Procedures for UT Flex Administration - January 1, 2003 implementation
Justification of why Flex Administration changes are needed
As was discussed in an earlier memo from Laura Chambers, we have to change the processes for administration of UT Flex contributions by January 2003. There are a few underlying factors which necessitate this change in such an urgent fashion.
1. For the first time in over ten years of Flex administration, it looks as if our Flex account reserves may not cover the Flex administration fees. If this trend continues, we may have to require that an administration fee be charged to every employee that participates in either of the Flex Reimbursement accounts, starting with the 2003-2004 fiscal year.
2. In order to perform more detailed queries of account status and for enhanced reporting capabilities, FlexBen is upgrading our account to their newest system. This requires the change in the dataset layout of the information being sent to FlexBen. This would require some work by each component to change the format.
3. There were a few situations discovered where FlexBen had inadvertently paid Flex reimbursements to employees that were not making contributions or in excess of their contributions. Because it is unknown whether this could also be a contributing factor in our estimated reserve shortfalls, EGI must put itself in the middle of the data transmissions. EGI is also in negotiation with FlexBen to receive monthly feeds of all Flex reimbursement payments so that audits can be performed monthly to verify the validity of payments.
Proposed Flow of Events
The following is our proposed flow of events for Flex administration. EGI is currently defining, prioritizing, assigning, and scheduling all the different projects and tasks necessary to implement the following processes:
1. Components transmit data and wire money. These two events should happen on relatively the same day. It may be that the data gets automatically sent during the evening either the night before or the night after wiring the funds, and that is okay, but neither will be “accepted” without the other. The total amount from the dataset must match exactly the amount wired.
2. Flex Dataset received and audited.
a. The Flex Premium Deduction dataset should be encrypted and transmitted to the egi.utsystem.edu FTP server.
b. Each weekday, datasets received before 5 PM will be decrypted and audited that same evening. Datasets received after 5 PM Friday but before 5 AM on Saturday will be audited later Saturday morning. Datasets received after 5 AM Saturday but before 5 AM on Sunday will be audited later Sunday morning. Datasets received after 5 AM on Sunday will not be processed until Monday evening.
c. The audit will start with a "verification" that the datasets are formatted correctly, that the number of records were received per the dataset summary, and that other amounts total the summary total amounts.
d. Following the verification, there will a "validation" that the fields contain valid values, and that the coverage matches our eligibility file. Records that contain valid values but the coverage does not match our eligibility records, will most like just be flagged as informational allowing the funds to be transmitted to the flex administrator.
e. The validation process will include an error tolerance process where the dataset will be rejected if the number of significant errors exceeds preset tolerance levels.
3. Flex Funds to be wired to EGI.
a. The EGI Finance Group must be notified of the wire transfer in the same fashion as the premium funds are transferred to EGI. (Kathi Shipley)
b. When the funds are received by EGI, the EGI staff will enter the transfer amount into the Flex Remittance Received page in SGIFIS.
c. If the transfer amount matches the total remittance amount from the transferred dataset, SGIFIS will send an email notice to the appropriate parties at the component letting them know of the match and SGIFIS will mark the Remittance file for transfer to flex administrator. The SGIFIS Flex Remittance Received page will notify the user that such match occurred by a message on the screen.
d. If the transfer amount does not match the total remittance amount from the transferred dataset, SGIFIS will send an email notice to the appropriate parties at the component letting them know of the problem and that they will be contacted by phone by the User. The SGIFIS Flex Remittance Page will notify the User that the total wired amount did not match the dataset remittance total and provide the name and telephone number of the person that submitted the dataset.
e. If the dataset has not yet been received by the component, SGIFIS will send an email to the components FLEX Remittance Dataset Contacts notifying them that the money has been received and that it will not be transferred until the dataset is also receive (and that the dataset has not yet been received. The SGIFIS Remittance Received page will return the message to the user that the dataset has not yet been received and that the components have been notified of the receipt of funds and that the dataset has not yet been received.
f. Every day, after processing all Flex Remittance datasets, a process will check for Flex remittance funds received for which there has not yet been a dataset received, or in which the funds received do not match the Flex Remittance Dataset total. For each such situation a mail message will be sent to the Flex Remittance Dataset Contacts and the EGI Finance Group will be copied.
4. Flex Datasets transmitted to Flex Administrator
a. Every day after the eligibility processing and after the auditing of Flex datasets, a process will run to see if both the funds and a Flex Remittance Dataset have been received and the amounts are equal (exactly). In this situation, a dataset will be created of all the Components’ deductions that had not yet been sent to Flex. This means there may be from one to sixteen different components’ Flex deduction on detailed on the dataset. The data will be sorted by Component, Subscriber Record, and Coverage Period.
b. Whenever a Flex Remittance Dataset is sent from EGI to the Flex Administrator, Email Notifications will be sent to each component summarizing the Flex Transmission. The summary will include up to 14 pay periods; one for the prior fiscal year, twelve for the months of the remittance months’ fiscal year, and one for one future fiscal year. Whenever this is more than one period included, there will also be included a total of all periods. For each period, and the total, there should be the number of records, and separate amounts for Health, Dependent Care, and Total.
c. Whenever a Flex Remittance Dataset is sent from EGI to the Flex Administrator, Email Notifications will be sent to the Flex Administrator and to EGI Finance summarizing the Flex Transmission. The summary will include up to four sections; one section for the prior fiscal year, one for the remittance months’ fiscal year, one for one future fiscal year, and one for the total. If the there is only one fiscal year covered, then there will only be one section (no need to duplicate that fiscal year with a total section). For each section, there should be a line for each component included in the transmission, and if there is more than one component included, there should be a total line for the section. Included on each line there should be the number of records, and separate amounts for Health, Dependent Care, and Total.
5. Flex Deductions Wired to Flex Administrator.
a. On the first work day following the transmission of each Flex Deduction Dataset to the Flex Administrator, the EGI Finance Group should wire the funds appropriately to the Flex Administrator (the wire amount will be summarized per the email in 4.c). (Kathi Shipley)
6. Flex Payments Dataset from Flex Administrator to EGI.
a. By the eighth of each month, the Flex administrator should FTP a Flex Payments dataset to EGI for all Flex Payments made by the administrator to the employees.
7. EGI will report monthly (by component) on the amount remitted to Flex and the amount paid by Flex.
a. A report on totals remitted, paid, overages, amounts in reserve, fees, etc.
b. If there are inappropriate overage payments, then details should be reported.
Questions and Answers:
1. What role will the current EGI eligibility file provide with respect to UT FlexBen enrollment and remittance? The current eligibility file will be used by EGI to populate address information fields when sending the Flex Remittance datasets to the Flex Administrator.
2. Will the components receive a monthly UT FlexBen Billing file from EGI? No. That is not in the plans at this time. The Components will receive a “reconciliation/error” dataset for every Flex Remittance file sent to EGI.
3. The file names for the monthly UT FlexBen datasets.
a. Component Remittance to EGI -> SG.FLXFCRV2.compabbr.freeform
b. EGI error dataset back to Component -> SG.FLXFCEV2.compabbr.freeform
c. EGI remittance to Flex Administrator -> SG.FLXFVRV3.compabbr.freeform
d. Flex Administrator’s Payment file to EGI -> SG.FLXFVPV4.compabbr.freeform
4. A record layout monthly Component Remittance of contributions to EGI.
Attached.
5. What will be the process and vehicle for performing component reconciliation, i.e., HSC Tyler Recon Access system? Since EGI will not send a monthly billing file, there should be no need for reconciliation such as that provided by the UTHCT Reconciliation Access system.
6. Training plans for components' use of the RAPS system. EGI will discuss this with FlexBen.
7. Component UT FlexBen testing timelines/schedules with technical contacts. Testing should begin December 1, 2002, with the new datasets being sent to EGI. In addition to the new FLXFCRV2 dataset being sent by each component to EGI, the component should also forward to EGI a copy of the Flex data sent to FlexBen. During the implementation period, the lead technical contact for Flex administration will be John Cotton, Manager of Information Systems, jcotton@utsystem.edu, 512-499-4623. Other contact information will be distributed as tasks are assigned.
If you have any questions or concerns please contact John Cotton at jcotton@utsystem.edu.