This file identifies those employees billed for their insurance premiums whose priority codes and/or premiums did not update on Screen 106 (Benefit Maintenance) properly upon reaching the State Group Insurance Premium Contribution (SGIP) eligibility date. An employee will not receive SGIP until his SGIP Date matches or is beyond the Premium Due Date as shown on screen 106.
In order for priority codes to get updated, the Premium Due Date must be greater than or equal to the SGIP eligibility date. It is important to update the priority code prior to the next month's Billing or Payroll processing because the priority codes determine how SGIP is applied.
A priority code of ‘N’ indicates no SGIP will be applied so the full premium is the employee deduct amount. An active priority code (not 'N') applies the SGIP to the employer payment amounts and causes the employee deduct amount to be less.
The SGIP is applied to premiums in the numerical order of the priority codes. The priority codes are BL - '1', MED - '2', ADD - '3', DEN - '4' , VIS - '5' and LTD - '6'. (LTD priority code is optional based upon the employee's request.)
Because employees have the option of not applying SGIP to their LTD deductions, the priority code for LTD is not updated automatically. ‘LTD PRTY ‘N’ MAY NEED MANUAL UPDATE’ appears as an error message to prompt the processor to review that employee's LTD preference.
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Also see - System Benefits SGIP Eligibility, Screen 106
||Prty Code, Premium Update For Emp Reaching SGIP Elig Date
|BPP Job Name:
|BPP Program Name: