Life Insurance - EO

Life Insurance routines require a special routine for employee only (EO). This allows GTN to take into account the tobacco/nicotine response, gender, as well as an annual salary for the employee only benefit.  When the Special Routine ID is set to Life Insurance - EO, the routine uses the following fields:

• Populate Amount/Percent 1 to reflect the coverage level: .5 (x annual salary)

• Populate Amount/Percent 2 to reflect the maximum amount of coverage an employee can elect.  For example, an employee can only elect a maximum of 200,000.00 in coverage.

• Populate Amount/Percent 3 to reflect the amount of coverage the client provides at no charge to the employee.

• Populate Amount/Percent 4 with the weighting factor used to calculate the rate. For example, the rate of the plan is per each 1,000.00 in coverage

• Populate Amount/Percent 5 to reflect the rounding rule for annualized salary. For example, the employee’s annualized salary is 34,344.00. Rounding up for option 2 would bring the annualized salary to 35,000.00.

• 1 = no rounding at this point in the calculation

• 2 = round up to the nearest thousandth

• 3 = round down to the nearest thousandthPopulate Amount/Percent 6 to reflect the rounding rule for salary x coverage percent. For example, the annual salary is 35,660.00 per no rounding, the selected coverage is 3.5 x base salary which is 124,810.00, per option 2 rounding up the coverage amount is 125,000.00.

• 1 = no rounding at this point in the calculation

• 2 = round up to the nearest thousandth

• 3 = round down to the nearest thousandth

• Populate Amount/Percent 7 to reflect the IRS limit for exemption from pre-tax. For example, the current exempt amount is 50,000.00

• Populate the Secondary Deduction Type and Secondary Deduction Plan to handle any possible imputed income that GTN needs to process.

Note: The two rounding options can be set the same or they can be set with different rounding options. You can set the annual salary to not round, but round at the point in the calculation where the coverage percent x the base salary is rounded.