COMPTROLLER'S SEAL STATE OF CONNECTICUT

STATE OF CONNECTICUT

NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER

COMPTROLLER'S MEMORANDUM NO. 2004-10

April 22, 2004

TO THE HEADS OF ALL STATE AGENCIES

ATTENTION: Personnel and Payroll Officers, Chief Administrative Officers, Business Managers
SUBJECT: CORE-CT Benefits Administration - Retroactive Benefit Deduction Procedures

INTRODUCTION

The purpose of this communication is to provide information with regard to the processing of retroactive health insurance and life insurance coverage transactions in accordance with procedures set forth in CORE-CT Benefits Administration, administered by the Retirement & Benefit Services Division (RBSD). The retroactive process occurs when events are not entered on a timely basis, for example, the effective date of coverage precedes the date the event is entered into CORE-CT or the effective date of deductions is for a pay period that is already closed.

BACKGROUND

Benefits Administration is event driven therefore all health insurance and life insurance changes must be made by first entering the appropriate events using the Job Data and BAS Activity pages, and then entering the appropriate elections using the On Demand Event Maintenance page. Benefits Administration automatically calculates the requisite payroll deductions based on the plan and coverage an employee has elected, automatically determines whether retroactive premiums are due, then processes them through payroll accordingly. 

Premium payments for employees who are on leave without pay are processed using Benefits Administration - Benefits Billing. This includes the collection of any outstanding premiums attributable to such leaves.

PROCEDURES

I. Active Employees

Benefits Administration automatically processes appropriate retroactive premium deduction payments for employees on active payroll. Health insurance and life insurance enrollment transactions are initiated by first entering the appropriate events using the Job Data or the BAS Activity page as applicable and then entering the option or enrollment changes using the On Demand Event Maintenance page. The date and type of event determines the coverage effective date, which then determines when deductions commence. Deduction amounts are determined automatically by applying premium rates against the plan, option code elections and the employee's pay frequency. 

If the benefit elections are entered on a timely basis, Benefits Administration will generate the correct deductions, assure that the changes are submitted to the carriers and generate full premium payment to the carriers. If elections are entered after premium deductions were set to begin or are changed, corrected or updated at any time by reprocessing an event, Benefits Administration automatically determines the appropriate retroactive premium due and updates the employee's deduction accordingly.

II. Employees on Unpaid Leave

Employees on unpaid leave must be processed using Benefits Billing. RBSD will not consider retroactive deduction transaction requests to pay for unpaid billing amounts. For further details see the Benefits Billing job aid available on the CORE-CT website at:

http://www.core-ct.state.ct.us/user/hrjobaids/ben/

III. Retroactivity for periods greater than 2 months

To process retroactivity for periods greater than 2 months, contact RBSD for assistance in determining procedure. This may be required because of arbitration awards or workers' compensation settlements. However, the RBSD should be contacted prior to reaching any agreements insofar as assistance in structuring such remedies in a manner that will be practicable and equitable to all parties concerned may be required.

IV. Arrears

Deduction codes for health and life insurance benefits have been configured by the Payroll Services Division with arrears limits. The arrears limit for each plan is as follows; Medical plans - $60, dental plans - $20, basic group life plans - $25, and supplemental group life plans $25. This prevents an employee's check from being depleted if large retroactive amounts are requested by Benefits Administration. The arrearage amount is added to the employee's current deduction each paycheck until the entire amount due is paid. The following example illustrates how a retroactive amount due of $140 for a medical plan would be processed through 4 paychecks: 

Paycheck Total Amount Due Arrears Limit Current Deduction Total Deduction
1 $140 $60 $35 $95
2 $80 $60 $35 $95
3 $20 $60 $35 $55
4 $0 $60 $35 $35

V. Reports

The following reports can be used to review retroactive benefits processing details:

Daily or as needed:

Retro Ben Requested by Dept - Lists employee retroactivity calculated by CORE-CT for your department.
Missing Elections Report - Lists employees with open events that require action. Regular review of this report and timely processing of the events listed will minimize the amount of retroactivity. 

Monday after Pay Period End:

Retro Ben All Calced by Dept
Retro Ben Terms Calced by Dept
Retro Ben/Ded Error

Tuesday After Pay Period End:

Retro Ben Load by Dept
Retro Ben/Ded Error 

Periodically:

Retro Ben/Ded Summ by Dept

Further information concerning benefit reports is available on the CORE-CT website at:

http://www.core-ct.state.ct.us/user/hrjobaids/ben/benefits_reports.xls

VI. Override Procedures

The Payroll Services Division is no longer manually processing health insurance, life insurance, deferred compensation or supplemental benefits override requests without prior approval from RBSD.

If an employee's benefit record has been updated or changed through Job Data, BAS Action or Election Entry Pages which initiates retroactivity and the deduction appears incorrect, contact RBSD at the following email address: osc.benefitcorrections@po.state.ct.us The email must include an explanation which would allow RBSD to determine if an override is necessary. If approved, RBSD will provide additional instructions to process the override. 

Approved overrides will be processed in accordance with the Payroll Schedule, by the MTNC Data Due date. The Payroll Schedule is available at: www.core-ct.state.ct.us/user/hrjobaids/pay/

For example, overrides for the check date of June 25, 2004 must be received by the RBSD by Friday, June 11, 2004. Late requests or those requiring additional research will be processed as soon as administratively possible. 

VII. Other Benefits

Payroll Services Division will also no longer accept deduction override transactions for the following deduction codes and benefit programs: 

Deferred Compensation (457) Plan and the Dependent Care Assistance Program
Deduction Codes:
DEFHAR, DEFING, DEFPHO, DCAP
Contact the RBSD's Employee Benefits Unit at 860-702-3543 for assistance and override processing.

Transportation Fringe Benefit Program and the Supplemental Benefits Program Vendors
Deduction Codes:
QTFPRK and QTFTRN, AFLAC, COLLIF, COLSTD, HAILIB, HAIMET, LIFING, LIFMDS, LIFTRM, LTCARE, LTDISB.
Employees should contact the vendor directly for assistance. In the event an employee has a deduction for a benefit that they have not enrolled in, contact Payroll Services Division at 860-702-3464 for assistance.

CONCLUSION

Questions related to this communication should be directed as follows:

Benefits related questions:
 
Retirement & Benefit Services Division
Employee Benefits Unit: 860-702-3543
Health Care Analysis Unit: 860-702-3535
 
Payroll related questions:
 
Payroll Services Division: 860-702-3464

 

Very truly yours,

Nancy Wyman
State Comptroller

NW/nm

Return to Index of 2004 Comptroller's Memoranda
Return to Index of Comptroller's Memoranda
Return to Comptroller's Home Page