This document outlines the 2024 Quarterly Production Bonus (QPB) program for Fraternal Counselors (FCs) at Knights of Columbus Financial Advisors (KCFAPI). The objectives are to surpass minimum requirements for First Year Allowances, New Paid Lives, and Retention Ratio. Bonus is computed as a percentage rate multiplied by actual First Year Allowances. Percentage rate is based on total percentage points from attainment of factors. Additional bonus points can be earned for exceeding targets and submitting business online. Rules cover qualified business, bonus payment schedule, and administration of the program.

1. 2024 QPB for FCs

2. 2024 QPB for FCs

3. 2024 QPB for FCs
Outline
1. Objectives
2. Terms / Acronyms / Definitions / Formulae
3. Minimum Requirements (MR)
4. Computation of QPB
a. Percentage Points
b. Bonus Points
5. Other Rules

4. 2024 QPB for FCs
2024 QPB Objectives:
1. To surpass the following 2024 Minimum Requirements (MR)
a) First Year Allowances (FYA),
b) New Paid Lives (NPL) &
c) Retention Ratio (RR)
2. Increase the number of FCs submitting BCs through BC
Online App

5. 2024 QPB for FCs
Term 1: FYA Attainment
Acronym 1: FYAA
Definition: is defined as FYA Actual over FYA MR
Formula 1: 𝐅𝐘𝐀𝐀 =
𝐅𝐘𝐀 𝐀𝐜𝐭𝐮𝐚𝐥
𝐅𝐘𝐀 𝐌𝐑

6. 2024 QPB for FCs
FYA Sample Computation
Formula 1: 𝐅𝐘𝐀𝐀 =
𝐅𝐘𝐀 𝐀𝐜𝐭𝐮𝐚𝐥
𝐅𝐘𝐀 𝐌𝐑
𝐅𝐘𝐀𝐀 =
𝐏𝐡𝐏 𝟒𝟓, 𝟎𝟎𝟎. 𝟎𝟎
𝐏𝐡𝐏 𝟒𝟓, 𝟎𝟎𝟎. 𝟎𝟎
𝐅𝐘𝐀𝐀 = 𝟏𝟎𝟎%

7. 2024 QPB for FCs
Term 2: NPL Attainment
Acronym 2 : NPLA
Definition: is defined as NPL Actual over NPL MR
Formula 2 : 𝐍𝐏𝐋𝐀 =
𝐍𝐏𝐋 𝐀𝐜𝐭𝐮𝐚𝐥
𝐍𝐏𝐋 𝐌𝐑

8. 2024 QPB for FCs
NPLA Sample Computation
Formula 2: 𝐍𝐏𝐋𝐀 =
𝐍𝐏𝐋𝐀 𝐀𝐜𝐭𝐮𝐚𝐥
𝐍𝐏𝐋𝐀 𝐓𝐚𝐫𝐠𝐞𝐭
𝐍𝐏𝐋𝐀 =
𝟔 𝐍𝐏𝐋
𝟔 𝐍𝐏𝐋
𝐍𝐏𝐋𝐀 = 𝟏𝟎𝟎%

9. 2024 QPB for FCs
Term 3: Retention Ratio
Acronym 3 : RR
Definition: It is computed as collected FYC (inforced BCs
only) over total FYC due on the RR covered
period.
Formula 3: 𝐑𝐑 =
𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐞𝐝 𝐅𝐘𝐂
𝐓𝐨𝐭𝐚𝐥 𝐅𝐘𝐂 𝐝𝐮𝐞

10. 2024 QPB for FCs
RR Sample Computation
Formula 3 : 𝐑𝐑 =
𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐞𝐝 𝐅𝐘𝐂 (𝐢𝐧𝐟𝐨𝐫𝐜𝐞𝐝 𝐁𝐂𝐬 𝐨𝐧𝐥𝐲)
𝐓𝐨𝐭𝐚𝐥 𝐅𝐘𝐂 𝐝𝐮𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐑𝐑 𝐏𝐞𝐫𝐢𝐨𝐝
𝐑𝐑 =
𝟓𝟎𝟎 𝐊 𝐅𝐘𝐂
𝟓𝟎𝟎 𝐊 𝐅𝐘𝐂
𝐑𝐑 = 𝟏𝟎𝟎%

11. 2024 QPB for FCs
RR Covered Periods
Covered BCs
Quarter
Jan 2023 to Dec 2023
Q1
April 2023 to March 2024
Q2
July 2023 to June 2024
Q3
October 2023 to Sep 2024
Q4

12. 2024 QPB for FCs
RR Covered Periods
2024 Period Covered
Q1 Jan 2023 to Dec 2023
Q2 April 2023 to March 2024
Q3 July 2023 to June 2024
Q4 October 2023 to September 2024

13. 2024 QPB for FCs
Term 5: Percentage Points
Acronym 5 : PerP
Definition: is defined as the total attainment points of FYA,
NPL, RR and Bonus Points.
Formula: 𝐏𝐞𝐫𝐏 = 𝐅𝐘𝐀𝐀 + 𝐍𝐏𝐋𝐀 + 𝐑𝐑𝐀 + 𝐁𝐨𝐧𝐮𝐬 𝐏𝐭𝐬.

14. 2024 QPB for FCs
PerP Sample Computation
Formula 5: PerP = FYAA+ NPLA+ RRA
= 40% + 40% +20%
= 100%

15. 2024 QPB for FCs
Term 6 : QPB Rate
Acronym 6 : QPBR
Definition: is the rate of QPB based on the total
Percentage Points (PerR) Table.
Formula 6 : Please refer to QPBR Table

16. 2024 QPB for FCs
QPBR Table
Example: 100% PerP = 8% QPBR
PerP 90% to < 100% 100% to < 110% 110% to < 120% >=120%
QPB Rate 7% 8% 9% 10%

17. 2024 QPB for FCs
Term 7 : Quarter Production Bonus
Acronym 7 : QPB
Definition: is computed as QPBR multiplied to the
actual FYA of the New Business (NB)
Formula 7 : 𝐐𝐏𝐁 = 𝐐𝐏𝐁𝐑 ∗ 𝐅𝐘𝐀 𝐍𝐁

18. 2024 QPB for FCs
QPB Sample Computation
Formula 7 : QPB = QPBR X FC FYA NB
Example: QPB = 8% X 100,000
= PhP 8,000

19. 2024 QPB for FCs
Minimum Requirements
1. With Regular Status at the end of the Program Period (PP)
2. PhP 200,000.00 FV personal insurance coverage (PIC) OR PhP
500,000.00 FV family insurance coverage (FIC)
3. 45,000 FYA, 6 NPL and 85% RR
4. 1 NPL submitted through BC Online App

20. 2024 QPB for FCs
How to Compute for QPB?
1. Percentage Points (PerP)
Total
RR
NPL
FYA
Factors
100%
20%
40%
40%
Weighted Average (WA)
85%
6
45,000
Minimum Reqs

21. 2024 QPB for FCs
How to Compute QPB?
a. Percentage Points (PerP) – Sample Computation
Total
RR
NPL
FYA
Factors
85%
6 NPL / 6 NPL
45,000 / 45,000
Actual / MR
-
100% X 20%
100% X 40%
100% X 40%
PerP X WA
100%
20%
40%
40%
PerP per factors

22. 2024 QPB for FCs
How can I further
increase our PerP?

23. 2024 QPB for FCs
QPBR Table
Example: 100% PerP = 8% QPBR
PerP 90% to < 100% 100% to < 110% 110% to < 120% >=120%
QPB Rate 7% 8% 9% 10%

24. 2024 QPB for FCs
Other Bonuses
1. Excess Over Target
2. BC Online App

25. 2024 QPB for FCs
PerP Bonus from the excesses over MR of
1. FYA
2. NPL
3. RR
Excess Over MR Bonus
NO CAPPING

26. 2024 QPB for FCs
FYA PerP Bonus
FYA PerP = FYAA x WA
Comparison
With Excess Over MR
FYA PP = 120% X 40%
= 48%
Attained MR Only
FYA PP = 100% X 40%
= 40%
PhP 45K FYA only PhP54K FYA

27. 2024 QPB for FCs
NPL PerP Bonus
NPL PerP = NPLA x WA
Comparison
With Excess Over MR
FYA PP = 150% X 40%
= 60%
Attained MR Only
FYA PP = 100% X 40%
= 40%
6 NPL only 9 NPL

28. 2024 QPB for FCs
RR PerP Bonus
RR PerP = RRA x WA
Comparison
With Excess Over MR
FYA PP = 150% X 20%
= 30%
Attained MR Only
RR PerP = 100% X 20%
= 20%
100% RR only With advance FYC subsequent payment

29. 2024 QPB for FCs
Excess Over Target Bonus
PerP FYA NPL RR PerP
WA 40% 40% 20% 100%
Bonus +8% +20% +10% +38%
Total 48% 60% 30% 138%

30. 2024 QPB for FCs
BC Online App Bonus (10%)
Maximum of 10% bonus points on the number of BCs submitted through BC online
app. It is computed as BCs submitted through BC Online App over total BCs
submitted X 10%.
Formula: BC Online App Bonus =
𝐁𝐂𝐬 𝐒𝐮𝐛𝐦𝐢𝐭𝐭𝐞𝐝 𝐎𝐧𝐥𝐢𝐧𝐞
𝐓𝐨𝐭𝐚𝐥 𝐁𝐂𝐬 𝐒𝐮𝐛𝐦𝐢𝐭𝐭𝐞𝐝
𝐗 𝟏𝟎%
=
𝟐𝟒 𝐁𝐂𝐬
𝟐𝟒 𝐁𝐂𝐬
𝐗 𝟏𝟎%
= 𝟏𝟎𝟎% 𝐗 𝟏𝟎%
= 𝟏𝟎%

31. 2024 QPB for FCs
BC Online App Bonus
PerP FYA NPL RR PerP BC Online App Bonus Total
WA 40% 40% 20% 100% 10% 110%

32. 2024 QPB for FCs
QPB Bonus
PerP FYA NPL RR PerP
BC Online
App Bonus
WA 40% 40% 20% 100% 10%
Excess
Bonus
+8% +20% +10% +38% 148%

33. 2024 QPB for FCs
OTHER RULES
1. Qualified business includes all plans regardless of Face
Value (FV).
2. QPB runs quarterly from the first (1st) working day of January
2024 up to December 29, 2024
3. Release of QPB amount is every 15th working day after the
end of the quarter.

34. 2024 QPB for FCs
OTHER RULES
4. Only one (1) NPL is credited per BC Holder.
a. No multiple NPL credit based on face value
amount.
b. No repeated NPL credit per plan for BCs holders
with multiple new plans.

35. 2024 QPB for FCs
OTHER RULES
5. All FYA in 2024 is credited to this production bonus.
Including:
a. FYA of subsequent contributions (1-2 to 1-4) but
not the NPL count.
b. FYA of repeated new business from the same BC
holders but not the NPL count.

36. 2024 QPB for FCs
OTHER RULES
6. Advance payment of subsequent FYC (1-2 to1-4) due for next RR period is
credited to current RR attainment.
For example:
If the FC already collected all expected subsequent FYC for the current RR
period and he/she convinced a BC holder to pay in advance contributions due
for next quarter/semester, FYC credit will be added to the computation of his RR
attainment (numerator). Similar to computation of FYA and NPL excess over
target, this serves as additional/bonus point for the FC.

37. 2024 QPB for FCs
OTHER RULES
7. FYA and NPL credits will be deducted from total qualified business
arising from death claims that were DENIED payment of benefits by
KCFAPI. Exclusions to this rule are SPEK and GIO (Guaranteed
Insurance Offer) death claims wherein the number of lives will be
credited. However, FYC and FYA on SPEK and GIO will be
deducted from all credits. Any adjustments discovered after the
awarding of this incentive program will be considered in the next
quarter/s awards.

38. 2024 QPB for FCs
OTHER RULES
8. New BC applications tagged as ‘FROM
SURRENDER’ will not be credited as
qualified business.

39. 2024 QPB for FCs
OTHER RULES
8.1 Scenario on BCs tagged as surrender:
An in-force BC was surrendered, and a new BC was bought during the
program period.
To illustrate:
A brother knight surrendered an in-force BC on January 2024 and
applied for a new BC on the month of December 2024. The new applied
BC will be tagged as ‘from surrender’ because the BC replacement on
the same life occurred in the same program period.

40. 2024 QPB for FCs
OTHER RULES
8.2. Scenario on BCs tagged as surrender:
It is not limited to the same BC holder but also extended to all BCs with the
same family client code.
To illustrate:
A brother knight applied for a new BC anytime during 2024 while his son
surrendered a BC within the same program period. The new BC application of
the brother knight will be tagged as ‘from surrender’ because the BC
replacement on the same family client code occurred in the same program
period

41. 2024 QPB for FCs
OTHER RULES
9. A qualifier must not have any derogatory record with KCFAPI
and/or the Order of the Knights of Columbus at any time. He
must also conduct himself with utmost professionalism and be
worthy of trust and confidence by the Order of the Knights of
Columbus and the KCFAPI.

42. 2024 QPB for FCs
OTHER RULES
10. The FBG Support shall oversee the changes and operation
of this sales incentive program. The Sales Incentive and
Awards Committee (SIAC) shall render a decision on any
written request or case filed in the interpretation of any
provision of all Incentive Programs for Fraternal Counselors.

43. 2024 QPB for FCs
OTHER RULES
11. It is understood the criteria and condition of this
incentive and other incentive programs for the year
2024 shall only be applied during the program
period and may be enhanced, changed, or
amended every year.

44. 2024 QPB for FCs
Q&A

45. 2024 QPB for FCs
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46. 2024 QPB for FCs
Thank you!