1. ABC National & Fringe Benefit Group National Marketing Partnership

2. Who We Are  Founded in 1917  Number one area of emphasis is Construction Contractors Insurance and Surety  Company goal is to be your business partner  Experienced in all lines of insurance including employee benefits

3. Who We Are  We implemented the first “bona-fide” benefit plan for prevailing wage contractors (PW) in 1979  We have helped over 4,000 non-union contractors reduce labor costs, win more bids and stay compliant  We are experts in PW benefits and compliance  Broker-based marketing with local support

4. The Problem when performing government work Many contractors pay some or all of the mandatory fringe benefit package as wages because it is the easiest way to satisfy DOL compliance. It is also the most costly method……

5. How It Works… prevailing wage is broken down into 2 part: Base Wage + Fringe Pay Fringe in Paycheck Base Wage $28.60 Fringe $12.43 Total Wage $41.03 Payroll Burden $12.30 (30%)` Bid Cost $53.33 Pay Fringe to “Bona Fide Plan” Base Wage $28.60 Total Wage $28.60 Payroll Burden $8.58 (30%) “Bona Fide Plan” $12.43 Bid Cost $49.61 $3.72/hr savings per person Bid is 6.98% lower

6. The Solution: Remove fringes from payroll and allocate into “bona fide” programs.. Fringe Dollars Health & Welfare Health & Welfare Vacation Retirement Training

7. Health Insurance Carriers  ABCWV and MSIA give you the option of two excellent carriers  United Healthcare  Mountain State Blue Cross Blue Shield

8. Fringe Benefit Group  We offer “bona fide” benefit plans that are designed to address the unique challenges of the Davis-Bacon and SCA markets  Major Medical Health Insurance  Limited Medical Health  Retirement Plans

9. Health Plans  Contractors Plan Employee Benefit Trust  8,000 contractor lives treated as 1 group  Very desirable demographic  Custom quote available for larger groups  PPO Options  Composite Rate  Ancillary benefits: dental, vision, chiropractic, life insurance

10.  Hourly or monthly premium payments  “Carve-out” of field workers available  COBRA administration included  Hour Banking  Coverage based on minimum monthly hours  Excess hours/dollars banked for employee  Avoids ineligibility under traditional plans  Bank provides coverage when fewer hours worked, or laid-off Health Plans

11. Retirement Plans  “Fringes only plan” or 401k/PS  Takeover of existing plan or stand alone  Employer makes contributions on chosen projects only. (not annualized like health)  Two-tier investment menu design ideal for contractors  Third-party plan trustee

12. Advantages for Employer and Employee  Employer  Competitive bids and/or higher profits  Free up cash flow  Equalize wages between public and private work  Increase retirement savings for owner & HCEs  Employee  Pre-tax savings and “forced” retirement savings  Health coverage for dependents and during down time