USPS Fiscal Year-End Close Manual –
USPS Group Insurance Overview
As part of the fiscal year-end (FYE) process, USPS coordinates with ERS to create and update new plan-year insurance coverage records in USPS. New plan-year information is sent to USPS via file transfer protocol (FTP). This file, referred to as the summer enrollment file, replicates the daily insurance change file (Report 999). It includes changes to health carriers, health care reimbursement accounts, dependent care reimbursement accounts, dental plans, and other optional coverages made by employees during the annual enrollment period as well as any premium changes for the new plan year. This year the summer enrollment file is scheduled to be processed by Sept. 4, 2020.
When the summer enrollment file is processed, a new 09/01/2020 HMTU1 record is created that includes any insurance coverage changes employees made during the annual enrollment period. However, these changes will not update H0ZUC until the night after your agency processes month-end clears for August.
Your agency is responsible for processing the fiscal year-end insurance rollover on HMQU1 after the assignment rollover is complete and all 09/01/2020 personnel actions affecting insurance salary have been entered into USPS. The insurance rollover process:
- Recalculates the employee’s insurance salary.
- Recalculates optional life and disability premiums.
- Creates the Insurance Salary Transactions Report (974).
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- Generates the insurance salary file to report all insurance salary changes to ERS.
After the insurance rollover process is complete, your agency will receive the Insurance Rollover Premium Calculation Error Report (991). This report indicates employees who have errors during the rollover process due to an invalid carrier for the new plan year. These errors must be corrected in ERS OnLine and/or USPS before running September’s payroll. Also, you must verify after the insurance rollover that the insurance salary, coverages and premiums are correct in USPS.
After an agency processes its initial insurance rollover on HMQU1, each employee’s insurance salary will be recalculated during the nightly cycle and compared to the last insurance salary reported to ERS until the September final regular payroll is successfully processed. If the calculated salary and the last reported salary are different, the HMTU1 screen will be updated with the new insurance salary, and the salary change will be reported to ERS via the insurance salary file (Report 974). If an agency makes any change that would affect an employee’s insurance salary after the September regular payroll has processed, the agency must manually request the insurance rollover again to recalculate and send the new insurance salary to ERS.
The deadline to report insurance salary changes to ERS is Sept. 30. Therefore, changes must be entered into USPS no later than Sept. 30 in order to be included on the insurance salary file and reported to ERS by the deadline. Remember that to capture any change entered after the September regular payroll has processed, your agency must request the insurance rollover on the HMQU1. Any change to an employee’s insurance salary after the deadline must first be approved by ERS, then manually updated in both ERS OnLine and USPS.
ERS uses the insurance salary file to update insurance salary information and to recalculate optional life and disability premiums in ERS OnLine. It may take several days before updates to an employee’s insurance salary are reflected in ERS OnLine.
The insurance rollover must be completed or requested before a final September payroll can process. Agencies are not allowed to set up a final payroll request on HSCU1 if the insurance roll has never been completed or requested on the HMQU1 screen before the HSCU1 entry.