Pension Dynamics has been administering employee benefit plans for San Francisco Bay area companies since 1985. Our first priority is to help you solve problems and meet your business objectives in a cost efficient manner. We do not sell products or receive commissions. You pick the benefits that best suit your needs. As you desire to make changes to those benefits, we can continue to accommodate your choices. The Pension Dynamics team has a proven track record of designing and implementing a variety of benefits plans:
Section 105 Health Reimbursement Accounts (HRA)
HRAs are designed to help offset employee medical costs and can be customized to the needs of your business. Many employers are opting to offer High Deductible Health Plans (HDHP) to their employees and an HRA can help offset the deductibles for participants while still saving insurance costs for employers.
In addition to the regular HRA, Pension Dynamics also offers a Wellness HRA Program to encourage your employees to stay healthy. The Wellness HRA allows employers to offer specific health related events and programs throughout the plan year. Employees can earn contributions by participating and/or completing certain events. These contributions can be used to reimburse out-of-pocket expenses that are associated with the employer’s health insurance. As the employer, you determine what events you would like to offer and how much you would like to contribute for each event.
COBRA requires certain employers with group health plans to give employees the opportunity to continue their group health care coverage under the employer’s plan if their coverage otherwise would cease due to termination, lay off, or other changes in employment status. The Department of Labor estimates that 90% of employers are out of compliance with COBRA regulations. Many do not realize that their COBRA responsibilities start the day an employee enrolls in group health coverage, not the day they lose coverage. Failure to comply with COBRA regulations can result in lawsuits, unintended liability for medical claims, IRS excise taxes and ERISA penalties amounting to millions of dollars. Another area that we find employers are often out of compliance on in regards to COBRA is with Health FSAs. Does your current COBRA Administrator offer Health FSAs to those accounts that have a positive balance as required by regulations?
Section 125 Cafeteria Plans (Includes Flexible Spending Account (FSA) and/or Premium Only Plans (POP)
Health FSA plans allow employees to purchase certain benefits (including medical, dental or vision) utilizing pre-tax dollars. Qualifying expenses incurred will be reimbursed saving participants taxes on certain health care related expenses.
A Limited Section 125 Flexible Benefit Plan also helps employers save on Social Security, Medicare and other state taxes and is compatible with Health Savings Accounts (HSAs). The Limited FSA would cover dental and vision expenses, not medical expenses.
Dependent Daycare FSAs are also available. They allow employees to put pretax dollars aside to help pay for daycare expenses including summer camps, before and after school care expenses.
Premium Only Plans (POP) are also available. This type of plan allows your employees to pay for their insurance premiums with pre-tax dollars.
Section 132 Pre-Tax Commuter Plans
Section 132 Plans allow employees to set aside a portion of their pre-tax dollars to use for commuting expenses including mass transit and parking. Employees save 35-45 cents per dollar on average and employers see an average combined payroll tax/workers’ compensation premium savings of 10 cents on that same dollar. Many areas of the country are beginning to require certain employers to offer these plans to their employees, including the San Francisco Bay Area.