Life and Disability Option Coverage Settings

Determines whether employees must actively elect to participate in the option. When the checkbox is selected, employees who qualify are automatically enrolled in the option by the Benefits Auto Enrollment Option Process background job or the benefits eligibility recalculation that runs whenever a workflow includes the Benefits Enrollment node. This occurs regardless of whether employees access Benefits and elect to enroll in the option themselves.

By default, the option is selected when employees open the enrollment, and you can't change it.

Determines the values upon which coverage is based. The options are:

• Base Compensation: Dayforce shows the Basecomp Variable Settings section.
• Flat Amount: Dayforce shows the Flat Amount field, where you enter the coverage amount for the option. Employees can't change this value during enrollment.
• In Units: Dayforce shows the Units in increments of field, where you define the increments in which employees can elect coverage. Dayforce also shows the Coverage Minimum and Coverage Maximum fields.
• Note: This option isn't available if the Auto Enroll checkbox is selected.

Determines how Dayforce establishes the base compensation frequency. This field shows if you selected Base Compensation in the Coverage Based On drop-down list. The options are:

• Annual Base Compensation: The base salary for a salaried employee or the employee's base rate multiplied by the normal hours for an hourly employee.
• Monthly Base Compensation: The annual base compensation, divided by 12.
• Weekly Base Compensation: The annual base compensation, divided by 52.

Determines when the compensation or earning grouping amount is derived. Dayforce shows this field if you selected Base Compensation in the Coverage Based On drop-down list. The options are:

• Daily
• Relative Date: When this option is selected, Dayforce shows Month, Day, and Year drop-down lists. In the Year drop-down list, the options are Current Year, Current Plan Year, Previous Year, and Previous Plan Year.
• Specific Date: When this option is selected, Dayforce shows a Date field where you define a specific day, month, and year.

Dayforce uses employees' compensation as of their hire date if they don't have a compensation record as of the defined date. By default, the checkbox is selected. This field shows if you selected Relative Date or Specific Date in the Coverage as of drop-down list.

Note: If an employee has a compensation record of 0.00, then Dayforce uses 0.00 as the compensation amount in the coverage expression. In cases where no records exist, Dayforce considers the compensation as of the hire date. When the date defined by the Coverage as of field isn't the same as the hire date, Dayforce uses the later of the 2 dates.

If you select Base Compensation in the Coverage Based On drop-down list, Dayforce shows the Coverage Multiplier section.

When selected, the option uses a multiplier to calculate the coverage amount. The Multiplier Values and Maximum Multiplier fields show when you select this checkbox.

Determines whether you use system or custom multiplier values. The first step in setting the range of multipliers that employees can choose from when selecting coverage. The options are:

• 1 to Maximum
• Custom

Determines the highest coverage multiplier that an employee can choose when selecting the option. Select from a range of 1 to 10 in the drop-down list. The field shows if you selected 1 to Maximum in the Multiplier Values drop-down list.

Sets the units employees can choose from when selecting coverage. Click Add and enter a unique value from 1 to 100 with no more than 2 numbers after the decimal. Click OK. Repeat this process to add as many multiplier values as you need.

The coverage expression defines the minimum amount that an employee can enter when electing the option. This section shows if you selected Base Compensation or In Units in the Coverage Based On drop-down list. To configure the coverage expression, click Edit to open the Benefits Expression Builder. See The Benefits Expression Builder.

The coverage expression defines the maximum amount that an employee can enter when selecting the option. This section shows if you selected Base Compensation or In Units in the Coverage Based On drop-down list. To configure the coverage expression, click Edit in the field to open the Benefits Expression Builder. See The Benefits Expression Builder.

The coverage expression defines how Dayforce calculates the coverage amount for an employee. This section shows if you selected Base Compensation or In Units in the Coverage Based On drop-down list. To configure the coverage expression, click Edit in the field to open the Benefits Expression Builder. See The Benefits Expression Builder.

You can configure Dayforce to reduce coverage when participants reach a certain age. Example: The option has a flat coverage amount of $10,000. You can configure coverage to reduce by 10% at 55, 15% at 60, 20% at 65, 25% at 75.

Select this checkbox if the plan requires that the coverage amount is reduced when the participant reaches a specific age.

Dayforce also shows the Base Reduction on age of:, Calculate age as of, and Reduction Rules fields when you select this checkbox.

Determines whether Dayforce uses the age of the employee or the employee's spouse or legal partner to determine the age reduction. The Spouse/Legal Partner option is available only for the following life and disability plan subtypes:

• Dependent Life Insurance
• Supplemental AD&D
• Supplemental Life Insurance

For all other plan subtypes, the Employee option is selected by default and can't be changed. This behavior makes sure that you can’t mistakenly set up age reduction based on a spouse or legal partner for plan subtypes where this option isn’t applicable.

Note: If an option is set up to use age reduction based on a spouse, but an employee without a spouse enrolls in the option, Dayforce defaults to using the employee’s age for age reduction purposes.

Determines the date to derive a participant's age. The options are:

• Today
• Relative Date: Dayforce shows Month, Day, and Year drop-down lists. In the Year drop-down list, the options are Current Year, Current Plan Year, Previous Year, and Previous Plan Year.
• Specific Date: Dayforce shows a Date field, where you define a specific day, month, and year.

In the Age column, define the age at which a reduction percentage is triggered.

In the % Reduction column, define the percentage reduction associated with the specific age.

If you select Base Compensation in the Coverage Based On drop-down list, Dayforce shows the Rounding section.

When the checkbox is selected, Dayforce rounds the coverage amount after applying the multiplier and age reduction where applicable. Leave the checkbox cleared, and Dayforce applies rounding before the multiplier and age reduction if it’s configured as part of the coverage amount expression.

Example: An employee with an annual salary of 48,700 selects a voluntary life option at 4 times their base compensation, and their coverage should be rounded up to the nearest 1,000. When you clear this checkbox, Dayforce rounds the salary up to 49,000 and then multiplies it by 4 for a final coverage amount of 196,000. When you select this checkbox, the multiplier is applied first: 

48,700 * 4 = 194,800

That total is then rounded up to 195,000.

In the Benefits > Benefit Elections screen in People, you can check how Dayforce has performed a calculation by clicking Show Calculation Details, which opens the Calculation Trace dialog box in the election details.

Note: Show Calculation Details shows only before you save a newly added election and when you edit an election that doesn't have an override applied.

Dayforce also shows the Round to and Round to Nearest fields when you select this checkbox.

Determines the type of rounding used.