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Cafeteria Plan

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Cafeteria Plan
An employee benefit plan that allows employees to choose from a variety of benefits to formulate a plan that best suits their needs.
    
Also known as 'cafeteria employee benefit plan' or 'flexible benefit plan'. Similar to a cafeteria where individuals can select their food of choice, employees may choose benefits of their choice. Plan options include health and accident insurance, Cash benefits, Tax advantages and/or retirement plan contributions.  
    
Though some cafeteria plans Offer an explicit choice of Cash or benefits, most today are operated through a "salary reduction agreement", which is a payroll Deduction in all but name.
Posted by  PrĂ©vis AG
 
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