Benefits Eligible Earnings for New Hires

2024 Plan Information

Benefits Eligible Earnings Defined

Your Benefits Eligible Earnings (BEE) are calculated:

  • On your hire date; and
  • Each fall before Annual Enrollment for use in the upcoming calendar year.

BEE are used to determine the following:

  • Your medical plan contributions (amount of premiums deducted from each paycheck)
  • Your long-term disability premiums
  • Your eligibility for an individual disability policy
  • Your maximum coverage amount for:
    • Long Term Disability
    • Supplemental Life Insurance
    • Supplemental Accidental Death & Dismemberment Insurance
    • Business Travel Accident Insurance

How Your BEE Is Calculated

Benefits Eligible Earnings consider different measures of your compensation to determine how much you pay each paycheck for medical coverage, as well as the maximum amounts of insurance coverage (Supplemental Life, Long-Term Disability, etc.) you may elect. For instance, the maximum amount of Supplemental Life Insurance you may elect is 10 times your BEE, up to a maximum of $5 million.

Typically, your BEE is the greater of your current base pay or your prior year’s W-2 earnings (base pay, commissions, overtime and bonus).

Additionally, your BEE calculation depends on your hire date, whether you are a Financial Advisor (FA), or whether you transferred to the United States from an international location:

You are:Your BEE is the:
Not a recent/new hire* and not an FA
*Hired more than two years ago
Greater of US Eligible Pay* or Base Pay
A recent/new hire* and not an FA
*Hired less than two years ago
Greater of W-2 from your prior employer (if submitted), US Eligible Pay or Base Pay
Not a recent/new hire* and an FA
*Hired more than two years ago
Greater of US Eligible Pay or Base Pay
A recent/new hire* and an FA
*Hired less than two years ago
Greater of US Eligible Pay, Base Pay, W-2* or Trailing 12-Month Earnings* (T12)
*W-2 or T12 will be used to determine your BEE if either are greater than your Base Pay or US Eligible Pay
International transfer*
*Transferred within the two most recent calendar years
Greater of Total Rewards, US Eligible Pay or Base Pay
You've been rehired:Your BEE is the:
Rehired within 31 days of leaving the FirmSame BEE as before you terminated employment; BEE is determined as if you never left the Firm
Rehired more than 31 days but less than 12 months since leaving the FirmGreater of prior year’s US Eligible Pay, current Base Pay or same BEE before you terminated employment
Rehired more than 12 months since leaving the FirmSame as a new hire’s; BEE will be recalculated

What Is Eligible Pay?

Generally, Eligible Pay represents your earnings in a given year. It does not include certain reported income such as imputed income and payments to satisfy a loan, among others. It is generally similar (but not identical to) your prior year’s Form W-2 earnings.

The components of your specific Eligible Pay are detailed on the Payroll website (click YTD Data, Eligible Pay). You can compare the amount shown there with the income portion of your corresponding payroll summary to see the differences, if any.

Eligible Pay includes, but is not limited to:

  • Base pay
  • Most bonus payments
  • Incentive compensation (when paid)
  • Commissions
  • Cash performance awards
  • Overtime
  • Premium pay
  • Night premiums
  • Retroactive pay
  • Shift differentials
  • Vacation pay
  • Allowances
  • Payouts from deferred compensation plans
  • Amounts deferred under Flexible Spending Accounts, Commuter Benefits Program and the 401(k) Plan

Eligible Pay does not include:

  • Referral fees
  • Relocation expenses
  • Amounts paid by Morgan Stanley prior to employment start date
  • Employee expense reimbursements
  • Imputed income
  • Certain bonuses to satisfy a loan
  • Benefits paid under any plan or payroll practice due to retirement, disability or death of an employee or his or her dependents
  • Retention awards
  • Similar types of pay determined by the Plan Administrator

View Your Benefits Eligible Earnings

  1. Log on to the Benefit Center website or from the office, type “benefits” in your browser.
  2. On the Health and Insurance tab, click on the box on the right-hand side of the page labeled Current Benefits Eligible Earnings.