Payments of death benefits, short-term and long-term disability benefits are normally based on the salary of the each employee. It is therefore essential, that salary information is regularly updated. Otherwise the amount paid can end up being incorrect.
As the plan administrator or manager, you are responsible for transmitting this information and keeping accurate records of all insured members. You are also responsible for informing the insurer of any changes to payroll as soon as possible. If you fail to do so, undeclared pay increases can mean that payments in case of death or disability are lower than they should be and could financial stress to the employee and his family.
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Sleiman Karam MBA GBA