Permitted Employer Contribution Formulas Under Cafeteria Plans

[Guest eab317]

I have a client who wants to implement a cafeteria plan and wants to base the employer contribution amount (i.e. employee flex credit amount provided monthly/annually) on either: years of service, or on employee class (example - salaried or hourly employee). Are either of these criteria permitted under the applicable regulations? The employer's health plan options are fully-insured, if this helps in answering this question.

[Guest jamestgordon]

Yes, you can

[Ron Snyder]

* * * so long as the allocation meets the nondiscrimination requirements.