U n b i a s e d P u r s u i t o f Y o u r B e s t I n t e r e s t s

S t r o n g . S m a r t. S u r e .

BENEFITSIndependent Third Party Administrator

Corporate Employee Benefits Specialists

Health & Welfare Benefits

Programs & ServicesMedical InsuranceIt’s a fact of life - your employees need health insurance – and the time to get it is before they have an accident or suffer a serious illness. With healthcare costs spiraling out of control, finding affordable, adequate coverage may seem overwhelming. The knowledgeable staff at Vantage Benefits can help make your search less stressful.

Dental and VisionOur partners provide affordable dental and vision benefits to millions of people nationwide. Using multiple providers and networks allows us to negotiate for the most affordable dental and vision insurance plans available.

Life InsuranceIn today’s society, most households are dual income families that depend on both parents to meet the family’s economic needs. When either spouse meets an untimely demise, the loss of income places considerable financial burden on surviving family members. By working with multiple insurance carriers, VANTAGE can assist companies in obtaining an employer-sponsored group life policy to give their employees and families the opportunity to purchase inexpensive term life coverage. For many employees with pre-existing health conditions, this plan offers exceptional benefit, as it is one they could not qualify for independently.

DisabilityMany employees would struggle to pay their bills if they couldn’t work. Where would the money come from if they developed a serious illness or suffered a disabling accident that kept them off the job for months...or years? Nearly one-third of working age people will suffer a disability that lasts at least three months at some point during their careers. Financial experts recommend disability insurance to cover the loss of income in such an event. If you’re interested in reviewing available options for your company’s employee benefits package, we can help.

Your VANTAGE BenefitsVANTAGE Benefits Administrators offers a wide and affordable selection of superior insurance products. Our primary objective is to establish a partnership between you, the insurance company and our staff, which assures you

• QualityProtection

• ValuedCustomerService

• ExcellentClaimsSupport!Our agency structures Employee Benefits Programs that are custom fit to your employees’ needs.

Program Q&A

How much support will be provided for our benefits package?We are prepared to:

•Analyze – Review benefits coverage, contribution strategies, benchmark analysis, perform employee survey to determine perception and evaluate, and measure ROI of the benefit programs.

•Design – Identify business initiatives, goals & objectives, conduct a gap analysis, and develop an employee benefit program with a range of affordable, quality benefits so participants can select those benefits that best meet their needs.

•Source – Develop requests for proposal, analyze vendor responses, negotiate and select vendors, and integrate with administrative functions.

•Implement – Create a “branded” communication strategy, emphasize utilization and fiscal responsibility, leverage technology systems & tools that provide employees with real- time access to data & information, and provide a user friendly on-line enrollment process.

•Manage – Customer service, daily administrative support, periodic demographic reports, and review semi-annual cost analysis and employee surveys.

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Technology Features

For Employees:• Enroll&managelifeeventchangesonline

• Electionsareprocessedonlineinaccordancewiththeeligibilityrules

• Electionsarecommunicatedelectronicallytopayrollandcarriers

• Websiteisintuitiveandeasytouse

• Onlinetutorialshelpemployeeseducatetomakeinformeddecisions

• Employeescanaccess&managetheirbenefits24/7,365daysayear

• Accesstoaccurate&timelycompanyinformation

For Employers:• Benefitsadministrationcostsarereducedthroughautomation&datamanagement

• Systemintelligencepreventsemployeesfromenrollinginplanstheyarenoteligiblefororadding dependents who do not qualify

• Allemployeedataandbenefittransactionscanbemanagedfromasinglesystem

• Seamlessintegrationwithpayroll

• RelieffromadministrationtofocusonmorestrategicHRissues

• Eliminatesneedtohandlemultipleemployeeelectionformsandchaseincompleteenrollments

• Premiumreconciliationissimplified,oreveneliminatedbyconsolidatedpremiumbilling

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A b o u t VA N T A G EVANTAGE Benefits Administrators (VBA) is an independent Third Party Administrator and full service insurance agency specializing in corporate Employee Benefit Programs. Independent of all insurance companies, VANTAGE can pursue your company’s best interest without bias. VBA was founded solely to provide professional and timely employee benefit administration services. The firm has established its base of operations in Southern California, and is staffed with professionals that have extensive knowledge in the design, implementation, and compliance of corporate employee benefit plans. VBA has developed a web-based self-service employee benefits platform that simplifies the daily administration, record keeping, and compliance for health and welfare benefits and retirement plans.

VBA’s PhilosophyVBA remains focused on sustaining optimal levels of service at competitive fees. Our philosophy is to provide professional consulting and administration via a real-time, online platform.

VBA’s ConvenienceThe convenience of the internet is undeniable. Twenty-four-hour access to employee benefit plans makes it especially appealing to participants who want to manage their benefits in a real-time environment. Vantage is dedicated to maximizing the facility the internet offers to the employee benefits industry.

VBA’s CommitmentWe have qualified hundreds of plans before the Employee Plans Division of the Internal Revenue Service, submitted several thousand annual reports, and earned an excellent reputation dealing with clients, achieving their objectives and maintaining the highest standards of expertise. We are committed to providing ERISA programs that are flexible, diversified, simple, and convenient.

VBA delivers cost-effective retirement plans your employees will want to participate in.

Declare your freedom from high plan costs, compliance burdens and plan limitations.

AndaskyourservicerepresentativeaboutVANTAGE401(k).

D e c l a r e Yo u r F r e e d o m

1.800.337.80054

COBRA Administration

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Effortless Compliance VBA’sgoalistoprovideadministrationofCOBRAandHIPAAregulations as effectively and cost efficiently as possible. We will customize our services to meet your company’s needs. In additiontoadministeringCOBRAandHIPAA,VBAwillworkonaconsultative basis to ensure that employers are in compliance withallregulationspertainingtoCOBRAandHIPAA.Weofferfreeevaluations, which include review of all required notifications and review of all policies and procedures.

Communication between the employers and VBA is a key component to ensuring that both parties comply with all Federal regulations, as they pertain to the Consolidated Omnibus ReconciliationActof1985(COBRA)andtheHealthInsurancePortabilityandAccountabilityActof1996(HIPAA).VBAhasthetools, experience, knowledge and dedication you need to make COBRA compliance effortless.

Understanding COBRA Who Must Offer COBRACOBRAisalawthatrequiresorganizationswith20ormoreemployees to offer the continuation of group health benefits (Medical,Dental,VisionandMedicalReimbursementAccount)toemployees(andcovereddependents)uponexperiencinga“qualifying event.”

Employers are required to provide initial COBRA notification to covered employees and dependents, a letter detailing an individual’s rights upon experiencing a qualifying event, and an explanation of the conversion privilege.

Qualifying EventsCOBRA qualifying events may include the following:

•Terminationofemployment

•Deathoftheemployee

•Lossofcoverageduetoretirement

•Medicareentitlementoftheemployee

•Reductionintheemployee’sworkhours

•Divorceorlegalseparation

•Achild’slossofdependentstatus

•Leaveofabsence

Why You Should Outsource ItCOBRA regulations are subject to continuous revision, making it difficult to administer the program accurately. Accuracy is vitalsincethepenaltiesfornon-compliancecanbesevere(see“notificationcompliance”sectionbelow).Inaddition,maintainingthe necessary documentation is a time consuming chore. COBRA specialists at VBA maintain their expert status with continuing education in COBRA regulations. They also receive specialized training which enables them to provide each client with personalized customer service, streamlining administration. The end result is fast, accurate and hassle-free processing of your COBRA requirement. Outsourcing this chore to VANTAGE Benefits Administrators ensures its accuracy while conserving your resources, taking the bite out of your COBRA obligations.

Services ProvidedVBA provides the following COBRA Continuation services:

•Initialnotificationandqualifyingeventletters

•NotificationatTermination

•Quarterlyreports

•Assistancewithopenenrollment

•Notificationofanyplanchanges

•BillingandcollectingforyourcontinuantsThe more you know about COBRA, the more you will want someone else to administer it for you, especially if that someone else is VANTAGE Benefits Administrators.

Notification Compliance

If you fail to promptly notify your former employees about COBRA

continuation laws, you may be responsible for any medical

expenses incurred after their health plan expires. The U.S.

DepartmentofLaborcanalsoimposefinesupto$150,000,plus

$1500perday.TheInsurancecompany,TPA,orHMOwillnotallow

them to come back on the plan once the deadline has passed.

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Cafeteria Plans

OverviewThe flexibility and tax savings of Cafeteria Plans make them very popular with employees, and employers also recognize significant reward in offering this fringe benefit.

• CafeteriaPlansattractandretainqualityemployees.

• Assistsemployerswithreducingemployeestaxliability.

• Companiescanrealizesignificanttaxsavings.

• CafeteriaPlansdonotrequirechangestocurrentlyestablished fringe benefits.

The benefits resulting from a Cafeteria Plan are applicable to all businesses, large or small. Accordingly, our firm has been among the first to help companies design, implement, and administer Cafeteria Plans.

How it WorksA Cafeteria Plan is a written plan in which participating employees can select qualifying benefits from a “menu” of choices. In most plans, eligible employees have the following options:

• Toreceiveallcompensationincash

• TodirectaportionoftheirsalarytotheCafeteriaPlanThe employee’s redirected salary is “banked” by the employer in an account maintained for the employee. When an expense is incurred for one of the qualifying benefits, the employer reimburses the employee from the dollars in the banked account. These reimbursements represent an additional benefit to the employee as they also escape federal, state, local and social security taxation.

Plan Administration Q&A

Can VBA help my company establish a Cafeteria Plan?We are prepared to assist you in all aspects, including:

• Designingyourplan.

• Introducingtheplantoyouremployees.

• Providingyouremployeeswithinformationansweringcommonlyaskedquestions.

• Meetingwithemployeesindividuallytodeterminethemaximumbenefittoeachemployee.

• Providingyourcompanywithalloftherequiredforms.

Can VBA perform the monthly administration for me?Yes! We provide total plan administration including preparation of all summary reports.

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Give your employees a bigger piece of the pie...

Included BenefitsYour plan can include the following benefits:(You do not have to include all of these features in your Cafeteria Plan. You may choose to offer any combination of the benefits)

• Healthinsurancepremiums(employee’sportion).

• Medicalexpensesnotcoveredbyinsurance(eyeglasses,medicalexams,insurancedeductibles,etc.)

• Adultandchilddaycareexpenses.(Thecosttocareforadependentwhiletheemployeeworks.)

• Otherinsurancecoverages,includingdentalinsurancepremiums, disability and accident benefits, and group term life insurance premiums.

Why Have a Cafeteria Plan• YourcompanywillSAVEmoney.

• YouremployeeswillSAVEmoney.

• Youremployeemoralewillincrease.

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TAXE

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Without Cafeteria PlanTOTAL TAXES: $10,322

With Cafeteria PlanTOTAL TAXES: $8,819

Advantages to the CompanyReduce Costs, Taxes - Earn Income

• AvoidSocialSecuritytaxesontheamountsredirected by the participating employees totheplan.(Thisistrueofemployeesearning less than the maximum amount taxedforsocialsecurity.)

• Reducepremiumsforcoveragesbasedonemployees’taxablesalaries(i.e.,worker’scompensation,disabilityinsurance).

• Reductionintheexpenseofanyretirementplan(profitsharingorpensionplan)thatisbasedonyouremployees’taxable salaries.

• Changestoyourhealthplan,incombinationwithaCafeteriaPlan, can reduce your company’s health insurance costs.

• EarninterestincomeonPlanbalancesthroughouttheyear.

An Additional BenefitCost increases for health insurance and other benefits have many companies looking to change or reduce the insurance coverage they provide for their employees. Implementing a Cafeteria Plan at the same time such changes are made can greatly reduce their impact on employees.

Contribution Q&A

What happens to the money that employees put into their Cafeteria Plan? Companies maintain the money until their employees incur expenses, after which the employee requests reimbursement.

Can an employee forfeit a contribution?Yes, contributions are lost when an employee’s actual expenses do not equal the contribution put into the plan. Employees can minimize or avoid any forfeitures by carefully estimating their expenses.

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while lowering corporate taxes and earning interest income!

EXAMPLE: Employer Savings

EXAMPLE: Employee Savings

AAA Manufacturing Company implements a Cafeteria Planand30employeeselecttoredirect$2,000oftheirannual compensation to pay for day care, health insurance premiums, and other medical expenses.

JohnandJaneSmithearnajointyearlyincomeof$50,000.Daycarefortheirtwochildrencosts$400/month.Theypay$1,000annuallyinhealthinsurancepremiumsand$2,300inqualifyingmedicalexpenses which are not covered by insurance. They decide to redirect $8,100ofJohn’ssalaryintohiscompany’sCafeteriaPlantopayfortheseexpenses.With$8,100lessintaxableincome,theSmithswillseetheirdisposableincomeincreasebyover$1500!

AnnualSalaryreduction(30employeesx$2,000) $60,000

FICAsavings($60,000x7.65%) $4,590OtherSavings(estimatedat3%) $1,800 - Retirement plan contributions - Unemployment taxes - Insurance premiums based on compensationInterestincomeonCafeteriaPlanbalance $300(assumeaveragebalanceof$5,000x6%)

Savings to Company $6,690

You could save up to 10% with these first two items alone!

Advantages to EmployeesTax SavingsThe portion of income which the employee directs to the Cafeteria Plan is not taxable. This includes

• FederalIncomeTax

• StateandLocalTaxes

• SocialSecurityTax(assumingtheemployee’ssalaryisbelowthemaximumSocialSecuritywagebase)

Your employee’s savings will depend on the amount they direct to the Cafeteria Plan and their tax rate. The example below illustrates the savings a family of four might realize.

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U n b i a s e d P u r s u i t o f Y o u r B e s t I n t e r e s t s

S t r o n g . S m a r t. S u r e .

VANTAGE Benefits Administrators31285TemeculaParkway,Suite235

Temecula,CA92592

1.800.337.8005Clientservices@Vantagebenefits.com

©2008FortressFinancialServices,Inc.DBAVantageBenefitsAdministrators,allrightsreserved.This publication is distributed with the understanding that the publisher and distributor are not rendering legal,

accounting or other professional advice and assume no liability whatsoever in connection with its use.