9.2 Creating Coverage Formulas

Purpose:  Use this document to create coverage formulas for Benefits within the ctcLink system.

Audience: Benefits Administrators.

The Coverage Formula Table supports credits as a percent of salary: 

  • If you specify a Coverage Maximum, the system will limit the employee's salary to that maximum before calculating credits. If you do not specify a Coverage Maximum, the system will not limit the employee's salary.
  • If rounding is specified, the system will use it to round the salary before calculating credits.

Navigation: NavBar > Navigator > Set Up HCM > Product Related > Base Benefits > Rates and Rules > Coverage Formula Table

  1. On the Coverage Formula Table search page, select the Add a New Value tab.
  2. Enter valid value into the Coverage Formula ID field.
  3. Select Add. The Coverage Formula Table page will display.
Coverage formula table add a new value

If you select plan level coverage, use the Coverage Formula Table to define how coverage should be calculated. Coverage formulas are used by both life and disability insurance plans.

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.

  1. On the Coverage Formula Table page, enter valid value into the Description field.
  2. Enter info into the Short Description field.
  3. In the Benefit Base section, select the employee's salary from the drop-down menus, that the system will use for coverage and premium calculation. Values for both Coverage Base as of and Premium Base As Of are:
    • Check Date
    • Last Year On
    • Pay End Date
    • This Year On
  1. The system uses the regular compensation base entered on the Job Data - Compensation page in Workforce Administration for the Annual Rate. Alternatively, you can enter a rate from the drop-down menu in the Source section. The system uses the rates defined in the Annl Benf Base Rt Type Tbl page.
  1. In the Formula section, select Constant from the Entry Type drop-down menu.
  2. Enter valid value into the Numeric Value field.
  3. In the Age Coverage Reduction section, enter valid value into the Age field.
  4. Enter valid value into the Percent field.
  5. Select the Add a New Row button.
  6. Enter valid value into the Age field.
  7. Enter valid value into the Percent field.
  8. Select the Add a New Row button.
  9. Enter valid value into the Age field.
  10. Enter valid value into the Percent field.
  11. Select the Save button.
Coverage Formula Table page
  1. The process to create coverage formulas is now complete.
  2. End of procedure.

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