Considerations for Enforcing Dependent and Beneficiary Designation

You can set up an enforcement check on the Self Service Configuration page so that participants don't forget to designate their dependents and beneficiaries. When a participant selects an option that requires designations and they don't make any, they see an error message.

Participants will need to complete the designation before moving to the next step.

Allowable Dependent or Beneficiary Designees

This check specifically considers the designation rules you set up in the Allowable Dependent or Beneficiary Designees tab during plan configuration. The check applies only when the number of eligible dependents of a participant is the same as or higher than the minimum limit specified.

Ensure that you define these rules at only one level, instead of conflicting rules at multiple levels. The program considers rules set up at the lowest level first, which is typically the option-in-plan level. Then, it considers the rules set up at the option and plan-level.

Example

You have set up a plan to allow 2 or more dependents and beneficiaries and enabled the enforcement check. Here's how the check works based on how the participant designates dependents:

• If the participant designates themselves and only one child, they see a message and can't continue with the enrollment until they complete the designations.

• If the participant designates themselves, their spouse and two children, the minimum requirement is met and they can continue with the enrollment.

• If the participant has 4 children, and only 1 is eligible for enrollment, they can select that 1 child, and continue with the enrollment. No message appears. That's because the number of eligible dependents is less than the configured minimum.