BFL CANADA’s Administration Tip of the Month | By Jeanne Migneault | JULY 27, 2018
Salary changes: Why is it vital that you report them correctly?
Death benefit payments and short- and long-term disability benefit payments are typically based on plan members’ salaries. It is vital that members’ salaries be accurately reported on a regular basis, otherwise their benefit payments will not be based on the correct salary.
As plan administrator, you have the responsibility of providing salaries according to the definition of salary stipulated under your group insurance contract and maintaining accurate and current information for all of your plan members. You must inform your insurance company of any salary changes as soon as possible. Failure to properly report salary increases will result in benefit payments to your plan members being lower than they should be.
Please be aware that if you neglect to maintain and report accurate salary information and do not pay premiums based on current salaries, it could lead to potential liabilities for you.
If you have any questions or concerns regarding this matter, you should contact your benefits advisor or Insurance Company’s group account executive.
Jeanne Migneault is a Group Insurance Plans Advisor and Team leader - Administrative Support and Actuarial Services at BFL CANADA Consulting Services Inc.