Associated General Contractors of Missouri Recommends Thomas McGee and The Contractors Plan

KANSAS CITY, Mo.--(BUSINESS WIRE)-- Thomas McGee, L.C., a Missouri risk management consultant/broker, today announced it has been recommended by the Associated General Contractors of Missouri ("AGC-MO") to offer The Contractors Plan bona fide benefit plan to AGC-MO members working on Davis-Bacon jobs, including projects being created by the economic stimulus package (American Recovery and Reinvestment Act of 2009 - "ARRA"). Through The Contractors Plan powered by Fringe Benefit Group, Thomas McGee's associates are able to offer retirement plans and major medical, dental, vision and life insurance to contractors bidding and working on Davis-Bacon Act jobs.

The ARRA includes a provision that all resulting projects fall under the provisions of the Davis-Bacon Act. The Davis-Bacon Act, passed in 1931, requires payment of locally "prevailing wages" including the "anticipated cost of prevailing benefits," commonly referred to as fringe benefits. Prevailing wages are generally expressed as a per-hour wage and per-hour cash equivalent value of benefits, and are often based on a union scale. Prevailing wages are set by the U.S. Department of Labor and are included in the bid specifications of covered contracts.

Many Davis-Bacon contractors pay the fringe benefit portion of the prevailing wage as additional cash wages, believing it is the easiest way to comply with the law. Allocating the fringe amount to a bona fide benefit plan such as The Contractors Plan actually results in significant cost savings on payroll burden because these monies are not subject to FICA, FUTA, state unemployment taxes and workers compensation insurance. Benefits that might be included in a bona fide benefit plan offering are retirement, medical, dental, vision and life insurance plans.

With its nearly 30-year history of assisting contractors, The Contractors Plan provides unparalleled expertise in prevailing wage benefits and compliance. Some of the advantages of utilizing The Contractors Plan include: reduce payroll taxes and insurance costs on public work; be more competitive and/or profitable on prevailing wage projects; ease possible bonding challenges; uncover ways to reduce wage discrepancies on public vs. private work; utilize hour banks to stabilize group benefits; and help owners and highly compensated employees get more from the company retirement plan. Information about prevailing wage benefits and The Contractors Plan is available at www.thecontractorsplan.com.

"Thomas McGee, which is about to celebrate its 100 year anniversary, has been heavily involved with the AGC of Missouri for many years. We are proud to offer AGC-MO members a product that can help them become more competitive bidders by reducing direct labor costs. The benefit plans will also help members attract and retain employees. And, at a time when many pension plans are experiencing financial difficulties, The Contractors Plan's third party trustee is directing one of the only funds that has outperformed the S&P 500 for nearly a decade," said Mike Kelly, Risk Consultant of Thomas McGee.

Since its formation in 1925, the Associated General Contractors of Missouri has been an advocate for heavy, highway and municipal-utility contractors. The AGC-MO allows Missouri contractors to speak to the governor, state legislature and state agencies with a unified voice on matters of public policy affecting the industry.

"In this day and age, it's critically important for contractors to be informed about new government rules and regulations, safety and health issues, labor trends and pending legislation - and that's the mission of the AGC of Missouri. We are endorsing The Contractors Plan because it offers contractors an excellent way to be more competitive when bidding, and ensure compliance with government laws while providing important benefits to employees," said Doug Smith, president of the AGC of Missouri.

About Thomas McGee

Located in downtown Kansas City, MO, Thomas McGee, L.C. is an independent risk management consulting and brokerage firm representing most of the country's major insurance companies and many specialty markets. A full-service agency providing customers with comprehensive protection for themselves and their businesses, Thomas McGee's products and services include providing products and services for Commercial, Personal Lines, Group Life & Health, Surety and Risk Management Clients.

About Fringe Benefit Group & The Contractors Plan

Austin, Texas-based Fringe Benefit Group and its affiliate companies have helped employers design and administer fringe benefit programs since 1983. Through its nationwide network of independent brokers and agents, Fringe Benefit Group has established itself as the leader in government contractor health, welfare and retirement plans. Drawing on its expertise in the prevailing wage segment, the company has also emerged as a leader in group benefit plans designed specifically for hourly and part-time workers (limited benefit programs). For more information, log on to www.fringebenefitgroup.com or www.thecontractorsplan.com.

Thomas McGee, L.C.

LoRee Stephens, 816-843-4433

Employee Benefits Dept. Mgr

lstephens@thomasmcgee.com

or

Mike Kelly, 816-843-4439

Risk Consultant

mkelly@thomasmcgee.com

or

Tom Latz, 816-843-4481

Risk Consultant

tlatz@thomasmcgee.com

or

for The Contractors Plan

Melinda Hart, 210-824-3433

melinda@melindahartpr.com

Source: The Contractors Plan