Plan Administrators – An Ever expanding Role!A Plan Administrators’ responsibilities will vary depending on thecomplexity of the benefit plan, however, even the simplest of plansplace the burden of proper enrollment and exit procedures on theshoulders of the plan administrator. Checklists for the enrollmentprocess and termination process are critical to ensure bothprocesses are handled correctly and missteps do not happen whichcan leave the company liable.Enrollment procedures~When an employee joins the firm, have the enrollment formcompleted immediately and processed. This will ensure theemployee is not a ‘late entrant’ which could jeopardize theircoverage.~Provide them with a benefit summary which should include thefollowing information~When benefits become effective~Coverage details~Cost sharing information~For plans including Long Term Disability explain the pre-existing condition clause.~Underwriting requirements, if any needed to be eligible forcoverage~The broker’s contact information for confidential questionsEncourage the new employee to read about the plan descriptioncontent and ask questions.
Termination ProcessWhether an employee chooses to leave, retires or is ‘let go’ by the employer, atermination process (checklist) should always be followed.Termination Procedures~Provide information on the conversion of the group life insurancecoverage. Have a waiver signed if the employee chooses not to exercisethis option. (see previous blog on conversion of Group Life Insurance)~Provide information on the conversion of extended health and dentalbenefits to individual products.~Confirm when their benefits end.If benefits are being extended as part of a severance package, this mustbe approved by the insurer. Long term disability can not be extended.~If your benefit plan has a retirement program, ensure the advisor isaware of the termination and is able to provide the employee withoptions for their proceeds.~Advise them of the time frame available to have claims submitted to theinsurer.Needing a formal checklist that you can personalize? Contact me email@example.com