Security Profile - Ex-employee assignment records issue

Hi,

We are on Oracle Apps 11.5.10.2.

We  use security profiles to enforce record access restrictions based on criteria such as job profile, job level etc. To enable this we are using the custom security tab.

In custom security tab, if I choose Restrict people visible to each other using this profile, then I cannot view ex-employees. I believe this is because of the fixed code that precedes the code section that we add in here.

After going through metalink, I came across some notes which mentions of a new profile option introduced in R12 which fixes this issue.

Now, if I use the other option in custom security which is,