TravisFlex to Add "Defined Contribution" Account Capability During Summer2002

In response to the growing demand by employers and administrators to offer "Defined Contribution Health Plans" via Section 105 of the Internal Revenue Code, Travis Software Corp. has begun development work to add a new type of account to the TravisFlex for Windows and TravisFlex/CS systems that will accurately model this new type of account and will allow system users to offer this new administrative service.

The Defined Contribution account will share many of the contribution and claim payment features of the Medical Spending Accounts already in TravisFlex, and will add the rollover provisions incumbent on this type of account that are not able to be found in spending accounts administered under Section 125 and 129.

Since the Defined Contribution accounts are designed for employers to offer a fixed contribution to employees for their health care expenses, administration of these accounts may be used to fund to premium-based accounts, as they would be if an employer offers a catastrophic health care plan that employees can "buy" with funds from the account, and will also allow direct payment of claims to employees to reimburse them for medical expenses they have paid personally.

Drawing on fifteen years of experience offering cafeteria plan administration software, Travis Software Corp. will easily add Defined Contribution Account administration to TravisFlex and distribute the new type of account as part of a release of the system sent to users who subscribe to the TravisFlex Support and Update Plan. No additional license fees will be due from users for these new capabilities, just as when Travis added Parking and Transit account processing to TravisFlex in 1999 - users simply got a new version of the system that had the new capabilities, they didn't have to pay any additional fees to get the new capabilities.

We are excited about these new capabilities, and are going to place this new account-handling capability in the hands of our users ahead of the time their competitors may be able to offer such administration.

Details of the availability of this new type of account will be the subject of upcoming emails and announcements. Stay tuned!

Contact Info:
Travis Software
Garth Williams
Vice President
(281) 496-3737