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 on the Coverage Options subtask of the Manage Benefit Plans screen under the following conditions:
You selected the Coverage Table option in the Coverage Calculation Method group box on the Coverage Options subtask of the Manage Benefit Plans screen;
You selected the Salary option on the Coverage Table group box in the Coverage Options subtask of the Manage Benefit Plans screen; and
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.
Enter a unique code to identify this coverage table.
Enter a description or name for the coverage table code.
After you select the 
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 To Salary + .01. For example, for the salary range 0.00 - 14,999.99, you enter 0.00 in this field on the first row. In the second row, this field will be 15000.00.
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 enter 14999.99.
From the drop-down list, select the calculation method option. Valid options are:
Amount
Factor
Select Factor to indicate that coverage will be calculated by multiplying the employee's salary by the factor that is entered in the Coverage field. Enter Amount if you want the amount that is entered in the Coverage field to be the actual coverage amount.
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.
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:
|
Salary Ranges |
Calculation Method |
Coverage |
|
0.00 - 14999.99 |
Factor |
5 |
|
15000.00 - 29999.99 |
Factor |
4 |
|
30000.00 - 39999.99 |
Factor |
3 |
|
40000.00 - 49999.99 |
Factor |
2 |
|
50000.00 - 99999.99 |
Factor |
1 |
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 option selected in the Salary Calculation Method group box on the Coverage Options subtask of the Manage Benefit Plans screen.