Flexible benefit plans

{
  "id": "MLC-T-ECS-000747",
  "term": "Flexible benefit plans",
  "field": "Economic statistics",
  "definition": "Plans that, under Section 125 of the Internal Revenue Code, provide employees a choice between permissible benefits (including cash) and nontaxable benefits, such as life and health insurance, vacations, retirement plans, and childcare.\n\nNote: The code permits companies providing flexible benefit plans to offer employees the following options: accident and health insurance plans, including healthcare spending accounts; group term life insurance and dependent coverage; disability benefits and accidental death and dismemberment plans; employee contributions to 401(k) plans or other thrift or savings plans (either pretax or after tax); dependent care assistance plans, including spending accounts; vacation days; and group legal services. Flexible benefit plans may be funded solely by the employer or through joint employer-employee contributions. Employers usually grant each employee credits to purchase benefits covered by the plan. Many plans include a core group of benefits (e.g., life insurance coverage of $25,000) and allow employees to purchase additional levels of the core benefit, as well as benefits not included in the core group. An example is the employer’s offering an additional $20,000 in life insurance coverage.",
  "references": [
    "BLS Glossary"
  ],
  "url": "https://mlchart.com/terminology/economic-statistics/flexible-benefit-plans/"
}