Offering Employee-Funded Benefits Programs

Employee funded benefits are fully funded by the employee.

In order to receive optimal benefits from the plan (common examples are group pricing discounts based on the level of participation or higher guarantee issue limits for additional life, disability or long term care insurance) an employer should have mandatory employee meetings and actively communicate the availability of the employee funded benefit.

By actively communicating the availability of the plan, the employer is endorsing the benefit and supporting the benefit with time and communication services but not with employer dollars.

The value to the employer endorsing the employee funded benefit is rounding out of the employee benefit package for healthy employee retention, favorable tax treatment to the employee and employer (typically the employer does not need to match the FICA/FUTA) and advantageous group underwriting and pricing.