Set Pricing group to override list for pricing calculation

Use case for "Product-1": List price is $100.00 and Pricing Group Level1 price is $90.00. A Pricing rule for Pricing Group Level 1 Customers is defined with a 10% discount on the list price. 

When the "Pricing group to override list price for price calculation" is checked 10% should apply to $90.00 which is a level-1 pricing group. If it is unchecked, 10% should apply to $100.00 which is the list price