What's a reasonable fee for a cafeteria plan document?

[chris]

I received a fee estimate of 1000 to 1500 to draft the cafeteria plan document for a 20 e/ee e/er. The options initially would include a flexible spending arrangement with health ins. and dependent care assistance as benefit options. Is the fee estimate out of line??? Thanks.

[mroberts]

Is this fee is for an actual cafeteria plan and not just a POP, I would say it's a very good fee. Some administrators charge a lot to set up cafeteria plans since there's a fair amount of work that needs to be done to get one off the ground. What are the maintenance fees after the first year set up?

[Guest tintree73]

I agree with mroberts. However, I would caution to be careful that they do not send you a cookie cutter document that does not accurately reflect your arrangement.

[Lisa Hand]

The BenefitsLink yellow pages lists Cafeteria Plan TPAs, you may want to get some other bids. For a 20 person company, $1,000 - $1,500 set up may not be the best you can find, especially if the company is going to be the TPA for the plan.

[chris]

The employer is planning to handle the administration of the arrangement and the fee is apparently only for drafting the cafeteria plan document...

[Guest Autelitano]

With AFLAC's FLEX ONE program, they provide your plan document free of charge - just for the opportunity to introduce your employees to their voluntary products. Of course, it may be a cookie-cutter type document tailored to fit your situation, but in my experience, no matter how much you pay they all end up saying the exact same thing.

Of course, check with your state's AFLAC office for more info, NY may be different than Florida.

[QDROphile]

If your experience is that no matter how much you pay, the plan says the same thing, you don't have much experience. One size does not fit all and quality varies. Price is not necessarily the touchstone. I think your statment, coupled with your promotion of AFLAC is rather telling. My experience is that AFLAC agents are agressive pains in the neck for employers, concerned with marketing products, often through the back door, rather than getting arrangements done correctly.

In defense of AFLAC, I will say that when we finally call the national office and get someone that knows how to do something besides sell, we finally get answers and accomodatons (contrary to the misinformation of the agents) that are reasonable.

[Guest lschaab]

Ouch, that stings! I agree however, that not all documents are the same. There may be standard language, no document is exactly alike. As for plan document fees, group size does not necessarily affect the cost of the document, plan design might. I think the quote you received is a little high, but not way out of whack. Definitely look around on the Internet, or in the yellow pages for comparisons.

[Lisa Hand]

Autelitano - please remember the message boards are for general advise, not for advertising your specific services. If you wish to do so, please contact BenefitsLinK about the opportunites on the Yellow Pages. Many of us who are posting answers are benefits professionals, however, we keep our marketing efforts away from this forum.

Additionally, I do absolutely agree no document is a one-size fits all. Just as each employer is unique, each 125 plan should be crafted to fit the needs of that specific employer.