Transcript Document

ABC National & Fringe Benefit Group
National Marketing Partnership
Who We Are
 Founded in 1917
 Number one area of emphasis is Construction
Contractors Insurance and Surety
 Company goal is to be your business partner
 Experienced in all lines of insurance including
employee benefits
Who We Are
 We implemented the first “bona-fide” benefit
plan for prevailing wage contractors (PW) in
1979
 We have helped over 4,000 non-union
contractors reduce labor costs, win more bids
and stay compliant
 We are experts in PW benefits and compliance
 Broker-based marketing with local support
The Problem when performing
government work
Many contractors pay some or all of the
mandatory fringe benefit package as wages
because it is the easiest way to satisfy DOL
compliance. It is also the most costly
method……
How It Works…
prevailing wage is broken down into 2 part: Base Wage + Fringe
Pay Fringe in Paycheck
Pay Fringe to “Bona Fide Plan”
Base Wage
Fringe
Base Wage
$28.60
Total Wage
$28.60
$8.58
Total Wage
$28.60
$12.43
$41.03
Payroll Burden
(30%)
Payroll Burden
$12.30
(30%)`
Bid Cost
“Bona Fide Plan”
$12.43
Bid Cost
$49.61
$53.33
$3.72/hr savings
per person
Bid is 6.98% lower
The Solution: Remove fringes from payroll
and allocate into “bona fide” programs..
Fringe Dollars
Health &
Welfare
Retirement
Vacation
Training
Health Insurance Carriers
 ABCWV and MSIA give you the option of two
excellent carriers
United Healthcare
Mountain State Blue Cross Blue Shield
Fringe Benefit Group
 We offer “bona fide” benefit plans that are
designed to address the unique challenges of
the Davis-Bacon and SCA markets
Major Medical Health Insurance
Limited Medical Health
Retirement Plans
Health Plans
 Contractors Plan Employee Benefit Trust
 8,000 contractor lives treated as 1 group
 Very desirable demographic
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Custom quote available for larger groups
PPO Options
Composite Rate
Ancillary benefits: dental, vision, chiropractic, life
insurance
Health Plans
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Hourly or monthly premium payments
“Carve-out” of field workers available
COBRA administration included
Hour Banking
Coverage based on minimum monthly hours
Excess hours/dollars banked for employee
Avoids ineligibility under traditional plans
Bank provides coverage when fewer hours worked,
or laid-off
Retirement Plans
 “Fringes only plan” or 401k/PS
 Takeover of existing plan or stand alone
 Employer makes contributions on chosen
projects only. (not annualized like health)
 Two-tier investment menu design ideal for
contractors
 Third-party plan trustee
Advantages for Employer and Employee
 Employer
Competitive bids and/or higher profits
Free up cash flow
Equalize wages between public and private work
Increase retirement savings for owner & HCEs
 Employee
Pre-tax savings and “forced” retirement savings
Health coverage for dependents and during down
time