New Survey Finds 92% of Employers Offer Flexible Benefit Plans

October 24, 2006

Contact: Brenda Rood
(262) 373-7756
brendar@ifebp.org

New Survey Finds 92% of Employers Offer Flexible Benefit Plans

Brookfield, Wisconsin—The International Foundation of Employee Benefit Plans announces the publication of its latest book, Flexible Benefit Plans and FSAs, which provides survey data and samples from employers nationwide.

Key Findings

Of survey respondents, 92% of employers offer some type of Section 125 flexible benefit plan. Of those who offer a flexible benefit plan:

• 90% offer health care and dependent care flexible spending accounts (FSAs).
• However, 73% of respondents indicated that only 39% or less of their employees use health care FSAs, and 68% of respondents indicated the participation level for dependent care accounts is 9% or lower.
• 30% offer a consumer-driven type of health plan, in addition to a flexible benefit plan.
• 25% provide cash or credits to employees who opt out of health care benefits in their flexible benefit plans.
• 92% of health care FSAs are completely funded by employees.
• Most participants use all the funds set aside in their FSAs. The majority of respondents, 62%, indicate that 7% or less of employees forfeited money in their health care FSAs and less than 5% of employees forfeited money in dependent care FSAs.
• The most commonly indicated maximum contribution that an employee can make to a health care FSA was $5,000 or more, as cited by 42% of respondents.

The survey results are compiled from 326 responses of corporations (60%), professional services firms (22%) and public employers (18%). The results include 50 valuable samples, including 24 enrollment and claims forms, 15 summary plan descriptions, seven plan documents and four other communication pieces.

Flexible Benefit Plans and FSAs is the latest installment of the International Foundation’s Survey & Sample Series. The series was created to provide survey data and samples on a variety of employee benefits topics to allow benefits professionals to compare their plans to others, determine trends and costs, and better manage their plans. Also available in the series are Pharmacy Benefit Managers, Auditing and Legal Services: Sample RFPs, Education Assistance Plans, Disaster Planning, Wellness Programs and Vacation Benefits and Paid Time Off Banks. For more information, visit www.ifebp.org/surveysample.

To purchase a copy of Flexible Benefit Plans and FSAs, visit www.ifebp.org/surveysample, or contact the Publications Department at (888) 334-3327, option 4; fax (262) 786-8780; or e-mail books@ifebp.org. The 700-page publication is available in CD-ROM, e-book (pdf) or print format and costs $125 (I.F. Members $50) plus shipping and handling.

###

The International Foundation of Employee Benefit Plans is a nonprofit educational association serving the employee benefits and compensation industry. Total membership includes more than 35,000 individuals representing over 8,300 trust funds, corporations, public employee groups and professional advisory firms in the United States and Canada.