Defining Termination Rules

Termination rules determine when a benefit stops for an employee who becomes ineligible for the plan or flex plan because of changes made by personnel actions. Employee Change Benefit Update (BN100) uses the termination rules to automatically terminate the affected benefits and flex credit records.

If termination rules have been defined for the flex plan and a change causes an employee to be ineligible for a flex plan, BN100 stops the employee's flex dollar record and all benefits under the flex plan according to the flex plan's termination rules.

Procedure flow: Define Termination Rules

To define termination rules

  1. Access Add Rules (BN16.4).
  2. Select the Company and Benefit Type.
  3. Select the plan for which you want to define termination rules. If you leave this field blank the rule will apply to all plans within the benefit type selected.
  4. Type the date the termination rules are effective. You can vary rules by start date. This allows you to define unique rules for different periods. If rules change, add a new record for the new rules.
  5. If you are defining termination rules that are unique to a particular group of employees, select the employee group for which these add rules apply.
    Note: If you define termination rules by employee group, make sure employee groups are defined such that an employee can be a member of only one group at a time. If an employee belongs to more than one group for which rules have been defined, benefit update reports list the situation as an error.
  6. Select the personnel action that triggers an employee's ineligibility for the plan.
  7. Define the stop rules using the following guidelines:
    Stop Date

    Select the date used to determine the benefit stop date. If no months or days are entered in the fields that follow, this is the date the benefits stop.

    Months

    Type the number of months after the Stop Date benefits should stop.

    For example, if you want benefits to stop three months after the stop date, type 3.

    Note: If you enter a value in the Days field, do not enter anything in this field.
    Days

    Type the number of days after the Stop Date benefits should stop.

    For example, if you want benefits to stop 60 days after the stop date, type 60.

    Note: If you enter a value in the Months field, do not enter anything in this field.
  8. If the termination rules apply to COBRA participants, define the COBRA attributes. Use the following guidelines:
    COBRA Occurrence

    Select whether the termination of this benefit is a qualifying COBRA event and you want the employee to be notified of COBRA rights.

    Occurrence Type

    If you selected Yes in the COBRA Occurrence field, select an occurrence type.

    If you select an occurrence type, the application creates a COBRA participant in COBRA Participant (BN70.1) for employees affected by these termination rules if the employee does not already have a COBRA record in BN70.1 for the same period.

  9. Select the Add function.

Related Reports and Inquiries

To Use
List the change rules Benefit Entry Rules Listing (BN216)
Related topics