How does Infor Track Benefit Plan Changes?
The changes you can make to existing benefit plans include changes to entry rules, coverage, contributions, and general ledger overrides. You enter these changes by defining a new record with a new start date. This maintains historical information on the plan. If you change the current entry rule, coverage, contribution, or general ledger override record, rather than defining a new record, you lose the information that was originally defined. Whether you add a new record or change an existing record, all employees currently enrolled in the plan must be updated for changes to coverage, contribution, and general ledger override information. Changing or adding a new entry rule to a plan will only impact future enrollment and re-enrollments for the plan.
To make a change to a benefit plan, add a new record or change the existing record. Update employees enrolled in the plan by running an update program.
You can change the frequency table for a benefit plan by attaching a new table or by changing the table that is already attached. This type of change does not involve a new effective date, but employee benefit deductions need to be updated for the change.
A benefit plan can also be discontinued and all employee enrollments stopped. Through a mass termination you can create a data file that can be used to mass enroll employees in a new plan. This is useful when you are replacing an existing benefit plan and all enrollment should be transferred over.
When a benefit enrollment is updated for a new or changed coverage, contribution, or general ledger override, the application does the following:
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Stops the original benefit and deductions the day before the change is effective.
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Re-adds the benefit with the new amounts, deductions, and with a start date equal to the effective date of the change.
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For benefits under a flex plan, the application will create or update standard time records.
When a benefit enrollment is affected by a new frequency table, the application does the following:
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Changes the current benefit deduction amount and updates the deduction cycles.
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For benefits under a flex plan, the application will update standard time records.
Example 1
Alden Tire Company has received a premium increase from their insurance carrier for their group health plan. The new premiums take effect January 1, 2000, so a new contribution record is defined for the plan dated January 1, 2000 with the new rates. When employee enrollments are updated, the current benefits are stopped on December 31, 1999 and a new benefit is added with a start date of January 1, 2000.
Example 2
Jones Piano has discovered that their disability plan was defined incorrectly. The coverage calculation was defined as 65% of an employee's salary, when the correct calculation should be 70%. The current coverage record is changed to reflect the correct percent. Employee enrollments are updated and all current benefits are recalculated using the new percentage rate, but the start date on the benefits remains unchanged.
Example 3
RJ's Shoes, Inc. has decided to change the way their benefit contributions are deducted from payroll. Currently, benefit deductions are taken only once each mont. Starting June 1, 2000, RJ's Shoes want deductions to be taken every biweekly pay period. Before the first payroll of June, RJ's Shoes define a new frequency table and attach the new table to all the benefit plans. Employee enrollments are updated prior to running the payroll cycle so that all the benefit deductions are recalculated to the new biweekly amounts with the new deduction cycle designations. Benefits are not stopped and re-added with a new effective date, since only the benefit deductions are impacted by the change.