About changing benefits using automation rules
The Benefits Administration application uses Change Rules to update employee benefits for:
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The employee's membership in an employee group changes, qualifying him or her for different coverage, contributions, or general ledger overrides in the same plan.
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The employee's salary changes and the employee is still eligible for the plan. The salary used for the calculations is the employee's current salary.
Note: In the Benefit application there is a program that updates benefits for salary changes without using change rules. Use this program when coverage or contributions are determined by an employee's salary as of the first of a month or a specified date.See Updating Automatically for Age, Salary, or Years of Service.
Salary changes are changes made to the employee's job code, FTE (Full-Time Equivalent), rate of pay, step, grade, schedule, salary class, or benefit salaries 1 through 5.
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The employee's pay frequency changes.
To determine the date the change affects an employee's benefits, the application uses the date defined in the change rules. The application stops the employee's benefit the day before the date defined in the change rules, and re-adds the benefit with a start date equal to the calculated effective date.
For flex benefits, if an employee switches between groups used as eligibility criteria for flex credit calculations, or if the salary used for flex credit calculation changes, then the Benefits Administration application does the following:
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Stops the employee's benefits under the flex plan
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Stops the employee's flex credit record
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Adds a new flex credit record for the employee based on the employee's new employee group or new salary
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Re-adds the employee's flex benefits with the same elections