Definicja no additional funding scheme

An organization provides a salary plus a fixed range of core benefits and standard benefits for its employees. The organization, however, wishes to give its employees some flexibility for benefits selection, to suit their own risk tolerance level.

Therefore, by allowing the employee to increase or decrease the levels within each of these benefits, the employee is given a degree of flexibility with regards to the benefits he or she receives. Ultimately, the employee must pay any additional costs should they, for example, only increase their levels of benefits chosen above the level of the standard benefits provided. Conversely, the employee benefits in cash where the level of benefits chosen is below the value of the standard benefits provided by the organization.