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BENEFITS OF PROACTIVE PREMIUM-ONLY PLAN ("POP") ADMINISTRATION

A question commonly asked of brokers and third-party administrators: "What are the benefits of outside POP administration?"  This document outlines the benefits of proactive POP administration by ProBenefits.

Benefits of Proactive POP Administration

  • ProBenefits handles all plan setup and administration.  This is not a "document only" service as "free POPs" typically are, where a vendor provides a document and nothing else, leaving all administrative responsibilities to the employer.  Administration by ProBenefits includes: (1) data verification at plan setup and renewal; (2) timely and accurate processing of participant hires, terminations, and status changes; (3) oversight and assistance with legal documents; (4) IRS-required discrimination testing of the plan (where applicable); and (5) additional issues or needs that arise in the context of the plan.  ProBenefits' services and plan responsibilities are further described in the Service Agreement (if you are interested, request a copy of a proposed Service Agreement).
  • First Quality, Compliant Legal Documentation For Your Plan.  ProBenefits utilizes its full resources to provide current, compliant legal documentation for all plans.  Legal documents distributed by ProBenefits have been drafted and approved by retained counsel, and include the latest provisions stipulated by applicable law.
  • High Level of Customer Service.  ProBenefits' valued customer service approach extends to POP plans.  A ProBenefits administrator is assigned to each plan and handles all aspects of plan administration for the plan - a "single point of contact" for your company.  Also, the entire ProBenefits staff is available to assist with questions (from the company or individual participants) or other customer service needs.  ProBenefits offers a company website - www.probenefits.com - to help administrators and participants access and understand the plan at all times.
  • Proactive Monitoring, Compliance, and Technical Support.  Plans administered by ProBenefits are compliance-ready plans that receive continuous monitoring and proactive technical support.  In addition to a plan administrator with substantial expertise in this area, ProBenefits has an in-house attorney who assists with compliance and technical support for all plans.  ProBenefits works diligently to assist its clients with compliance concerns, including the need to comply with IRS requirements on non-discrimination of flexible benefit plans.  Where applicable, ProBenefits tests plans and communicates testing results and information to the plan sponsor.
  • Low Cost.  The fees for ProBenefits POP administration are very low.  And not only does a company gain all of the benefits of proactive POP administration for very low fees, but the FICA savings of the employer generated by the plan basically ensures that the plan more than pays for itself.  As an example, if a company has even a single employee in the plan with a family election of $360 per month for pre-tax medical coverage, the FICA savings generated for the employer by that one employee alone would pay for the administrative cost of the plan for the entire first year (setup fee and annual fee).  The plan typically results in substantial tax savings for your company - with no downside!  [For more information on potential tax savings, request a Tax Savings Assumption worksheet].

If you have any questions about POP plans or wish to have a plan administered by ProBenefits, please contact Vicki Forrest, Plan Administrator (888-722-8382, ext. 122, email: vicki@probenefits.com).