Spouse Imputed Shell Plan Ignores Employee Deductions For Subject Plans (Doc ID 2612132.1)

Last updated on NOVEMBER 02, 2023

Applies to:

Goal

In calculating the imputed income related to group term life plans, we must first determine the total volume of coverage subject to these rules, calculate a rate for the imputed income, then subtract out any premiums already being paid on the coverage by the employee. In Cloud Benefits, we're unable to subtract the employee-paid piece. This is resulting in an over-calculation of imputed income for all employees with spouse supplemental life. We can potentially modify fast formulas on the payroll side, but this puts payroll out of sync with benefits. It's also less reliable because the imputed income must have a lower processing priority number than the voluntary deduction. How can we meet this requirement given that fast formulas are not enabled in the configuration of imputed rates

Steps taken:
Created a Spouse Imputed Shell Plan (calculating based on the spouse)
Made Optional Spouse Life plan subject to "Spouse" imputed income
Marked the optional spouse standard rates as subject to imputed income

Example: In the enrollment screen, it shows the imputed spouse income plan as 17 cents greater than what it should be, this is because there should be a credit of 17 cents applied for the premium already paid by the employee.
 

Solution

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