Age reductions reduce coverage for employees when the employee hits a certain age in the system. Commonly seen for Basic Life, and Supplemental Life benefits. In the example below for an employee that would be 72 years of age, the employee may elect 100,000 of coverage but only receive 65,000 of coverage because of their age.
Administrators have the option to use employees age or spouse’s age for benefit reduction. Generally, the admin will use the employees age unless the benefit is looking at spouses age for the age banded premiums. In those plans the spouse would typically be selected here. The Reduce premium cost accordingly when benefit amount is reduced through age reductions box would be selected if the employer or employee pay less for the reduced benefit coverage. If employees or employers still pay for the full elected coverage, even though the actual coverage has been reduced, then box would not be selected. when employee or employer pay less for coverage because coverage reduction the box would be selected. See billing detail for over age employees to figure out if box needs to be selected.