Voluntary Benefits Flashcards
1
Q
Voluntary Benefits
Advantages to Employers
A
- Offering more benefits without significant added cost
- Supplement/replace ER-sponsored benefits that have been reduced
- Benefits act as EE recruitment/retention tool
- Making available benefits to EES that meet performance goals
2
Q
Voluntary Benefits
Advantages to Employees
A
- Convenience of obtaining benefits through workplace
- Benefits are portable to new job
- Advantageous pricing
- Purchase is made through salary reduction
3
Q
Voluntary Benefits
4 Requirements to Be Excluded from ERISA
A
- ER makes no contributions
- Participation is 100% voluntary
- ER only collects and remits premiums and allowed insurer to publicize program
- ER receives no consideration other than admin services rendered
