Eryk had paid into a Flexible Benefit Plan
with Winterthur Life, now under the Friends Life umbrella.
When asked to select from a range of potential benefit arrangements, 60 per cent of said they would prefer to have a flexible benefit plan
, to give them more personalisation of their benefits.
Competitive wage and benefit package to include health and dental insurance, flexible benefit plan
, life insurance, pension, tax sheltered annuity, child care center, wellness program, PTO, extended leave, etc.
A flexible benefit plan
for frill-time employees offers $150 per month that can be used to either purchase their own health insurance or pay for reimbursed medical expenses or child care, according to Olson.
For example, suppose a company decided to implement a flexible benefit plan
that allowed employees to upgrade their current benefits package by selecting from four different additional options (A, B, C, and D).
Such an arrangement would be a "non-125 flexible benefit plan
." (See the sidebar for examples of how to use such plans wisely.)
Sixty percent of all employers offered a flexible benefit plan
in 1996, increasing from 53 percent in 1995.
So, by structuring a flexible benefit plan
with choice among nontaxable benefits only, you can create a so-called "benefits-only plan" that is less restrictive than Section 125 plans.
By offering a flexible benefit plan
, you allow employees to direct a portion of gross salary to a special account and then to withdraw those pretax dollars to pay for qualifying expenses.
The diversity of options available under a flexible benefit plan
, the ability to pay for plan options with pre-tax dollars, and the option to accumulate cash in flexible spending accounts on a pre-tax basis for child care or eider care all make flexible benefit plans
attractive to many employees.
In 1992, 43% of employers offered a flexible benefit plan
, up from 37% in 1991.
Whether the approach be a "premium conversion" or a "full-blown" flexible benefit plan
, corporations of all sizes are rapidly recognizing the value of cafeteria-style plans.