The 125 Solution - Third Party Administration for Employee Benefits
Region 10 has partnered with Region 4 Education Service Center in Houston to offer a Third Party Administration of school districts employee benefits. This program offers a unique method for offering your employees the very best supplemental insurance products at cooperative prices and save time and money in your payroll and human resources offices.
The 125 Solution was established by Region 4 through The Cooperative Purchasing Network (TCPN). The program provides traditional cafeteria plan service through an inter-local agreement without the necessity of a time consuming and often frustrating process of bidding and selecting supplemental insurance products. Insurance products are available in most categories (i.e. vision insurance, dental insurance, disability insurance, cancer insurance, etc.) allowing you to tailor the offerings to your employees’ needs. These products are available at comparable or lower costs than most districts’ current plans.
All services are provided on a fee basis thus eliminating the aggressive sales tactics often employed by salespeople enrolling employees. One of the unique aspects of the program is that the district does not incur the fees. All commissions received from the insurance products sold to your employees goes to pay the fees of the service providers. The school district is considered a provider because of the time district staff spends in the routine functions related to payroll deductions for insurance premium payments. Therefore, the district is paid a service fee along with other service providers. Your district may choose to use this revenue for whatever purpose it chooses such as business office expenses, reducing a portion of employees’ benefit costs, or paying for an inventive program for students or employees.
Services included:
- State-of-the-art, full-service, year-round online enrollment system; enrollment data can then be downloaded automatically into the district’s payroll system.
- Non-commissioned enrollment counselors to provide on-site assistance at benefit enrollment times.
- Flex spending accounts administered through a convenient Mastercard debit card, thus cutting paperwork for employees and staff.
- Compliance with applicable state and federal laws is administered by the service provider.
- Consulting services available to help your district design its benefit program.
- Common remitter service is available for your convenience.
- The Region 10 RAMS 403(b) Third Party Administration service is included at no additional fee.
To initiate service the district board of trustees passes a resolution adopting the inter-local agreement and designating an employee (by job title) as the authorized representative to sign on behalf of the district. The designee will then sign the inter-local agreement and works with professionals from the service provider to design and implement the program.
Fees Per Eligible Employee Per Month
125 Flex Card
$ 1.50
125 Full Administration
$ .50
Common Remitter*
125 Plan
$ .50
403(b) Plan Administration
$ 1.50
Website Enrollment
$ 3.00
Enrollment Services/Management
$ 8.00
Consulting
$ 1.25
Coordinating ESC (Region 4)
$ .40
District
$ 4.00
Fees are Not Paid by District;
Paid from Commissions on Supplemental Insurance Products
Contact:
Gordon Taylor, (972) 348-1004
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