Premium Only Plans (POP)
A POP is an IRS-regulated, employer-sponsored benefits plan that lets employees voluntarily redirect a portion of their compensation towards tax-free benefits. The cost for benefits under the plan (i.e. health insurance or group term life insurance premiums) is deducted from employees’ wages on a pre-tax basis -- this allows savings throughout the year for both the employer and employees.
A POP is an easy, cost-effective and worthwhile addition to an employer’s benefits program.
- We furnish a prototype POP benefit plan document, Summary Plan Description (SPD) and necessary forms for adoption of the plan by the plan sponsor. These documents should be reviewed by your attorney or tax advisor at your discretion.
- Revisions annually to plan documents as legally required
- Discrimination testing annually
- Forms and materials required for implementation and continued administration of the plan are provided electronically