Flex Your Benefits

The concept of flexible benefits is being driven by changing demographics and environmental trends. There are 3 approaches to such plans. With the core method plan, the existing benefit plan is reduced to a minimal level of coverage of specific benefit areas that cannot be traded away. The participa...

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Bibliographic Details
Published inWorkforce management Vol. 67; no. 5; p. 54
Main Author Baker, Carolyn A
Format Journal Article
LanguageEnglish
Published Costa Mesa MediaTec Publishing Inc 01.05.1988
Subjects
Cafeteria plans
Employee benefits
Employees
Employment
Group insurance
Salary reduction plans
Tax regulations
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Summary:The concept of flexible benefits is being driven by changing demographics and environmental trends. There are 3 approaches to such plans. With the core method plan, the existing benefit plan is reduced to a minimal level of coverage of specific benefit areas that cannot be traded away. The participant option method involves the creation of several variations of specific benefit coverages as options using the existing benefit program as a basis upon which to draw. The additional allowance approach involves maintenance of the existing benefit program and provides a supplemental allowance in the form of flexible credits for increased levels of existing benefits or to purchase new credits. The most common flexible features are life insurance, dental care, and the choice of 2 or more basic health plans. The medical plan generally is viewed by employees as their most important option. Flexible benefits allow employees to trade before-tax income for nontaxable benefits. Most employees seem to prefer flexible plans to traditional plans.
ISSN:1547-5565
2168-9016