AmeriFlex Presents

1. AmeriFlex Presents Your POP Plan: A Guided Tour

2. Outline of Presentation • What is a POP Plan? • How do you start a POP plan? • The Plan Documents • Enrollment Procedures • Payroll Adjustments

3. What is a POP Plan? • “POP” = Premium-Only Plan • Insurance premiums only • Employee share of the pie • Example: 80%/20% arrangement • 80% of premium from employer • 20% from employee through the POP plan • “Pre-tax” = not counted for purposes of calculating taxable income • Example: $30,000 salary - $3,000 pre-tax = $27,000 of taxable income • Also means no “payroll tax” (“FICA”)

4. What is a POP Plan? • For different types of insurance products • Health • Dental • Vision • Accident • Life • Disability

5. The Plan Documents • Two important documents • The Plan Document • The plan’s “rulebook” • Legalese • Guided tour in a separate presentation • The Summary Plan Description (SPD) • The explanation of the rules • Plain language • Guided tour in a separate presentation • Not optional

6. Enrollment Procedures • Annual “Open Enrollment” • All eligible employees • Choice of options • Make elections • NOTE: They are electing not just the benefit, but the salary reduction • Mid-Year Election Changes & Enrollments

7. Payroll Procedures • In-House • Make sure that person/office in charge has the correct information • Double-check the payroll runs for the first couple of pay cycles • Mistakes can be time-consuming to correct • Outsourced • Experienced payroll services understand how salary reductions work • Make sure you provide the correct information to them

8. Conclusion