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 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 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 salary directly in the plan member’s personal file. Please follow the steps below:Perform a member search and access the plan member’s personal file From the left-hand menu, under Update Member Information, click Edit Salary Update the salary amount and salary basis and enter the effective date Click Ok
You can also complete the Notice of Change form (F54-020A) and send the completed document to us within 31 days of the salary change. The Notice of Change form (F54-020A) is available on our website at www.inalco.com, in the Group Insurance section, under the Administrator Services heading.
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 the employer.
If you have any questions or concerns regarding this matter, please contact your benefits advisor or your Industrial Alliance group account executive.