What is 'additional funding scheme' in SAP PA-BN-FB - Flexible Benefits?

additional funding scheme - Overview

• Component: PA-BN-FB

• Component Name: Flexible Benefits

• Description: Benefits scheme where the benefits element of an employee's package is totally separated from the salary received. An additional flex fund is allocated to each employee, comprising a fixed sum of money available to each employee to spend on benefits. The organization offers a comprehensive list of benefits to the employee from which they can make their selections, paying for these with their flex fund.

additional funding scheme - Details

• 
  Key Concepts: 
  Additional Funding Scheme (AFS) is a feature of the SAP PA-BN-FB Flexible Benefits component. It allows employers to provide additional funding to employees for their flexible benefits plan. This additional funding can be used to purchase additional benefits or to increase the value of existing benefits. 
  
  How to use it: 
  To use the Additional Funding Scheme, employers must first set up an AFS account in the SAP system. This account will be used to track the additional funding provided to employees. Once the account is set up, employers can then allocate funds to employees for their flexible benefits plan. Employees can then use these funds to purchase additional benefits or increase the value of existing benefits. 
  
  Tips & Tricks: 
  When setting up an AFS account, employers should ensure that they have sufficient funds available in the account to cover all employee contributions. Additionally, employers should ensure that they are aware of any restrictions or limits on how much additional funding can be provided to employees. 
  
  Related Information: 
  The Additional Funding Scheme is just one of many features available in the SAP PA-BN-FB Flexible Benefits component. Other features include employee contribution tracking, benefit selection and enrollment, and reporting and analytics. Employers should familiarize themselves with all of these features in order to maximize the value of their flexible benefits plan.