WHY THIS MATTERS
If EOI approvals aren’t reviewed and cleaned up post-OE, you risk incorrect life insurance coverage, deduction errors, file transfer issues, and confusion during next year’s enrollment.
WHAT GOES WRONG
• EOI approvals or denials never make it into the system
• Employees assume they’re covered for the full elected amount, but only guaranteed issue was approved
• Without proper EOI logic, payroll may deduct based on full elections
• At the next OE, increases are applied to an already invalid base
ROOT CAUSE
• No post-OE review process for pending EOIs
• Lack of communication between the carrier and client/vendor
• System doesn’t track partial approvals or EOI status
• Assuming the system “just handles it”
HOW TO FIX IT
• Confirm pending EOI status with the carrier post-OE
• Update system logic to reflect actual approved amounts
• Adjust payroll deductions based on carrier approval- build a process
• Communicate clearly with impacted employees
• Archive old EOI data annually to prevent confusion
• Add an “EOI Cleanup” line to your OE closeout checklist
Pro Tip: Don’t assume carriers always send updates. Build a process to ask.
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