Life Insurance Salary Routine (LSRY)*

The Life Insurance Salary Routine (LSRY) calculates deductions based on annualized monthly calculated salary regardless of the actual amount paid during the pay period. This routine uses the following fields:

  • Amount/Percent 1 is used to define the multiplication factor that defaults to one.

  • Amount/Percent 2 is used to define the maximum amount, with a default of no maximum amount.

  • Amount/Percent 3 is used to define the exemption amount.

  • Amount/Percent 4 is used to define the weighting factor, with a default value of zero (which means, do not apply the weighting factor).

  • Amount/Percent 5 is used to define the rounding rule for the annualized monthly calculated salary and for the result of applying the weighting factor to the annualized salary. Valid values are:

  • 1 - Indicates that rounding to the nearest integer number after weighting is required.

  • 2 - Indicates that truncation to the lower integer number after weighting is required.

  • 3 - Indicates no rounding for the salary amount after the weighting factor is applied to the annualized salary amount. Also indicates that the annualized salary is rounded up to the nearest 1000 before multiplying the Amount/Percent 1 value.

  • 4 - Indicates that rounding to the nearest integer number after weighting is required. Also indicates that the annualized salary is rounded up to the nearest 1000 before multiplying the Amount/Percent 1 value.

  • 5 - Indicates that truncation to the lower integer number after weighting is required. Also indicates that the annualized salary is rounded up to the nearest 1000 before multiplying the Amount/Percent 1 value.

Below are the detailed steps for Life Insurance Salary Routine (LSRY):

  • Step 1: Annualize the Monthly Calculated Salary obtained after running the Calculated Salary Routine.

  • Step 2: Round the annual salary from Step 1 using the rounding rule specified in Amount/Percent 5.

  • Step 3: Multiply the rounded annual salary from Step 2 by the multiplication factor in Amount/Percent 1.

  • Step 4: Compare the value from Step 3 with the Maximum Amount from the Amount/Percent 2 field. Select the lesser of the two amounts unless Amount/Percent 2 is zero that indicates there is no Maximum Amount.

  • Step 5: Subtract the exemption amount (Amount/Percent 3) from the amount obtained in Step 4. The result is the amount of coverage the employee’s life insurance premium is based on.

  • Step 6: Divide the result from Step 5 by the weighting factor (Amount/Percent 4).

  • Step 7: Multiply the result from Step 6 by the life insurance rate from Deduction Plan Alternate Rates (DEDA) to calculate the employee’s life insurance premium amount.

For benefits/deductions assigned the Life Insurance Salary Routine, if the full primary deduction that consists of the pre-tax deduction, the cafeteria after-tax deduction, and the full secondary deduction and fringe deduction, cannot be taken. The partial premium withheld for the pre-tax deduction is placed in a cafeteria clearing fund until the full premium is collected.

For benefits/deductions assigned the Life Insurance Salary Routine, if the employee fails the Benefit Eligibility test and the primary deduction rolls to the cafeteria after-tax deduction and is withheld in full for the employee, and the employee has a secondary deduction, but it cannot be taken in full then the primary cafeteria after-tax deduction, secondary deduction and the fringe are not processed.

Note: This functionality is only available when utilizing the Next Generation Payroll service.