Which statement reflects the correct use of the payroll system in relation to SGLI changes?

• A. The payroll system should not reflect SGLI changes.
• B. SGLI changes are only recorded in the LES.
• C. The payroll system with updated enrollment and premium deductions reflects SGLI changes.
• D. SGLI changes are communicated verbally and not recorded in payroll.

Answer: (C)

Updating SGLI through the payroll system is essential because enrollment changes must be tied to your paycheck deductions. When you adjust SGLI—whether increasing, decreasing, starting, or stopping coverage—the payroll system needs to reflect those changes so the correct premium is taken from each pay period. This keeps your coverage current and ensures your net pay matches your intended benefits.

The LES shows what you were paid and what was deducted after processing; it isn’t where you make or update SGLI enrollment. Relying on verbal changes or leaving updates only in the LES can lead to mismatched coverage or incorrect deductions, which is why updating the payroll system directly is the proper approach.