Terms as never effective question

Hi all - this was forwarded to Samir in November but I don't see I ever received a response. Please respond as soon as possible. Thanks!

Samir

Quick question for you in
regards to people who are terming benefits as never effective within clients
who have a smaller waiting period at the company level than at the plan level.

In FDU, the waiting period we
set at the company level is “date of hire”. On the actual plan, the waiting
period is “first of the month after 30 days”.

When there is a new hire who
initially elects a benefit and then later changes their mind and waives the
benefit, the termination date for this plan is showing as one day prior to the
company level rule of date of hire instead of one day prior to the enrollment
date.

For instance, Test O’Connel in
FDU prod.

DOH 10/1

Benefits effective 11/01

Enrolled in FSA 11/01, then
waived. The term is showing 9/30 instead of 10/31 (the day prior to the actual
enrollment effective date).

Is this how we should expect it
to work?