How Derived Factor Boundaries Work

To trigger a life event, participation evaluation processing requires a value. For example, consider age as the value to cross a particular defined boundary like the maximum limit that you set.

For example, you want a different rate to apply for a benefit when an enrolled participant crosses the age of 65. You define the age range as part of the Age Changed derived factor. So the derived factor indicates when the event should be detected, for example, when the participant's age is greater than 65. You link this derived factor to an eligibility profile, and link the eligibility profile to a variable rate. You add the variable rate to a standard rate that you create for a benefit offering.

When you run the participation evaluation process, it checks whether the participant has crossed the required age boundary set in the derived factor. If it has, the process creates an event and recalculates the rate according to the calculation method that you defined. The boundaries are inclusive. For example, the maximum in the age range of the derived factor was the whole number 65. So the boundary is not met until the associated temporal value reaches the whole number 66. This prevents any gaps that might occur between the maximum of one derived factor and the minimum of the next.