Calculating coverage amounts

Coverage Type

Select the plan participants for this coverage record.

If the plan covers employees, COBRA participants, and retirees, you must at least three separate records, one for each cover type.

Start Date

Specify the date this coverage amount record is effective.

You can vary coverage by start date to define unique coverage for different periods. If coverage changes, add a new record for the new coverage.

Employee Group

If you define only one coverage option default record for a particular cover type, leave this field blank.

Note: Employees who do not meet the criteria for the employee group on the other coverage record use this coverage. This is only true if there are group-specific records for this plan, cover type, and date, and if you leave this field blank.

If you define coverage that is unique to a particular group of employees, select the employee group.

If you are defining coverage for COBRA participants, leave this field blank.

Note: If you define coverage by employee group, ensure to define employee groups so that an employee is a member of only one group at a time. If an employee belongs to more than one group for which coverage options have been defined, benefit entry forms and benefit update reports display an error.

If all employees in a group receive the same amount of coverage, select Flat Amount. For example, all employees receive $50,000 of life insurance coverage, and their spouse/domestic partner and dependents each get $2,000 of coverage.

If coverage is calculated as a multiple of salary, select Multiple of Salary. For example, employees can elect life insurance coverage equal to two or three times their salary.

If coverage is calculated according to a pre-set multiple of salary, select Fixed Multiple Salary. For example, employees cannot elect coverage equal to any multiple of their salary.

If coverage is calculated as a percent of salary, select Percent. For example, disability coverage is 60 percent of salary.

If coverage is elected in specified increments, select Supplemental. For example, increments of $5,000 of life insurance coverage up to $100,000 maximum.

Covered

Select whether Spouse, Domestic Partner, Spouse or Partner, Dependents, Partner Deps, Spouse and Deps, Partner and Deps or Spouse or Partner and Deps are covered by the plan.

If Dependents, Partner Dependents, Spouse and Dependents, Partner and Dependents, or Spouse or Partner and Dependents are selected type the age dependents student or non-student are no longer eligible for coverage under the plan.

Student Age

If the plan covers dependents, enter the age students are no longer eligible for coverage. If a dependent is defined as a student and not disabled on Dependent (HR13.1), the dependent's coverage is automatically stopped the day before the dependent reaches this age.

If you leave this field blank, 99 defaults.

Dependent Age

If the plan covers dependents, enter the age dependents, who are not students, are no longer eligible for coverage. If a dependent is not defined as a student and not disabled on Dependent (HR13.1), the dependent's coverage is automatically stopped the day before the dependent reaches this age.

If you leave this field blank, 99 defaults.

Part-Time Students

Select whether dependents with a part-time student are eligible for coverage in the plan until they reach the age in the Student Age field. If you select N - No, dependents with part-time student status are only eligible until they reach the age in the Dependent Age field.

Termination Option

Select whether the dependents stop date is based on the birth date, the last day of the month, or the last day of the year of the maximum age.

Flat Amount

If the plan's calculation type is Flat Amount, type the coverage amount. You cannot override the amount on benefit entry forms.

If the plan covers both spouses/domestic partners and dependents, type the spouse/domestic partner coverage amount in the first field and the dependent coverage amount in the second field.

Increments

If the plan's calculation type is supplemental, specify the increments of coverage that are purchased. For example, if employees can purchase coverage in increments of $5000, type 5000.

Multiple

If the plan's calculation type is Multiple, of an employee's salary, type the multiple in which coverage can be purchased. For example, if you type 0.5, valid coverage multiples are 0.5, 1.0, or 1.5.

Optionally, you can further define coverage.

See Defining coverage salary parameters

Click Add to open Salary Parameters (BN02.5).

Percent

If the calculation type is Percent of an employee's salary, specify the percent of an employee's salary that is used to calculate the employee's coverage amount. For example, if the coverage amount is based on 60 percent of an employee's salary, specify 60.

You cannot override this amount on benefit entry forms.

Optionally, you can further define coverage.

See Defining coverage salary parameters

Click Add to open Salary Parameters (BN02.5).

If you defined Calculation type as Percent or Multiple of Salary, the Salary Parameters (BN17.5) form opens, you must define the salary parameters for these calculation types.

See Defining coverage salary parameters .