Retirement Benefit Claims Rapid Process Improvement Story

September 23 through 25, 2009

Set Direction Retirement Benefit Claims Team Charter

Retirement Benefit Claims Team Charter Developed by Jennifer Kerr, Edd Peterson and Peni Bell

Problem or need: Current processes are inefficient requiring entering the same data in up to three different systems which do not support one another. When a request for retirement is made the person receiving the request takes care of the customer from start to finish. It is not easy for someone else to step in to assist that customer if their Benefits person is not available. Processes are not centralized, controlled or audited to ensure customer service success. Link: Retirement Enrollment and Benefit Services Core Service - Annual number of retirements performed Mission: To define a repeatable Retirement Benefits Process that is internally tracked and reported to allow any Retirement Services Staff to provide immediate and accurate customer service to all active employees seeking retirement information or support. Measure of Success: All Retirement Services Staff are able to provide immediate and accurate customer service at any step in the Retirements Benefits Process.

- Immediate Customer Service (No hands off or asking co-worker) - Zero Repeatable Errors

Scope: From receipt of request for benefit estimate through final benefit calculation. Methodology: Rapid Process Improvement. Interdependencies: Payroll Administration and GRS Certification Time Commitment: The Team will meet September 23rd through 25 th and September 29th through October 1st to accommodate the typical timeline of an RPI event.

Role Name Dept Champion: Jennifer Kerr

Leader: Jennifer Kerr Team Members: Dana Blydenburg Debbie Stefanski CAS - Sam Chapparro Bench Strength: IT - Edd Peterson, Pat Cherundalo, Tim Marsh CAS - Sam Chapparro GRS - Jeff Ambrose

Facilitator(s): Peni Bell, Edd Peterson & Brian Dick

Historical Trend Data: Payroll lets us all know when an error is made. For 2Q09 there were 13 separate emails to RS explaining some sort of error made on RS behalf.

Management Review Schedule: In a one (1) week project it is advised to schedule Management Review Schedule on the 4th day, which will be Tuesday, September 29th in the afternoon around 3:00 P.M. This will allow approval of Recommendations before the implementation plan is developed. RPI taskforce will review project status on a 30-60-90 day schedule. RS to meet weekly to discuss who’s retiring, what stage they’re at and provide progress reports.

Understand Process Set Direction

Ident ify and Analyze Barriers

Ident ify, Test and Select Solutions

Implement

Ensure Results

Remaining Issue and Future Plans

Prior to t eam

meeting Proj ect Day (PQS on site)

2 3

4

1

5

After team meet ings

Set Direction

Key Process Steps

SIPOC

Process Owner:

Key Performance Measures Customer Requirements

Suppliers:

Inputs/Enablers:

Support Area (Enablers)

Outputs:

The positions performing the work –

potential RPI Team Members

Customers:

Dana Blydenburg – Pension Benefits ManagerAnnette Wieck – Pension Benefits Specialist

Debbie Stephanski – Pension Benefits

Run Benefit Estimates Consultation Status Change Final Pay

Receive request for Benefit Estimate

Run Estimates

Generate Forms

Conduct Counseling Appt.

Estimate Final Pay

Figure Retirement Calculation

Communicate Retirement

Generate a Personnel Action Form (PAF)

Receive Authorized PAF

Enter “In-Active” status

Generate Final Pay

Send Retiree Final Pay

Process Final Pay Out of Accrued Leave

Sign Off on Accrued Leave

Create New Record for Retiree

Final Benefit Calculation is prepared and sent to GRS for Certification

Retirement Benefit Claims

Retirement ServicesJennifer Kerr – Retirement Services Director

Employees

Requests for Benefit Estimates

Accurate and timely benefit estimates.

Accurate and timely processing of Final Pay Check including Accrued Leave.

Accurate estimate of the amount(s) and date when the 1st Retirement Check will be received.

Active and Retired Employees

Payroll Administration

Outputs:

Proper tools to plan for retirement future

Info for Final Pay Check generation

Retirement Checks

I.T. – Edd Peterson, Pat Cherundalo & Tim MarshC.A.S. – Sam ChapparroGRS – Jeff AmbrosePayroll Administration – Susan Norton & Nancy Greenfield

Annette Wieck – Pension Benefits SpecialistDebbie Stephanski – Pension Benefits

That all Retirement Services Staff are able to provide immediate and accurate customer service at any step in the retirement benefits process.

- Immediate Customer Service – no handoffs (or asking co-worker)- Zero repeatable errors

Understand Process1

Receive Request for Benefit Estimate

Start

Final Benefit Calculations is

prepared and sent to GRS for Certification

End

· Date of Termination

· Date of Retirement

Run Pension Estimate in People Soft

Provide Estimate to Employee and Explanation of

Benefits Options

Defer Income

457Maxed

/

Has 457

Create Contribution

Change Form

Send to Payroll

Pull Authorization Forms

Create 457

Consult with Employee and

Complete Forms

Send Beneficiary Form to Hartford

Provide Employee w/Copy of all

Forms and Exit Check List

Consult Payroll Calendar & Create PAF

the 1st Friday of the Pay Period

of the date of Retirement

Enter Employee ID in Timekeeper Report to identify Department in People Soft Job Data Panel to Determine

Supervisor

Email PAF authorization to: Supervisor

Time KeeperRisk Management

Retirement ServicesEmployee Relations

with Retirement Instructions

Generate Forms:Retirement Application

& Survivors

Benefits Form in Crystal Reports · Direct

Deposit· W4P· PR Health

Insurance Election

· Accrued Leave Balance & how it is calculated

· What is pensionable of the balance

· Sick Service Credit

· Input Employee ID

· Final Pay· Pay Roll Final Pay Worksheet

Estimate Final PayPull Employee Balances in

Access and Enter into Spreadsheet

Provide Employee Dates of Retirement

1st Pension Check Last Week Check

Pick up Accrued Leave Check

Create Retirement Record

In People Soft on “Job Data Panel”

Insert a new Employee row for

Retirement Record

Go To “Beneficiary Panel” on Retiree Record

Enter: · Contribution Start

Date· Retirement Date· Benefit Options· Hire Date· Termination Date· Year Retirement

Starts

In Retirement Service Access Data Base

Employee IDEnter:· Contribution Start

Date· Retirement Date· Benefit Options· Hire Date· Termination Date· Year Retirement

Starts

Change Active Record

In People Soft in the “Job Data Panel” inset a new Status Change row insert:

Retirement DateAction Retirement with Pay

Reason Retirement

Upon Receipt of email from Payroll that

Bi-weekly Confirmation is completed

proceed with Final Pay

Send Workers Compensation email to Payroll Determine

Accrued Leave changes to an On the

Job Injury(Friday)

Upon receipt of On the Job Injury Proceed with

Determining Final Pay

Pull up Accrued Leave Balance in People Soft, Micro Soft Time Keeper Reports to obtain Leave Balances for Entry into 2 spreadsheets

Determine Longevity Earnings

Send emails to Timekeeper & Payroll with Final Pay Worksheet for

Authorization

Receive email that all Final Accrued Leave Balances are Paid

(1 week from Friday)

In PS System, view Final Pay

check and verify accuracy

Prepare Final Pension Benefit

Calculation

Audit 3 highest years of pay for

calculation

· Pay Roll· Employee Relations· Risk Management· Retirement Services

Send Pay Roll an email with Final Calculation of Pension and

Instructions to:

In People Soft in the “Beneficiary Panel” on Retiree

Record enter Monthly Retirement amount

In RSAD Change Status to “R” in table and Insert

Retirement Amount

Prepare and send Hartford Letter

Discontinuing 457 Contribution

Y

N

N

Y

N

Y

Determine Taxability of

Retirement Benefit

Note: Distribute Social Security

Forms

Prepare and send Retiree letter

confirming benefits

In the Crystal Report export Pension Data to Excel and scrub data to the earning

period in the pension calculation

Baseline

Note: All Documentation is scanned for file

Retirement Benefit ClaimsSubject Matter Experts: Jennifer Kerr, Dana Blydenburg, Debbie Stefanski and Sam Chaparro

9-23-09

Identify & Analyze BarriersHigh Level Issues

Coding of High Level Issues # of High

Level Issues Issues Resolution1- Decide Now

2 - Decide Later

3 - Barrier

3 1 Too many databases Deferred to Barriers

3 2 Reports & Forms not centrally located Deferred to Barriers

3 3 No tracking of retirement within the process Deferred to Barriers

3 4 Timelines are date driven Deferred to Barriers

3 5 Same data is manually entered 3 or more times Deferred to Barriers

1 6 Step 32 - "In PS System, view Final Pay check and verify accuracy" Non Value Step eliminated

Identify & Analyze BarriersSeq Barrier Description (from flip chart) Action to be taken (Recommendation) Benefits

1 Cannot prepare accurate Benefit estimate on Payroll / Wednesday.Develop a Retirement Services around payroll Processing calendar. To provide accurate pension calculations.

2 Difficulty in locating forms and duplicate data entry.Centrally locate all forms and reports in a shared directory in one specified location. Repeatable and immediate customer service.

3 Cannot prepare Final Pay Estimate on a Payroll / WednesdayDevelop a Retirement Services around payroll Processing calendar. To provide accurate pension calculations.

4Retirement Information provided to employee is not centrally located for others to locate.

Centrally locate all forms and reports in a shared directory in one specified location. Repeatable and immediate customer service.

5 Spreadsheets and forms are difficult to locate.Centrally locate all forms and reports in a shared directory in one specified location. Repeatable and immediate customer service.

6Manually figuring 457 threshold is very time consuming and creates opportunity for error. Macro developed to automate. Accurate customer service.

7 Contribution Change form difficult to locateCentrally locate all forms and reports in a shared directory in one specified location. Repeatable and immediate customer service.

8Proper timing of form submission for Final Pay Deferred Comp changes Payroll is restrictive and confusing. Develop a queue. Always on time-providing accurate customer service.

9 Authorization forms DTL.Centrally locate all forms and reports in a shared directory in one specified location. Repeatable and immediate customer service.

10 Exit Checklist not centrally located,

11 Hartford Letter not centrally located.Centrally locate all forms and reports in a shared directory in one specified location. Repeatable and immediate customer service.

12 PAF difficult to locate.Centrally locate all forms and reports in a shared directory in one specified location. Repeatable and immediate customer service.

13 Excessive steps to obtain basic information.Report developed by computer applications specialist located in shared directory. Immediate customer service.

14Template is very lengthy and time consuming to insert the appropriate details and time sensitive. Develop a fail proof template.

Provide more concise and user friendly critical information.

15 Can forget to create Retirement Record. Develop a queue.Internal tracking and reporting and allow any retirement service staff to provide immediate customer service.

16 Can forget to create Retirement Record. Develop a queue.Internal tracking and reporting and allow any retirement service staff to provide immediate customer service.

17Duplicate data entry is time consuming + inefficient which creates an opportunity for errors. Pull data from PeopleSoft into Access. Reduced opportunity for error and more efficient.

18 Can forget to complete "Change Active Record". Develop a queue.Internal tracking and reporting and allow any retirement service staff to provide immediate customer service.

19 Sending email that is time sensitive. Develop a queue. Always on time-providing accurate customer service.20 Duplicate data entry. Pull data from PeopleSoft into Access. Reduced opportunity for error and more efficient.

21 Spreadsheets DTL,Centrally locate all forms and reports in a shared directory in one specified location. Repeatable and immediate customer service.

22Determining the amount of Longevity is a time consuming manual process which creates opportunity for error. Macro developed to automate. Accurate customer service.

23 Can forget to calculate Longevity. Develop a queue.Internal tracking and reporting and allow any retirement service staff to provide immediate customer service.

24Template is very lengthy and time consuming to insert the appropriate details. Develop a fail proof template.

Provide more concise and user friendly critical information.

25 Timing of the e-mail is crucial + confusing. Develop a queue. Always on time-providing accurate customer service.

26 Crystal report DTL.Centrally locate all forms and reports in a shared directory in one specified location. Repeatable and immediate customer service.

27Manual scrub of data time consuming and creates opportunity for error. 1-Outsource and copy to payroll. 2-Build an internal macro.

1-Accurate, limited liability, saves time. 2-Save time and increase accuracy.

28E-mail template is very lengthy and time consuming to insert appropriate detail. Develop a fail proof template.

Provide more concise and user friendly critical information.

29 Can forget to enter monthly amount in. Develop a queue.Internal tracking and reporting and allow any retirement service staff to provide immediate customer service.

30Can forget to change status to "R" in table and insert Retirement Amount. Develop a queue.

Internal tracking and reporting and allow any retirement service staff to provide immediate customer service.

31 May have to repeat step 4 to determine post tax contributions. Add field to retirement Beneficiary Panel. Saves a step-increases efficiency.

32 Letter is DTL.Centrally locate all forms and reports in a shared directory in one specified location. Repeatable and immediate customer service.

Implement Solutions9/25/2009 11:56

# Solution to be Implemented Action Step - what is to be Done?Who is

Responsible?When will it be

Started?Date

Complete?

1Centrally locate all forms and reports in a shared directory in one specified location.

All forms, reports, checklists, etc. will be located: Y/Retirement Services/Employee Pension/Retirements

Dana/Debbie/Jenn 9/28/2009 10/2/2009

2Develop a Retirement Services Schedule around payroll Processing calendar.

On Group Calendar, Black out calendar with "Payroll Wednesday" to identify days where you cannot pull leave balances and payroll activity which could be inaccurate since this is the day Payroll runs pay calculations/ confirmation and leave accruals for the biweekly pay process. Jenn 9/28/2009 9/28/2009

3 Develop a fail proof template for all critical communication of information. Develop a standardized data format to deliver in an e-mail.

Jenn and Payroll staff 9/28/2009 10/16/2009

4 Pull data from PeopleSoft into Access.Review and modify existing Access DB reports to select the data from the PeopleSoft production database instead of using the Access database. Sam 11/7/2009 12/31/2009

5 Outsource the auditing of Payroll data and copy to payroll.

Jenn will submit to Pension Board for approval. If the board does not approve RS will have to build a macro to assist in validating the data.

Jenn 9/28/2009, 10/27/09

10/27/2009, 12/31/09

6 Develop a queue for internal tracking to ensure timely & accurate customer service.

Using Access, create a method to track employee requests/status through the entire retirement benefit claim process with queues for critical dates. Staff recommends a weekly check in meeting with Jennifer to keep the project moving.

Jenn/Sam/Staff

10/5/2009 12/31/2009

7I.T. PeopleSoft programmer will define and create the e-mail templates for Retirement Status change. Dana/Pat 9/28/2009 12/31/2009

8 Automate figuring member's contribution to the 457 Threshold.

Create a Crystal to provide year to date 457 deferrals and use with excel macro to automate this process.

Sam/Dana 11/7/2009 12/1/2009

9Timekeeper/supervisor report developed by computer applications specialist located in shared directory.

Have the computer application specialist develop a Timekeeper/supervisor/department id report and store in the shared directory.

Sam 11/9/2009 11/16/2009

10Excel Macro developed to automate figuring 457 Threshold.

This excel macro will be developed and located in the Retirement Services shared directory. There are deferral limits per calendar year/regular and age 50+ catch up. 2009 limits are: Regular $16,500 and age 50 + is $5,500.00 additional. (Note: Jenn will consult with Susan Norton,Payroll to determine if this currently exist.)

Dana/Debbie/Jenn/Sam

11/16/2009 11/23/2009

11 Excel Macro developed to automate figuring Longevity.

This excel macro will be developed and located in the Retirement Services shared directory. (Note: Jenn will consult with Susan Norton, Payroll to determine if this currently exist.)

Dana/Debbie/Jenn/Sam 11/16/2009 11/23/2009

12Add field to retirement Beneficiary Panel.

Develop a method to review post tax contributions for employees. Based on this information we may want to add a field to the employees city of Lakeland page in PeopleSoft.

Sam/Jenn/programmer

12/1/2009 12/31/2009

Implementation Plan MatrixRetirement Benefits RPI Changes and Solutions

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9-23-09Retirement Benefit ClaimsSubject Matter Experts: Jennifer Kerr, Dana Blydenburg,Debbie Stefanski and Sam Chaparro

Start: Receive Request for Pension Benefit Estimate End: Prepare and send Retiree letter confirming benefit.

9-25-09Revised

No

Yes

Yes

No

Yes

12Create

Retirement Record in Access

15Send IOJ Email to

Payroll(Friday – Week 2)

6Create

Contribution Change Form & send to Payroll

Note: All Documentation is scanned for file

3Defer Final Pay Income

?

16Upon receipt

of On the Job Injury

Proceed with Determining

Final Pay

9Consult with

Employee and Complete Forms

13Change

Active Record

11Create

Retirement Record in

People Soft

4Has 457

?

2 Estimate Final pay

10Create and

email Personnel

Action Form for authorization

1Receive Request and run Pension Benefit Estimate

8Send Beneficiary Form to Hartford

7Create

457

19Prepare and email

Final Pension Benefit Calculation with Final Earnings

to Actuary and Payrol

18Receive email that all Final Accrued Leave Balances are Paid (Friday – Week 1)

5457

Maxed?

No

14Upon Receipt of email

from Payroll that Bi-weekly Confirmation

is completed proceed with

calculating Final Pay(Thursday)

17Complete and

email Final Pay Authorization Worksheet to

Timekeeper and Payroll

21Update Retiree

Record in People Soft`

22Update Retiree Record

in Access

20Upon receipt

of Benefit Certification

23Prepare and send Retiree

letter confirming

benefit

End

StartTask No. Work Instructions

1 In PeopleSoft enter in the employees SSN, date of termination, retirement.

2Run a Crystal report that shows employee's accrual leave balances. Using an Ms-Excel form RS populate Leave Accrual balances from the prior step. Using PeopleSoft bring up Job Data page under Compensation tab getting hourly wage. Enter the wage into this Ms-Excel file.

34 Ask the employee if they want this option. 5

6On the change form note the maximum amount allowable out of final pay. Send this form the Friday (pay check Friday) before Final Pay

7 Dana will add instructions a later date.8 Dana will add instructions a later date.

9Sit down with the employee explain, consult and fill out the applicable forms. After finished, also deliver copies of all forms to the employee during this meeting. This step requires a complete list of the form used during this meeting.

10

Consult Payroll Calendar and Create PAF the 1st Friday of the Pay Period of the data of Retirement. Enter Employee Id in Timekeeper Report to identify the Department in the PeopleSoft Job Data page to determine the Supervisor. E-mail the PAF for authorization to supervisor, timekeepers, Risk Managements, Retirements Services and Employee Relations with Retirement instructions.

11In PeopleSoft on the "Job Data" panel insert a new Employee row for Retirement record. On the "Beneficiary panel' on the Retirees record enter: Contribution Start date, Retirement Date, Benefit options, Hire date, Termination date, Year retirement starts.

12In the Access database: Contribution Start date, Retirement Date, Benefit options, Hire date, Termination date, Year retirement starts.

13In PeopleSoft on the "Job Data" panel insert a new Status Change row entering effective date with the employees Retirement date, Action field set to Retirement with Pay and Pay Reason field set to Retirement.

14 Self explanatory.15 Requesting any sick or vacation time charged during the employees entire service to IOJ (injury on the Job).16 Self explanatory.

17Pull up accrued Leave Balance in PeopleSoft, using Microsoft Timekeeper Reports to obtain Leave Balances for entry into 2 spreadsheets named Final Pay and Payroll Final Pay worksheet. Calculate longevity earnings.

18 Self explanatory.

19E-mail this document to GRS (Pension Actuary) and Payroll. In the Crystal report export Pension Data to Excel and scrub data to the earnings period in the Pension Calculation.

2021 In PeopleSoft update Retiree record in the "Beneficiary Panel" entering the Monthly Retirement amount.22 In Retirement Services Access Database change status to "R" in table and update Retirement amount.

Ensure Results• Zero Repeatable Errors• Reduction in Task Time• Immediate Customer Service at any step

within the Retirement Benefit Claims Process

Remaining Issues & Future PlansImplementation PlanAction items and accountabilities have been assigned. For additional information, contact Project/Implementation Leader or Champion/Sponsor. Team Communication PlanProject/Implementation Leader will provide updates on the implementation plan. RPI Facilitators will be available for coaching if required. Future RPI ProjectsPotential RPI project suggestions should be submitted to Champion/Sponsor.

Remaining Issues/Opportunities:•IOJs documented in System•Time Off without Pay Research•Pension Administration Module•Actuary perform all Pension Benefit Calculations•Online Benefit Calculator