How are Flex Credits Issued and Structured?

There are three options you can use to issue flex credits to your employees:

• Issue credits before employees choose their benefits

• Associate credits to specific benefit plans, then issue credits based on the employee's benefit choice

• Issue credits based on a combination of the first two options

If you issue credits before your employees choose their benefits, you can structure the flex credits in any of the following combinations:

• A base amount to every eligible employee. For example, all employees in a flex plan receive $1,000.

• A percentage of each employee's salary. You can define a minimum and maximum salary amount for calculating flex credits. For example, each employee in the flex plan receives flex credits equal to 10% of his or her salary. An employee earning a $30,000 salary receives flex credits worth $3,000.

• An amount for each employee's age, years of service, number of dependents, or lifestyle points.

If you base credits on age, years of service, dependents, or lifestyle, you need to define rate tables to vary the credits. For age and years of service you can give credit based on an employee's annual salary or as a flat amount.