What are Contribution Types?
For each plan, you can define unique contributions. Infor offers six different contribution types. Contributions can be flat amount premiums, amounts calculated by the application, or amounts determined by the employee. Contribution Type Examples
The following are the types of contributions you can define.
| Type | Description |
|---|---|
| Options Amount (1) | The cost for each coverage option is a flat amount and is the same for all employees in a group. |
| Options Amount Range (2) | The cost for each coverage option varies based on salary, age or years-of-service ranges for employees in a group. |
| Flat Contributions (3) | The cost is a flat amount for all employees in a group. The cost may be based on employee's salary, age, years of service. |
| Salary or Coverage Rate Table (4) | The cost is calculated by multiplying a rate times the employee's amount of coverage or salary. The rate may be based on age, salary, or years of service. |
| Contribution Limits (5) | Contributions are designated by the employee, up to a specified limit. |
| Match Limit Schedule (6) | Used for benefit plans that specify employee contribution limits that are matched by a company contribution. |
| Match Percent Schedule (7) | Used for benefit plans that specify employee contribution limits that are matched by the company based on the percent of the employee's contribution. |
| No Contribution (0) | Use for benefit plans that will not track any contributions, neither by the employee, or company paid. |
Contribution Type Examples
Options Amount - For example, employees pay $400 for single coverage or $1100 for family coverage under a health plan.
Options Amount Range - For example, a company may reward years of service by paying a larger share of the cost of health insurance. Employees with less than five years of service pay $450 for single coverage, while employees with more than five years of service pay only $325, with the difference being added to the company's share of the cost.
Flat Contributions - The cost is a flat amount for all covered employees in a group. Cost may be based on age, salary, or years of service, but does not vary with level of coverage. For example, a company-provided Employee Assistance Plan has a flat cost to the company of $100 for each covered employee.
Salary or Coverage Rate Table - The cost is calculated by multiplying a rate times either an employee's salary or the amount of coverage in the plan. The rate used in the calculation may be based on age, salary, or years of service. For example, the cost of a disability plan is $.75 per $1,000 of coverage in the plan, where coverage is 60% of an employee's base salary.
Contribution Limits - For example, a medical reimbursement account allows employees to contribute any amount they choose up to $2,000 per year.
Match Limit Schedule - Used for benefit plans where employee contributions are matched by the company up to a specific limit. The match is determined as a percentage, and may vary based on years of service. For example, a 401(k) plan where an employee may contribute up to 15% of their eligible earnings and the company match is 50% of the employee's contributions up to 8%.
Match Percent Schedule - Used for benefit plans where employee contributions are matched by the company, and the amount of the match varies over the range of possible contribution levels. For example, a 403(b) plan where an employee may contribute up to 12% of their eligible earnings, and the company match is 100% on the first 1%, an additional 60% on the next 4%, and an additional 40% on the next 2% of contribution.
No Contributions (0) - Used for benefit plans that will not track any company or employee expense associated with the plan. For example, a vision discount plan for which the company pays a flat annual fee. Cost will not be tracked based on enrollment in the plan, only coverage.