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What are the 8 Instances?



Instance 1


With Defined Contribution turned off, employees will see their benefit offering(s) at the plan’s buildout price. Plan costs can be set and employer contribution details are manageable within the plan’s premium build out.

 

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In Instance 1, an employee users shopping cart might look like this when electing benefits. Pretty simple huh? Employees will be able to see what they’ll be paying for their benefits and you’ll have the option to show or hide what amount of Employer contribution is offered.

 

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Instance 2




When defined contribution is turned on but health reimbursement is turned off, you will be able to make health and/or ancillary product contributions by way of “buckets.”

 

What are buckets? They are specified amounts of contribution for certain groupings of benefits.

 

In Instance 2, you are turning on Defined Contribution but only for “ancillary” products. You’ll be able to divide contributions for those “ancillary” product in up to 3 separate buckets, which can consist of any plan types.

 

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When electing benefits, the employee’s shopping cart below illustrates an employer using defined contribution which is divided into 3 ancillary” product buckets. Bucket 1 consists of contributions for dental, vision, voluntary life, and accident. Bucket 2 has an allotted amount for short term disability and critical illness. This gives employees more freedom to choose how to spend their given contributions.

 

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Instance 3




Instance 3 occurs when defined contribution is turned on for both ancillary and health benefits. You may now separate different contribution amounts into an additional bucket strictly for health to accompany up to three ancillary buckets.

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For the example below, an employer offers $50 of contribution for a health plan, $20 for 1 bucket (with $1.23 unused towards, let’s say, dental/vision), and $10 for another ancillary bucket (for accident, and vol life).

 

BernieTip: This type of strategy encourages employee participation by giving them the choice of how to use employer contributions.

 

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Instance 4




If defined contribution is turned on for both health and ancillary benefits but are not divided into separate buckets, you will experience instance 4. Employees will now have one large bucket of contribution to spend on any of their offered benefits. This may give employees more freedom to spend contributions how they want to.

 

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For example, the snapshot below represents an employer who is contributing $100 in 1 bucket rather than divvying up amounts for different types of benefits.

 

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Instance 5


When defined contribution and health reimbursement are both turned on, you’ll have the option to turn on a Section 125 Benefit Credit option as well. If yes, proceed with instance 5.

 

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If your group participates in Section 125 Benefit Credits, and the setting is turned on, you will notice a benefit credit input box on specific benefit’s premium configuration. The employee will see this amount with further options to adjust the amount of contribution to use during enrollment.

 

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Instance 6



BernieTip: Instances 6, 7, & 8 apply when defined contribution and health reimbursements are both turned on.

 

If defined contribution and health reimbursements are both turned on and your group does not participate in Section 125 Benefit Credits, health reimbursements may or may not roll over from month to month. Specify whether or not reimbursements should roll over. If not, instance 6 occurs.


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Instance 7


 

If you choose to roll over reimbursements month to month, do they roll over year to year as well? If yes, then Instance 7 occurs. 

 

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Instance 8



Or maybe Instance 8, if reimbursements roll over only from month to month.

 

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