Create a Benefit Variable Rate

This example demonstrates how to create a benefit rate for an employee payroll contribution to a life insurance plan. The rate varies depending on the participant's age, so it's associated with multiple variable rate profiles.

The following diagram shows the Plan Configuration work area tasks to complete in this example:

Follow these general steps to create variable coverage:

1. Create variable coverage profiles.

2. Create a base coverage.

3. Associate variable coverage profiles with the base coverage.

Prerequisites

1. Create the life insurance plan to which the rate applies.

2. Define a payroll element and input value to associate with the rate.

3. Create derived factors for the age bands associated with each variable rate, such as:

   • Age_20-29

   • Age_30-39

   • Age_40-49

   • Age_50-59

   • Age_60-69

   • Age_70-greater

4. Create the following eligibility profiles and associate each with the appropriate derived factor.

   • Life_Age_20-29

   • Life_Age_30-39

   • Life_Age_40-49

   • Life_Age_50-59

   • Life_Age_60-69

   • Life_Age_70-greater

Creating Variable Rate Profiles

Use default values for fields unless the steps specify other values.

1. Click the Manage Benefit Rates task.

2. On the Variable Rate Profiles tab, click Create.

3. Complete the fields, as shown in this table.

   Field	Value
   Profile Name	Life_Age_20-29
   Tax Type Rule	After Tax
   Activity Type	Employee Payroll Contribution
   Treatment Rule	Replace
   Defined Rate Frequency	Biweekly
   Eligibility Profile	Select the eligibility profile for this age band.
   Status	Active
   Calculation Method	Flat Amount
   Value	4.00

4. Click Save and Close to return to the Variable Rate Profiles tab.

5. Repeat steps 2 - 4 to create five additional variable rate profiles, one for each age band. Use the values in the previous table for all fields except Profile Name and Value.

   Profile Name	Value
   Life_Age_30-39	6.00
   Life_Age_40-49	8.00
   Life_Age_50-59	10.00
   Life_Age_60-69	15.00
   Life_Age_70-greater	22.00

Creating a Standard Rate

Use default values for fields unless the steps specify other values.

1. Select the Rates and Coverages tab.

2. On the Standard Rates subtab Create menu, select Create Standard Rate.

3. Complete the fields, as shown in this table.

   Field	Value
   Rate Name	Life Rate
   Legal Employer	Select your legal employer.
   Plan	Select the life insurance plan you created for this rate
   Activity Type	Employee payroll contribution
   Tax Type Code	After Tax
   Payroll Element	Select the payroll element associated with this rate
   Element Input Value	Select the input value for this rate
   Calculation Method	No standard values used

Associating the Variable Rate Profiles to the Standard Rate

1. In the Variable Rates section of the standard rate page, click Select and Add on the Variable Profile Name subtab toolbar.

2. Enter a sequence number and select the first of the six variable profiles you created earlier.

3. Click OK to return to the Variable Rate Profile Name subtab.

4. Repeat steps 1 and 2 to add the other five variable profiles to this rate.

5. Click Save and Close to return to the Rates and Coverages tab.