What Happens when I Stop Benefits Using Automation Rules?
Benefits are stopped based on termination rules, if a personnel action causes an employee to be ineligible for the benefit. An employee is no longer eligible for a benefit if either of the following is true:
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The employee is deleted from an employee group used to qualify an employee for the plan
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The employee's postal code changes so that it no longer matches one in the postal code table for the plan
If an employee is deleted from the employee group assigned to a flex plan, the employee's flex credit record and all the employee's benefits under the flex plan stop.
The application calculates the stop date for a benefit using the Stop Date, Months, and Days information defined in the rule. If no termination rule exists, the affected employee benefits are listed by the update program but not terminated.
A COBRA record is created if the termination rule is defined as a COBRA occurrence. The employee's occurrence date is the day after the employee's calculated benefit stop date.
The Benefits Administration application uses the occurrence date and termination date to define a COBRA period. If the benefit stop date falls within an existing COBRA period, a new COBRA record is not created.