What’s the 411 about the core-flex policy approach?
Interest in core-flex policies is on the rise. Associate Manager of Policy Administration Amy Nikrad gives you the core-flex lowdown.
Complete transcript: “Hi, my name is Amy Nikrad. I’m the associate manager for the policy administration team. Today my question is, ‘How do you define a core-flex policy?’
A core-flex policy is a benefits package divided into two sections. This allows for the convenience of customization, flexibility, and cost containment for you while also giving your employees the opportunity to chose the benefits that meet their needs and policies can also be tiered depending on the job grade levels. Today only 16% of companies use a core flex policy but interest has been growing and many businesses want to learn more about how the program works. Let’s break it down into the different components.
First, we have the core benefits which all employees within a tier are eligible to receive. Benefits are typically determined by taxability and utilization. This section includes tax excludable benefits as well as benefits that are considered to be essential support for the employee. These are likely to include: final move to destination, shipment of household goods and storage, home finding or rental assistance or the miscellaneous allowance.
Secondly, we have the flexible benefits which the business or employee can select from to personalize and meet their specific needs. This not only provides flexibility for the employee but also reduces potential costly exceptions. These may include: temporary living, home sale, home purchase, or home finding. Hopefully this gives you a little more context of the core-flex policy and how it works.
In summary, it is a benefit not only to the company but it can also help increase employee satisfaction as it allows more freedom for employees to choose what meets their needs. Thank you for watching and have a great day!”