| Title: | The Digital way of working |
| Moderator: | QUARK::LIONEL ON |
| Created: | Fri Feb 14 1986 |
| Last Modified: | Fri Jun 06 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 5321 |
| Total number of notes: | 139771 |
I just received "Your Summary Annual Reports," which is apparently sent to all U.S. employees to satisfy ERISA requirements. It mentions the Cafeteria Plan. Does anyone know what this is? (Yes, I know I can get a full annual report for $2, but it's probably legalistic gobbledygook).
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 1470.1 | GRANPA::SHBROWN | Thu May 16 1991 15:34 | 15 | ||
I'm not sure how DEC will work it, but the basic premise of Cafeteria
Style Benefits, it that the employee can tailor the benefits to their
needs. You can pick and choose which benefits you feel are most
important to you, and avoid the ones that you find unimportant. You are
given an amount of benefits money and you can spend it on whatever
benefits you wish. Some restrictions are made, as with everything.
This plan has its good and bad points, even though you make your own
choices, you are limited at the same time with what you can "purchase".
The company feels it saves by giving you power to choose, therefore you
will use your benefits more wisely. If you utilize most of the benefit
options, you may come out behind if you opt to purchase with real money
what you couldn't afford with the original "amount".
Hope this makes sense. Did they mention when they were going to this
plan?f
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| 1470.2 | ICS::ENGLERT | Put the Hammer Down, son | Thu May 16 1991 15:49 | 5 | |
The Cafeteria plan in the Summary Annual Report is the official title
of the plan that allows employee medical and dental contributions to
come out of the paycheck on a pre-tax basis.
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| 1470.3 | REGENT::POWERS | Tue May 28 1991 13:48 | 5 | ||
The reply in .1 makes a whole lot more sense to me than .2 does. "Cafeteria" is a word that's been used for years to describe the "pick and choose" style of benefits plan that .1 describes. How does it apply to the IRS code changes that led to the use of pre-tax income to pay for medical insurance? | |||||