Section 125 Cafeteria Plan

sonny

We currently have employees fill out a Election Form and Compensation reduction Agreement for health and dental insurance every year at open enrollment. It has been suggested that we need not do this every year. . only that ee's have to understand that their decution are pre-taxed and that they can not make changes mid year (absent a qualifying event)

For those of you who do this, how often do you have ee's fill out the form?
thanks in advance

ACU Frank

We stopped completing a form for that about two years ago. I include the fact in new hire orientation and in our open enrollment meetings, and let it go at that.

cnghr

We have a form that is part of our insurance enrollment packet that employees sign when they enroll in the insurance.

Still Need Coffee

We do the same as Frank - stopped using the form about 2-3 years ago, the info is mentioned at open enrollment, and prominently displayed in the benefits section of our website.

NaeNae55

Ours is not electronic, so we hand out forms every year. Employees wishing to make a change on their health plan, or any employee who wants to participate in the FSA plan complete and submt the form. Those making not changes or not participating in the health plan write 'no changes' and sign and submit the form back to me.

Our life and disability benefits are on the same form, so it helps employees remember to make appropriate changes in beneficiaries. Of course, they are also reminded when they get their annual benefit statement, but I think this helps.

sonny

Thanks all. . for those of you who stopped distributing. . what made you decide to do so?

ACU Frank

It's a simple formula:

X < Y+Z

where X represents the time in a day, Y is the time needed for mission-critical tasks, and Z is the time needed for distributing, collecting, and following up on forms that serve no purpose.

I refer to this formula as often as possible.