Introduction
The notices and disclosures contained herein relate to Engage Insurance Agency, LLC. and S2 HR Group LLC. (“Engage PEO”) in connection with Brokerage and Plan Administrative Services (defined below) provided with respect to the Component Benefit Plan(s) selected by your company (“Client”) that are provided through the S2 HR Group LLC Welfare Benefit Plan (“Plan”). Section 408(b)(2)(B) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), requires certain service providers to ERISA-covered group health plans to disclose information regarding the provider's compensation and services to clients. The Broker and S2 HR Group, LLC value transparency-- therefore, this document goes beyond the disclosures specifically required by ERISA. References to “our”, “us”, or “we” refer to the Broker and S2 HR Group, LLC (Engage PEO), while references to “you”, “your”, or “Client” refer to your company.
Broker commissions and other compensation (collectively, “Broker Compensation”) may be reflected in the premiums charged but are not separately billed to Client, and instead are paid by insurance carriers (“Carriers”) and/or one or more third-party vendors (“Vendor”). The premiums payable under the Plan, including any portion of the premiums payable by Plan participants, do not adjust during the course of a Plan year as a result of Broker Compensation, which is paid to Brokers by Carriers.
Our Broker engages in brokerage services on behalf of the Plan, and S2 HR Group, LLC (Engage PEO) also provides valuable administrative services to the Plan. Our Broker strives to provide a valuable service by explaining various insurance products, conducting market analyses, interacting with Carriers on plan design and cost, and a number of other services agreed to from time to time. S2 HR Group, LLC (Engage PEO) also provides valuable plan administrative services to the Plan, including but not limited to assisting with open enrollment, providing advocacy services to client employees with respect to their benefit claims to the Carriers, and other Plan administrative functions (such as the preparation of required annual files and drafting and delivery of required participant disclosures). Together, these services are referred to in this document as “Brokerage and Plan Administrative Services.” expects to provide services to the Plan as a fiduciary within the meaning of section 3(21) of ERISA.
Insurance Commissions
In connection with each of the Component Benefit Plans you have selected; the Broker is compensated based on the commission rates listed below. When commission rates vary based on premiums paid, premiums are measured on a plan-wide basis.
1-Only Available to Fusion Legacy Clients
2-MetLife Vision commissions vary by plan
Other Compensation
In addition to the commissions described above, the Brokers may become eligible for additional compensation from Carriers, including overrides and bonuses, expense reimbursement and other allowances. Each arrangement depends on several factors unique to each Carrier, such as number of insured lives, technology and systems used to service clients, and programs and services provided by third parties and offered to clients. Any such arrangement is subject to change by the applicable Carrier and may be negotiated each year.
Acknowledgements and Confirmation of Insurance Premiums and Rates
By signing your specific Benefit Plan Offering (BPO) document on behalf of Client, you acknowledge that Client is responsible for reviewing and approving the premiums and contribution rates associated with the Component Benefit Plans made available to employees, as well as all plan-related compensation, including any commissions, that the Broker, S2 HR Group, LLC (Engage PEO), or its affiliates has received or may receive with respect to the Plan. You also acknowledge and agree that Client has exercised independent judgement in approving the Component Benefit Plans that will be made available to employees, has reviewed and approved all fees and amounts related to such options, and agrees that the commissions set forth above may be retained by us as reasonable compensation for the Brokerage and Plan Administrative Services rendered for the benefit of the Plan by the Broker and the PEO.
By signing the BPO, Client confirms the receipt of the information and disclosures set out above and approves for its plan the insurance coverages, premium rates and employee contribution strategy set out in your S2 HR Group, LLC (Engage PEO) benefit renewal documents.