Remember when your parents gave you a weekly allowance and told you it was up to you to decide how the money would be spent. The only catch was that when your allowance was gone, it was gone – you would have to do your chores and wait until next week for additional spending money.
This is a good way to grasp a concept currently being offered by Diversified Group. With a defined contribution plan, you give your employees a set amount of money to spend on benefits, and they shop for coverage that meets their individual needs.
Your company gains the ability to control rising healthcare costs plus it’s a way to promote informed decision-making. Employees have the freedom to choose from a greater variety of plan options and your costs are limited to the amount of the “allowance” you provide.
To determine if a defined contribution plan is an alternative your company should consider, talk to Diversified Group today.