ABC National & Fringe Benefit Group National Marketing Partnership

1
ABC National Fringe Benefit GroupNational
Marketing Partnership
2
Who We Are

• Founded in 1917
• Number one area of emphasis is Construction
  Contractors Insurance and Surety
• Company goal is to be your business partner
• Experienced in all lines of insurance including
  employee benefits

3
Who We Are

• We implemented the first bona-fide benefit plan
  for prevailing wage contractors (PW) in 1979
• We have helped over 4,000 non-union contractors
  reduce labor costs, win more bids and stay
  compliant
• We are experts in PW benefits and compliance
• Broker-based marketing with local support

4
The Problem when performing government work

• Many contractors pay some or all of the mandatory
  fringe benefit package as wages because it is the
  easiest way to satisfy DOL compliance. It is
  also the most costly method

5
How It Worksprevailing wage is broken down into
2 part Base Wage Fringe
Pay Fringe in Paycheck Base Wage
28.60 Fringe 12.43 Total Wage
41.03 Payroll Burden 12.30 (30) Bid
Cost 53.33
Pay Fringe to Bona Fide Plan Base Wage
28.60 Total Wage 28.60 Payroll
Burden 8.58 (30) Bona Fide Plan
12.43 Bid Cost 49.61
3.72/hr savings per person Bid is 6.98 lower
6
The Solution Remove fringes from payroll and
allocate into bona fide programs..
Fringe Dollars
Training
Vacation
Retirement
Health Welfare
7
Health Insurance Carriers

• ABCWV and MSIA give you the option of two
  excellent carriers
• United Healthcare
• Mountain State Blue Cross Blue Shield

8
Fringe Benefit Group

• We offer bona fide benefit plans that are
  designed to address the unique challenges of the
  Davis-Bacon and SCA markets
• Major Medical Health Insurance
• Limited Medical Health
• Retirement Plans

9
Health Plans

• Contractors Plan Employee Benefit Trust
• 8,000 contractor lives treated as 1 group
• Very desirable demographic
• Custom quote available for larger groups
• PPO Options
• Composite Rate
• Ancillary benefits dental, vision, chiropractic,
  life insurance

10
Health Plans

• Hourly or monthly premium payments
• Carve-out of field workers available
• COBRA administration included
• Hour Banking
• Coverage based on minimum monthly hours
• Excess hours/dollars banked for employee
• Avoids ineligibility under traditional plans
• Bank provides coverage when fewer hours worked,
  or laid-off

11
Retirement Plans

• Fringes only plan or 401k/PS
• Takeover of existing plan or stand alone
• Employer makes contributions on chosen projects
  only. (not annualized like health)
• Two-tier investment menu design ideal for
  contractors
• Third-party plan trustee

12
Advantages for Employer and Employee

• Employer
• Competitive bids and/or higher profits
• Free up cash flow
• Equalize wages between public and private work
• Increase retirement savings for owner HCEs
• Employee
• Pre-tax savings and forced retirement savings
• Health coverage for dependents and during down
  time