Employer Excess Funding:
$1200 ben./yr funding ($100/ month PAC)
IF: only $700 used by employee ….

The $500 left can be:
1/ returned to business
2/ added to EE’s next year’s benefit
3/ prepay next year’s funding

 

Example:
$1200 ben./yr funding ($100/ month PAC)

IF: only $700 used by employee ….
The $500 left can be:
1/ returned to business
2/ added to EE’s next year’s benefit
3/ prepay next year’s funding

Employee advantage: cash control means each employee can choose where to spend their benefit $$’s.

 

Employer advantage: cost control means no more increasing premiums that create pressure to reduce benefits. But employers can choose to increase benefits when they want (ask consultdoug.com for the rules)