State of California

  M E M O R A N D U M

  REFERENCE CODE:
  99-048

  DATE:
  October 6, 1999

  TO:
  Personnel Officers
  Personnel Transactions Supervisors
  Personnel Transactions Staff

  FROM:
  Department of Personnel Administration
  Benefits Division

  SUBJECT:
  Benefit Deductions For Semi-Monthly Positive Paid State 
  Employees 

  CONTACT:
  William Page, Benefits Program Analyst
  (916) 445-9801, CALNET 485-9801
  FAX: (916) 322-3769
  OFFICE VISION: DPA(WilliamPage)
  INTERNET: WilliamPage@DPA.CA.GOV


  This memorandum contains important information regarding 
  the benefit deductions for semi-monthly positive paid State 
  employees. This information will not have an affect on 
  semi-monthly negative paid State employees.
  
  State Benefit Deduction Process For Semi-Monthly Positive 
  Paid Employees
  
  Currently, health, dental, and vision benefit deductions 
  are applied against the second half of the monthly pay for 
  employees paid on a semi-monthly basis.  This means that 
  the premiums are sent to the benefit carriers mid-month 
  rather than at the first of the month like the majority of 
  employees.  Effective November 1, 1999 (pay warrant dated 
  the latter part of November) health, dental, and vision 
  benefit deductions will be applied against the first half 
  of the pay for all semi-monthly positive paid State 
  employees.
  
  A separate letter will be sent by the Department of 
  Personnel Administration (DPA) to all semi-monthly positive 
  paid employees advising them that their State benefits will 
  be applied against the first half of their monthly pay 
  instead of their second half monthly pay.  For your 
  information a copy of the letter that will be sent to all 
  semi-monthly paid employees (Attachment I) is provided in 
  this memorandum.
  
   
  Reason for the Change in the Benefit Deduction Process 
  
  Semi-monthly paid employees often experience eligibility 
  problems with their benefits because their benefit premium 
  deductions are paid out of their second half monthly pay.  
  As a result, these employees are not on the first 
  eligibility tapes that are sent to the carriers from the 
  State Controller's Office on the first of the month.
  
  The result of this change will be that the premiums will be 
  sent to the health, dental, and vision carriers for 
  coverage at the beginning of the month.  This new deduction 
  process should eliminate specific problems that semi-
  monthly paid employees have experienced with dental 
  coverage as a result of their premiums being reported mid-
  month.
  
  Impact on Employees in Consolidated Benefits (CoBen) or 
  FlexElect 
  
  Those semi-monthly paid employees who are eligible for 
  CoBen will have the Benefit Allowance Amount applied in 
  their first half pay.  Any semi-monthly paid employee who 
  receives FlexElect or CoBen Cash Option payments will 
  receive the cash payment in the first half of their pay.  
  
  Semi-monthly paid employees who are enrolled in the 
  FlexElect Medical Reimbursement Account and/or Dependent 
  Care Reimbursement Account will continue to have the 
  reimbursement account deduction applied against their 
  second half monthly pay.
  
  QUESTIONS REGARDING BENEFIT DEDUCTIONS FOR SEMI-MONTHLY PAID 
  EMPLOYEES
  
  Employees should be directed to contact their departmental 
  Personnel Office if they have any questions regarding their 
  benefit deductions.  Personnel Office staff requiring 
  assistance or clarification of the information contained in 
  this memo should call William Page, Benefits Program 
  Analyst, at (916) 445-9801 or CALNET 485-9801.
  
  
  
  
  Kathie Vaughn, Chief
  Benefits Division
  
  cc:SCO, Butch Massoni/Bob Curry/Don Ward
  CALPERS, Pam Moore
  JRS, Rae Gamble
  STRS, Pat Sidhu
  CAHP BENEFIT TRUST, Terri Westbrook
  CCPOA BENEFIT TRUST, Gerrit Buddingh
  
  Attachments will be distributed via mail.