Salary Reduction Agreement Question

[Guest Wislndixie]

I have a client that has asked about changing the name of his salary reduction agreement..He wants to take out "Salary Reduction Agreement" on the form and replace it with "Benefit Election Form". The employer says that many employees actually think they are signing a form that allows him to reduce their pay or take away pay. Any suggestions?

[Alan Simpson]

How about "Salary Deferral Agreement"?

[Lisa Hand]

Is it simply the enrollment form or a separate form the employees sign?

If it is the enrollment form for the benefit, as long as it details everything it should as far as disclosure and plan elements for clarity, then naming it something for employee comprehension seems wise to me. You could simply call it, Section 125 Cafeteria Plan Enrollment.

[Guest Wislndixie]

Thanks for your replies..it's just the enrollment form used to sign up for the Cafeteria Plan. It was structured using the format out of the EBIA book on 125 plans.