General POP
What are other names/references for POP?
Name at least 2
Cafeteria Plan
Section 125
Pretax Group Insurance Premium
Pre-Tax Deduction Plan
Are the premiums for a dental policy i got direct from a carrier eligible for pre-tax savings?
No, only when it's a Group Sponsored Premium may it be taken on a pre-tax basis. Individual premiums are not eligible.
Can a group policy for medical be taken on a pre-tax basis?
Yes
What states can PSA administer POP in?
5 answers
Washington
Idaho
Montana
California
Oregon
Think WINCO, but instead WIMCO
What is the minimum percentage of savings an employee could receive?
Actual savings are dependent on the employee's tax bracket, state residence, and can include city, state, and federal income taxes.
Employees can save at least 22% in payroll taxes.
How often should an employer test their plan for discrimination?
Every year.
Can a group policy for income replacement be taken on a pre-tax basis?
No
How far in advance is the first POP renewal invoice sent?
30 days
What document should employees receive when enrolled in POP?
(Not election forms)
The Summary Plan Description
Who cannot participate in a POP?
Two answers
Self employed individuals
Owners in an S Corporation; Their families are also excluded from participating. (Spouse, children, parents, and grandparents.)
Can a group policy for hospital be taken on a pre-tax basis?
Yes
How many payment reminders do we send?
3 plus an email advising of termination
Can an employee make changes to the insurance policy when a POP is in place?
Only if they experience a qualifying event such as marriage, divorce, birth, death, and adoption.
What documents are required in order for an employer to offer an POP?
Two answers
A model Plan Document
A Summary Plan Description
Can a group policy for accidents be taken on a pre-tax basis?
Yes
When is a group termed for non-payment?
60 days after their renewal date