Supplemental Life Insurance Set-Up

Currently, we offer Employee supplemental life 3X, 4X, 5X and 6X salary. We are looking into changing the plan design to offer flat amout of coverage, $25,000 increment, up to $1 million or 6 times salary for employee whichever is less. Does anyone have similiar set-up?

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connie-heitman

When we went live with benefits in Lawson S3 this year and switched our Voluntary Life Insurance from the salary increments to a flat amount of coverage, $10,000 increment, up to $1 million dollars.

Legacy Contributor

Yes, we have $10,000 increments with a maximum of $250,000 or 7 times salary whichever is less. The increment is control on Coverage Amounts (BN17.3) and the limits are on Coverage Limits (BN17.4) where we use both the Amount Limits (Minimum $10,000; Maximum $250,000) and Multiple of Salary Limits (Minimum is blank; Maximum 7).

connie-heitman

Our set up on the Benefit Plan (BN15.1) screen is Coverage Type 2 (Coverage Amount) and Contribution Type 4 (Salary or Coverage Rate Table). On the Coverage Amounts (BN17.3) screen we have Calculation Type S (Supplemental), Covered E (Employee), and Increments $10,000. On the Coverage Limits (BN17.4) screen we have the Amount Limits Minimum set at $10K and the Maximum set at $1mil. We would like to add Coverage Reduction Rules but we receive the error "Coverage Reduction not allowed for Supplemental plan". We are currently on Version 9.0.1 in Lawson S3 and have not learned of a work around within the system.

Legacy Contributor

Our work around for the coverage reduction is to have 2 Coverage Amounts (17.3) forms - one with the increment and one without. We use employee groups to control which one applies. When employees reach age 70 they are excluded from the main group and added to the reduced coverage group. The coverage amount is then calculated manually. Luckily we only have two points of reduction (ages 70 & 75) and only reduce at the beginning of the year. The number of employees affected is small enough that handling this manually hasn't been an issue.

connie-heitman

Thank you! We have three points of reduction (ages 70, 75, and 80). For those that you handle manually, are you able to have the employee enrolled in the plan and enter the deduction amount on the BN32.2 screen?

Legacy Contributor

We entered the reduced coverage amount on BN32 and the system calculates the deduction amount.

Legacy Contributor

Thank you, Nancy Stanley and Cmeier for your responses! Excellent information. Would you be able to run a BN215 on your plan and send to me? I truly appreciate your assistance on this. My email is mindy.le@regence.com. Once again, thank you in advance!

connie-heitman

You are welcome! I have emailed the BN215 for our plan set up.

Legacy Contributor

Very nice. Thank you both for you time!

Legacy Contributor

Question for Nancy Stanley. The second coverage amount form for employees at the coverage reduction age...how do you have the Calculation Type flag set on BN17.3?

connie-heitman

On the BN17.3 screen we have the Calculation Type set to S (Supplemental). On the next screen BN17.4 we should be able to include the information in the Coverage Reduction Rules section, but this does not work in the current version of Lawson S3 we have (9.0.1). I had opened a case with Infor to have this resolved and was told this is fixed in version 10. Currently age reduction is managed manually for us.

Legacy Contributor

Thank you, Nancy. I believe I have set up worked out now.

Legacy Contributor

We may be making the same type of changes to our supplemental life plan 1/1/2018. Nancy- would you mind sharing your BN215 with me as well? My email is kmuccioli@wakemed.org. Thanks!

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