Section 105 Benefits Plan
- Thread starter smokin goose
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- 389
I can't verify that post but If you want a real chuckle, check out your first post.
Does Scagnt83 post any facts to his wild claims?
Has Scagnt83 done more due diligence than one of the top 2 underwriters in the "world" who is funding $1.5 BILLION for an initial pilot program for 100,000 employees?
Does Scagnt83 have any credibility whatsoever on the subject?
Will Scagnt83 trot right back here with even more false information and accusations?
That is a different Total Financial Group. The Classic 105 is offered by Total Financial Group based in Louisiana.
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What is so hard to understand? Employees are purchasing secondary coverage to their existing employer sponsored group plan. The fact that it is designed under section 105 of the Tax Code, just makes it a welfare benefit plan not a 105 HRA, not a 105 reimbursement plan etc. The Classic 105 is a second to pay welfare benefit plan. While most on this forum get confused because you are only used to a traditional Employer funded reimbursement plan, the Classic 105 has employees purchase secondary coverage to help offset their deductibles, co-pays and co insurance, just like they purchase gap plans from other companies. The employee submits the claim and then TTFG pays the employee 75% of the expense up to what he has contributed as long as it is considered a covered expense. This process should hush those claiming that TTFG is giving an advanced benefit before medical expenses occur. We are well aware of the revenue rulings 2002-80 and 2002-3 and we are in no way advancing any benefits towards medical expenses that have not happened yet.
The loan benefit is OPTIONAL!!!!! Do a little research on work place loans. We are not the only company offering loans through payroll, but we are the pioneers who packaged it together with the Classic 105 to HELP the employee offset their purchase of the Classic 105. What makes Total Financial Group different in their work place loans benefit is we figured out how to have the loan paid off at time of death. If you think this is illegal then reverse mortgages must also be illegal. Quit looking at actuary tables for group term products, universal life products, whole life products etc, because you will never get the numbers to work out. We figured out how to pay off the loan through another death benefit and that is what is proprietary about our program.
We did pass a DOL audit. I have seen and read the letter personally. The fact that we will not make it public is not because we do not want to but that letter can not be used to sway or entice people or companies to sign onto the program and the DOL gets enough calls about our program on a daily basis, so imagine posting the letter with the DOL auditor's direct phone number on it. He would not be able to do his daily job due to the phone calls.
I understand that you are weary about this program but I have been with TTFG since the beginning, I went through the lawsuit when we separated from Benesmart. We have taken all recommendations from the DOL, and the IRS and implemented them into our program to improve it. We are stronger than ever and actually growing faster than we can keep up. I am proud to represent this company and when my clients tell me how much they were helped because of the Classic 105, it makes it easy for me to stand up and defend TTFG because it is real and it is helping employees and employers.
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What is so hard to understand? Employees are purchasing secondary coverage to their existing employer sponsored group plan. The fact that it is designed under section 105 of the Tax Code, just makes it a welfare benefit plan not a 105 HRA, not a 105 reimbursement plan etc. The Classic 105 is a second to pay welfare benefit plan. While most on this forum get confused because you are only used to a traditional Employer funded reimbursement plan, the Classic 105 has employees purchase secondary coverage to help offset their deductibles, co-pays and co insurance, just like they purchase gap plans from other companies. The employee submits the claim and then TTFG pays the employee 75% of the expense up to what he has contributed as long as it is considered a covered expense. This process should hush those claiming that TTFG is giving an advanced benefit before medical expenses occur. We are well aware of the revenue rulings 2002-80 and 2002-3 and we are in no way advancing any benefits towards medical expenses that have not happened yet.
The loan benefit is OPTIONAL!!!!! Do a little research on work place loans. We are not the only company offering loans through payroll, but we are the pioneers who packaged it together with the Classic 105 to HELP the employee offset their purchase of the Classic 105. What makes Total Financial Group different in their work place loans benefit is we figured out how to have the loan paid off at time of death. If you think this is illegal then reverse mortgages must also be illegal. Quit looking at actuary tables for group term products, universal life products, whole life products etc, because you will never get the numbers to work out. We figured out how to pay off the loan through another death benefit and that is what is proprietary about our program.
We did pass a DOL audit. I have seen and read the letter personally. The fact that we will not make it public is not because we do not want to but that letter can not be used to sway or entice people or companies to sign onto the program and the DOL gets enough calls about our program on a daily basis, so imagine posting the letter with the DOL auditor's direct phone number on it. He would not be able to do his daily job due to the phone calls.
I understand that you are weary about this program but I have been with TTFG since the beginning, I went through the lawsuit when we separated from Benesmart. We have taken all recommendations from the DOL, and the IRS and implemented them into our program to improve it. We are stronger than ever and actually growing faster than we can keep up. I am proud to represent this company and when my clients tell me how much they were helped because of the Classic 105, it makes it easy for me to stand up and defend TTFG because it is real and it is helping employees and employers.
- 10,806
I never said that you are prepaying benefits. I said that you are making loans that are secured by group policies that are actuarialy unsound for the purpose of securing that loan. And I said that those Loans reduce the employee's SS/Medicare benefits.
And you are using incorrect assumptions just like your cohort. The DOL would not audit TTFG.... they would audit your clients. So whatever you were shown was a crock.
Quick question.... lets just say hypothetically that the insurance securing the loan is not sound actuarilly. Who would be responsible for paying back those Loans if the insurance falls through???
And you are using incorrect assumptions just like your cohort. The DOL would not audit TTFG.... they would audit your clients. So whatever you were shown was a crock.
Quick question.... lets just say hypothetically that the insurance securing the loan is not sound actuarilly. Who would be responsible for paying back those Loans if the insurance falls through???
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LOL.....what did I tell you.... scagnt83 would trot right back with more mis-information! Pay attention....read S L O W L Y THIS TIME!
......CLIENTS HAVE BEEN AUDITED!!!!!.....AND THEY STILL COME BACK THE NEXT YEAR" ... You remind me of Pavlov's dogs.
And this may or may not reduce (an insignificant amount at best) SS benefits....that remains to be seen. That's assuming SS even exists when their time arrives. FACT: Nearly 2/3 of Americans today could not pay a $1000 deductible "TODAY" if they were hit with a medical event! will you PLEASE PAY ATTENTION!!!
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Okay, it is not a group term policy that backs up the loan, so if you would have read my previous statement you would have noticed that. So again what ever actuary tables you are looking at will not fit the narrative. TO your hypothetical question, if the secured instrument is held by an insurance company and they go belly up, their assets (Life Policies) are sold to another insurance company. Please see link. Put the www in front of the link because I was not allowed to post a link. investopedia.com/articles/insurance/09/insurance-company-guarantee-fund.asp]Are[/url] You Protected If Your Insurance Company Goes Belly-Up? | Investopedia[/url]
In regards to the DOL auditing TTFG, it happened. I am not sure why you think that the fiduciary party paying claims can not be audited, but it happens.
In regards to Social Security/ Medicare. Loans do not affect your social security, but reducing your taxable income through a 125 cafeteria plan will. Social security is based off of your 10 highest quarters of your working career, so you would truly have to be on the Classic 105 for a long time for it to effect your Social Security Check. Plus our program generally gives the employee a slight increase in their take home pay and we encourage the employee to put the extra income into their 401 plan which would out perform Social Security. In regards to the program effecting Medicare, there is no effect on Medicare at all.
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105 guru...some folks simply can not be educated on a subject (or just don't want to be) ....you're dealing with one.
- 10,806
So what type of policy is it? Who is it with? If I am incorrect then why not give me the correct info?
If it has the potential ability to affect Social Security it has the ability to affect Medicare too.
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You must not ever read the Life or FE sections of the Forum... lol
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So what type of policy is it? Who is it with? If I am incorrect then why not give me the correct info?
... lol
1) They are prepaid credit life policies with a major carrier
2) It's so much more fun listening to your wild ramblings on the subject.... as someone previously mentioned!
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