plan Details
     section, add plan details for your employees so that they can see the specific features of the benefit plan. You can also add instructions and links to benefit plan information. Workday displays employee and employer contribution information.
  5. In the
    Employee Contribution
     section,you can enable workers to automatically increase retirement savings contributions, to support Secure Act 2.0.
    This feature is only available for
    percentage
    contributions. Employees can opt in or out of automatic contribution increases during an enrollment event with the
    Auto Contribution Increase
     check box.
    As you complete this section, consider:
    Option Description
    Auto Contribution Increase
    Select to enable auto contribution increases on the retirement savings plan.
    Auto Contribution Percentage
    Specify the default contribution percentage of the worker's initial enrollment, between 3% and 10%. Available only when you enable
    Auto Contribution Increase
    .
    Yearly Auto Contribution Increase Percentage
    Specify how much the percentage increases each year. Typically 1%. Available only when you enable
    Auto Contribution Increase
    .
    Auto Increase Percentage Maximum
    Specify the maximum percentage at which the yearly increase stops. Available only when you enable
    Auto Contribution Increase
    .
  6. (Optional) Select a deduction for the Payroll Entity on the
    External Payroll Deductions
     grid when you use an external payroll application to calculate employee and employer contributions.
    Specify deductions to ensure that retirement savings plans display costs.
You can enable employees to configure their contribution elections for retirement savings plans during open enrollment. Workday enables employees to configure their contribution elections during open enrollment or update them during the plan year on the
Benefits and Pay Hub
.
  • Enable employees to allocate their contribution to more than 1 retirement savings plan using the
    Maintain Retirement Savings Allocation Across Multiple Providers
     task.
  • Create or edit the benefit plan year definition and add the new retirement savings plan to it.