Established in 1992 Thousands of clients nationwide No complaints with: BBB

1. Established in 1992 Thousands of clients nationwide No complaints with: BBB Chamber of Commerce Insurance Commissioner’s Office from any state We do what we say we are going to do and we do it when we say we are going to do it.

2. Gemini/ Endeavour With changes in the Healthcare arena, more companies are looking for ways to keep up with the demands the Federal Government has placed on them. Such as: • Companies with 50 or more employees must provide healthcare or they will be fined. • Insurance companies have no lifetime limits anymore and in the near future will have to cover all pre existing conditions, the cost of the premiums are going sky high. • Now they are talking about cutting deductions for Cafeteria plans as well as contributions to Health Savings Accounts( HSA’s) down even further. So the million dollar question is : What are we going to do?

3. Gemini/ Endeavour Here at TFG we have noticed a trend of companies going with a Section 105 “Defined Benefits Plan” for the following reasons: • You do not have the limitations of the Defined Contributions Plan. • No need for a use it or lose it plan like an FSA. • Pass tax liability to administrator for the pre- tax amount • Because it is a self funded prepaid benefit program, the administrator will provide a cash benefit to each employee to cover all out of pocket expenses. • Employee will control what Health Carrier they use to reinsure the Administrator, such as Blue Cross, UHC and Cigna… The plan must have a Max out of pocket of $10,000.00 or less.

4. Requirements of Section 105 Internal Revenue Code Section 105(h) (3) Nondiscriminatory eligibility classifications. (A) In general. A self-insured medical reimbursement plan does not satisfy the requirements of subparagraph (A) of paragraph (2) unless such plan benefits; (i) 70 percent or more of all employees, or 80 percent or more of all the employees who are eligible to benefit under the plan if 70 percent or more of all employees are eligible to benefit under the plan; or (ii) such employees as qualify under a classification set up by the employer and found by the Secretary not to be discriminatory in favor of highly compensated individuals. This plan is equal to all employees and is nondiscriminatory

6. Gemini/ Endeavour The company provides plan documents (required) for a Section 125 POP so benefits and premiums will be deducted pretax. • Lowers taxable income for the employee • It will also lower the matching tax contributions for the company. • By using a 105 combined with a 125 we maximize tax savings to create a benefit bank for the employee

7. Example of Tax Savings If you have an employee (single, no dependants) who makes 1,000.00 a week and the health insurance premium is 430.00 a month; • If you use a 125 POP only, you would only be able to pretax 100.00 per week leaving the employee with a taxable income of 900.00. • However on a 105 Self Funded Defined Benefits plan, along with the 125 POP with an insurance carrier that has 10,000.00 or less out of pocket, the pretax deduction would be approximately 300.00 a week (100 for premium and 200 for max out of pocket) and the taxable income will be only 700.00 a week. As you can see this plan will give you much more tax savings than what you have been using in the past.

8. BENE$MART • A company big enough to make a difference and still small enough to care. • They have been around since 1998 and have a remarkable reputation in the Administration arena. • With ownership having 30 years Actuary and Product development experience, it was an easy choice for TTFG to pick them over the competition. • The best benefits package, and ultimate customer service, which is head and shoulders above the industry.

9. “What is the cost”? The truth of the matter is it will save the company money. • When we lower the employee taxable income it also lowers the matching contributions of the company. • The money saved in matching contributions will be sent to Bene$mart as your fees. Also a small amount of money will be transferred to you from the employee’s benefit bank to contribute toward the fees. • Bene$mart fees are 100% tax deductable. • Example: If you where sending 1000.00 a week to the IRS for payroll tax and we lower that to 500.00 then you will send 500.00 to the IRS and 400.00 to Bene$mart. Because the 400.00 to Bene$mart is a tax deduction, in a 25% tax bracket you would save another 100.00 from what you where paying before.

10. External Benefits Life insurance premium will be provided for all of the employees that participate in the plan. • Option A Option B $110.00 per month for the employee $55 per month for the employee $55.00 per month for the spouse $27.50 per month for the spouse $25.00 per month per child $12.50 per month per child Why did we chose life insurance as an additional benefit: Surveys show that over 75% of the American workforce feel they do not have adequate amounts of life insurance in force. Why are they going to give you these benefits? Because they want to have the best benefit package in the industry. They want this to be the easiest decision you have ever made for your company. Their motto is make smaller profits and give more benefits and they will make it up by doing larger volume.

11. Why don’t we look at an example of a side by side comparison of what you have in place right now and what we can do for you.