BN053 Determine Life Coverage

State of Connecticut Core-CT Project

Application: HRMS Module: Benefits Business Process: Administer Event Maintenance Requirement Number: BN053 Requirement Title: Ability to determine Life Insurance Coverage Amount

Module Leads: Nancy McMahon, John Woodyard

1. Requirement Description Describe the requirement (gap). Include a description of the delivered PeopleSoft functionality. The State determines life insurance coverage based on salary ranges. For example, employees earning $20,500 – $21,500 per year are eligible for $25,000 of life coverage. However, PeopleSoft, as delivered, uses life insurance rate tables to determine life insurance amounts based on either a flat amount or a factor of the employee’s salary, not based on a range of salaries. In addition there is a cap of $85,000 on life insurance regardless of salary.

2. Business Need Provide a justification for the requirement. Include information about frequency, volume, number of users impacted, etc. Section 5-257 of Connecticut General Statutes mandates that life insurance coverage be based upon a range of salaries. The range of salaries and associated coverage amount are defined in the Group Life Insurance brochure published by the State Comptroller. The ranges published are relatively static and have not changed in several years.

The State must be able to determine the eligible coverage amount for all employees at hire. This is not identified as a change in a future release of PeopleSoft.

3. Required By: (Y/N) Federal ____ Agency ____ Bargaining Unit __Y_

State Statutory __Y__ State Regulatory ____ State Procedural ____

4. Requirement Priority

High (High, Medium, Low – please see “Requirements Prioritization Criteria”)

5. Recommended Solution Enter an “X” next to the appropriate category

___X___ Process Solution _1__ Option Number

____ Application Modification __ Option Number

6. Explanation for Recommendation Provide reasons for recommendation. Please do not re-state the description of the solution itself.

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Although human error may result in the improper amount added to the ABBR field, simple queries can be written to identify gross errors. Coupled with the automated BN051, all error should be captured and corrected on a semi-annual basis.

7. Organizational Impact of Recommendation Describe the changes to the organization that result from the recommended solution. Include a description of any role, process, statute, or bargaining unit agreement affected.

This option will result in an increase to work load of the Agency Benefits Specialist. This increase would occur at the time of hire. Since there is already a substantial amount of data entry, we would expect this increase to be minimal.

8. Process Solutions Describe the possible Process Solutions. Include a description of impacts and benefits of each solution.

Option 1.

The Agency Benefits Specialist, upon hiring an employee, would use the Group Life Insurance guide provided by the State Comptroller to determine the employee’s eligible life coverage. They would enter that into the Annual Base Benefit Rate (ABBR) field of the Compensation page of the Job Data. Central Benefits will configure the calculation rules so that Benefits Administration uses the ABBR to determine life insurance.

If this option is used, an audit report should be created and run monthly or semi-annually to ensure accurate values are being manually entered.

9. Application Modifications Describe the possible Application Modifications. Include a description of impacts and benefits of each solution.

Option 1. Modification Type (On-line, Batch, Interface, Report, Workflow): Batch Complexity (Easy, Medium, Difficult): Medium Description:

Create a custom SQR that will automatically assign a Annual Base Benefit Rate (ABBR) for an employee upon hire, based on a custom table (same custom table that recommended solution for BN051 would use) and the employee’s compensation rate. This would be a fully automated process where the benefits specialist would not need to refer to the coverage tables published by the State Comptroller. The custom table would need to be maintained as the rate schedule changed, however, these rates have not changed in several years. PeopleSoft’s Benefits Administration will be configured to use the ABBR for the life insurance coverage amount.

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