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HOW ARE COSTS CALCULATED IN OPEN ENROLLMENT#

The system will first check to see which rate basis the costs are using by checking the Rate Basis field in the Coverage Details of IBPN. Using that basis, the system will first calculate the annual cost and then calculate the monthly cost. To determine the period costs, the system will use the Times Per Year amount defined for the Open Enrollment type pay category. In order for the period cost calculations to work correctly, you will need to set up a pay category in IPPGU for Category Type of Open Enrollment. After setting this up, that catagory needs to be added to the frequency or frequencies in IPPF that are used by Benefits.

The following scenarios depict how the Year, Month, Period costs are calculated using different rate basis. Each scenario uses a different frequency.

Scenario: EE Deduction Rate of 22.60, Frequency is Bi-weekly (Times Per Year is 24)#

Rate Basis	Year	Month	Period
YR	$22.60 (22.60 * 1)	$1.88 (22.60 / 12)	$0.94 (22.60 / 24)
MO	$271.20 (22.60 * 12)	$22.60 (271.20/ 12)	$11.30 (271.20 / 24)
SM	$542.40 (22.60 * 24)	$45.20 (542.40 / 12)	$22.60 (542.4 / 24)
BW	$587.60 (22.60 * 26)	$48.97 (587.6 / 12)	$24.48 (587.60 / 24)
WK	$1,175.20 (22.60 * 52)	$97.93 (1 175.2 / 12)	$48.97 (1 175.20 / 24)
DY	$5,876.00 (22.60 * 260)	$489.67 (5 876 / 12)	$244.83 (5 876 / 24)
HR	$47,008.00 (22.60 * 2080)	$3,917.33 (47 008 / 12)	$1,958.67 (47 008 / 24)

Scenario: EE Deduction Rate of 22.60, Frequency is Bi-Weekly (Times Per Year is 26)#

Rate Basis	Year	Month	Period
YR	$22.60 (22.60 * 1)	$1.88 (22.60 / 12)	$0.87 (22.60 / 26)
MO	$271.20 (22.60 * 12)	$22.60 (271.20/ 12)	$10.43 (271.20 / 26)
SM	$542.40 (22.60 * 24)	$45.20 (542.40 / 12)	$20.86 (542.4 / 26)
BW	$587.60 (22.60 * 26)	$48.97 (587.6 / 12)	$22.60 (587.60 / 26)
WK	$1,175.20 (22.60 * 52)	$97.93 (1 175.2 / 12)	$45.20 (1 175.20 / 26)
DY	$5,876.00 (22.60 * 260)	$489.67 (5 876 / 12)	$226.00 (5 876 / 26)
HR	$47,008.00 (22.60 * 2080)	$3,917.33 (47 008 / 12)	$1,808.00 (47 008 / 26)

Scenario: EE Deduction Rate of 22.60, Frequency is Once A Month (Times Per Year is 12)#

Rate Basis	Year	Month	Period
YR	$22.60 (22.60 * 1)	$1.88 (22.60 / 12)	$1.88 (22.60 / 12)
MO	$271.20 (22.60 * 12)	$22.60 (271.20/ 12)	$22.60 (271.20 / 12)
SM	$542.40 (22.60 * 24)	$45.20 (542.40 / 12)	$45.20 (542.4 / 12)
BW	$587.60 (22.60 * 26)	$48.97 (587.6 / 12)	$48.97 (587.60 / 12)
WK	$1,175.20 (22.60 * 52)	$97.93 (1 175.2 / 12)	$97.93 (1 175.20 / 12)
DY	$5,876.00 (22.60 * 260)	$489.67 (5 876 / 12)	$489.67 (5 876 / 12)
HR	$47,008.00 (22.60 * 2080)	$3,917.33 (47 008 / 12)	$3,917.33 (47 008 / 12)

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