PeopleSoft Stock Administration Training

7-5 Stock Actions

• Looks like we'll need to create an action for transfer to ineligible organizations.
• 7-7 discusses some of these other Stock Action triggers.

Chapter 7 : Changing Data

6-23 Administering Refunds

• Looks to be where we'd do withdrawl refunds. But maybe not if we are just adding contributions prior to the purchase at each trade. A withdrawl (manual or triggered) would probably trigger a Benefit action to ADP to do the refund.

6-20 Purchase Stock

6-18 Calculating Prices

• This should calculate the discount price and therefore, the company contribution.
• This looks like a way to determine if you table setup is correct because if uses the Stock Price Daily table and the Holiday Schedule table.

6-16 Currency Conversion. Probably not applicable to us for our ESPP plan because it's for U.S. paid employees. Correct?

6-7 Gather Contributions

• Would probably use Manual Contribution (import from ADP). Import definition on 6-10.

We currently don't send any Savings Plans percentages to ADP from Peoplesoft. Not a big deal (I think).

Enrollment in ESPP: We'd have to communicate the percentage to ADP and they would do the actual Gross-Code*percentage calculation.

6-3 Update Participants: Would we need a group (because we have Process All which would process all participants enrolled in the plan)?

Would it be possible to immediately do the distribution when shares are purchased by the Plan Agent for the plan? Is it just a legacy of the distribution being too hard to do each quarter?

Chapter 6: Administering ESPP

5-14 Stock Purchase Table

• What's the difference between Stock ID, Stock Plan, and Offering ID?
• Contributions: Does this let you determine which contributions are used for purchase?

5-11 Process Groups

5-9 Offering Purchase Period

• Do you need to have it expire?

What's the difference between Grant and Purchase Date?

Can we configure an ongoing Purchase Period?

5-3 Stock Purchase Plan Rules

• General: Tieing Stock to Benefits.
• You can Pro-rate a Purchase based on the number of shares the plan has available.
• FMV Rules: Set prices for purchase.
• Limits: Can limit the amount of participant contributions, grant value, shares.
• Purchase: Discount %
• Purchase: Rounding, fractional shares.
• Contributions: Source (PS Payroll, Manual Contributions)
• Contributions: Residual (Carry forward <= price)
• Dispositions: Holding Period Months (for tax purposes...not Plan holding prior to distribution). Probably just use IRS default (2 years?).

In Grant Process, you can reject just one of the entire group. Reject individually.

E-10: PS Enterprise Application Points (EIP) for Option Grant and Award.

March 22, 2002 - Stock Purchase

4-33, Disposition of Exercised shares. This is how a disposition of ISO share communicates the amount sold to Payroll (not something SAIC currently does). We should see the same thing in the ESPP discussion tomorrow (3/22).

PS Stock Admin currently only works with PS North American Payroll.

4-25: The Admin-Stock-Options - Use - Exercises - Issuance tab. Seems to be the link from the exercise to the broker to complete. This whole process is the 'old' way of doing things where an Admin is keying in an exercise for an employee.

A key to getting the Option Exercise to work pretty seemlessly would be to use PeopleSoft Payroll to hold actual, up-to-date withholdings. Would more than likely mean an implementation of PeopleSoft-ADP integration module. Otherwise, all you get is a default tax calculation.

Jeff: Create Variable Comp pools for each organization pool, add funds from Stock Options, and let HR organizations grant out of their variable compensation pool.

Variable Comp doesn't seem to have, out of the box, a type of 'stock bonus' compensation. They do have options, but not direct stock. They have an 'other' type that would probably be used (configured, built) to support this SAIC-type of bonus.

Variable Comp to Stock integration: There is a publish and subscribe feature that allow the grants to happen in VC and the a Stock process runs to get those.

ISO limits: Key thing I don't know anything about. These requirements are checked when a new grant is saved (4-9, first paragraph as a starter).

Jeff: What happens when you supercede a vesting schedule on a grant?

4-2: Can you add prices for future days if the prices isn't going to change (like ours)?

Chapter 4: Administer Stock Option Plan

3-19: When they talk about HR actions triggering Stock Actions and workflow, are they strictly talking about email notification? Or can this be some other type of system initiation, like triggering a job or something else (URL, SOAP call, etc.)?

Stock Action Reason Table amd Stock Action Rules Table

• More definition of actions taken when PS HR action happens.<

Stock Action Table

• Integration point with PS HR.
• Types of actions: LOA, Return LOA, Termination.
• Able to configure definition of LOA?

Stock Tax Types

• Used to setup defaults if not using PeopleSoft Payroll to get actual taxes.
• Are we, in essence, currently in SP integrating with ADP because we get actual tax feeds?

Stock Option Plan Rules

• Payment/Income Methods: Set the different types of payment methods, includes Swap, Cash, Trade for Taxes
• Option Paramters: Can assign parameters to a grant by default. Such as Vesting ID, Agreement ID, etc.

Vesting Schedules (Options, 3-3)

Process Groups

• Can you use this to process the ESPP purchase for those contributing?

Stock Blackout Table

• Can be set for groups of people.
• Used for our subscription periods?

4-25: Issuance Page.
7-11: Issuance Instruction Page.

Stock Plan Table (2-30)

• Working with Benefits is key to setup. Plan ID should be same as Benefits ID.

Stock Treasury Table (2-26)

• Allocating shares to plans.
• Allocations are done on a 3 tier system: Treasury, Class, Plan (each with own table to configure).

Stock Details

• Looks like a key table.
• Need to setup earnings codes in Peoplesoft Payroll (if you are going to integrate).
• Rounding rules set here.
• These are common rules for both Options and Purchase.
• How to date transactions (like Option Exercises) on Holidays and weekends.
• Limit options to per optionee or at Plan level.
• Require an agreement to exercise.

Stock Branch Table

• Enable what services a branch can handle.

Stock Agent (2-15)

• Linking Stock ID (Stock table) to Transfer/Escrow Agency
• Specify contacts for services the agent supplies to the stock ID

Stock Table (2-14)

• Displays the 'tracking numbers' (grant number, etc.)

Brokerage/Branch Table

• Setup Brokerage, then Branch.

Transfer/Escrow Agency

• Used to configure for electronic issuing of shares.

FMV Method Table

• Setup of price.
• Usually configure FMV Average Days to 1.

• Title: Stock Administration HRMS 8.01
• Instructor: Eunice Valenziano
• Attendees: Kay VanMouwerik, Brian Banks, Heidi Kelley, Mary Helen Blasius, Michelle Padidar, Jeff Lemons

Optionee Role: In Self-service for maintaining your own options.

Variable Comp: Where grants are done. Do we have/use Variable Comp? No

Grouping of employees in Variable Comp can then be used to grant options.

Stock Table: Stock ID. (1-3)

• Used with many other tables.
• A high level key.

Enrollment in ESPP is done through Benefits module.

Map reports (1-6) with our current reports.

Chap 2: Stock Admin Setup

Usually not updated much after initial setup.

Holiday table used to designate when stock trading is closed. (Exchange table?)

2-4: Recommended order of table setup.

Governing Body Rules:

• PS delivers IRS rules.
• $25K limit per year for ESPP is an IRS rule.
• Year from Grant Date in Purchase. What is this for?

Exchange Table

• Where you trade shares.
• Link to holiday schedule.
• Only U.S. Exchanges.
• Can you setup your own exchange?

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