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USPS Fiscal Year-End Close Manual
Insurance Rollover

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, 2019.

When the Summer Enrollment file is processed, a new 09/01/2019 HMTU1 record is created that includes any insurance coverage changes employees made during the annual enrollment period. However, these changes will not update HØZUC 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 09/01/2019 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) and
  • 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 error 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 prior to 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 their 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 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.

The Insurance Salary file is used by ERS 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 prior to the HSCU1 entry.

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Group Insurance/TexFlex Rollover

The Group Insurance/TexFlex rollover is scheduled to begin Sept. 3, 2019. Agencies must request the insurance rollover prior to requesting a September final payroll.

After completing month-end clears for August, executing the Employee Assignment rollover, and entering all 09/01/2019 personnel actions, you should set the parameters for the insurance rollover. The insurance rollover process does the following for all active employees:

  • An 09/01/2019 HMTU1 record is either inserted or updated.
  • Insurance salaries and premiums are calculated and updated/inserted on the 09/01/2019 HMT record. Premium calculations are based on the new plan year rates and the employee’s age on 09/01/2019.
  • The transaction code on HMTU1 is set to FYE.
  • If an employee is on leave without pay in USPS, that employee’s insurance salary will recalculate and be reported to ERS OnLine on the Insurance Salary Report 974 if there is a salary change.
  • The Insurance Rollover Premium Calculation Errors Report 991 will display employees with invalid carriers. These errors should be corrected before a final payroll is processed.
  • An automatic compare of each employee’s insurance salary to the last insurance salary sent to ERS will occur with each nightly cycle after an agency has processed its initial insurance rollover. This process will continue until a final regular payroll is processed. This will ensure that any changes made will update HMTU1, create the Insurance Salary report 974 and be sent to ERS on the Insurance Salary file.

Assuming a termination has been entered on the Employee Status Information (H0BUS) screen prior to the rollover for an employee with a termination date on or before 08/31/2019, the rollover does not calculate an insurance salary and does not create a 09/01/2019 HMTU1 record.

Note: Salary updates are not reflected in ERS OnLine until the insurance salary file is processed by ERS. Updates to HMTU1 and HØZUC are fully processed the night the roll occurs if the agency has completed month-end clears for August. Report 974 (Insurance Salary Transactions) should be retained throughout the plan year and used as confirmation of the salary changes that were reported to ERS.

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Establish Parameters for Insurance Rollover

Screen:

HMQU1 (Rollover Parameters)

Key Field:

AGENCY

 > GU    00XXX                                                     ON HMQU1
                                                                                   
                      -----------ROLLOVER PARAMETERS----------                     
                                                                                   
 R   AGENCY--> 00XXX 
                                                                                   
                                                                                   
                                                                                   
 ORGANIZATION(HNO)------------------>  N                                        
 PAYROLL TABLES(HN7,HMM)------------>  N                                        
 SALARY TABLE(H7S)------------------>  N                                        
 JOB CLASS CODE(HNT, H7O, HML)------>  N                                        
 POSITION(HNP)---------------------->  N  ENTER 'E' FOR EDIT OR 'U' FOR UPDATE  
 ACT(A),BUDG(B),GREATER(G),LOWER(L)>   A                                        
 LIST DETAIL FOR ROLLED RECORDS(Y/N)?  N                                        
 EMPLOYEE ASSIGNMENTS(HMP)---------->  N  ENTER 'E' FOR EDIT OR 'U' FOR UPDATE  
 LIST DETAIL FOR ROLLED RECORDS(Y/N)?  N                                        
 INSURANCE(HMT)---------------->       M 
   INSURANCE ROLL STATUS--------- ->                                            
                                                                                   
                                                                                   
  A205W-END OF LIST                      MM/DD/YYYY  08:23:54   M3LL PARJ ____ 

Action:

  1. Access HMQU1.
  2. Enter R in the SUBCOMMAND field
  3. Enter the following fields as required:
    • AGENCY (KEY)
    • INSURANCE (HMT) (REQUIRED)
      This field defaults to N.
      Code Description
      N (default) Indicates that the system is free to perform an insurance rollover.
      S Roll only the semimonthly employees’ insurance salaries and recalculate the insurance premiums (pay frequency 70 only).
      M Roll only the monthly employees' insurance salaries and recalculate the insurance premiums (pay frequency 90 only).
      B Roll both the semimonthly and the monthly employees’ insurance salaries and recalculate the insurance premiums.

      Note: For semimonthly agencies, after rolling either semimonthly or monthly employees only, (S or M in the INSURANCE ROLL STATUS field) a B value should always be entered.

  4. Press Enter to process the transaction.
  5. Verify the new insurance salary calculation using Report 974.

Note: Once your agency has requested the insurance rollover on the Rollover Parameters HMQU1 screen, the system will automatically continue to do an insurance salary calculation during each nightly cycle until the September regular payroll has successfully processed.

The insurance salary that is calculated during the nightly cycle is compared to the last insurance salary reported to ERS. If it is different, a new Report 974 will be produced and sent to ERS via FTP.

This process will automatically resend all changes to an insurance salary to ERS and create a new Report 974 without any action from the agency after the Insurance Rollover is first requested.

If an agency requests an insurance rollover for semimonthly employees, (a value of S on HMQU1), then the nightly process will continue to check for insurance salary changes for semimonthly employees until the September second half semimonthly payroll has been completed.

Once an agency requests an insurance rollover for monthly employees (a value of M or B on HMQU1), the nightly process will continue to check for insurance salary changes for monthly employees until the September monthly payroll is finaled. Once both semimonthly and monthly regular payrolls have processed, the automatic insurance salary evaluation process will cease.

Note: If the agency makes changes after the automatic insurance salary evaluation process ceases, a re-roll can be requested on the HMQU1 by entering a B (for semimonthly agencies) or M (for monthly agencies). Before doing so, the agency should ensure that no October special pays have been established on H10SP as special pays are not effective dated and would be incorrectly included in the insurance salary. This manual re-roll must be completed no later than Sept. 30, the ERS deadline for reporting insurance salary changes.

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Establish Parameters for the Benefits Profile (6) Report

The day after the insurance rollover, you may request the Benefits Profile (6) Report to aid in verification of the employees’ new coverages and premiums. This report includes all current information for the employees’ insurance coverages, retirement plans, defined contributions and/or optional retirement plans. This report should not be requested unless August month-end clears have been processed as any updates in the new plan-year will not be processed to the Employee Deductions (HØZUC) screen and this report will not reflect the employees’ new September profiles.

Note: This report is formatted to print one page per employee and can be very lengthy, depending on the size of the agency.

Screen:

HSRPT (Standard Report Request)

Key Field:

AGENCY

 > GU    00XXX                                                     ON HSRPT
                                                                                  
                     --------STANDARD REPORT REQUEST---------                     
                                                                                  
 I AGENCY---> 00XXX PAGE NUMBER--> 00001 
                                                                                  
                                                                                  
                                                                                  
            R      O     O     O     O     O     O     O     O     O     O        
  CYCLE TRN I  RPT C RPT C RPT C RPT C RPT C RPT C RPT C RPT C RPT C RPT C        
   000  RPT 1  006 0 000 0 000 0 000 0 000 0 000 0 000 0 000 0 000 0 000 0 
   000  RPT 0  000 0 000 0 000 0 000 0 000 0 000 0 000 0 000 0 000 0 000 0        
   000  RPT 0  000 0 000 0 000 0 000 0 000 0 000 0 000 0 000 0 000 0 000 0        
   000  RPT 0  000 0 000 0 000 0 000 0 000 0 000 0 000 0 000 0 000 0 000 0        
                                                                                  
                                                                                  
                                                                                  
                                                                                  
                                                                                  
  A287W-NO RECORD/S FOUND                                                         
                                        MM/DD/YYYY  11:29:21   M3LL PARJ ____     

Action:

  1. Access HSRPT.
  2. Enter I in the SUBCOMMAND field
  3. Enter the following fields as required:
    • AGENCY (KEY)
    • PAGE NUMBER (REQUIRED)
      Enter the page number.
    • RI (REQUIRED)
      Enter 1.
    • RPT (REQUIRED)
      Enter 006.
  4. Press Enter to process the transaction.
  5. Set the date parameters for Report 6 on the Benefits Report Request (HNKBA) screen by using an End Date of 09/30/2019.

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Establish Date Parameters for Report 6

Screen:

HNKBA (Benefits Report Request)

Key Field:

AGENCY

> GU     00XXX                                                      ON HNKBA 
                                                                                
                      -------BENEFITS REPORT REQUESTS-------                    
                                                                                
R_  AGENCY---> 00XXX 
                                                                                
                START DATE----> 09/01/2019  END DATE----> 09/30/2019 
                FY START DATE-> 09/01/2019  FY END DATE-> 08/31/2020 
                                                                                
                                                                                
      RPT 575 LAST PRCSD ON----------> XX/XX/XXXX                               
                                                                                
      ORP EMPLOYEE RETIRE CONTRIB------------879->  _                           
                                                                                
      TRS SERVICE PURCHASE REPO--------------992->  _                           
                                                                                
      EMPLOYEE INSURANCE INFO----------------993->  _                           
                                                                                
      ANNUAL RETIREMENT FEE------------------038->  D                           
 
      ALLOW INSURANCE UPDATES-RPT---032/LAST PRCSD->_/XX/XX/XXXX 
                                                                                
 A205W-END OF LIST                                                              
                                       MM/DD/YYYY  08:50:13   M3LL PARJ ____    

Action:

  1. Access HNKBA.
  2. Enter R in the SUBCOMMAND field
  3. Enter the following fields as required:
    • AGENCY (KEY)
    • END DATE (REQUIRED)
      Enter 09/30/2019 (the last date through which the information is needed).
  4. Press Enter to process the transaction.

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Options for Applying Insurance Updates During Payroll Processing

Agencies have the option to stop any insurance updates from being applied to the employee’s deductions once a verified trial payroll has been established. This process will stop updates sent by ERS and changes made online by the agency on HMTU1 from updating the Employee Deductions screen (HØZUC). When the ALLOW INSURANCE UPDATES flag on HNKBA has been set to N, no insurance updates will be applied until a final payroll has processed or until the agency manually removes the N. Once the payroll has been finalized, the flag will automatically clear and the incoming ERS transactions and/or HMTU1 changes will update HØZUC for the appropriate month.

Screen:

HNKBA (Benefits Report Request)

Key Field:

AGENCY

> GU     00XXX                                                      ON HNKBA
                                                                                
                      -------BENEFITS REPORT REQUESTS-------                    
                                                                                
R_  AGENCY---> 00XXX 
                                                                                
                START DATE----> 09/01/2019  END DATE--->  09/30/2019            
                FY START DATE-> 09/01/2019  FY END DATE-> 08/31/2020            
                                                                                
                                                                                
      RPT 575 LAST PRCSD ON----------> XX/XX/XXXX                               
                                                                                
      ORP EMPLOYEE RETIRE CONTRIB------------879->  _                           
                                                                                
      TRS SERVICE PURCHASE REPORT------------992->  _                           
                                                                                
      EMPLOYEE INSURANCE INFO----------------993->  _                           
                                                                                
      ANNUAL RETIREMENT FEE------------------038->  D                           
      
      ALLOW INSURANCE UPDATES-RPT---032/LAST PRCSD->N/XX/XX/XXXX 

Action:

  1. Access HNKBA.
  2. Enter R in the SUBCOMMAND field
  3. Enter the following fields as required:
    • AGENCY (KEY)
    • ALLOW INSURANCE UPDATES-RPT---032/LAST PRCSD (REQUIRED)
      Enter N to stop insurance changes from being applied until a final payroll has successfully processed.
  4. Press Enter to process the transaction.

Note: If an agency chooses to use this option, the agency will need to confirm all employee changes that were not updated during payroll processing and make any deduction adjustments and/or refunds on the next payroll.

Note: The date that is displayed in the ALLOW INSURANCE UPDATES-RPT---032/LAST PRCSD field is the last date that Report 032 ran for the agency. If insurance updates were held during payroll processing (because the agency entered a value of N), then the date in this field will display on both HSCU1 and HSCU3 to inform agency staff and the payroll approver that additional updates may occur following the successful processing of the current payroll.

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Insurance Salary Files

On the night of the Group Insurance/TexFlex rollover, an Insurance Salary file is created and sent to ERS to update ERS OnLine insurance salaries. USPS calculates premiums based on the USPS 09/01/2019 salary and HMTU1 coverage information as part of insurance rollover.

When daily processing creates a change in an employee’s insurance salary, the new insurance salary calculation compare process (described in a previous section of this chapter) will automatically create Report 974 and report the new salary to ERS.

Remember this process only begins after you have requested an initial insurance rollover on the HMQU1 screen. Once the final regular payroll for September has processed, the nightly cycle will no longer do an auto-compare of insurance salaries or reporting to ERS.

Note: It is important to remember that any change to insurance salary after the September regular payroll process requires an agency to request a re-roll of insurance on the HMQU1 screen to ensure that all changes get reported to ERS before the Sept. 30 deadline.

Insurance salary changes are updated in ERS OnLine with the electronic version of Report 974. Once ERS updates its system, ERS recalculates premiums. The two systems’ insurance information should then be in sync.

The Daily Insurance Change Report (999) displays salary discrepancies that exist between USPS and ERS OnLine. This ERS insurance salary will not overlay the insurance salary in USPS or be used to calculate premiums. Use the report to correct all discrepancies in the appropriate system(s). Manual (HMTU1) insurance salary changes must be entered in both USPS and ERS OnLine. ERS must approve changes after the Sept. 30 deadline.

Letters of Authorization (LOAs) to correct 09/01 salary information on HNHLS will automatically update the insurance salary until a September payroll has been processed. However, an LOA that affects insurance salary processed after the September payroll has processed will require a re-roll of insurance by entering a value of B or M on HMQU1. Before re-rolling, the agency should ensure that no October special pays have been established on H10SP.

ERS automatically sends all agency insurance changes every time an insurance salary is updated in ERS Online. Therefore, be prepared to receive numerous 100% Daily Insurance Change files (Report 999) in the month of September.

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Insurance Salary Calculations

Insurance salary is equal to the sum of base monthly pay, hazardous duty pay, longevity pay, shift differential, cost of living adjustment (COLA) pay, housing supplement, Texas military department pay, corporal pay, applicable benefit replacement pay (BRP) and the special pays for commissioned peace officers (education pay, certification pay and/or bilingual pay). These special pays must be established on H10SP before the insurance roll is complete if effective Sept. 1, 2019.

Use the following guidelines to determine an employee’s applicable BRP:

  • If annual insurance salary as of Sept. 1, 2019, is greater than $16,500.00, the BRP amount in the insurance salary formula is the leveled amount of the ERS annual maximum. (Use $85.58 for ERS, JR1 and JR2.)
  • If annual insurance salary as of Sept. 1, 2019, is less than or equal to $16,500.00, the BRP amount in the insurance salary formula would be determined by using the factors listed below.

(Multiply Base Pay by factor to get monthly BRP amount.)

BRP Maximum Amount Calculation Factors by Retirement System

Name of System Maximum/Level Factor
ERS $1,026.86/$85.57 0.066364152
TRS $1,031.25/$85.93 0.066666667
JRS Plan One $1,026.86/$85.57 0.066364152
JRS Plan Two $1,026.86/$85.57 0.066364152
ORP $1,034.01/$86.16 0.066857143
Not Participating in Retirement $965.25/$80.43 0.062134891

Note: The following examples are for BRP-eligible employees.

Example 1:

Employee’s Annual Insurance Salary is greater than $16,500.00
Retirement System = ERS

Types of Pay Amount
Base Pay $1398.00
Hazardous Duty Pay $0.00
Longevity $20.00
Shift Differential $0.00
COLA $0.00
Housing Supplement $0.00
Texas Military Department Pay $0.00
Corporal Pay $0.00
Hazardous Duty Pay $0.00
BRP $85.57
Total Insurance Salary $1503.57

Example 2:

Employee’s Annual Insurance Salary is less than or equal to $16,500.00
Retirement System = ERS

Types of Pay Amount
Base Pay $1335.00
Hazardous Duty Pay $0.00
Longevity $40.00
Shift Differential $0.00
COLA $0.00
Housing Supplement $0.00
Texas Military Department Pay $0.00
Corporal Pay $0.00
*Calculated BRP ($91.25)
BRP $85.57
Total Insurance Salary $1460.57

*When calculated BRP is more than leveled BRP, the leveled BRP amount must be used for the insurance salary.

Example 3:

Employee’s Annual Insurance Salary is less than $16,500.00
Retirement System = ERS

Types of Pay Amount
Base Pay $627.50
Hazardous Duty Pay $0.00
Longevity $0.00
Shift Differential $0.00
COLA $0.00
Housing Supplement $0.00
Texas Military Department Pay $0.00
Corporal Pay $0.00
BRP $41.64
Total Insurance Salary $669.14

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Manual Update of Insurance Salaries After the September Deadline

Screen:

HMTU1 (Group Insurance/TexFlex Participant Information)

Key Fields:

AGENCY, EMPLOYEE SSN, EFF DATE

> GUH   00XXX,00XXXXXXXXX,09/01/2019                           ON HMTU1 
                                                                              
         --GROUP INSURANCE/TEXFLEX PARTICIPANT INFORMATION--
__ AGENCY-> 00XXX    EMPLOYEE SSN--> 00XXXXXXXXX    EFF DATE--> 09/01/2019     
   NAME-> DOE, ZACHARIAH                                                 
   1ST ACT DT-> 06/27/1994  INS SALARY->    4459.00    BIRTHDATE-> 10/23/1962 
   ERS/USPS STAT-> O / B    BENEFIT STATUS-> ACTIVE    CURR ORG- > 11000010101
   PARTICP TYPE--> FTE      TRANS CODE-----> SAL       CURR POS- > 11000010
   BENEFIT PLAN    CAR / SKIP  AMOUNT  LEVEL  PREMIUM  UPD LAST UPDATED
   HEALTH--------> HI     N     .00     MF      418.64     09/01/2019
   DENTAL--------> DH                   MF       28.98     09/01/2019
   TOB USER PREM->                      NO         .00     09/01/2019
   OPTIONAL LIFE->                      E2       14.04     09/01/2019
   DEPENDENT LIFE>                       Y        1.38     09/01/2019
   VOL AD&D------>            200000.00 MF        8.00     09/01/2019
   DISABILITY-SHORT TERM->              ST       11.56     09/01/2019
   DISABILITY-LONG TERM-->              LT       28.02     09/01/2019
   EMP HSA CONTRIBUTION-->                         .00     09/01/2019 
   ST PD/UPD-> 856.94 /  TOTAL EMPLOYEE COST--> 510.62
                     CREATE DATE---> 09/05/2019 ACTION DT-> 09/05/2019    
                                                                               
                                   XX/XX/XX  10:33:27 1 M3LL PARJ ____    

Action:

  1. Access HMTU1.
  2. Enter R in the SUBCOMMAND field
  3. Enter the following fields as required:
    • AGENCY (KEY)
    • EMPLOYEE SSN (KEY)
    • EFF DATE (KEY)
    • INS SALARY (REQUIRED)
      Enter the calculated insurance salary amount. The system uses this field to calculate certain premiums and does not edit this field.
    • BENEFIT STATUS (REQUIRED)
      Enter Active (the employee's status).
    • TRANSACTION CODE (OPTIONAL)
      Enter SAL (insurance salary change).
  4. Press Enter to process the transaction.

Note: If a salary change occurs after the ERS Sept. 30 deadline, approval to change a salary must come from ERS. Once the approval process is complete,ERS corrects the insurance salary in ERS OnLine, and then the agency must correct the USPS insurance salary on HMTU1. These changes affect optional life, short term and long-term disability premium calculations.

Once an updated insurance salary is entered on HMTU1, recall the screen to verify that the disability and optional life premiums have been recalculated. A value of Y populates the UPD field on HMTU1. This updates HØZUC during the nightly cycle if the agency is in the current processing month or later than the effective dated record.

Adjustments to the September pay period may be required if the new insurance salary caused changes to any premiums.

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USPS Fiscal Year-End Close Insurance Post-Roll Checklist

___ Ensure the insurance roll has occurred by verifying the INSURANCE ROLL STATUS field on HMQU1 has a value of B, S or M.

___ Insurance salaries have been verified on Report 974. Check ERS OnLine with Report 974 to ensure all salary updates have occurred prior to the Sept. 30 deadline.

___ Check Report 991 to ensure invalid health carriers have been corrected in ERS OnLine and USPS.

___ Check Report 991 to ensure no errors for missing F20 HNH rollover record. If an employee does not have an F20 row on the HNHU1 screen, they will be paid for September but will not be paid for October. Re-roll assignment or submit and LOA to add the F20 record prior to October regular payroll processing.

___ Insurance salaries for LWOP/FMLA employees have been verified. Salary change has been verified for returning LWOP/FMLA employees on Sept. 1, 2019. All other LWOP employees’ prior fiscal 2019 salaries have been rolled to a 09/01/2019 insurance record.

___ HMTU1 records have been verified to HØZUC records (use Report 32).

___ Retain Report 974 for future use with discrepancies between USPS and ERS OnLine.

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