Termination Rules (BN16.4)

Use Termination Rules (BN16.4) to define a benefit stop date for employees whose benefits should stop as a result of a personnel action. BN100 (Employee Benefit Update) uses the rules you define in this form to automatically stop the appropriate benefits.

More Information

Define termination rules only for personnel actions that cause an employee to be ineligible for a benefit. An employee is no longer eligible for a plan if:

  • The employee is removed from an employee group used to qualify an employee for the plan.
  • The employee's postal code changes so that it no longer matches one in the postal code table for the plan.

You can define termination rules for a flex plan, plan type, or a benefit plan. If all benefit plans under a plan type (such as all dental plans) have the same termination rules, define termination rules only for the plan type. You do not need to define rules for each plan under the plan type.

If termination rules vary for different groups of employees, define termination rules by employee group. If you define termination rules for one or more employee groups as well as a termination rule with no employee group selected, the latter termination rules include all employees not in the employee groups associated with a termination rule.

Note: If you define different rules for different groups of employees, the employee group selected in BN15.1 (Benefit Plan) should include all the groups used for the rules. For example, if rules vary for UNION and NON-UNION employees, the group in BN15.1 should include the groups UNION and NON-UNION.

If a change makes an employee ineligible for a flex plan, BN100 (Employee Benefit Update) stops the employee's flex dollar record and all benefits under the flex plan according to the flex plan's termination rules.

If an employee's group membership in an employee group or postal code changes but no termination rules exist, BN100 (Employee Benefit Update) only lists the employee's affected benefits.