As noted in my original blog “SmallBiz Employee Benefits Option #4 – Hybrid” , when it comes to benefits, the Smallbiz Owner certainly has a lot more choice on how to set up a Benefits Program than they may think.
In that blog, I had 5 different Hybrid scenarios. For this blog, I get to add another scenario because one of my Clients needed a solution that not only addressed their rising Health and Dental premiums but also took into consideration the addition of some type of Pension Plan.
What was happening…
This Client of mine had a Traditional Benefits Program and had seen their average benefit cost per employee increase by 38% over the last 3 years and had determined that “enough is enough”. In order to continue to offer a competitive Benefits Program, they wanted to take a closer look at some of the Options that I had presented at our previous Year-End Reviews.
What they decided to do…
- The Hybrid Option that they landed on was an Insurance; Health Care Spending Account; and an RRSP blend. Yes, an Insurance, HCSA, and an RRSP Hybrid!
- The amount that will be deposited monthly into the Employees’ HCSAs is 5% of gross monthly earnings.
- They placed the Life, AD&D, Dependent Life, and Long-Term Disability with another Carrier.
How it works…
- The employee asks for reimbursement from their HCSA for their Medical and Dental expenses throughout the year.
- Any left-over amounts in the HCSA are rolled into an RRSP at the end of the year.
It’s that easy!
If you would like to take a look at something completely different for your company, give us a shout!
Located in Cambridge, ON Sharkey Group Insurance provides independent Employee Benefits advice & counsel for Small Businesses across Ontario.