Section 125 Cafeteria Plan
The Holston Conference of the United Methodist Church is endorsing a Section 125 Cafeteria Plan administered through the American Family Life Assurance Company (AFLAC). This plan allows for all personal insurance premiums paid, health care expenses and dependent daycare expenses to be deducted from wages on a pre-tax basis. It will meet all IRS guidelines. Programs that will be offered by this Section 125 Plan for pre-tax deductions are as follows:
- Premium conversion (medical insurance premiums pre-tax)
- Health care flexible spending expense reimbursement
- Dependent daycare reimbursement
- Cancer plans
- Accident plans
There will be no initial fees to churches/clergy for setting up any accounts. Monthly fees are: premium conversion – none; health care flexible spending account and/or dependent care accounts - $2.00 per month per family (one payroll). E.g., if you set up both a health care flexible spending account and a dependent daycare reimbursement account, you would still pay only a $2.00 monthly charge.
Representing AFLAC is Mike Crawford, The Crawford Agency, 1100 Marion Street, Suite 300, Knoxville, TN 37921. His phone number is 865-525-1251 and fax is 865-541-6929. Your District Superintendent is aware that representatives from AFLAC will begin calling Clergy directly to see if there is interest in setting up these accounts. There is no obligation. Many District Superintendents are doing cluster meetings to expedite the process. Call Mike Crawford if there are questions.
The Conference Treasurer's Office will not be involved in the receiving or payment of reimbursement claims requests, nor will we arbitrate any payment disputes as AFLAC will follow IRS guidelines. My office will receive the payroll withholding amounts which will be deposited in a special reimbursement account to be utilized by AFLAC. You need to be aware of all guidelines which the agents will discuss in detail. Moneys not used at the end of the year will be forfeited. This is a very low cost, properly administered plan, that will allow you to save tax dollars if you so desire.
AFLAC
Why Have It?
What Can We Save Taxes On?
Other Plans Available
Clyde H. McDonald, Conference Treasurer
October 18, 2005
