Do you charge for POP administration?

[Guest Wislndixie]

I've got a client that for years we've done their 125 plan along with the FSA. We've charged a minimum amount ($1.00 per month per pop participant) for the POP participants and a higher amount for those with FSA and DCAP. Another carrier has come in and offered to do the POP plan for free. I'm interested in other TPA's and what you charge for a POP plan only, and how you would justify a monthly fee for a POP plan only.

Thanks,

Wisln

[John Feldt ERPA CPC QPA]

Our cafeteria charges $1.00 for each 20 oz. bottle of pop.

-Sorry, I couldn't resist!

[david rigby]

From About BenefitsLink:

Our purpose is to support the people who administer, give compliance advice about, design, make policy for, or otherwise are concerned with, employee benefit plans in the United States sponsored by either private or governmental employers.

Information presented here is designed to help people working directly or as service-providers for employers of all sizes.

I'm pretty sure this website is not for the purpose of sharing fee information. What do you think?

[GBurns]

IMHO, it certainly seems to fit the "mission statement" quoted. I think that each can choose whether to share or not to share.

wsln,

I usually see free POPs but usually it is from an insurance product provider. Employer size does not seem to matter.

[Guest Wislndixie]

IMHO, it certainly seems to fit the "mission statement" quoted. I think that each can choose whether to share or not to share.

wsln,

I usually see free POPs but usually it is from an insurance product provider. Employer size does not seem to matter.

Thanks GB, it is an insurance product supplier..

[LRDG]

Premium included in a 125 plan must be tested for non-discrimination, must comply with sec. 125 with respect to annual elections, comply with election change rules, and must be included in the plan document and any amendments. Compliance regs for FSA and premiums are the same, there isn't a seperate set of regs for premiums under a 125 plan,

and the idea that compliance for premium conversion is less important than a medical or dependent care FSA is very risky for clients.

Administration and compliance for FSAs is more labor intensive, therefore fees for premium conversion reflects that fact. We require clients who wish to self administer their premium conversion accounts to sign a bullet point waiver form. As a curtiousy(sp) we include premiums in annual enrollment for both the POP and FSA portion of the plan for clients who choose self admin of premium accounts. We also offer POP administration as a stand alone service.

[GBurns]

Do you charge for the stand alone POP?

[jpod]

LRDG: I thought the proposed regs. give you a free pass on the nondiscrim. rules for a POP only plan, as long as everyone is eligible on the same terms and conditions.