When Do I Use Termination Rules?

You 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.

Example

All full-time employees are eligible for all health plans at Sampson Lumber Company. When an employee is terminated, the date the employee's health benefit terminates depends on whether an employee belongs to the union. Union employees are covered for 60 days after termination and all other employees are covered for 30 days. All employees should have COBRA participant records created for the COBRA occurrence type that represents termination in the application.

Sampson Lumber must establish two different termination rules, for the differences in the benefit stop dates to be created. One rule will use an employee group for union employees and the other rule will leave the employee group field blank to include the non-union employees. When an employee group is used on a rule, the eligible employee group on the health plan needs to contain the union employee group as part of the selection criteria.