Life Insurance Processing

When processing life insurance plans, the system is designed to process:

  1. An eligibility check.

  2. Basic life deductions.

  3. Supplemental life deductions.

  4. Spousal life deductions.

Eligibility Check

To perform the eligibility check, the system:

  1. Processes BEN FM BASIC ELIG.

    This is the same eligibility check performed by the health plan process.

  2. If BEN FM BASIC ELIG equals one, the system will process the section LIFE INIT.

    LIFE INIT calls the array BEN AR LIFE PLANS. BEN AR LIFE PLANS uses the formula BEN FM LIFE PLANS to retrieve the employee's life insurance enrollment information for plan types 20, 21, and 25 from the Life/ADD Elections page in PeopleSoft HR.

Basic Life Deductions

To calculate life insurance deductions, the system:

  1. Performs another eligibility check using the formula BEN FM BAS LIF ELG.

    If retroactive adjustments exist, and if the employee's plan type 20 election coverage is not blank, then one is assigned to the formula BEN FM BAS LIF ELG.

    If the value of BEN VR BASIC ELIG equals zero, then zero is assigned to the formula BEN FM BAS LIF ELG.

    If the employee's plan type 20 election coverage equals blank, T, or W, then zero is assigned to the formula BEN FM LIF ELIG.

    If the Primary Job field for this employee is selected, then one is assigned to the formula BEN FM BAS LIF ELG.

  2. If the formula BEN FM BAS LIF ELG equals one, the system will process the section BAS LIF DED. BAS LIF DED uses:

    1. The formula BEN FM PLN TYP 20 to set plan type 20 specific search criteria.

    2. The array BEN AR BEN PRG DEF to retrieve benefit option and cost information from the Benefit Program page in PeopleSoft HR.

    3. The arrays BEN AR RATE TBL and BEN AR RATE DAT2 to retrieve benefit rate data from the BN_RATE_TBL and BN_RATE_DATA tables respectively.

    4. The array BEN AR CALC RULE to retrieve the calculation rules from the Calculation Rules page in PeopleSoft HR.

    5. The array BEN AR LIFE PARM to retrieve the group coverage code from the Life/Accidental page in PeopleSoft HR.

    6. The array BEN AR DEP COV ELG to retrieve covered person type data from the BN_DEP_COV_ELG_LIF table.

    7. The array BEN AR BN FORMULA to retrieve benefit formula data from the BN_FORMULA table.

    8. The array BEN AR BN FORM DEF to retrieve benefit formula definition data from the BN_FORM_DEF table.

    9. The array BEN AR COV GRP to retrieve the maximum coverage for the group coverage code from the Coverage Group Tbl page in PeopleSoft HR.

    10. The formula BEN FM CVGRPCD DAT to check that the employee does not exceed the maximum amount allowed for all life insurance plans.

    11. The formula BEN FM BAS COV AMT to calculate the basic life coverage amount taking into consideration the limits that may apply.

    12. The deduction BASIC LIF EE to calculate the actual basic life insurance deduction.

      BASIC LIF EE uses the formula BEN FM BAS EE COST.

Supplemental Life Deductions

To calculate supplement life deductions, the system:

  1. Performs another eligibility check using the formula BEN FM SUP LIF ELG.

    If retroactive adjustments exist, and if the employee's plan type 21 election coverage is not blank, then one is assigned to the formula BEN FM SUP LIF ELG.

    If the value of BEN VR BASIC ELIG equals zero, then zero is assigned to the formula BEN FM SUP LIF ELG.

    If the employee's plan type 21 election coverage equals blank, T, or W, then zero is assigned to the formula BEN FM BAS LIF ELG.

    If the Primary Job field for this employee is selected, then one is assigned to the formula BEN FM SUP LIF ELG.

  2. If the formula BEN FM BAS LIF ELG equals one, the system will process the section SUP LIFE DED. SUP LIFE DED uses:

    1. The formula BEN FM PLN TYP 21 to set plan type 21 specific search criteria.

    2. The array BEN AR BEN PRG DEF to retrieve benefit option and cost information from the Benefit Program page in PeopleSoft HR.

    3. The arrays BEN AR RATE TBL and BEN AR RATE DAT2 to retrieve benefit rate data from the BN_RATE_TBL and BN_RATE_DATA tables respectively.

    4. The array BEN AR CALC RULE to retrieve the calculation rules from the Calculation Rules page in PeopleSoft HR.

    5. The array BEN AR LIFE PARM to retrieve the group coverage code from the Life/Accidental page in PeopleSoft HR.

    6. The array BEN AR BN FORMULA to retrieve benefit formula data from the BN_FORMULA table.

    7. The array BEN AR BN FORM DEF to retrieve benefit formula definition data from the BN_FORM_DEF table.

    8. The array BEN AR COV GRP to retrieve the maximum coverage for the group coverage code from the Coverage Group Tbl page in PeopleSoft HR.

    9. The formula BEN FM CVGRPCD DAT to check that the employee does not exceed the maximum amount allowed for all life insurance plans.

    10. The formula BEN FM SUP COV AMT to calculate the supplemental life insurance coverage amount taking into consideration the limits that may apply.

    11. The deduction SUPL LIF EE to calculate the actual basic life insurance deduction.

      SUPL LIF EE uses the formula BEN FM SUP EE COST.

Spousal Life Deductions

To calculate spousal life insurance plan deductions, the system:

  1. Performs another eligibility check using the formula BEN FM SPS LIF ELG.

    If retroactive adjustments exist, and if the employee's plan type 25 election coverage is not blank, then one is assigned to the formula BEN FM SPS LIF ELG.

    If the value of BEN VR BASIC ELIG equals zero, then zero is assigned to the formula BEN FM SPS LIF ELG.

    If the employee's plan type 25 election coverage equals blank, T, or W, then zero is assigned to the formula BEN FM SPS LIF ELG.

    If the Primary Job field for this employee is selected, then one is assigned to the formula BEN FM SPS LIF ELG.

  2. If the formula BEN FM SPS LIF ELG equals one, the system will process the section SPOUSE LIFE DED. SPOUSE LIFE DED uses:

    1. The formula BEN FM PLN TYP 25 to set plan type 25 specific search criteria.

    2. The array BEN AR BEN PRG DEF to retrieve benefit option and cost information from the Benefit Program page in PeopleSoft HR.

    3. The array BEN AR CALC RULE to retrieve the calculation rules from the Calculation Rules page in PeopleSoft HR.

    4. The array BEN AR DEP BIRTH to retrieve the spouse's birth date from the Update Dependent/Beneficiary - Name and Personal Profile pages in PeopleSoft HR.

    5. The date GP PRD END DT EXTR to extract the current year based on the period-end-date.

    6. The formula BEN FM SPOUSE AGE to calculate the spouse's age.

    7. The formula BEN FM RT SMKR ST to determine rates based on smoker status.

    8. The array BEN AR LIFE PARM to retrieve the group coverage code from the Life/Accidental page in PeopleSoft HR.

    9. The array BEN AR BN FORMULA to retrieve benefit formula data from the BN_FORMULA table.

    10. The array BEN AR BN FORM DEF to retrieve benefit formula definition data from the BN_FORM_DEF table.

    11. The array BEN AR COV GRP to retrieve the maximum coverage for the group coverage code from the Coverage Group Tbl page in PeopleSoft HR.

    12. The formula BEN FM CVGRPCD DAT to check that the employee does not exceed the maximum amount allowed for all life insurance plans.

    13. The formula BEN FM SPS COV AMT to calculate the supplemental life insurance coverage amount taking into consideration the limits that may apply.

    14. The deduction SPSE LIF EE to calculate the actual spousal life insurance deduction.

      SPSE LIF EE uses the formula BEN FM SPS EE COST.