([Full-time Employer Contribution]*0.5) + (([Full-time Employer Contribution]*0.5) / ([Full-time Hours]-80)) * ([Hours Worked]-80)) + [Part-time Insurance Subsidy, if applicable] = Part-time Employer Contribution
The basic concept here is that half of the employer contribution is earned as soon as the employee works 80 hours in a month (even if this isn’t 50% of the full-time hours for the month).
The other half of the employer contribution gets spread out over the rest of the full-time hours for the month.
- The employer contribution for full-time employees
- The employee’s coverage tier
- How many hours the employee worked in the month (or, if on protected leave, the hours he WOULD HAVE worked)
- How many full-time hours there are in the month
- Whether the employee enrolled in a medical part-time insurance plan or not
- Part-time insurance subsidy amounts
If you don’t know how to find any of the above information, see the questions and answers at the bottom of this page.
Scenario A:
John Doe covers himself and his family on a full-time insurance plan. His work schedule is Tuesday-Friday, six hours each day. He is a 60% employee.
Example A:
Let’s presume the Full-time Employer Contribution for family coverage is $1,200. Using his schedule, for a 30-day month that starts on Wednesday, the number of full-time hours for the month would be 190, and he would work 114 hours. He has a full-time insurance plan so doesn’t qualify for the subsidy.
Using the equation above, his numbers would be:
(1200*0.5) + (((1200*0.5) / (190-80)) * (114-80)) + 0
Which when calculated out gives:
600 + ((600 / 110) * 34) + 0 = 785.30
In this example, $785.30 is the Part-time Employer Contribution for this employee.
Scenario B:
Jane Dere covers herself only and uses a part-time insurance plan. Her work schedule is Monday-Friday, four hours each day. She is a 50% employee.
Example B:
Let’s presume the Full-time Employer Contribution for employee-only coverage is $900. Using her schedule, for a 30-day month that starts on Wednesday, the number of full-time hours for the month would be 184, and she would work 92 hours. She has a part-time insurance plan so she qualifies for the subsidy. Let’s presume the subsidy for the employee-only tier is $150.
Using the equation shown above, her numbers would be:
(900*0.5) + (((900*0.5) / (184-80)) * (92-80)) + 150
Which when calculated out gives:
450 + ((450 / 104) * 12) + 150 = 651.96
In this example, $651.96 is the Part-time Employer Contribution for this employee.
Stuck following the math? We’ve created a worksheet (xls) that can help you do this visually.
Pay the premiums in this order:
- Basic Life
- Vision (if applicable)
- Medical
- Dental
If you need more detail about this process, see the questions and answers at the bottom of this page.
A: There are two detailed explanations in the entry guides of the OSPA Reference Manual. One for PEBB, Part-time and Job Share (pdf) and the other for PEBB, Protected Leave, Part-time and Job Share (pdf).
Q: Why isn’t this calculated on a strict percent of FTE?
A: A collective bargaining agreement specifies that working 80 hours constitutes having earned 50% of the employer contribution. This calculation was then expanded to cover all employees who do not share one position.
Q: Where do I find the employer contribution?
A: Two places. PEBB includes this information in their online benefit handbooks under medical plan premium rates. You may also find this on the PTB1 screen of any benefit package, in the “ST MAX CNTRB” field. The W, X, Y, and Z refer to the “OPE Cls Tier Cd” on PTD2 for your deduction code.
Q: Where do I find opt out figures?
Opt out would not apply for protected leave. For transferring employees or other hand adjustments, look up the figures on the PTB1 screen for the employee's benefit package. Use the second figure as the starting point to determine the OONN PEBB entry. Use the third figure as the starting point to calculate the employee's IR cash back.
Q: What’s a coverage tier?
A: There are four coverage tiers: Employee Only, Employee & Children, Employee & Spouse, or Employee & Family. (Or their Domestic Partner equivalents.)
Q: How do I know how many full-time hours there are in a month?
A: You need to know their work schedule code. Then, pull up PTW2 with that code and use the first of the month for a start date. This tells you how many full-time hours belong to which days. Use that to add up the full-time hours for the month.
Q: How can I tell if the medical insurance plan is a part-time one?
A: Part-time medical insurance plans have a letter "O" or "P" as the second letter of the deduction code.
Q: Where do I find the part-time subsidy amounts?
A: PEBB publishes this in their online benefit handbooks under medical plan premium rates.
Q: Where do I find the insurance premium amounts?
A: See the PTD2 deduction screen for the employer/PEBB/vendor breakouts of these premiums. Use the employer amounts to calculate out-of-pocket costs, if any. If you need to see a previous year, change the “999999” to 1130xx.
