Premium Only Plans (POP)

The Premium Only Plan (POP) was created under Section 125 of the Internal Revenue Code. A POP allows your employees to pay their premiums for employer sponsored insurance such as health, dental, vision, disability, accident and group life (to $50,000) on a pretax basis. You can give your employees a raise, and your company a tax break. Both the employers and the employees profit!

SFB offers the following services for POP Administration:

  • All legal Documents and Administrative Forms
  • Phone Support for questions about your 125 plan
  • Processing and Maintaining Change of Status Elections
  • Processing initial Benefit Election Forms to initiate records for plan Administration
  • Preparing reports for payroll setup for employee elections
  • Processing and sending Employer Pay Cycle Contribution Billing Reports to reconcile with payroll
  • Performing nondiscrimination tests and providing nondiscrimination reports to employer, as needed
  • Advising Plan Administrator of any known Plan Compliance Issues

« Back to Cafeteria Plans