Partial Month Determination Rule Options

The partial month determination rule calculates the contribution or distribution amount when a participant's enrollment coverage date falls within a month.

You can choose from the following options:

• All

• None

• Prorate value

• Formula

• Wash formula

All

The rule calculates the amount as if the participant were enrolled for the entire month.

None

The rule calculates the amount as if the participant wasn't enrolled at all for the entire month.

Prorate Value

The rule prorates the standard contribution or distribution based on the percentage of the month that the participant was enrolled.

If you select this option, click Add in the Proration Details section to define proration details, including:

• Percentage

• Rounding rule or formula for rounding the calculated prorate value

• Prorate period

• Which months the proration details apply to: for example, months with 28 days, 29 days, and so on.

• Proration formula, if applicable

• Start and stop coverage rule, if applicable

You can define more than one set of proration details if, for example, the details differ depending on the number of days in a month.

Formula

The rule uses your formula to calculate the rate. Select the formula to use. You must define the formula using the Manage Fast Formulas task in the Setup and Maintenance work area before you can select it here.

Wash Formula

The rule applies a wash formula to the rate to determine whether or not participants receive a contribution or distribution.

• Enter the day of the month (1-31) to use as the wash rule day.

• Participants don't receive a contribution or distribution if either is true:

  • Their start date occurs after the wash rule day

  • Their end date occurs before the wash rule day