C. Vendors
shall:
1. provide annual renewal application
as set forth in
§106 of this
rule;
2. maintain the requirements
set forth in A. and B. of this Section;
3. maintain individual product (product
categories as defined by OSUP) participation levels that meet or exceed 100
employees paid through the LaGov HCM payroll system. Vendors will be allowed 12
months after initial product approval to meet the minimum product participation
requirements;
4. solicit employees
for payroll deduction only:
a. after
notification to the vendor and state department/agencies from OSUP that the
product has been approved;
b. upon
written authorization and within the solicitation policy established by the
department/agency; and
c. for those
products, policy forms or service plans submitted and approved in the annual
renewal or new application process;
5. provide and use the standard deduction
authorization form (SED-4) authorized by OSUP using the guidelines below;
a. deduction form is not authorized to be
submitted from an employee for the purpose of transmitting any part of that
deduction to a non-approved vendor;
b. deduction form shall not be submitted
which lists any product or service for which a product code has not been
approved;
c. deduction form may
include additional information provided that such information shall not
represent a disclaimer or escape clause(s) in favor of the vendor. The
authorization shall not stipulate any "contract" or "term of participation"
requirements;
d. the authorization
must specify product name, IRC §125 eligibility, monthly premium or fee,
and the semi-monthly (24 annually) premium or fee. Statewide vendor deductions
in the LaGov HCM payroll system must be semi-monthly deduction amounts only (to
the second decimal place). Payroll systems outside of the LaGov HCM payroll
system which permit monthly deductions may continue same;
e. an employee shall have only one deduction
authorization (which may cover more than one product/policy) for a single
vendor effective at any one time. Total current deduction amount and each
component amount that make up that total must be reflected on any successive
form(s);
f. vendor shall be
responsible for completing authorization forms prior to obtaining employee
signature and for submitting forms to the appropriate payroll office designated
by each employing department/agency;
g. deduction forms must contain appropriate
agency number to support monthly reconciliation process;
h. deduction authorization shall not be
processed for any employee which is intended to provide a benefit for any party
for whom the employee has no insurable interest;
i. employee deduction authorization shall not
be transferred by an approved vendor to another vendor without special approval
from the Commissioner of Administration;
j. an employee may discontinue a voluntary
statewide vendor policy/service at any time by following OSUP and
department/agency policy. Any deduction amount that is committed for
participation in a current FBP year will continue to be deducted, but will be
paid to the state of Louisiana;
6. follow procedures established by OSUP
policy when refunding payroll deducted and remitted premiums to employees and
§
112 for requesting changes to
existing products;
7. use
invoice/billing identification structure that is compatible with payroll agency
numbers to facilitate the monthly reconciliation;
8. be responsible for preparing a
reconciliation of monthly payroll deduction/remittances to vendor's monthly
premium due;
a. monthly reconciliation shall
include total monthly premium due amount, each product amount and code as
assigned by OSUP that makes up the total amount of premium due, total
remittance amount, and a listing of all exceptions between the premium due and
deduction/remittance by employee within billing/payroll agency
numbers;
b. monthly reconciliation
exception listing shall identify the employee by Social Security number and
payroll agency number and shall be grouped within payroll agency numbers for
LaGov HCM payroll system agencies and similarly for payroll systems outside of
the LaGov HCM payroll system;
9. furnish evidence of reconciliation to OSUP
as requested by that office. Like verification may be required by other payroll
systems outside of the LaGov HCM payroll system;
10. provide written notification within ten
days of any change in the name, address, entity status, principal officers,
designated administrative coordinator, appointed Louisiana sales coordinator
and appointed billing coordinator to OSUP;
11. provide written notification of the
dismissal of any vendor representative participating in state deduction to
OSUP. Any vendor representative who has been debarred by a vendor from state
participation shall not be allowed to represent any vendor for deduction for a
minimum of two years thereafter.