Term Life and AD&D Insurance
What happens to those left behind after death? Loss of income, medical costs, and burial expenses can cause additional burden besides the loss of a loved one. Term Life Insurance and Accidental Death and Dismemberment coverage up to $50,000 is offered to all employees working a minimum of 32 hours per week. At age 65, this coverage is reduced to $32,500 and at age 70 coverage is reduced to $25,000. The 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.
Long Term Disability Income Insurance
What if your paycheck stopped coming? It's estimated that one in three people will experience a disabling event sometime in their life. Are you prepared for such an event? This benefit is a available to 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.
Both of these plans require 100% participation. All congregations that choose to participate must enroll all eligible employees.
Health Savings Account HSA
A Health Savings Account (HSA) is a tax-advantaged savings account that can be used for qualifying current and future medical expenses. Contributions to an HSA are made with "pretax" dollars and distributions for qualified medical expenses are tax-free. HSA's are able to invest in assets on a tax-deferred basis such as stocks, real estate, gold, etc. Tax-free distributions cannot be used to pay medical expenses incurred prior to the HSA being opened.
In order to participate in the HSA the employee must have a qualifying High Deductible Health Plan (HDHP). In 2017 deductibles for the HDHP must exceed $1,300/self and $2,600/family with a maximum out-of-pocket limit of $6,550/self and $13,100/family. Contributions limits for 2017 are $3,400/single and $6,750/family. A $1,000 Catch-Up Contribution is allowed for those 55 and older.
Health Reimbursement Account HRA
The AFLC no longer has an active Health Reimbursement Account. However, current employees may still have a balance in their HRA. This section is for those employees.
Congregations who wish to participate in any of the AFLC Benefit programs should complete the following forms and return them to the AFLC Business Office.
- Complete the Participation Agreement to select the plans in which they wish to participate.
- Complete an ACH Authorization Form for premiums and administrative fees.
- Have employees complete enrollment forms for the appropriate plans:
- Life and/or Long-Term Disability
- HSA Enrollment Form
- HSA Election Form - Must be submitted annually before the beginning of the year.