OFFICE OF STATE UNIFORM PAYROLL MEMORANDUM #98-56

To:	All UPS Agencies
From:	Ronald S. Mitchell, Director
Subject:	1998-99 Cafeteria Plan Year Employee Record Maintenance

Cafeteria Plan Open Enrollment ended April 30, 1998. Any changes made to employees' Group Hospitalization (HS), Group Life (LI) or miscellaneous deductions MUST be entered in UPS by agencies the first pay period in June for HS and LI products and July for miscellaneous products, with the exception of MSZ. Keep in mind that different entries will be required for an employee who is joining the cafeteria plan as opposed to an employee who is a current cafeteria participant making changes to their deductions.

The attached chart was developed to assist agencies in determining when to enter data. The chart also identifies the system cafeteria maintenance that will be performed in June and July. Refer to the chart for detailed instructions to stop MSZ deductions. All changes automatically processed by UPS for cafeteria maintenance will appear on separate On-Line Record System Audit Reports to be produced the weeks of May 18 and June 15, 1998.

The MSU Deduction Report (BL1438-01) and the MSZ Deduction Report (Bl1438-02) will be produced this week. Agencies should review these reports in BUNDL to determine which employees must complete a new enrollment form for dependent care (MSU) and determine whether any MSZ deductions are for hospitalization and/or life products which must be stopped in June.

1. For current cafeteria participants who elect to add or increase insurance coverage during open enrollment with an immediate effective date, the deduction or increase must be set up as non-participating (N). The system cafeteria maintenance routine run in July will change the deduction to participating
.
2. New cafeteria participants' CAFE IND should be changed to the appropriate indicator P, M, or F for the first pay period in June regardless of current Group Hospitalization and/or Life coverage. This will ensure that the system will change all eligible miscellaneous deductions to participating (P) for the first pay period in July.
3. For current cafeteria participants who elect to stop their participation in the cafeteria plan, the HS/LI Part indicator must be changed to "N" during pay period 5/18 - 5/31/98 so that Group Hospitalization/Life is not sheltered during the month of June for July premium payments. However, when July cafeteria maintenance is run for the first pay period in July, the HS/LI Part indicator will automatically change back to "P" to match the cafeteria participation indicator. This action is unavoidable; consequently, OSUP will review the special audit report, identify the affected employees, and contact the affected agencies. The affected agencies will have to manually change the HS/LI part indicator back to "N" to resolve this problem. Refer to the attached chart for miscellaneous product entry in July.

New Cafeteria enrollment forms should be stamped with the green "Reviewed for Processing State of Louisiana" stamp and mailed to State Employees Group Benefits Program (SEGBP). SEGBP will not process unstamped forms.

Any questions which agencies cannot resolve regarding the establishment of miscellaneous products should be referred to SEGBP and/or the respective miscellaneous vendor coordinator. For further assistance with entry of necessary changes, please contact a member of the User Services Unit at (504):

• Stacey Guilbeau
  342-5377
• Colette Anderson
  342-5344
• Andrea Hubbard
  342-5337
• Cheryl Bunch
  342-5950

RSM:SKG

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