Understanding Self-Service Benefit Plan Guidelines

Many organizations include contribution and coverage change limits in their benefit plans and benefit plan options. For example, to participate in plans that enable employee contributions, such as a retirement savings benefit plan, employees might have to contribute a minimum amount. In addition, organizations normally impose a maximum amount that employees can contribute. You can use the Benefit Amount Rate Edits program (P085573) to create these rules.

For other indemnity benefit plans such as life insurance, organizations often limit the amount of coverage increase that employees can choose during enrollment events. Even if employees are permitted to enroll for higher coverage when they are hired, companies often limit annual increases. For example, if an employee is enrolled in a life insurance plan that provides 10,000 USD of coverage, a rule might exist that the employee can elect to change to another plan that provides an increase of no more than 5,000 USD. Thus an employee with 10,000 USD coverage cannot elect a life insurance benefit plan with more than 15,000 USD coverage. You can use the Maximum Insurance Coverage Increase program (P085574) to set this limit.