BENEFIT TYPE is mandatory and is a system global type. It is used to be able to link specific accounting rules to be used when accounting transactions are to be generated for the value calculated for the benefit product.
Note:
This field only applies to those schemes that use Standard Benefit Rules. For those schemes using Flexible Benefit Rules, the implicit meanings attached to benefit type (FAS, GLA, STD, etc.) are not applicable as their business meaning is expressed in a calculation package.
FORMULA TYPE is a mandatory field and indicates the nature of the data that defines the benefit product.
It may also be used as a place holder for a lower level package containing other calculation types, benefit products and operands. Two examples of this type of formula type are:
- CALC TYPE
- CALCTYPELOOP
When a benefit product is defined as a CALCTYPELOOP, the application will process the whole structure below the calctypeloop repetitively for the criteria matching the FORMULA APPLIED TO value. There are currently two values that will be processes in conjunction with the calctypeloop, viz. FOR EACH FINDEP and BENEFICIARY.
For example, if the formula applied to is BENEFICIARY (which currently has classification values of BENEFICIARY, DEPENDANT, DISABLED DEPDNT, FINDEPENDANT and SPOUSE) and the benefit products defined below in the package structure only have classification values of DEPENDANT and DISABLED DEPDNT, the values returned for the BENEFICIARY, FINDEPENDANT and SPOUSE benefit products within the repeated structure will be zero.
The formula type also guides which of the following fields to enable on the benefit scale window:
|
AMOUNT |
Amount value on the window |
|
PERCENTAGE |
Percent value on the window |
|
MULTIPLE |
Multiple value of the window |
Note:
This field only applies to those schemes that use Flexible Benefit Rules.
TYPE OF RESULT defines the output format of the benefit product and is mandatory.
Where the purpose of a benefit product is to determine the service for a member, the formula type would be defined as SERVICE based on a FORMULA APPLIED TO (see below) of CREDIT SERVICE with a classification of PGOC and PGNC. In this example the TYPE OF RESULT could be defined as DAYS.
The following rules apply when the type of result is FACTOR:
- Where the benefit product Formula Type has been defined as PERCENTAGE, the value captured on either the Scale of Benefit or on the Global Parameters window will return the value captured expressed as a factor, e.g. if 70 is captured as the percentage value, the result returned will be expressed as 0.70. If a value of 0.70 is captured, the result returned will be 0.007.
- Where the benefit product Formula Type has been defined as FACTOR and a value captured of 70 is captured, the result returned will be expressed as 70.0. If 0.70 was captured, then the result returned is 0.70.
- The number of decimal places defined for FACTOR is 8.
- When one needs to set up a set of factors on the JU1AW Benefit Calculation Maintain window for a particular range of side labels (like AGE), the Classification on this window should be defined as one of the values other than NONE, AMOUNT or PERCENTAGE. This will then allow access to JU1FP Factor Value List window where a factor can be captured. The rules mentioned above will apply.
- Setting the Classification to PERCENTAGE on JU1AW will only allow a percent to be captured on this window. Once again the rules mentioned above will apply.
FORMULA APPLIED TO describes the object to which a formula is applied, i.e. what needs to be looked up.
It would for example indicate to the process where to look up the specific member data to be used in the calculation. The exact value in this location is specified by the classification as defined on the scale.
Some examples are:
|
TAX |
Look up on the Member Information table |
|
HOURS |
Look up on the Member Information table |
|
SERVICE BOUGHT |
Look up on the Member Information table |
|
SERVICE CREDIT |
Look up on the Member Information table |
|
PENSION TAKE-ON |
Look up on the Member Information table |
|
SERVICE |
Look up on the Member Information table |
|
MONTHLY SALARY |
Look up on the Member’s Salary table |
|
INCOME TYPE |
Look up the Member’s investment accounts for specified Income Types |
TYPE OF SCALE is always used in conjunction with a FORMULA APPLIED TO and indicates a further categorization of the value retrieved for the FORMULA APPLIED TO.
It could also imply a restriction to a FORMULA APPLIED TO based on a date criteria, e.g. TYPE OF SCALE of DATE LESS implies that the data retrieved for the FORMULA APPLIED TO is governed by this operand and the date value expressed in the scale or referenced in the calculation parameter.
The parameter for a vesting scale (such as AGE) would be defined here. This would then enable one to define an AGE band (per each scale captured) for which an associated amount or percent would be captured.
Note:
This field only applies to those schemes that use Flexible Benefit Rules.
ACCOUNTING is used to define what accounting transactions must be generated, where applicable, when processing a claim.
The accounting activities to be created are linked to the accounting via the accounting activity associations facility.
On the accounting activity associations page select the PROCESS BENEFIT PAYMENT. Select one of the following sub-processes:
- CAPITAL VALUE
- COMMUTATION
- REASSURANCE
- INSURED LUMP SUM
Select the PROCESS RECON RETRIEVAL and select one of the following sub-processes:
- INSURED P/L
- INSURED ADJ
- BENEFIT P/L
- BENALPROFIT
Select an accounting activity to be linked to the Sub-processes
A list a potential accounting activities will be displayed on the JU2CL Accounting Activity Association screen. From this list select any other accounting activities that must also be created in the sub-process.
Note:
This field only applies to those schemes that use Flexible Benefit Rules.
This parameter is used to create specific calculation modules.
It is primarily a hard coded module that is tailored for a certain business function. However, there may still be opportunities where some of the parameters used within this module may be defined by the benefit scale classification. Examples of this are:
- When the FORMULA APPLIED TO is MONTHLY SALARY, the classification is ADDITIONAL and the CALCULATION METHOD is PREPHI, then the PREPHI module uses the classification value of ADDITIONAL within its code.
- A vesting scale can also be used in conjunction with the module.
- It can also define the method used to interpolate factors.
CALCULATION METHOD is used when something in addition to the package structure is required.
Note:
This field only applies to those schemes that use Flexible Benefit Rules.
ROUNDING METHOD indicates how the result for a CALC TYPE or BENEFIT PRODUCT will be rounded at a calculation result level.
Rounding can be broken into two main categories, namely the rounding of term values or the rounding of amounts, percentages or factors. The latter category will require the number of decimals to be defined.
Benefit products used to calculate a term can use the following rounding methods:
|
EXACT |
No rounding is applied so the result is the exact number of years, months and days calculated. |
|
YRS/MNTHS LAST |
The term is rounded down to the last complete month. |
|
YRS/MNTHS NEXT |
The term is rounded up to include the current month. Where no rounding method has been selected this is the default. |
|
YRS/MNTHS NEAR |
The term month is rounded up or down, depending on the number of days in that month. |
Benefit products used to calculate an amount (maximum of 2 decimal places), percent or factor (maximum of 8 decimal places) will use the following rounding methods:
- ROUND NORMAL
- ROUND DOWN
- ROUND UP
- NEAREST 0.05
This parameter allows the user to select either a pre defined system variable (system tag) or a unique variable (user defined) for the BSV that may be captured.
|
System Tag |
This parameter is used to give a tag name to the result for the benefit product to which it has been associated. The configuration of the benefit letter templates allows the dynamic insertion of a benefit tag into a paragraph which is then translated to the appropriate value when displaying the letter. This value will be retrieved from the member’s latest claim or quote benefit package result containing a benefit product with this system tag. |
|
User Defined |
The benefit letter template may select user defined tags to insert into a paragraph. The value of these tags will be retrieved from the member’s latest claim or quote benefit package result containing a benefit product with this user defined tag. |