Setting Up Coverage Group Codes
To set up coverage group codes, use the Life and AD/D Coverage Groups (COVERAGE_GROUP_TBL) component.
This section provides an overview of coverage group codes and discusses how to enter coverage group code information.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
COVERAGE_GROUP_TBL |
Enter the coverage group code information that sets the maximum total life and AD/D coverage for a group of life and AD/D benefit plans. |
Life insurance and accidental death and dismemberment (AD/D) plans use coverage group codes to establish the maximum lifetime coverage allowed.
For example, if you define a coverage group code with a 500,000 USD maximum, then enter that coverage group code for a supplemental life plan and a group life plan, and associate both benefit plans with a benefit program. If you were to enroll an employee in both of those plans, the system would ensure that the employee's total coverage by both plans does not exceed 500,000 USD.
If the total coverage for a participant exceeds the coverage maximum, the system reduces the total coverage to meet the coverage maximum. When the system processes the deduction, it accumulates the coverage amounts and begins reducing coverage when the coverage group maximum is reached. The system processes plans in order of deduction priority, and if more than one plan has the same priority, it processes in increasing plan type order.
Note: Oracle's PeopleSoft Payroll uses the effective date to determine which coverage maximum to use for a particular processing cycle, according to the pay period end date.
Use the Life and AD/D Coverage Groups page (COVERAGE_GROUP_TBL) to enter the coverage group code information that sets the maximum total life and AD/D coverage for a group of life and AD/D benefit plans.
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Image: Life and AD/D Coverage Groups page
This example illustrates the fields and controls on the Life and AD/D Coverage Groups page. You can find definitions for the fields and controls later on this page.
|
Field or Control |
Definition |
|---|---|
| Effective Date |
Enter the effective date for the coverage maximum. Payroll uses the effective date to determine which coverage maximum to use for a particular processing cycle, according to the pay period end date. |
| Coverage Maximum |
Enter the maximum total life and AD/D coverage. This amount applies to all the life and AD/D benefit plans that you associate with the coverage group code and that you associate with one benefit program. You connect a life or AD/D plan with a coverage group code using the Life and AD/D Plan table. |