Life & Health Plan

Health

HRA​

​A Health Reimbursement Arrangement account is a health spending account funded by the employer for the benefit of the employee. Contributions to the HRA and distributions from the HRA and all earnings are income tax free. Distributions made from the HRA must be used to cover expenses that meet the definition of “medical care”, within Section 213(d) of the Code including amounts for hospital bills, doctor and dental bills, prescription medicines, other medicines and drugs to alleviate or treat personal injuries and sickness, co-pays, and insurance premiums. Contributions made to your HRA account by your employer can be used by the participant, their spouse, and dependents. The balance in this account can grow from year to year and are not subject to the “use it our lose it” provisions of a flexible benefits plan. In order to make contributions to an HRA after 1/1/2014, the employer/congregations must have a group medical plan in place.

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​Flexible Benefits Plan

​A Flexible Benefits Plan account is a health spending account funded by the employee. An annual election is made by the employee as to how much money they would like to have withheld from their salary every month on a pre-tax basis. The AFLC “Flex Plan” has a menu of benefits available including a Medical Reimbursement Account, a Dependent Reimbursement Account, an Adoption Assistance Reimbursement Account, Group Life Insurance, and an Individual Premium Account where participant’s portion of specialty insurance premiums, individual policy premiums, or Medicare premiums can be paid with pre-tax dollars. Funds set aside in Flexible Benefits Plan must be spent by the end of the calendar year or it is lost by the employee. In order to participate in the Flexible Benefits Plan after 1/1/2014, the employer/congregation must have a group medical plan in place.

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​Long Term Disability Income Insurance

An employer paid benefit for all eligible employees who work at least 32 hours per week and are under the age of 65. The cost of Long Term Disability Insurance coverage is $.262/month for every $100 of covered payroll. In the event of a disabling event the participant will receive 60% of their “before-tax” earnings to a maximum annual salary of $78,000 after a 90 day elimination period. The employer needs to “gross up” the participant’s salary to include the disability premiums so that premiums are paid with “after tax” dollars.

See the Information Packet for additional information.


Life

​Group Life Insurance

​The employer paid group “term” life insurance plan is guaranteed without requirement for medical underwriting. However, if a church elects to participate in this plan they must automatically enroll all eligible employees who work at least 32 hours per. The cost of coverage is $18.50/month for $50,000 of Group “Term” Life Insurance. Once an employee reaches age 65, the benefit amount (and the premium) is reduced to $32,500 when attaining age 65 and is further reduced to $25,000 when attaining age 70.

​See the Information Packet for additional information.


Getting Started

​Congregations interested in any of the AFLC Benefit programs should:

  1. ​Complete the Benefits Participation Agreement to select the plans in which they wish to participate.
  2. Complete an ACH Authorization Form for premiums and administrative fees.
  3. Have employees complete enrollment forms for the appropriate plans: