What is the process to terminate a pay deduction (e.g., SGLI) when member enrolls?

• A. Update the payroll system to stop or adjust the deduction and confirm with the member.
• B. Remove the deduction from the system only after the next pay cycle.
• C. Notify the insurance provider to stop payment.
• D. Leave the deduction unchanged and rely on member to report.

Answer: (A)

Stopping a pay deduction when a member enrolls or changes coverage starts with updating the payroll system to stop or adjust the deduction and then confirming the change with the member. This ensures payroll reflects the new status immediately, prevents continued deductions after enrollment, and creates a clear record of what was done. It’s important to apply the change in a timely manner and verify that the effective date matches the member’s enrollment. The other options fail because delaying the stop allows funds to be deducted in the current period, contacting the insurer doesn’t control the employer’s payroll deductions, and leaving it unchanged relies on the member to report the change, which is not a reliable control.