COVERAGE AMOUNTS BY SALARY

If your company has benefit plans in which coverage amounts differ by salary group, you can use this screen to set up the codes, related descriptions, and other information that will be used in determining life insurance coverage by salary ranges. These rates are generally used only for life insurance plans.

Use this screen to set up coverage amounts for employee salary ranges. You can apply this information to a benefit plan by entering the coverage table code in the Coverage Table column in the Coverage Options subtask of the Benefit Plan Setup screen under the following conditions:

1. You selected the Coverage Table radio button in the Coverage Calculation Method group box in the Coverage Options subtask of the Benefit Plan Setup screen;

2. You selected the Salary radio button in the Coverage Table group box in the Coverage Options subtask of the Benefit Plan Setup screen; and

You should enter the coverage amounts by salary information before setting up a benefit plan that will be using this table. However, you can add to this table at any time, and an unlimited number of records may be established.

Coverage Table Code

Enter up to 12 alphanumeric characters to uniquely identify this coverage table. This is a required field.

Description

Enter up to 30 alphanumeric characters to describe the coverage table code. This field is required.

Table Window

From Salary

After selecting the New Line button on the toolbar, enter up to 12 digits, plus up to two digits to the right of the decimal, for the salary amount at which to start the range. You can enter an amount as large as $999,999,999,999.00. In the first row, this field must be "0."  Subsequent rows must equal the previous row's Up To & Including Salary + .01. For example, for the salary range $0.00 - $14,999.99, you will enter "0.00" in this field on the first row. In the second row, this field will be "15000.00."  This is a required field.

Up To & Including Salary

Enter up to 12 digits, plus up to two digits to the right of the decimal, for the salary amount at which the range ends. This value must be equal to or greater than the value in the From Salary field. For example, for the salary range $0.00 - $14,999.99, you will enter "14999.99."  This is a required field.

Calculation Method

Enter "F" to indicate that coverage will be calculated by multiplying the employee's salary by the factor that is entered in the Coverage column. Enter "A" if you want the amount that is entered in the Coverage column to be the actual coverage amount. This is a required field.

Coverage

Enter up to 12 digits, plus up to two digits to the right of the decimal, for the amount of coverage for an employee in this salary bracket. You can enter an amount as large as $999,999,999,999.00. However, if this value represents a factor, it cannot exceed 100.00. This is a required field.

Example of Table Setup

If your company offers life insurance at different coverage amounts, based on the salaries of the employees, you could set up a table similar to the one below:

According to this table, employees who earn up to $14,999.99 per year receive five times their annual salary in life insurance coverage. Employees who earn between $15,000.00 and $29,999.99 receive four times their annual salary in life insurance coverage, and so on. Annual salary calculations are controlled by the radio button selected in the Salary Calculation Method group box on the Coverage Detail subtask of the Benefit Plan Setup screen.

Table Information

Changes to this screen update the following tables:

Salary Coverage - HB_SAL_CVG

Salary Coverage Schedule - HB_SAL_CVG_SCH

Benefit Plan - HB_BEN_PLAN_HDR

                     - HB_BEN_PLAN_LN