HR/Payroll Conference Call

1. HR/Payroll Conference Call October 21, 2014

2. Agenda • Training • New Class Available in November – FI 400 • Benefits Updates • Annual Enrollment Update • Same Sex Marriage Ruling • Retirement Processing • Dual Enrollment Issues • OM/PA Updates • 2-Year Service Awards Report • ACA – PCR Process for Temps • Payroll Updates • Time Updates • Bonus Leave update • Delimiting Military Training Leave • Adverse Weather expirations

3. New Course Coming Soon - - - - - - - - - Tues & Wed, November, 18 & 19, 2014 Training Updates FI400 – Reporting for Funding Approvers Course Content: • Overview • Terms & Definitions • Funding Approver Workflow role review • What is ERP? • What is BI? • ERP Reports (ZFIR018 – Payroll Posting for NCAS) • BI Reports (B0149 – Position by Funding Source for Budget) Prerequisites: • OM250 – Agency Funding Approver • WF220 – Workflow for Funding Approvers Security for: • ERP & BI reporting Course will be taught in the PRODUCTION region! For more information…Contact your Agency Training Agent. They received detailed information in an email sent 9/30/14.

4. Annual Enrollment Updates & Reminders • Annual Enrollment – 10/1/14- 10/31/14 • For the State Health Plan & NC Flex Plans • Enrollment choices for benefits will be effective: • 1/1/15 – 12/31/15 • Employees can: • Switch between Plans • Add or Remove Dependents • Cancel Plans • Re-Submit Wellness Credits

5. Annual Enrollment Reminders • All NC Flex Plans will automatically renew for 2015, with the following exceptions: • Health Care Spending Account • Dependent Day Care Spending Account • Employees must re-enroll each year in the FSAs • Employees MUST go thru the online enrollment process to cancel or remove any NC Flex plans (with the exception of the FSAs) • Employees enrolled in the 80/20 plan or CDHP that wish to maintain or lower their premium will need to complete the wellness premium credits as required below: • Employees do NOT have to re-indicate a PCP if one has already been chosen • Employees WILL BE REQUIRED to complete the Tobacco Attestation again • Employees WILL BE REQUIRED to complete the Health Assessment again, IF completed prior to 11/1/13

6. Annual Enrollment Stats

7. Annual Enrollment Reminders • New Hires & Qualifying Events (QE) – Complete the New Hire or Qualifying Event enrollment FIRST, then return the following Monday to complete the Annual Enrollment • For all Qualifying Events & Return from LOAs in November • Employee should complete the QE or Return from LOA enrollment • BEACON will reenroll the employee back in the Health Plan as of 1/1/2015. • Employees on LOA exhausting leave during the AE still need to go online to complete the ESS enrollment • Employees on LOA without pay, will be able enroll upon Reinstatement from LOA • Agencies need to monitor employees on LOA that are still eligible for continued state sponsored insurance – Short Term Disability with > 5 yrs, FMLA, Workers’ Comp/Injury Leave, Separation Pay Continuation (RIF & Short Term Disability)

8. Annual Enrollment Reports • BI Benefits Reports • Annual Enrollment Statistics – to determine annual enrollment activity • Participating Employees B0011– to determine employees currently enrolled in the FSAs & compare to employees enrolled as of 1/1/15 • Personnel Admin BI Reports • Last Employee Action as of Selected Date B0080 – to determine employees currently on LOA & what type of LOA OR employees separated for RIF or Pay Continuation

9. Annual Enrollment Issues • 2014 Wellness Credits – Due to processing requirements for the 2015 credits, the 2014 credits may not currently show on the Benefits Confirmation statement; This will be corrected after the Annual Enrollment period • Health Assessment Credit • Incompatible Internet Explorer Versions may require log in with userid & password • List *.myactivehealth.com as a ‘trusted’ website • Phone Assessment Option - 1-800-817-7044 • Health Assessment credits will not show on the Benefits Confirmation statement until 24-48 hours after completion • Health Assessments submitted AFTER 11/1/13 will not see the wellness credit until AFTER the Annual Enrollment period • Tobacco Attestation Credit – should show up on the Benefits Confirmation Statement the day AFTER the enrollment/attestation is completed

10. Annual Enrollment Issues continued • PCP Credits - Some doctors may be “in network” with the State Health Plan/BCBS, but not in the PCP tool for selection.  Physicians or medical practices need to contact BCBS to get listed in that directory, in order for employees to select and receive the credit.  Employees can still choose an existing PCP listed in the tool to get the monthly premium credit; they will just need to see the PCP or practice selected to get the reduced co-pay. • NC Flex Group Term Life Elections - If a spouse election change results in a coverage amount that is greater than the employee’s CURRENT 2014 election, the system will kick out the enrollment or display an error message that will not allow the change to be saved.  If issues like this should occur, please have your employees place a ticket into BEST so the spouse election can be manually entered.

11. Same Sex Marriage Court Ruling • A Federal Court ruling overturned NC law – Same sex marriage now recognized as legal • Same sex spouses & their dependents of State Health Plan & NC Flex members are now eligible for coverage • The BEACON system has been updated as of 10/16/14 to allow same sex spouses to be listed in the system as a ‘spouse’ (and/or ‘child’) rather than ‘other’ or ‘related persons’. • This is considered a Qualifying Life Event to add these dependents now effective 11/1/14, OR • This includes eligibility to add same sex spouses & children for Annual Enrollment with a 1/1/15 effective date

12. Same Sex Marriage Court Ruling continued • As a Qualifying Life Event (QE): • Members have 30 days from 10/16/14 (10/16/14-11/14/14) to add a spouse • Marriage Certificates are REQUIRED • Children of the new spouse are eligible for coverage as well – Birth Certificates are REQUIRED • Coverage would become effective 11/1/14 • For a QE Enrollment, the Agency HBR must obtain appropriate documentation to verify the addition of the dependent (spouse or child, i.e., marriage or birth certificate) • The Agency HBR must create the QE Adjustment Reason for ADDF (Add Family) with a start date of 10/16/14

13. Same Sex Marriage Court Ruling continued • If a same sex spouse (and/or spouse’s child) is not enrolled within the 30 days for the qualifying event (by 11/14/14), they cannot be added until the next annual enrollment (October 2015). • They can be added during this annual enrollment, which ends on 10/31/14. • Going forward, any newly married couples are eligible to be added to the plans under regular Qualifying Event rules, using the MRG adjustment reason for ‘Marriage.’

14. Same Sex Marriage Court Ruling continued • PLEASE REMEMBER – PRIOR TO COMPLETING AN ENROLLMENT, the spouse or child needs to be listed as such in the BEACON system first. • Employees can log onto the ‘Beneficiaries & Dependents’ screen in My Data (ESS), My Benefits to add the spouse or child: • PLEASE NOTE: The spouse may already be listed as ‘Other’ or ‘Related Person’. These records cannot be deleted. • A new record needs to be created for the individual as ‘New Spouse’ or ‘New Child’. • Once the new Beneficiary/Dependent record is created, the individual will be listed in the BEACON system as an eligible dependent to add to an insurance plan. • Agency HBRs or Master Data Maintainers can also create the spouse or child record in the ‘Family Member/Dependents’ Infotype (IT 0021).

15. Retirement Processing • Retirement Separations need to be completed at least 60 days prior to the retirement effective date • BEACON is a date driven system and will not process any IT416 Leave Payouts until the payroll date entered • Additionally, benefit elections will be termed based on the date of separation, NOT the date of entry into the system • This is to ensure Retirees that are Medicare Eligible can enroll in a Medicare Advantage Plan within the time frame allowed • Agencies can monitor separations processing based on when the Form 6 is submitted by the employee – Employees are encouraged to submit the Form 6 at least 120 days prior to their retirement • Employees need to made aware that it is extremely important that they notify their Agency HR staff of their retirement, to ensure timely processing of their Insurance Benefits

16. Dual Enrollments • Please ensure RIF and Retirement Separations are processed as timely as possible • Late processing of a RIF or Retirement separation can result in the employee being dually enrolled in the State Health Plan • This results in billing discrepancies for the Agencies and the Insurance Vendor

17. 2 Year Service Awards Report • It’s Ready! BI Report B0079 • The change to the Service Awards Report B0079 to add the eligible 2 year employees went into production on 10/9/14

18. ACA Process • Employees are measured by BEACON to determine eligibility & eligibility files will be sent to the Insurance Vendor. • Agencies are notified monthly by OSHR of eligible employees OR Agencies can run BEACON reports monthly to identify eligible employees. • Agencies notify eligible employees of their eligibility, option to enroll & how to enroll. • Employee enrolls (or not). • Employee pays vendor directly. • Insurance Vendor will bill the Agency. • The Agency pays the Vendor the state sponsored portion of insurance coverage. • The Insurance Vendor will send BEACON enrollment files. • BEACON will upload the files into SAP for Agency monitoring.

19. ACA Responsibilities • OSHR Benefits Division will: • Run the Standard Measurement eligibility report in November 12-14, 2014. • Send a list of ACA full-time and non-full-time employees to each agency. • Agency will: • Also run eligibility reports. • Notify the ACA full-time employees of their ACA health insurance eligibility. Note: A template enrollment letter will be provided for use. • Pay the SHP vendor directly for employer premiums. This Plan will not be run through BEACON’s Payroll. • BEST will: • Send eligibility files to the vendor. • Maintain the enrollment platform to include making changes to employee’s plans.

20. ACA – PCR BEACON Process for Temps • PCR screen changes: • To capture the initial status expectation. • New Infotype – IT9701: • To store the measurement period dates, stability coverage period dates, initial status expectation, and final measurement results. • Supporting programs: • Infotype creation program. • Measurement calculation program. • FUTURE: Tax reporting program. • ACA Reports: • To identify who is newly eligible for coverage. • To identify current coverage eligibility status. • To monitor average weekly working hours prior to measurement. • Conversion of Existing Temps for Newly Eligible list as of 1/1/15

21. ACA - Conversion of Temps • Measure current Temp EEs to determine eligibility • 1st Measure in November for 11/1/13-10/31/14 employees • 11/1-11/14 run measurement/eligibility reports • 11/17 – Eligibility report sent to Vendor & Agency • 11/17-11/19 – Agencies to notify employees • 11/20 -12/19 - Employee enrollment period • OSHR/BEACON will continue to measure each month • This captures all current temporary employees that should be designated as newly eligible for health insurance coverage effective 1/1/15 • Measurement Program Creates new IT 9701

22. ACA – PCR ChangesTemp Hire Action

23. ACA Status

24. ACA Status Agency will be required to indicate: Agency will be required to indicate in the PCR: indicate: Is the employee reasonably expected to work 30 or more hours/week Is the employee expected to work less than 30 hours/week Is the employee ‘Seasonal’

25. ACA Status Users will NOT be able to continue processing the PCR without Users will NOT be able to continue processing the PCR without making an ACA Status choice. A hard stop error message will occur. A hard stop error message will occur. Users will NOT be able to continue processing the PCR without making an ACA Status choice. A hard stop error message will occur.

26. ACA – PCR Changes for Temps • New PCR info is available for Temps with a New Hire effective date of 11/1/14 and after • Temps with a New Hire effective date prior to 11/1/2014 will not be able to access the ACA Status options • The info will be ‘greyed out’ on the screen • These employees will be measured in the Temp Conversion process NOTE: If anyone has started a Nov effective hire date PCR for a Temp, PRIOR to the implementation of this new process, please REJECT it back to the initiator so the ACA status can be selected • Completion of the PCR will generate the new Infotype - 9701

27. ACA Infotype – IT 9701 • IT-9701 will be created and updated by batch programs. • BEST will make any necessary corrections. • Agencies will have display access.

28. ACA Infotype-Initial Measurement Measurement period Initial stability/coverage period Eligibility indication Extended stability/coverage period Eligibility indication

29. ACA Infotype-Standard Measurement Measurement period Standard stability/coverage period Eligibility indication

30. ACA Reports Transaction: ZBNR052

31. ACA Reports Transaction: ZBNR052 • Final Measurement – Use this option to see who just became eligible. • Coverage – Use this option to see who is eligible or not on a specific date. • Period-To-Date - Use this option to see weekly averages so far in unmeasured periods.

32. ZBNR052 – Initial screen

33. Final Measurement Report

34. Coverage Eligibility Status Report

35. Period-To-Date Report

36. Key Take-Aways • Remember the new field on PCRs for Temporaries hired on or after 11/1/2014. • OSHR will assist agencies when to run their eligibility report and to inform employees. • Eligibility for the initial measurements period will be calculated starting the first of each month. Agencies to run reports to see the results.

37. Payroll Updates • Payroll Corrections – • Payroll runs correction runs at Noon and 3:30 each day of corrections • Any employee record that is open during that time will not be updated – therefore new results will not be reflected when payroll is open • Please exit all employee records a few minutes before Noon and 3:30pm – the system will be unavailable for approximately 1 hour while the corrections run. • 2015 Payroll Calendars are now on the BEST website • In preparation for W2 processing please ask employees to verify that we have their current address. They can verify the address in ESS.

38. Bonus Leave – Quota 50 • SB744 granted 40 hours of Bonus Leave effective 9/1/14. • The State Human Resources Commission approved a policy change to allow bonus leave to be consumed prior to vacation leave. We are still collecting information to determine the best course of action within the system. • Maintenance of the Bonus Leave quota (Q50) via IT2013 is only available through BEST.

39. Delimiting Military Training Leave If an EE is no longer eligible for Military Training Leave (Quota 85) which accrues annually on 10/1, you can prevent the EE from accruing by creating IT2012 / ZMLE. This infotype was introduced in the system in January 2014. Job Aid located on the training website under Time Management. Link to Job Aid: http://www.osc.nc.gov/training/osctd/help/Time%20Management/Job%20Aids/PA61DelimitMilitaryLeaveTraining.pdf

40. Adverse Weather Expirations • Looking ahead to 2015, there are thousands of AW liabilities that will expire. Please be proactive and run B0210 to see which EEs have liabilities in the next 12 months • January 2015 – 3,743 EEs totaling 37,275 hours • February 2015 – 6,042 EEs totaling 73,833 hours • March 2015 – 3,036 EEs totaling 18,270 hours • Link to Job Aid: • http://www.osc.nc.gov/training/osctd/help/Time%20Management/Job%20Aids/RecoveringAdverseWeatherOwed.pdf