Premium Calculation Method#
This component determines how the premium amount will be calculated.
Choose the rule to be used as the ‘Premium Calculation Method’ rule.
| Rule | Description | Logic | Assoc. | Go to |
|---|---|---|---|---|
| 00 | Use Value from UserCalc | Specify the name of the <User Calc> on the component. The usercalc must be of the type `Function`, with a return value of the type `Numeric`. Use the RET operator to return the numeric value. This value is interpreted by the component as a user provided premium amount. | B0660 | |
| 01 | Use Value from Element | Specify the name of the <Element> on the component. The value of the element will be used as the premium amount. | B0660 | |
| 02 | Use Premium Value on Enrollment | Use the premium amount from the employee’s current enrollment detail, or the <BC Value> specified in the component. The employee’s enrollment detail (IBEN) must be initialized with a value, either by conversion or manual input, or through the component value. | B0660 | |
| 03* | Use Premium Rate | Uses the premium rate from the Rates tab or B0600 as the premium amount. | B0600 | B0660 |
| 04 | Premium Rate × Eligible Earnings | Multiplies the premium rate from the Rates tab or B0600 by the eligible earnings (B0360). | B0600 B0360 | B0660 |
| 05* | Premium Rate × Coverage Unit Value | Multiplies the premium rate from the Rates tab or B0600 by the coverage (B0470), and divides by the unit <BC Value> specified in component B0640. This rule is commonly used for life and disability plans. | B0470 B0600 B0640 B0650 | B0660 |
| 06 | (Prem × (Covg <= Limit))+(Prem2 × (Covg > Limit)) | Multiplies the premium rate from the Rates tab or B0600 by the coverage (B0470) less than or equal to the coverage limit specified in component B0650, plus it multiplies the premium2 rate (B0610) by the coverage (B0470) greater than the coverage limit specified in component B0650 Used for `dual-rated` plans where the premium rate is one rate up to a certain level of coverage and another rate over and above that level. | B0470 B0600 B0610 B0650 | B0660 |
| 07 | Premium Rate + Deduction + Contribution | Uses the premium rate from the Rates tab or B0600 plus the employee deduction amount plus the employer contribution amount as the premium amount. Used by some self-insured plans. The Premium Rate may be zero (0), which must be entered on the Rates tab. When using this rule, the sequence numbers of the premium components B0600 to B0690 must be changed to calculate after the contribution component B0840 and the deduction component B1040 have already been calculated. Rule may be used for self-insured plans. | B0600 B0610 B0620 B0660 B0670 B0680 B0690 B0840 B1040 | B0660 |
| 08 | Prem Rate × (Covg-SI Covg)/Unit Value (SI) | Multiplies the premium rate from the Rates tab or B0600 by the non self-insured amount of the coverage (B0470 minus the value of B0630), and divides by the unit <BC Value> specified in component B0640. Rule used for self-insured plans only. | B0470 B0600 B0640 B0630 | B0660 |
| 09 | Prem Rate × (Covg-SI Perc)/Unit Value (SI) | Multiplies the premium rate from the Rates tab or B0600 by the non self-insured percentage of the coverage (B0470 minus the value of B0630), and divides by the unit <BC Value> specified in component B0640. Rule used for self-insured plans only. | B0470 B0600 B0640 B0630 | B0660 |
| 10 | Premium Rate × Eligible Earnings / 100 | Multiplies the premium rate from the Rates tab or B0600 by the eligible earnings (B0360) divided by 100. This allows the premium rate to be entered as a percentage not a decimal. Rule may be used for CALPERS plans. | B0360 B0600 | B0660 |
Notes #
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