The "Age Reductions" tab allows you to reduce coverage for employees when the employee hits a certain age in the system, commonly seen for Basic Life and Supplemental Life benefits.
- Expand Settings and click Benefit Management from the menu.
- Click the name of the new benefit package.
- Click the Configure Benefit Structure tab.
- Click add plan to create a new plan or click the name of an existing plan.
- Click the Age Reductions tab.
In the example above, if an employee were 72 years of age, the employee may elect 100,000 of coverage but only receive 60,000 of coverage because of their age.
Administrators have the option to use employees' age or their spouse’s age for benefit reduction.
Generally, the admin will use the employee's age unless the benefit is looking at the spouse's age for the age-banded premiums. In those plans, the spouse would typically be selected here.
The "Reduce Premium Costs accordingly when the Benefit Amount is reduced through an Age Reduction" option would be enabled if the employer or employee pays less for the reduced benefit coverage. If employees or employers still pay for the full elected coverage, even though the actual coverage has been reduced, then the box would not be selected.
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The next article is Step 7 - Relationship Restrictions