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Former Member
Mar 10, 2010 at 09:04 PM

Life Insurance Cost or Credit calculations

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As Is:

Employer Credits (Plan LCRE on IT168) exist on all employees eligible for Life Insurance. The amount of the credit is the Age Banded Rate (ABR) per $1,000 up to the first $50,000 in Benefit Salary.

Employee/Employer costs are calculated as the ABR per $1,000.

To Be:

Employer Credits (Plan LCRE on IT168) exist on all employees eligible for Life Insurance. The amount of the credit is the Base Rate ($.17) per $1,000 up to the first $50,000 in Benefit Salary.

Employee/Employer costs are calculated as follows.

Scenrio Coverage Selected Costs

BSAL < 50K 5K 5,000 @ $.17/1000

BSAL < 50K 1XSAL 1XSAL @ $.17/1000

BSAL < 50K 50K 1XSAL @ $.17/1000 + 50K - BSAL @ ABR/1000

BSAL < 50K 2XSAL 1XSAL @ $.17/1000 + 1XSAL @ ABR/1000

BSAL > 50K 5K 5,000 @ $.17/1000

BSAL > 50K 50K 50,000 @ $.17/1000

BSAL > 50K 1XSAL 1XSAL @ $.17/1000

BSAL > 50K 2XSAL 1XSAL @ $.17/1000 + 1XSAL @ ABR/1000

The 'AS IS' is acheived by config. The 'TO BE' is not possible to handle through config and we are trying to find the best possible solution for this requirement. Any clues will be highly appreciated and please let me know if you need any additional information.

Thanks,

Kiran