Coverage Formula Table Page

Use the Coverage Formula Table page (BN_FORMULA) to create coverage calculation formulas.

Navigation:

Set Up HCM, and then Product Related, and then Base Benefits, and then Rates and Rules, and then Coverage Formula Table, and then Coverage Formula Table

You can select from existing formulas to calculate life insurance coverage or create your own coverage calculation formulas, both from the Coverage Formula Table page.

This example illustrates the fields and controls on the Coverage Formula Table page. You can find definitions for the fields and controls later on this page.

Coverage Formula Table page

Benefit Base

Field or Control Description

Coverage Base As Of

Select the employee's salary that the system will use for coverage calculation. Values are:

  • Check Date

    The date of the pay check is used to calculate the coverage amounts.

  • Last Year On

    A specific date is used to calculate the coverage amounts. You must enter the month and day.

  • Pay End Date

    The pay end date is used to calculate the coverage amounts.

  • This Year On

    A specific date is used to calculate the coverage amounts. You must enter the month and day.

Premium Base As Of

Select the employee's salary that the system will use for premium calculation. The options are:

  • Check Date

    The date of the pay check is used to calculate the coverage amounts.

  • Pay End Date

    The pay end date is used to calculate the coverage amounts.

  • Last Year On

    A specific date is used to calculate the coverage amounts. You must enter the month and day.

  • Pay End Date

    The pay end date is used to calculate the coverage amounts.

  • This Year On

    A specific date is used to calculate the coverage amounts. You must enter the month and day.

Source

Field or Control Description

Annual Rate

Select this field for the system to use the regular compensation base entered on the Job Data - Compensation page in Workforce Administration.

Annual Benefits Base Rate

Enter a rate from the drop-down menu. The system uses the rates defined in the Annl Benef Base Rt Type Tbl page.

Multiple Job Rules

Field or Control Description

Combine Base for Multiple Jobs

Select this option if you want to aggregate salary from multiple jobs as a basis for a coverage determination.

Group Method

This field is available if you selected the Combine Base for Multiple Jobs option.

Select the grouping method for the system to use when selecting jobs to contribute to the total benefit base. Values are:

  • All Flagged Jobs

    All flagged jobs are included in the calculation regardless of the benefit record number.

  • Flagged Jobs in Benefit Record

    All flagged jobs within the current record number are included in the calculation.

  • Primary Job in Benefit Record

    Only the primary job within the current benefit record number is included in the calculation.

Consider Active Jobs Only

Select to have the system consider only jobs with an active status.

Maximum Benefit Base

Enter the maximum amount of benefit base that can be used in the coverage formula calculation.

Note: This is most often used in disability plans to limit the amount of salary subject to replacement.

Coverage Minimum and Maximum

Field or Control Description

Coverage Minimum

Enter the minimum amount of coverage that an employee can receive. If the calculated coverage falls below this amount, this amount will be covered as a default.

Coverage Maximum

Enter the maximum amount of coverage that an employee can receive. If the calculated coverage exceeds this amount the coverage is capped.

Coverage Formula

Field or Control Description

Coverage Formula

Displays the formula in an algebraic format.

Show Formula

Click to refresh the Coverage Formula field.

Formula

Field or Control Description

Operand

Select from these mathematical options to build your formula.

Entry Type

Select an entry type. Values are:

  • Constant

    Select if the value is a constant.

  • Base

    Select if the base salary may change.

Numeric Value

This field is available if you select Constant in the Entry Type field.

Enter a numeric value.

Round to Multiple of

Enter a numeric value to designate the precision of the rounded number. Typical multiples are 100 and 1000.

Round Up Amount

Enter a numeric value to designate when a number gets rounded.

Age Coverage Reduction

Field or Control Description

Age

Enter the age of employee. The system determines the age by the pay period end date.

Percent

Enter a percentage that the system will deduct from the employee's coverage.

An Example for Creating a Formula

Here is an example for setting up the formula for ((2 X BASE) ROUND + 1000)) ROUND

  1. For Seq No field 10, select the ( symbol in the Operand field.

  2. Add a row.

  3. For Seq No field 20, select the ( symbol in the Operand field.

  4. Add a row.

  5. For Seq No field 30, select Constant in the Entry Type field and enter 2 in the Numeric Value field.

  6. Add a row.

  7. For Seq No field 40, select the * symbol in the Operand field and select Base in the Entry Type field.

  8. Add a row.

  9. For Seq No field 50, select the ) symbol in the Operand field.

  10. Add a row.

  11. For Seq No field 60, select Round in the Operand field, enter 1000 in the Round to Multiple of field, and enter 500.00 in the Round Up Amount field.

  12. Add a row.

  13. For Seq No field 70, select + in the Operand field, select Constant in the Entry Type field, and enter 1000.00 in the Numeric field.

  14. Add a row.

  15. For Seq No field 80, select the ) symbol in the Operand field.

  16. Add a row.

  17. For Seq No field 90, select the ) symbol in the Operand field.

  18. Add a row.

  19. For Seq No field 100, select Round in the Operand field, enter 500.00 in the Round to Multiple of field, and enter 1000 in the Round Up Amount field.

The formula creation area should look like this:

This example illustrates the fields and controls on the Formula creation area. You can find definitions for the fields and controls later on this page.

Formula creation area

When you are done and have clicked Save Formula or Save, the formula that you created appears in the Coverage Formula Scroll area.

This example illustrates the fields and controls on the Completed customized formula. You can find definitions for the fields and controls later on this page.

Completed customized formula

Other examples of formulas you may want to create are:

  • Flat Amount

  • 2 x Base

  • (2 x Base) Round

  • (2 x Base) Round + Flat Amount

  • ((2 x Base) + Flat Amount) Round

  • (Base + Flat Amount) Round

  • ((2 x Base) Round + Flat Amount) Round