The system has the ability to make benefits dependent on one another. When using this feature, please make sure benefits that are dependent are listed after the benefit they are dependent on. The system will need the election of the benefit that the new dependent benefit is based on. For benefits that are not dependent on other benefits, please disregard this tab entirely.
You may select the benefit that the newly created benefit is dependent on from the dropdown menu with all previously created benefits if the checkbox for 'Enrollment in this benefit is dependent upon enrollment in the following benefit' is checked.
An example would be a spouse's supplemental life. While creating the spouse supplemental life, you can select the employee supplemental life as the dependent benefit in the dropdown option. Nothing special needs to be selected for the employee supplemental life but you must select employee supplemental life as the dependent benefit in spouse supplemental life step 3.
Specify the Rules of Dependency
- The Elected Coverage Level for this benefit must match the elected coverage level of the benefit selected above: For this option, you must have identical coverage level ranks within your dependent benefit and the benefit with the dependency. You will see coverage level rank at the plan level under Step 2 - Coverage Levels. If level 2 is selected in original benefit, then dependent election will only allow employee to elect whatever level 2 is. Employee cannot waive if original benefit was not selected as waive with matching level rank.
- The Elected Coverage Level for this benefit must either be Waive OR match the elected coverage level of the benefit selected above: Identical as first selection but allows employes the option to waive or only select the same coverage level through level rank field from dependent benefit. Employees with this option get two coverage options but nothing else.
- The elected Benefit Amount for this benefit must not exceed the following percentage of the elected Benefit Amount for the Benefit selected above: X %: This option will allow employees to elect up to the percentage chosen for the benefit that the dependent benefit is looking to or any option less than that desired percentage. If percentage is set at 50% and employee elects 4100,000 option in benefit that dependent benefit is based on, then employee will only see $50,000 option along with waive and other elections that are less than 50 percent of initial benefit election.
- Base the Benefit Amount dependencies on the Benefit Amount of the Benefit selected above before Age Reductions are applied: This option is added to the percentage election if desired. The system can apply percentage of initial benefit before age reduction. If age reductions start at age 70 where employees receive 65% of initial benefit for say a $100,000 dollar election, then the system will still allow the dependent benefit election to be $50,000 instead of $32,500.
The next article is Step 2.4 - Benefit Compensation Calculation