Creating age bands within each of your classes is the easiest way to increase employer savings. As you define the contribution strategy the focus should be on what is most equitable. The hope is for each employee to have the same buying power.
How to add age bands
You will begin in the model your working on. You will click the three dots to the right of the class you're wanting to add age bands to. Select 'View age group/contributions' to proceed to the contribution page.
Once you're on the contribution page you will select either single year (to add one age at a time) or multi year (to add multiple ages at one time).
To create the most equitable contribution, it is our recommendation to class employees by single year starting at 21 and ending at 65. To do this you will select the '1 year' option and fill in the appropriate ages in the boxes to the right. Once you have made all your selections, click the 'Add age groups' box to apply the changes.
From here, you can reset the whole class to the ICHRA minimum by selecting the red 'Reset to ICHRA min' box to the right of the screen. This will apply the minimum to each age group based on compliance standards.
Remember that one of the ICHRA rules is that you cannot give an older person more than 3x the amount of money you're giving to a young person AND you can't give younger people a higher contribution than the older people. This compliance piece is built into our software and will automatically make adjustments to the contributions to meet the compliance standards.