The Answer Book guides you safely through the maze of potential administrative pitfalls-including IRS rules, ERISA and COBRA regulations, discrimination testing, and federal requirements-that could negate the advantages and cost savings of a flexible benefits plan. You'll find reliable answers to such questions as:
* What are the key factors for an employer to consider in developing a plan?
* How is adverse selection managed in a flex plan?
* Which tax-favored benefits are not qualified under a flex plan?
* How do you develop a credit methodology?
* How does recent federal legislation, such as HIPAA and the proposed IRS regulations on FMLA leaves, affect flexible benefits?
* What will be the impact of Medical Savings Accounts and the new tax rules on your flex plan?
* What are the elements of successful flexible benefit communication strategies?
Plus, practical examples and case studies; planning hints, tips, and practice pointers; and samples of field-tested communication documents, plan schedules, price matrices, and enrollment forms simplify the administration process and help you to make the best decisions.