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Posted

Employer has been allowing pre-tax payment of premiums to supplementary voluntary policies (life, health, etc) since Dec. 2003. Employer wants to stop the practice (due to ERISA implications). Employer has had a flex plan in place but it does not list the voluntary policies as an optional benefit.

QUESTION: Is BEST course to amend the plan retroactively to provide that there was a "12-month window" during which this was allowed, and to inform employees of the change?

Other thoughts?

Posted

Quite often it is overlooked that a large percentage of supplemental offerings come with their own section 125 plan and PD etc. Have you looked to see if there are multiple Plans?

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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