Archive for March 6th, 2018

Is “Free” Cafeteria Plan Administration In Exchange For Products Legal?

Tuesday, March 6th, 2018


Many purveyors of voluntary employee benefits offer “free” Cafeteria Plan administration in return for the opportunity to sell voluntary products such as cancer plans. A portion of the commissions earned by writing agents are shared with the Cafeteria Plan administrator thus affording “free” administration services to the plan sponsor.

Is this practice legal?