TO: CSI Member Schools Not Participating in the Rainbow Plan
FROM: Brian C. Meekhof, Benefits Administrator
Savings from Flexible Spending Account Plan
The CSI Flexible Spending Account Plan, the “Rainbow Plan”, can reduce expenses for your school and, at the same time, can increase take-home pay for your employees. This important benefit is saving each participating school an average of over $1,000 this year alone (after expenses!). In addition, participating employees are saving an average of more than $300.00 this year. Savings are realized by taking advantage of Section 125 of the Internal Revenue Code of 1986 which allows employees to set aside pre-tax dollars to pay certain health and child care expenses.
Cash in Lieu of Benefits
Schools which offer a cash incentive to employees eligible to opt out of the school’s insurance plan must use a Section 125 plan. The Rainbow Plan has been amended so that it can be used to avoid tax problems which arise when a Section 125 Plan is not used.
Now is the time to consider implementing the Rainbow Plan in your school for the 1997/1998 school year. An overview of the Rainbow Plan is attached; if you would like more information contact me at 800-635-8288, extension 267.