What effect do salary changes have on current benefits?

It's important to be mindful of your employee's salary-based benefits when adjusting their compensation in Namely. It's important to be mindful of your employee's salary-based benefits when adjusting their compensation in Namely.

Salary-based volume benefit plans where the benefit amount is typically a multiple of the employee's salary- e.g., basic life, basic AD&D- will not automatically update. In these situations, creating a Salary Change life event that is connected to only the affected coverage lines is recommended (For ex – Life, AD&D, LTD and STD). You can proceed through the Enrollment Wizard for each employee, and their benefit amounts will recalculate based on the new salary.

• For more information on setting up a new life event and connecting it to coverage lines please review following articles.

Creating Life Events

Creating and Mapping Coverage Lines

Updating benefit amounts and associated costs can be done with an import, but preparing the import files involves calculating the new benefit amount for each employee; depending on your employee population, it may not be more efficient than using Salary Change. Please reach out to the Service team via the Help Community if you would like to explore using an import.

• For employees who contribute a percentage of their earnings toward their 401(k), but wish to keep their contribution amounts the same, you may need to adjust their contribution percentage (or switch to a flat contribution amount, if possible.)

• If you classify employees based on salary bands, and those classes have different benefits offerings/premiums, you should be mindful of whether you would like to temporarily re-classify employees and the effects that may have on benefit offerings.

• While not related to salary change, you may consider offering your employees the opportunity to temporarily cancel any commuter benefits (which you may also change with an Salary Change life event.)