Zane Benefits Publishes New Information on Defined Contribution Employee Classes

Employee Classes are a Powerful Tool for Small Business Recruiting and Retention

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Park City, Utah (PRWEB) January 08, 2014

Today, Zane Benefits, the #1 Online Health Benefits Solution, published new information on the defined contribution employee classes.

According to Zane Benefits’ website, taking care of employees is one of the major reasons companies offer health benefits - from major global corporations to the newest small business. Another primary reason is recruiting and retaining great employees. Getting the best people requires competitive compensation - including health benefits. One way companies use their defined contribution health plan to recruit and retain the best employees with is with employee classes.

Using Employee Classes Makes Business Sense

According to Zane Benefits’ website, with salary and other types of compensation, employers routinely compensate groups of employees differently. Field sales reps are compensated differently than sales managers. Some employees get company cars, while others earn quarterly bonuses. Businesses offering a defined contribution health plan are applying this same logic.

Using a defined contribution health plan, companies can create employee classes to offer benefits tailored to their company's objectives, transforming the health benefit plan into a tool to find and keep great people.

Providing Class-Specific Health Benefits is Clearly Allowed by ERISA and HIPAA

According to Zane Benefits’ website, providing different levels of benefits to classes of employees is at the core of benefits compensation and is routinely done by major corporations. Federal regulations state that "a plan or issuer may treat participants as two or more distinct groups of similarly situated individuals if the distinction between or among the groups of participants is based on a bona-fide employment-based classification consistent with the employer's usual business practices."

To comply with these regulations, employee classes within the defined contribution health plan must:

  • Be based on bona-fide business differences.
  • Treat all "similarly situated" employees equally.
  • Not discriminate against unhealthy people.
  • Spell out the requirements for classes and benefits in the ERISA plan document.

Click here to read the full article.

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About Zane Benefits
Zane Benefits, the #1 Online Health Benefits Solution, was founded in 2006 to revolutionize the way employers provide employee health benefits in America. We empower employees to take control over their own healthcare, while helping employers recruit and retain the best talent. Our online solutions allow small and medium-sized businesses to successfully transition to a health benefits program that creates happier employees, reduces costs and frees up more time to serve their customers. For more information about ZaneHealth, visit http://www.zanebenefits.com.


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