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Jul 25, 2016 at 05:45 PM

Benefit insurance Age Bands – lock age based age at enrollment date

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All,

We have started a new insurance plan this year with setup based on age bands with the age cut-off/freeze date based on January 1. Our benefit provider has now informed us that the employee should be locked into their current rate based on their Age when they first enrolled in the plan. For example, if the employee enrolled this year and they are 39 years old, then next year if they stay enrolled their cost rate will still be based on age 39 even though they have turned 40 years old, and next year etc. Their rate will stay the rate as if they where still 39 as long as they stay enrolled in the plan.

Looking for ideas if anyone has come upon this and how it was handled?

We are on:

SAP_BASIS 740 SP 009

SAP_HR 608 SP 0012

EA-HR 608 SP 0012

Thanks,

Martha.