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The Doubt Of The Benefit

April 5, 2018

How quality, competitive benefits packages can attract & retain valuable employees


Pain points—every industry has them. And, at times, it might feel like contractors have more than their fair share.

Contractors who work on prevailing wage jobs undoubtedly see the complex regulations that apply to these projects as a burden they learn to live with in order to benefit from the opportunities presented by government-funded jobs. For example, there’s the sometimes confusing question of how to handle the fringe cost on government jobs.

Today, your employees may want the fringe amount paid in cash. However, is that a decision you both will regret later on? Could you win more jobs for them to work on by putting the fringe amount of the wage determination toward benefits, which lowers your job costs and makes your bids more competitive?

Click the link below to read more:


December 2017 Construction Spending

February 21, 2018

The U.S. Census Bureau announced construction spending increased for December 2017 at a seasonally adjusted annual rate of $1,253.3 billion, 0.7 percent above the revised November estimate. It was also up 2.6 percent from December 2016, and construction in 2017 was $1,230.6 billion, up 3.8 percent from $1,185.7 billion in 2016. 

While private construction spending was $963.2 billion, 0.8 percent above the revised November estimate of $955.9 billion; public construction spending was $290.0 billion, which is up 0.3 percent above last month’s revised estimates of $289.1 billion.

Educational construction spending is one of the main contributors to the public construction increase, which was at the adjusted annual rate of $75.5 billion, 1.6 percent above the revised November estimate. Highway construction which was also up to  $88.3 billion, a 0.3 percent increase from revised November estimate.

In 2017, the value of public construction was $279.8, a 2.5 percent decrease from 2016. However educational construction in 2017 was $ 71.2 billion, 2.5 percent above the 2016 figure of $ 69.5 billion.  

More information may be found at:


State of the Union; Addresses Infrastructure Plan

February 1, 2018

In his State of the Union Address, President Trump talked about his Infrastructure Plan, calling on Congress to come together to give Americans a safe, fast, reliable and modern infrastructure that our economy needs. 

Trump emphasized that the bill would generate at least $1.5 trillion for the new infrastructure investment and that every dollar would be leveraged by partnering with State and local Governments, and where appropriate, would tap into private sector investment to permanently fix the infrastructure deficit.

The funding approach is consistent with what White House Officials shared back in December; a 10-year, $200 billion plan meant to leverage about $1 trillion worth of overall infrastructure investment expected to go towards the nation’s roads and bridges. The goal is to generate hundreds of billions more from local governments and private investors for U.S. road, rail, water and utility work.

Trump also remarked that a major problem today is the approval processes and said that any infrastructure bill must address the need to streamline the permitting and approval process; reducing it down to two years or less.

Trump’s Infrastructure plan is expected to be issued by early spring. For any bill to move forward, it will need to be a bipartisan effort to get the necessary 60 votes from the Senate. Currently, the potential of a plan going forward looks promising as both parties appear in support of such a Bill.

Education Construction Spending Is Up

January 22, 2018

The U.S. Census Bureau announced construction spending for November 2017 was up at a seasonally adjusted annual rate of $1,257.0 billion, 0.8 percent above the revised October estimate. It was also up 2.4 percent from November 2016, and during the first eleven months of this year, construction spending amounted to $1,138.3 billion, 4.2 percent above the $1,091.9 billion for the same period in 2016.

While private constructions spending was 1.0 percent above the revised October estimate of $955.1 billion; public construction spending was $292.7 billion which is up 0.2 percent above last month’s revised estimates of $292.0 billion.  

One of the main contributors to the public construction spending growth in November came from educational construction which was at a seasonally adjusted annual rate of $78.8 billion, 3.8 percent above the revised October estimate of $75.9 billion and up 12.0 percent from a year ago.

More information may be found at:

White House To Unveil Infrastructure Plan Come January 2018

December 19, 2017

According to White House Officials, President Trump is expected to unveil his infrastructure plan shortly after Republicans pass a tax reform bill, which the GOP hopes to have completed before the end of the year. Though specifics of the program are not yet known, the administration supposedly has developed a 70-page document that would serve as the guiding policy for the infrastructure legislation come January.

 D.J. Gribbin, the president’s adviser on infrastructure previewed a few details with an audience at the Hudson Institute on Dec. 12 affirming that states will be asked to invest heavily in projects of regional significance. Meaning if a state or local elected official would be willing to create a new revenue stream for infrastructure, the federal government, in turn, would partner with them in doing that. Gribbin also mentioned that the plan would accelerate the permitting process of construction projects and would pave the way for more toll roads.

The administrations’ 70-page document reportedly breaks down a 10-year, $200 billion plan meant to spark $800 billion in private sector investments. Federal dollars are expected to be put towards the nation’s roads and bridges, with a goal of generating the hundreds of billions more from local governments and private investors for U.S. road, rail, water and utility work.


Measuring Adequacy Of Retirement Income

November 22, 2017

In October, the Congressional Budget Office (CBO) released a report Measuring the Adequacy of Retirement Income; A Primer. Intended to explain the various measures and approaches that researchers apply today and to provide a framework for the additional analysis of adequate retirement income.

While the report focuses on the different measures and approaches; it did find that overall, across the studies, the share of current workers who were at risk of having inadequate income ranged from about one-third to two-thirds.

The report presented a framework for future analysis of the adequacy of retirement income and was prepared at the request of the Chairman of the Senate Committee on the Budget. As directed, the CBO’s report provides objective and impartial analysis but does not make any recommendations.

Here is a link to the report;

Pension Plan Limits For 2018 Tax Year Announced

October 25, 2017



  • The elective deferral (contribution) limit for employees who participate in 401(k) plans changes to $18,500.
  • The catch-up contribution limit for employees aged 50 and over who participate in 401(k) plans remains $6,000.
  • The total annual limit for contributions made to defined contribution retirement plans increases to $55,000.
  • The maximum compensation allowed to be used for retirement plan purposes increased from $270,000 to $275,000. 


Retirement Plan Limits for Plan Year




401k Elective Deferrals $18,500 $18,000 $18,000
Catch-Up Contribution Limit $6,000 $6,000 $6,000
Annual Defined Contribution Limit $55,000 $54,000 $53,000
Annual Compensation Limit $275,000 $270,000 $265,000
Highly Compensated Employees $120,000 $120,000 $120,000
Top Heavy Key Employee Dollar Limit $175,000 $175,000 $170,000

Fringe Benefit Group Announces New Benefits Package Designed for Employers with Hourly Employees

October 16, 2017

Austin, October 16, 2017 – As the national debate on health care coverage continues, many employers are searching for group benefit plans with real-world cost control options. Fringe Benefit Group, an industry leader in the design, implementation and administration of benefit plans for hourly workers, offers affordable benefits to employers via The American Worker, a turnkey benefits platform utilized by many of the nation’s leading restaurant, retail, hospitality and staffing companies.

Fringe Benefit Group today announced it has launched The American Worker Triple Option plan, which consolidates fully insured fixed indemnity, self-funded Minimum Essential Coverage (MEC) and self-funded major medical insurance options into a single benefits package under one insurance/stop-loss policy. This allows employers to offer a wide variety of health insurance options to their diverse workforce with minimal administrative burden. Employers utilizing The American Worker Triple Option also have access to a wide range of specialty benefit options such as Dental, Vision, Short Term Disability and Life Insurance, which are tied into the platform’s payroll cycle billing administration.

For more than 30 years, Fringe Benefit Group has specialized in providing insurance for companies with hourly and part-time employees. Through its two national brands, The American Worker and The Contractors Plan, it works closely with more than 600 brokers across the U.S. to deliver benefit solutions to this unique market, which can be challenging to serve because of high turnover, geographically dispersed locations and difficult to reach employee populations. The American Worker Triple Option is designed specifically for employers with a contingent workforce and / or hourly employees, and allows employers to offer a broad range of benefit plans that provide employees with choices while allowing the employer to meet their Affordable Care Act (ACA) obligations.

“Fringe Benefit Group has a long and successful history of serving the diverse and sometimes challenging needs of hourly employees. We are very experienced with indemnity, MEC and major medical plans, and we are known for our outstanding customer service and administrative excellence,” said Jon Duczak, vice president, Fringe Benefit Group. “The American Worker Triple Option gives employers and their employees access to multiple products at multiple price points and lessens the administrative burden on employers. We know how to handle contingent workforce and hourly employees and are excited to help employers provide valued benefits to their entire workforce while reducing their administrative burden at the same time.”

As part of its focus on simplifying benefit plan administration and providing value to employers, Fringe Benefit Group offers an electronic platform that manages eligibility, payroll deductions and billing according to a client’s payroll schedule. The platform allows administration of benefit programs to occur on a weekly, bi-weekly and semi-monthly basis, which minimizes the hassles typically associated with monthly bill reconciliation and manual deduction processing.

About Fringe Benefit Group

Fringe Benefit Group and its affiliate companies have designed and administered programs that simplify the benefits process for employers with hourly workers since 1983. Through its nationwide network of independent brokers and agents, Fringe Benefit Group offers products from the industry’s leading carriers and is recognized for its full-service suite of tools and services designed specifically for employers with hourly and part-time workers. For more information, visit, or




Meeting Requested Seeking Progress Concerning Infrastructure Funding

October 3, 2017

Recently, Democrat Senator Sheldon Whitehouse, along with the other minority members of the Environment and Public Works (EPW) Committee launched efforts to gain bipartisan backing for infrastructure spending and improvements.

Democrats on the EPW Committee sent a letter Secretary of Transportation (DOT) Elaine Chao requesting a meeting where she and other Administration officials could share progress on the Administration’s infrastructure investment plan.

The letter highlighted Chao’s confirmation-hearing promise to work in bipartisan fashion in delivering on Trump’s campaign promise.  It also emphasized that they hoped Chao would be able to formally transmit the Administration’s plan to Congress promptly so that they may understand the “priorities as we get to work on developing a comprehensive infrastructure investment package.”

The letter to Secretary Chao can be viewed at:

Applying The New Fringe Rate To Existing Contracts

August 10, 2017

Since the release of All Agency Memorandum Number 225 on July 25, 2017, which provides the annual update of the Service Contract Act Health and Welfare Fringe Benefit, we have received several questions regarding the proper method to apply this change to existing contracts. Unfortunately, no additional information was provided in AAM No. 225 to explain how this rate change is applied other than to say, “Effective August 1, 2017, the SCA health and welfare benefit rate of $4.41 per hour will be posted on the Wage Determination Online and Wage and Hour Division (WHD) websites”.

However, on August 1st the Wage Determination Online website started posting updated wage determinations which include the new fringe rate. These rates do not apply until the new wage determination is modified to the contract.

The process of modifying existing contracts should be initiated by the contracting agency and is covered by the Federal Acquisition Regulation (FAR) 52.222-43, Fair Labor Standards Act and Service Contract Labor Standards – Price Adjustment (Multiple Year and Option Contracts)

You can read more about this here:

This FAR section applies to firm-fixed price and labor-hour contracts. The adjusted price must reflect the change in the updated wage determination. The adjustment occurs on the anniversary date of multiple year contracts or at the beginning of the renewal option period, but the process is initiated by the contracting agency early enough to be accomplished prior to these dates.

If you have any questions regarding a Service Contract Act price adjustment on a specific contract, the best place to start is with the contracting agency.

There are also several good references, in addition to the Federal Acquisition Regulation, that can help explain the process including: