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”, is a newer benefit offered by CSI. Eight schools joined the Plan this year for a total of 69 schools taking advantage of tax savings the Plan offers.
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 $925.00 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 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 to benefit your school and staff for the 1998/1999 school year. An overview of the Rainbow Plan is attached; if you would like more information contact me at 800-635-8288, extension 267.