Non-Retirement Benifits

Front 1

Group Term Insurance

Back 1

Master contract between employer and insurer
- no evidence of insurability required.
- conversion is available.
- uniformity is required in term of % of compensation and years of service.
- up to $50,000 Prem, deduction for employer

Front 2

Group Universal

Back 2

Subject to ERISA Title I requirements of reporting, disclosure, and fiduciary responsibilities.

Front 3

Survivor Income

Back 3

later

Front 4

Group Term Nondiscrimination requirement (IRC791)

Back 4

Covering at least 70% employees,
at least 85% of participants are not key employees.
The plan can excludes:
-employess < 3 years
-part time or seasonal employees
-collective bargaining employees
-certain nonresident aliens
Consequence if an employer does not meet the non-discriminatory requirements: Key employees lose the exemption for the cost up to $50,000 of coverage. Taxed on actural premium of table I cost.

Front 5

Cafeteria Plan

Back 5

-Must include one cash and one or more statutory nontaxable benifit
-Employee allocates credits and dollars toward relevant benefits
-Qualified non-taxable items, which will not be included in the employee's income:
a. Accident and health benifit (but not medical saving accounts or long term care)
b. Adoption assistance
c. Dependent care
d. Group-term life insurance
e, qualified 401k plan

Front 6

Flexible Spend account

Back 6

A Cafeteria plan fund through the employee's salary reduction.

Front 7

HSA

Back 7

-contribution is tax deductible for either employers or employee
-Must be covered by high deductible medical insurance.
- Catching up contribution:$700 per year after aget 55.

Front 8

Group Disability Insurance (short)

Back 8

-Certain sum or % of salary per week.
-benifit period: 13,26,or 52 weeks.

Front 9

Long Term disability

Back 9

Factors affect benifits:
-Benifit: 50% to 70% of base pay.
--Benifit begins: 60,90,or 180 days after total disability.
--Occupation Disability: first 12-24 months vs. Any occupation disablity: after 12-24 months.
Tax consequnce: If the employer pays the cost and the amount paid is deductible to employer, but is not included in the employee's income, the benifit will be taxable to the employee. If the employee pays cost or employee includes the cost
in their income, the benifit will be not taxable to the employee.

Front 10

Employer purchased disability insurance on a key employee, with the benifit payable to employer

Back 10

Cost is not tax deductible to employer, but the benifit are excludible.

Front 11

Long Term Care Insurance

Back 11

-Qualified long term care insuranc recevies favorable tax treatment.
To get the tax benifit, the long term care insurance must:
a. only provide insurance for long term care.
b. does not duplicate reimbursements provide by medicare
c. is guaranteed renewable
d. does not prvide a cash surrender value or loan provision
e, provides a consumer protection provision.

Front 12

COBRA

Back 12

Requirement for employer with 20 or more employees
Qualfying events for COBRA
a. termination or duction in hours: 18 months
b. death, divorce, legal separation and medicare: 36 months.
c. bankruptcy: 36 months
lost of dependent status: 36 months
disability: 29 months
Charge: ER can charge up to 102%.
If disabled, up to 150% of cost after 18 months.

Front 13

HIPAA (Health insurance portablity and accountability act)

Back 13

limitation or exclusionary period for preexisting condition can not be more than 12 months.

Front 14

Non-cash fringe benefits

Back 14

non-taxable:
-no-additional cost services
-qualified employee discounts
-on-premise athlethic facilities
-meal and lodging for employer's convenience

Front 15

Education Assistance

Back 15

IRC 127 allows ER max. $5250 education expensive, tax deductible to ER, and not tax to EE.
Subject to nondiscrimination rules.