How to calculate retro premium based on salary change for long term disability plan?
We have a requirement to provide retro-active salary increase as of Sept 1 2022 for about 700 Employees. Which is going back more than a year from now. With the increased salary the LTD(Long Term Disability Plan) benefit premium should also increase retroactively. As expected, there are multiple life events from Sept 1 2022 to till now that have been processed.
What is your suggestion to account for the retro LTD Benefit premium? I am assuming it is not recommended to add the “Salary Change” Life event as of Sept 1, 2022, since it would require to unprocess all the other life events on/after Sept 1, 2022.