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A full-time employee, having a plan balance of 200 hours, is associated with an accrual...

A full-time employee, having a plan balance of 200 hours, is associated with an accrual plan that has a ceiling limit of 250 hours. The employment status of the employee is changed to part-time, which has a reduced accrual plan ceiling limit of 150 hours.

What happens when the Calculate Accruals process in run?

A.

The application will automatically reduce the employee's balance to 150 hours to meet the new ceiling limit and new accruals will be generated once the balance falls below this threshold.

B.

The original balance of 200 hours will be automatically disbursed through their payroll, and accruals will start generating from that point onward with a ceiling of 150 hours.

C.

The original balance of 200 hours will remain valid, but will be moved to a different "overflow-plan to be spent as required. The new plan will accrue balances as normal up to the new 150 hours threshold.

D.

The application will generate a zero-accrual record with the new reduced ceiling limit. The balance of 200 hours that the employee had when the employment status was full-time will remain even after the change in employment status because the balance can exceed the new reduced accrual plan celling limit. However, a new accrual amount will only be generated once the balance falls below the new accrual ceiling limit.

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