PercentOfPeriodic
This section describes how the PercentOfPeriodic
calculation
type is calculated.
When creating a PercentOfPeriodic
action, you must specify a
percentage.
When setting up a benefit of this type, one or more based-on benefits must be specified. The calculations are done by applying the action percentage to the sum of the periodic values of the based-on benefits.
You can also specify an annual cap, that is, the maximum amount that can be applied over the course of a year. The cap can be based on the calendar year or the fiscal year.
Calculation formulas
The PercentOfPeriodic
calculation type uses this formula:
Period value = Action percentage x Sum of periodic values of the based-on benefits for this period
This calculation type is not prorated to avoid double proration in the case that the based-on benefit is prorated.
Example : PercentOfPeriodic calculation
This example shows how the PercentOfPeriodic
action is
calculated. The action is based on two benefits, Benefit A and Benefit B.
The table shows the values for the two based-on benefits for periods from February through June:
Benefit type | Feb | Mar | Apr | May | Jun |
---|---|---|---|---|---|
Benefit A | 100 | 100 | 100 | 100 | 100 |
Benefit B | 0 | 100 | 200 | 300 | 400 |
This table shows the percentage, start and end dates for this action:
Start date | End date | Percentage |
---|---|---|
2/8/16 | 6/15/16 | 10% |
This table shows the calculation results for the
PercentOfPeriodic
action:
Month | Calculation | Result |
---|---|---|
Feb | 10% x $100 | $10 |
Mar | 10% x ($100 + $100) | $20 |
Apr | 10% x ($100 + $200) | $30 |
May | 10% x ($100 + $300) | $40 |
Jun | 10% x ($100 + $400) | $50 |