I have worked for companies that have the Plan and have setup the plan
within other companies. The biggest problems I have seen is participation,
particularly in the manufacturing environment. It takes 2-4 years before
you will get good company participation. The first year you explain the
plan, but most people get concerned about the fact that they will lose
unused money. The only consider prescriptions, medical co-pay, and maybe
glasses as a medical expense. Unless they are regular medication they donÂ’t
think they can predict their usage. They never consider travel to and from
the doctorÂ’s office or pharmacy. Products that are not usually covered by
medical insurance and other out of pocket expenses. If they have children
in daycare they are pretty comfortable with expense, but do not consider
summer day camp, when the child does not stay overnight.
If the individuals that participate the first year have a good experience
and talk about it, the next year a few more will join. Of course if the
individuals having a good experience are in the office and donÂ’t interact
with individuals in the plant, etc., they never hear about this either.
With any luck each year a few more will sign up until you have good
participation. Additionally, with new hires if you do not spend time
thoroughly explaining the Plan and they did not have it before they wonÂ’t
sign up either.
The 125 Cafeteria Plan is one of the best benefits available, because it
allows individuals to withhold from their check for expenses that they could
not claim on the taxes. In addition, last year they added some public
transportation and parking expenses. It is a shame that employers implement
the Plan and then donÂ’t spend enough time helping their employees how to use
it to their benefit. If your benefits administrator (or whomever handles
that in your company) could identify a few people that could use the
benefit, but donÂ’t seem to be using it and sit down with them and help them
work through how to use it to their best advantage this would go a long way
toward getting company acceptance. The other problem is that in many cases
the decision-maker in the family doesnÂ’t usually work for the company and
does not receive the information they need to use this benefit.
Sorry to be so long winded, but as you can see this is something I feel
strongly about.
-----Original Message-----
From: Jim O'Donnell [mailto:jodonnell@...]
Sent: Monday, August 27, 2001 07:00 AM
To: 'vantage@yahoogroups.com'
Subject: RE: [Vantage] Section 125 Cafeteria Plans-Anyone doing them through
Vantage?
Unused money goes back to the Plan. It can then be used to pay Plan expenses
but does not go back to the Company for discretionary use.
Jim O'Donnell
Camcraft, Inc.
-----Original Message-----
We are stressing very thoroughly to employees to only put in the money that
they know they will use.
However, it is my understanding that unused money goes to the company, not
the government. Time for me to do additional research.
Deb @ Reeder & Kline Machine Co.
Yahoo! Groups Sponsor
<http://rd.yahoo.com/M=207641.1565480.3121573.1269402/D=egroupweb/S=17050071
83:HM/A=765263/R=0/*http://www.verisign.com/cgi-bin/go.cgi?a=b15334027000300
0>
Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto:
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Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service
<http://docs.yahoo.com/info/terms/> .
[Non-text portions of this message have been removed]
within other companies. The biggest problems I have seen is participation,
particularly in the manufacturing environment. It takes 2-4 years before
you will get good company participation. The first year you explain the
plan, but most people get concerned about the fact that they will lose
unused money. The only consider prescriptions, medical co-pay, and maybe
glasses as a medical expense. Unless they are regular medication they donÂ’t
think they can predict their usage. They never consider travel to and from
the doctorÂ’s office or pharmacy. Products that are not usually covered by
medical insurance and other out of pocket expenses. If they have children
in daycare they are pretty comfortable with expense, but do not consider
summer day camp, when the child does not stay overnight.
If the individuals that participate the first year have a good experience
and talk about it, the next year a few more will join. Of course if the
individuals having a good experience are in the office and donÂ’t interact
with individuals in the plant, etc., they never hear about this either.
With any luck each year a few more will sign up until you have good
participation. Additionally, with new hires if you do not spend time
thoroughly explaining the Plan and they did not have it before they wonÂ’t
sign up either.
The 125 Cafeteria Plan is one of the best benefits available, because it
allows individuals to withhold from their check for expenses that they could
not claim on the taxes. In addition, last year they added some public
transportation and parking expenses. It is a shame that employers implement
the Plan and then donÂ’t spend enough time helping their employees how to use
it to their benefit. If your benefits administrator (or whomever handles
that in your company) could identify a few people that could use the
benefit, but donÂ’t seem to be using it and sit down with them and help them
work through how to use it to their best advantage this would go a long way
toward getting company acceptance. The other problem is that in many cases
the decision-maker in the family doesnÂ’t usually work for the company and
does not receive the information they need to use this benefit.
Sorry to be so long winded, but as you can see this is something I feel
strongly about.
-----Original Message-----
From: Jim O'Donnell [mailto:jodonnell@...]
Sent: Monday, August 27, 2001 07:00 AM
To: 'vantage@yahoogroups.com'
Subject: RE: [Vantage] Section 125 Cafeteria Plans-Anyone doing them through
Vantage?
Unused money goes back to the Plan. It can then be used to pay Plan expenses
but does not go back to the Company for discretionary use.
Jim O'Donnell
Camcraft, Inc.
-----Original Message-----
We are stressing very thoroughly to employees to only put in the money that
they know they will use.
However, it is my understanding that unused money goes to the company, not
the government. Time for me to do additional research.
Deb @ Reeder & Kline Machine Co.
Yahoo! Groups Sponsor
<http://rd.yahoo.com/M=207641.1565480.3121573.1269402/D=egroupweb/S=17050071
83:HM/A=765263/R=0/*http://www.verisign.com/cgi-bin/go.cgi?a=b15334027000300
0>
Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/links
Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service
<http://docs.yahoo.com/info/terms/> .
[Non-text portions of this message have been removed]