'We understand why employers hesitate to offer retirement plan loans – they’re a lot of work and a lot of risk,' said Adam Bonsky. 'We’ve developed a loan program that takes company owners out of the equation and offers better options for their workers.'
Austin, TX (PRWEB) February 27, 2014
Fringe Benefit Group, an industry leader in the design, implementation and administration of health and retirement plans for contractors, today announced an innovative new retirement plan loan program for companies utilizing The Contractors Plan, Fringe Benefit Group’s bona fide benefit plan designed for contractors bidding and working on Davis-Bacon Act and Service Contract Act jobs. With this new offering, The Contractors Plan has created a retirement loan program that takes employers out of the loan processing business while giving workers access to funds in their retirement accounts.
The new loan program offers many benefits for The Contractors Plan customers and plan participants. Loans are set up directly between The Contractors Plan and the employee, so employers don't have to handle paperwork or set up payroll deductions. Because the program removes the payroll and deposit responsibilities associated with traditional loan programs, it reduces the monetary risk and possible government scrutiny resulting from late deposits.
Employers are no longer required to serve as a loan center -- collecting repayments, closing loans for employees at termination, converting loans when moving to a new retirement provider, etc. The plan is flexible and allows participants to borrow what they need, when they need it, and also allows for early repayment, unlike traditional loan plans that require participants to borrow a fixed amount up front with no options for early repayment.
By making it easier for employees to access their prevailing wage dollars, The Contractors Plan creates a retirement solution that is popular with employers and employees. The Contractors Plan call center follows up with employees to keep them on track, and supports accelerated repayment with 24/7 online account access and electronic payment options. Loans can be accessed quickly using a debit card or check and funds are available in emergencies. Employees also benefit because the loan is portable. If they terminate their employment, the loan stays in effect and they continue to pay it whereas traditionally, the loan becomes due in full at termination and can create a short-term financial hardship and major tax problems for the employee.
For 30 years, The Contractors Plan has specialized in benefits for prevailing wage workers. “We understand why employers hesitate to offer retirement plan loans – they’re a lot of work and a lot of risk," said Adam Bonsky, EVP of government markets for Fringe Benefit Group. “We’ve developed a loan program that takes company owners out of the equation and offers better options for their workers, including tax free access to their retirement accounts. They can borrow as much as needed within in their loan line, and access those funds via a debit card, check or direct deposit of the loan amount. We take the work out of retirement plan loans and improve the employee experience, which is a win-win for the employer and employees.”
Contractors bidding on public sector jobs understand that in order to win bids they need to maximize efficiencies, reduce costs and maintain compliance. Fringe Benefit Group’s prevailing wage product, The Contractors Plan, helps government contractors, like those working on Davis-Bacon and Service Contract Act jobs, stay compliant with government regulations and bid more competitively while providing quality benefits to their employees. As the first company to offer benefit plans for prevailing wage workers, Fringe Benefit Group is highly skilled at understanding, recommending and implementing retirement and ACA-compliant health plan options for government contractors.
Offering a retirement loan program to The Contractors Plan customers is another example of Fringe Benefit Group’s commitment to assisting its contractor clients. Fringe Benefit Group’s original retirement plan was the first plan specifically designed for merit shop contractors performing government work, and today The Contractors Plan provides valuable retirement and medical benefits on prevailing wage jobs across the U.S. Fringe Benefit Group has helped thousands of government contractors reduce labor costs, win more bids and stay compliant.
As part of Fringe Benefit Group’s commitment to its contractor clients and national network of agents and brokers, Fringe Benefit Group recently relaunched TheContractorsPlan.com with many new tools, educational resources and interactive calculators. While the most obvious change is the site’s new look, there are many improvements that will have a big impact on government contractors and the agents and brokers who serve them. Visit http://www.thecontractorsplan.com/video to learn more.
About Fringe Benefit Group
Austin, Texas-based Fringe Benefit Group and its affiliate companies have helped employers design and administer fringe benefit programs since 1983. Through its nationwide network of independent brokers and agents, Fringe Benefit Group has established itself as the leader in government contractor health and welfare and retirement plans. Drawing on its expertise in the prevailing wage segment, the company has also emerged as a leader in voluntary benefit plans designed specifically for hourly and part-time workers. For more information about Fringe Benefit Group’s products, visit http://www.fbg.com, http://www.thecontractorsplan.com and http://www.frameworkbenefits.com.