The Importance of Correctly Reporting Salaries
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 could be improperly paid.
As plan administrator, you have the responsibility of providing salaries according to the definition of salary stipulated under your contract and maintaining accurate and current information for all of your plan members insured with Industrial Alliance. You must inform us 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.
If you have all transactions Web@dmin access, you can update the information directly in your plan members’ file in the salary section by clicking on edit, and entering the new salary, salary basis, and effective date. Otherwise, please complete the Notice of Change form (F54-020) and send the completed document to us within 31 days of the salary change. The Notice of Change form (F54-020) is available on our website at www.inalco.com, in the Group Insurance section, under the Administrator Services heading.
Industrial Alliance will pay benefits based on the salary for which premiums were paid. There will be no adjustments of benefits at the time of claim if there is a discrepancy between the salary declared and the salary paid. Administrators that neglect to maintain and report accurate salary information—and therefore do not pay premiums based on their plan members’ real salaries could create potential liabilities for their employers.
If you have any questions or concerns regarding this matter, please contact your benefits advisor or your Industrial Alliance group account executive.