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Defined Contribution

An Affordable Alternative To Group Health Insurance:

As group health insurance costs continue to rise, employers are looking for ways to offer health benefits at a lower price. DefinedContributionNow! Is a concept often referred to as a defined contribution health plan. It allows an employer to name its price on its benefits offerings, rather than paying the costs to provide a specific group health plan (a "defined benefit"). Employers instead fix their costs by establishing a monthly dollar amount employees choose how to spend.

Employers can now make available a tax-free monthly allowance that employees use to purchase their own individual policy directly from a carrier or independent licensed health insurance agent.

How can I implement this at my company? Defined Contribution is current a term used for 401Ks Old Pueblo Benefit Advisors uses the Defined Contribution Now! System. Here’s how it works:

    Step 1—The employer creates a plan online and enrolls employees. Employees get their own user names and passwords.
    Step 2—Employees individually purchase their own policies from a menu of benefits, pay the bills themselves and add their policy choices to their online account.
    Step 3—Each month the administration system instructs the employer to make pre-tax withholdings via payroll and tax-free reimbursements for each employee in the plan.

Great for your Employees:

  • Freedom to choose any policy that fits their need and lifestyle
  • Direct relationship with insurance company and they own the policies
  • 20-40% savings in income and payroll tax savings on policy costs

Painless for You:

  • Affordable alternative to group health plans
  • Ability to fix benefit costs—no contribution required
  • Not subject to discrimination rules or participation rules
  • Painless administration for reimbursing employees through payroll

Call Us at (888) 977-5901 to Get Started! This program is offered through Old Pueblo Benefit Advisors, LLC and all Administration costs are provided in a proposal format. These fees are nominal and the savings in FICA taxes alone makes the program worth it! Simply provide an employee census of those wanting to participate.