Why salary verification matters
Protecting your plan, your employees and your organization
Accurate employee salary information plays a critical role in the administration of your group benefits plan. Many benefit coverages—such as life insurance, disability and critical illness—are directly tied to earnings. Regular salary verification helps ensure your plan operates as intended and that employees receive the coverage they expect.
What is salary verification?
Salary verification is the process of confirming that the earnings on file for plan members accurately reflect their current compensation. This includes base salary and, where applicable, eligible commissions or bonuses as defined by your plan.
Why is it important?
Ensures accurate coverage
Benefits calculated using incorrect salaries may result in over- or under-insured employees. Verification helps align coverage with actual earnings.
Prevents claim delays
In the event of a disability or life insurance claim, discrepancies in salary information can delay claim payments while earnings are confirmed.
Supports compliance and fairness
Accurate salary data helps ensure your plan is administered consistently and in accordance with plan provisions and policy requirements.
Helps manage plan costs
Overstated salaries can lead to higher premiums than necessary. Regular verification helps ensure your organization is paying the correct amount.
When should salaries be reviewed?
We recommend reviewing and confirming salary information:
- Annually around 5–6 months before your renewal
- Following salary increases or role changes
- When adding new employees to the plan
- When responding to a salary verification request from us
Need help?
If you are unsure what earnings should be reported or how to submit updates, give us a call or send us an email. We are happy to help.
Regular salary verification ensures accurate coverage, timely claims and cost-effective plan management—make it part of your annual process.