920 Group Basic Life Insurance

Deduction Type:
Group Life
Applicable Pay Group(s):
01, 06, 20
Action/Form:
Employer Ded
Contact Information:
Group Insurance 208-332-1860
Options and Rates:
0.00721 (.721%) * Certified Monthly Rate
 
 
Basic Life Insurance is an employer provided benefit paid on all eligible, active employees (pay status 'A' only) on the last payroll each month.
 
The basic life insurance premium is calculated based on the employee's life insurance plan code.  See below:
 
·        Plan Code - LC - Regular Employees
Life Insurance premium (deduction code 920) is calculated using the employee's regular rate of pay
·         Plan Code - LP - Applies only to employees whose rate of pay is pro-rated (PS change reason)
Life Insurance premium (deduction code 920) is calculated using the employee's override rate of pay
·        Plan Code - LB and LM - Applies to participating legislators, under age 70 (LB), over age 70 (LM)
Life Insurance premium (deduction code 921) is a fixed dollar amount based on plan code Legislators Insurance Premium
 
Life Insurance Premium Calculation
 
 
1.  Determine the Annual Equivalent Salary
 
2. Multiply the FTE by 12.  Result is the percentage of a month or the number of months the employee is expected to work.  (Round to two decimal places.)
 
3. Divide the AES (#1) by result from (#2).  (Truncate at two decimal places.  Do not round up.)  Result is the Certified Monthly Rate (CMR).
 
4. Multiply the CMR (#3) by the Life Insurance Premium Rate of .00675.  (Truncate at two decimal places.  Do not round up.)
 
 
Examples
 
Hourly Employee in Pay Group 01 with Rate of $22.10, 80.0 Pay Period Hours, and 1.0 FTE:
1.  22.10 x 2080 = 45,968.00
2.  45,968.00 x 1.0 = 45,968.00
3.  80.0 ÷ 80.0 = 1.0000
4.  45,968.00 x 1.0000 = 45,968.00
5.  1.0 x 12 = 12.00
6.  45,968.00 ÷ 12 = 3,830.66 (truncated from 3,830.6667)
7.  3,830.67 x .00721 = 27.62 (truncated from 27.6191307)
 
Hourly Employee in Pay Group 01 with Rate of $19.50, 42.0 Pay Period Hours, and 0.67 FTE:
1.  19.5 x 2080 = 40,560.00
2.  40,560.00 x 0.67 = 27,175.20
3.  42.0 / 80.0 = 0.5250
4.  27,175.20 x 0.5250 = 14,266.98
5.  0.67 x 12 = 8.04
6.  14,266.98 ÷ 8.04 = 1,774.50
7.  1,774.50 x .00721 = 12.79 (truncated from 12.794145)
 
Annual Employee in Pay Group 20 with Rate of $45,000.00, 173.3 Pay Period Hours, and 1.0 FTE:
1.  45,000.00 x 1 = 45,000.00
2.  45,000.00 x 1.0 = 45,000.00
3.  173.3 ÷ 173.3 = 1.0000
4.  45,000.00 x 1.0000 = 45,000.00
5.  1.0 x 12 = 12.00
6.  45,000.00 ÷ 12 = 3,750.00
7.  3,750.00 x .00721 = 27.04 (truncated from 27.0375