BN - Annual Benefits Base Rate (ABBR)

GENERAL DESCRIPTION:

PeopleSoft delivers a way to define an amount to be used in the calculation of life and disability insurance. This amount is referred to as Annual Benefits Base Rate or ABBR. Separate ABBR’s will be configured for State Group Life (SGL) and Income Continuation Insurance (ICI) since these amounts can be different. ABBRs will be need to be added for new hires and transfers from other state agencies, updated on an annual basis, and potentially mid-year in the event of a permanent FTE change, an unpaid leave of absence, or a change from University Staff (classified) to Faculty/Academic Staff/Limited Appointment (FA/AS/LI) (unclassified) or vice versa.

PROCESS CONSIDERATIONS FOR State Group Life:

  • For all new hires, the State Group Life ABBR will need to be manually entered by the campuses. This amount is based on an estimated calendar year WRS earnings rounded up to the next highest $1,000. All active WRS eligible jobs earnings must be added together to derive the estimated annual earnings. 
    • University Staff (Classified): Hourly Rate X 2080 hours
    • FA/AS/LI (Unclassified) and Lump Sum Appointments: Expected Annual Salary
    • Less than Full Time: Prorated based on the FTE
  • When an employee transfers from another state agency to the UW, the SGL ABBR must match the current coverage level from the previous employer based on the State Personnel Transfer Record.

  • Employees that had an employment category change during the calendar year will need to combine these earnings together for SGL ABBR update.

  • Annually, after the calendar year’s WRS Accumulator has been updated with all calendar year earnings, the SGL ABBR is reviewed and/or updated automatically by the ABBR Annual process. The amount is based on the highest calendar year of WRS earnings rounded to the next higher $1,000.

  • The SGL ABBR is created in early February by an automatic process which dictates the premium to be deducted for March coverage.

  • Employees subject to the 402 (g) limits for reporting WRS earnings, are not subject to these limits for State Group Life Insurance coverage.  Therefore, their unreduced calendar year WRS earnings are used in updating the annual SGL ABBR.

PROCESS CONSIDERATIONS FOR Income Continuation Insurance:

  • For all new employees the Income Continuation Insurance ABBR will need to be manually entered by the campuses. This amount is based on an estimated calendar year WRS earnings rounded up to the next highest $1,000. All active WRS eligible jobs earnings must be added together to derive the estimated annual earnings.
  • When an employee transfers from another state agency to the UW, the employee must submit an application within 30 days to maintain coverage and the amount of the ICI ABBR must match the current coverage level from the previous employer based on the State Personnel Transfer Record.
  • Permanent FTE changes (greater than 3 months duration) will require a manual update to the ICI ABBR amount. The effective date of the ABBR should equal the date the employee's FTE changed.
  • The annual ICI process will automatically update employee's ICI ABBR amounts: University Staff (Classified) employees' previous year's sick leave balance or net accumulation be included in calculating the premium level for the upcoming year.

PROCEDURE STEPS: 
  1. Navigate to:  Benefits > Employee/Dependent Information > Review ABBRs
  2. Enter the Employee's Empl_ID and click Search
  3. Review the ABBR type, amount, and the effective date as of the current date or enter a different As of Date and click the Refresh Search button

9.2 ABBR Review

To enter a new ABBR or update a current ABBR, please follow these steps:

  1. Navigate to:  Benefits > Employee/Dependent Information > Update ABBRs
  2. Enter the Employee's Empl_ID and click Search
  3. Click the magnifying glass icon to look up the ABBR type
  4. Select the ABBR type to be updated (SGL or ICI)
  5. Adjust the ABBR amount as necessary or click the + button to add a new effective dated row with a new ABBR amount

9.2 ABBR Update

 


ADDITIONAL RESOURCES:

Related KBs:

Related Links:





Keywords:ICI SGL salary employee class change transfer State Group Life Income Continuation Insurance Previous WRS Earnings Annual Salary Annual Income Coverage Level Benefit Amount ABBR Annual Base Benefit Rate Annual Benefit Base Rate   Doc ID:17090
Owner:Joanna B.Group:Human Resource System (HRS)
Created:2011-02-27 19:00 CDTUpdated:2017-06-16 09:44 CDT
Sites:Human Resource System (HRS)
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