| To: | Personnel/Payroll Technicians, Human Resource Staff |
| Subject: | Health, Dental and Basic Life Premium Adjustments |
| Sent Date: | 03/15/2007 |
As many of you may recall, one of the goals of the employee self-service initiative was to have the payroll system generate as many premium adjustments as possible. Effective March 12 the State Controller’s Office implemented an enhancement to the payroll system which will automatically generate Medical, Dental and Basic life Insurance premium adjustments, for both the employee and employer shares, in certain circumstances. On Thursday, March 14 you may see some new messages on your Pre-Processing reports and Friday morning after Final payroll you will see a new report listing any adjustments automatically generated.
Only employees with "new" (never been taken) benefit deductions and only needing one month premium adjustment will have automatic adjustments generated. This will most likely be employees who are new hires or newly eligible for benefits. Employees who are re-hired or transfer to a new agency and are set up with new benefit deductions will be treated as new hires for adjustment purposes.
A new report for both Group Insurance and the Agencies "Generated Insurance Deduction Adjustments (A-444953) will be created that will show the employees who have had adjustment transactions created. A new report for only Group Insurance "Generated Adjustment Errors" (B-444953) will be created for those employees who fall into a situation where more than one month of adjustments is necessary.
Adjustment transactions that are automatically generated will be taken on the next regular payroll (first paydate of month) and the agencies will see the following message on the "Payroll Processing Message Report" B-444395: "HEALTH/DENTAL ADJ WILL BE TAKEN NEXT PAYROLL XXX (deduction code i.e. 115, 118, 920 etc.)
If more than one premium adjustment is required, agencies will see the following message on the Payroll Processing Report: "MORE THAN 1 PREMIUM CALCULATED, NO ADJ TAKEN XXX (deduction code i.e. 115, 920 etc.)
Agencies will be responsible for adjustments to the Basic Life insurance deduction for any employees with the above message, but Group Insurance will be taking care of any medical and dental adjustments. You will be advised by Group Insurance when multiple medical/dental adjustments will be taken. In the event an employee has a substantial premium due, the adjustment will not be taken all at once in order to avoid a financial burden for the employee. You will be advised which paydates will be affected in advance of the adjustments.
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