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
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,
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
As part of Fringe Benefit Group’s commitment to its contractor clients and national network of agents and brokers,
Read the full story at http://www.prweb.com/releases/2014/03/prweb11625328.htm
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