Creating rate tables

Use this procedure to define rate tables. Rate tables are used in flex credit calculations and coverage and contribution calculations for benefit plans. These can be based on age, salary, years of service, smoker status, lifestyle or dependent credits, for coverage reduction that is based on age, or to define maximums based on number of dependents.

Create a rate table for each type of benefit plan election. For example, you would define a rate table for health insurance coverage for an employee only, and another rate table for health coverage for an employee and their spouse. You must also define rate tables for life insurance rates, short or long term disability insurances rates, and any other benefit plans offered.

  1. Select Benefits > Set Up > Rate Tables.
  2. Click Create.
  3. Specify this information:
    Rate Table

    Specify an identifier for the rate table.

    Description

    Specify a description for the rate table. This description should be specific enough to differentiate this table from others.

    Start Date

    Select the date on which this rate table is effective.

    The same rate table can have many start dates to accommodate rate changes.

    Table Type

    Select the type of rate table. Options are Age, Salary, Years of Service, Coverage Reduction, Lifestyle Credits, Dependent Credits, and Dependent Limits.

    Table Basis

    Select the basis for the rate table, either percent of salary, or a specific amount.

    Select whether contributions are an amount or a percent. Select Amount if this rate table is for a contribution record calculated as a flat amount. Select Percent if this rate table is for a contribution record calculated as a flat percent or percent of salary.

    Currency

    Select the currency to assign to this rate table.

    If left blank, and this is an amount table, the default is the organization currency.

  4. Click Save.
  5. Use the Details section to further define the rate table. The displayed fields are related to the Table Type selected; not all fields are displayed for each Type.
  6. Click Create.
    Age - Beginning / Ending

    The beginning date is a calculated value. Specify the ending age for the contributions that you are defining.

    Salary - Beginning / Ending

    Specify the ending salary for the contributions that you are defining. The beginning salary for each salary range is calculated.

    Years of Service - Beginning / Ending

    Specify the ending value of the years of service range for the contributions that you are defining. The beginning year of service for each range is calculated.

    Number of Credits Beginning / Ending

    Specify the ending number of lifestyle credits for this range. The Beginning number is calculated.

    Number of Dependents - Beginning / Ending

    Specify the ending number of dependents for this range. The Beginning number is calculated.

    Percent

    If the coverage amount is reduced to a specified percent for plan participants of a particular age, specify the percent of coverage used for this age range. For example, if coverage under an employee life plan reduces to 75% of original coverage when an employee reaches 60 years of age, specify 75. If you also type an amount of coverage for this age range, the greater of the two calculations is used.

    Amount

    If the coverage amount is reduced to a specified amount for plan participants of a particular age, specify the benefit coverage amount used for this age range. For example, if coverage under an employee life plan reduces to $10,000 for employees 75 years and older, specify 10000. If you also type a percent of reduction, the greater of the two calculations is used.

    Smoker

    Select a smoker state for the rate table. You can create a different rate for various combinations of smoker status for individuals and their spouse or partner. Select from these statuses:

    • None: Specify when you have a rate that is specifically for individuals who are not smokers and neither the individual or the spouse/domestic partner are smokers. You can also use this state when all rates are the same regardless of smoker status.

    • Individual: Specify to set up a specific rate for when the individual is a smoker.

    • Spouse or Partner: Specify to set up a specific rate when the Spouse or the Domestic Partner is a smoker.

    • Both: Specify to set up a specific rate for when both the individual and Spouse or Partner are smokers

    The smoker designation is not used when determining flex credits.

    You can indicate whether someone is a smoker using the Smoker field on the Talent Profile for employee, retiree, or COBRA participant's spouse and dependents.

    Employee Limits

    Used for table type Dependent Limits. Specify the maximum an employee can contribute if they have enrolled dependents in the range.

    Employer Contribution

    Used for table type Dependent Limits. Specify employer maximum if employee has dependents in range.

    Maximum

    The calculated value is displayed for employer and employee limits.

    Pre Tax

    Specify the pre tax contribution. Contributions for employees can be a negative amount if the rate table is for a benefit plan under a flex plan. If the employee contribution is negative, an employee receives flex credits when they elect the benefit. If the contribution is positive, employee deductions are created. If the contribution is negative, a standard time record for the employee is updated or created. For more information, see Overview of flex plan setup. For COBRA participant contributions, include the administrative fee, if any.

    After Tax

    Specify the after tax contribution for someone enrolled in the plan.

    Employer

    Specify the employer's contribution. For employee benefits, this amount is used to create company deductions.

    Flex Credits

    Specify the number of flex credits that employees receive.

    If the plan gives flex credits to employees and there is no employee cost, a standard time record for the employee is created or updated with this amount. If the plan gives flex credits and there is a cost to the employee, the employee cost is subtracted from the flex credits.

    Note: If you use the rate table to calculate flex credits, you must specify a value in this column.
    Total

    Total is a calculated value.

    Imputed Income

    If imputed income is needed for an election that should be applied each pay period, for example, health insurance, then specify the annual amount.

  7. Click Save.

    This table shows the fields that are displayed for each Rate Table Type option.

    Field Age Salary Years of Service Coverage Reduction Lifestyle Credits Dependent Credits Dependent Limits
    Beginning / Ending Age, Salary, Years of Service X X X X
    Beginning / Ending Number of Credits X
    Beginning/ Ending Number of Dependents X X
    Percent X
    Amount X
    Smoker X X X
    Employee Limits X
    Employer Contribution X
    Maximum X
    Pre Tax X X X
    After Tax X X X
    Employer X X X
    Flex Credits X X X X X
    Total X X X
    Imputed Income X X X