The Way Benefit Plans have Worked in the Past

traditional employee benefit program is often made up of 3 to 5 different benefit plans:

  • Group Insurance Plan, which is made up of several components:
    • Employee Life Insurance, Dependant Life, ADD
    • Disability: Weekly Indemnity and Long Term Disability
    • Prescription Drugs, Extended Health, Dental, Vision
  • Critical Illness Insurance
  • Group Retirement Savings Plan
  • Health Spending Account
  • Wellness Plan

The problems with this method are:

  • Your costs for the year can vary dramatically.
  • You probably have a variety of family situations with your employees, yet everyone is treated the same.
  • The benefit plan does not change from year to year, but your employee needs do.

Customized Benefits: The Way of the Future

myCafeplan allows you to design a set of employee benefits and allow the employee to select from the list so they can tailor their benefits to meet the exact needs for their family situation. Here is how this works:

  • The company can select from a choice of 11 different employee benefit components. So you are in control over what benefits the employee can choose from.
  • You decide how much benefit allowance each employee is entitled. For example, 10% of their earnings, minimum $5,000 to a maximum of $15,000.
  • At the start of the benefit year, the employee can allocate their benefit allowance to meet their needs for the coming year. For example, if they have $6,250 to 'spend' they can allocate it:
    • $420 to employee life insurance
    • $975 to disability insurance
    • $2,484 to Health and Dental Care
    • $1,000 to Health Spending Account
    • $1,371 to Group Retirement Savings
  • If they have a 'life event' such as birth, death, marriage during the year they can re-allocate their benefit. Otherwise it is set for the year.
  • We do all the accounting and report to you the taxable and non-taxable benefit for the year.

The advantages of myCAFEplan are:

  • Your costs for the year are known in advance as they are a percentage of your payroll.
  • Your employees are in total control over their own benefits plan design.
  • You and your employees have instant, online access to all their benefit information.
  • We handle all the administration.