The page allows you to set a forfeiture rate schedule for all the grants, and also at
the Group level. The effective date defines the first date on which a forfeiture rate
is applicable, and the combination of the effective dates and forfeiture rates creates
the default forfeiture rate schedule. The effective date has to be on or before the
earliest grant date.
A grant-specific forfeiture rate may be set by uploading the Forfeiture Rate File. A
forfeiture rate schedule set on the grant-level will override the default forfeiture
rate schedule for that particular grant.
At least one effective date and forfeiture rate must be entered at the system-wide
level for the earliest grant date. The default forfeiture rate setting is required in
Expense calculations.
When forfeiture rate settings are uploaded through the Forfeiture Rate File, any
effective date gaps will be filled in by the default forfeiture rate setting.
Example:
A default forfeiture rate is set through the Forfeiture Rate Schedule page.
Effective Date: 1/1/2006
Forfeiture Rate: 10%
An override forfeiture rate setting is uploaded through the Forfeiture Rate File for a
specific Grant ID:
Grant ID: 1111
Effective Date: 3/1/2006
Forfeiture Rate: 6%
Another grant specific forfeiture rate is set for the same Grant ID, but for a
different effective date.
Grant ID: 1111
Effective Date: 4/1/2006
Forfeiture Rate: 7%
Grant 1111 will use override forfeiture rate of 6% effective from 3/1/2006 until
3/31/2006. Thereafter it will use new rate of 7% until the end of its vesting life.
Any gaps between a grant's Grant Date and the date of its first override forfeiture
rate will be filled by the default forfeiture rate - in this instance 10%.
To Add a Forfeiture Rate:
1. Enter an Effective Date. The default value is the current date.
Once an effective date is set with a forfeiture rate, another forfeiture rate
cannot be set for the same effective date until the existing one is deleted.
2. Enter a Forfeiture Rate by entering a number 0-100 inclusive. The default
value is 0.0.
Effective Date and Forfeiture Rate combination settings should be unique. In
order to change a forfeiture rate for a specific effective date, the previous
setting should be deleted.
3. Click the Add button. The forfeiture rate setting is displayed in the Default
forfeiture rate schedule settings: section at the bottom of the page.
To Delete a Forfeiture Rate:
- Click the Delete link located to the right of the Forfeiture Rate.
Setting up for Group-level usage of Forfeiture Rate Schedule
1. To setup a new Schedule Code, type in a 5-digit alpha, numeric or alpha-numeric
value in the input box.
2. Alongside in the Schedule Name, enter a descriptive name to be associated with
the Schedule Code.
3. To the right of the Schedule Name are two options:
i. Delete, which deletes the Schedule Code and Schedule Name
ii. View Forfeiture Rate Schedule Line, which activates the Forfeiture Rate
Schedule Lines below.
4. Enter Effective Date and Forfeiture Rate values in the Forfeiture Rate Schedule
Lines. To add more Effective Dates, click on the Add Row button. Clicking on Save
saves the values and associates the values to theC Schedule Code above. Cancel
clears any changes.
Assigning Group-level Values
Assignment of values is performed under the section Forfeiture Rate Schedule
Assignment. Schedules can be assigned at the following levels:
· Grant Type
· Plan Name
· Award Type
· Award Subtype
· User-defined values (setup under Lists)
Select the Forfeiture Rate Schedule for the group value you want it assigned at, and
click on Save to save changes, or Cancel to clear changes.