Apply eligibility rules to not have any impact on inactive users.
Compensation and Variable pay
This is the expected behavior. As of now eligibility rules configured at UI level in Compensation Home > Plan Setup > Eligibility Rules are applied only on the active users but not for inactive user, even when "Starting point for eligibility" is selected as "All employees are eligible" and Include inactive users is selected for the template.
Only eligibility rules defined at User Directory File level will affect inactive users. This is the only way you can make an inactive employee eligible for the compensation. Please note that you will need to make the user active first then update the COMPENSATION_ELIGIBLE column to TRUE and import the UDF, as changes in the UDF for inactive users other than Status = Active/Inactive are not allowed (best practice: Import new UDf setting the inactive users to Active, Export UDF again, Import new UDF with new *_ELIGIBLE values, export UDF again, set users back to Inactive). Same applies for MERIT_ELIGIBLE, LUMPSUM_ELIGIBLE, EXTRA_ELIGIBLE,...
Inactive users, Eligibility rule , KBA , LOD-SF-CMP-ADM , Admin Tools, Settings, Permissions , Problem