Supplemental EE Life Ins - Benefit Reduction Schedule

One of our locations has a benefit reduction schedule for the supplemental life insurance (Calc Type: S, Increments: $10K). I am trying to set up a Coverage Reduction Rule to have this built into the plan but am getting the message of "Coverage Reduction Not Allowed for Supplemental Plan". Any creative ways on how to make this work and built into the plan setup?

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unknown

It's my understanding supplemental life plans can no longer have coverage reduction built into the plan set up. Most supp life plans have coverage limits of increments of round amounts. Since coverage reduction is usually a percentage, these two conflict with each other. As a result, we do our reductions manually.

I had to set up new groups for the various reduced coverage amounts. Each of these groups has a separate coverage record (BN17.3) with the coverage set up as a flat amount. I exclude the employee from the standard group for the plan and add him/her to the appropriate reduced coverage amount group to update the benefit record (BN32) to show the reduced coverage amount.

d-wilcox

When you find out how to do it through the system, please share. I currently just run an Access report at the beginning of the year to see who is turning 70 years old and manually adjust it accordingly.

unknown

Ours works. The coverage tab is set up as a multiple of salary. Then I set up Coverage Reduction Rules/Rate Table on BN17.4. My Coverage reduction table (BN02.5) is set up as a percent based on age.

I do have to run a report each month and manually stop/start the coverage on BN32 -- but I don't have to set up other groups, etc. to make it work.

unknown

this will work if you are using multiple of salary. But if you have life insurance based on incremental amounts, ($25K to $750K) the reduction doesn't work for me.

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