Life Insurance Coverage/Rates not Calculating for Age Reduction (Doc ID 303251.1)

Last updated on DECEMBER 08, 2016

Applies to:

Oracle Advanced Benefits - Version 11.5.10.2 and later
Information in this document applies to any platform.

Symptoms

 Trying to reduce coverage amount after employee passes a particular age band.  Basic Life calculation is 2x salary.  There are variable coverages setup so that coverage is reduced based on age derived factors.  However, the coverage amount is reducing but not correctly.

Example:  Employee (EE), age 63, makes 113,000/year.  Basic Life coverage is 226,000, but based on the EE's age, this coverage should only be 65% or 146,900.  However, Oracle is calculating this to be 165,548.07 which is 73%.

 

Steps to Reproduce:

Age Derived Factor:
Name = Ppt Age 60-65
UOM = Year
Age to Use = Persons
Min = 60
Max = 65
Determination Code = As of Event Date

Plan Type = Decline Life
    Enroll and Decline Options attached

Plan = Decline Life Plan
Program = Decline Life Program
    Attached Plan and Plan Type

Program Enrollment Requirements:
    [x] Allows Unrestricted Enrollment
    Coverage/Rate Start/End Date Codes = Event/1 Day Before Event

Variable Rate Profile (VAPRO) Setup:
Name = Decline Life 60-65
Activity Type = Taxable Benefit
Tax Type = Not Applicable
Reference Period = Annually
Treatment = Multiply By
Usages = Coverages
Assignment to Use = Employee Assignment Only
Calculation Method = Multiple of Compensation
    Multiplier = .00065
    Operator = Percent Of
    Compensation Factor = Annual Stated Salary
    Criteria = Age Derived Factors = Ppt Age 60 - 65

Coverage Calculations:
Compensation Object = Decline Life Plan - Xilinx Life Enroll
Boundary Period = In a Year
Calculation Method = Multiple of Compensation
    Multiplier = 2
    Operator = Multiply By
    Compensation Factor = Annual Stated Salary
    Rounding Code = Round up to Next Thousand
    Upper Limit Value = 250000
    Variable Coverage button = attach VAPRO: Decline Life 60-65

Create a new employee as of 01-Jan-2004.  Birthdate:  08-JUL-1940 (Age 63).
Give salary of 112,694.40.
Navigate to Non-Flex Program enrollment form 01-Jan-2004 and enroll employee into life plan.
Save.
View Enrollment Results shows coverage amount = 165,548.07.
The employee should have a benefit coverage of 146,900.  This is 65% of 2 times the employee’s salary (226,000*.65).  However, the coverage is calculating to 165,548.07 – which is 73%.

 

Cause

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