Which design issue can affect the cost of a Welfare Plan?

Adding or deleting provisions of the plan can significantly impact the cost of a Welfare Plan because these changes directly influence the benefits provided to employees. When provisions are added, such as expanded health coverage, increased life insurance benefits, or additional wellness programs, the overall cost of providing these benefits increases. Conversely, if provisions are removed, the costs may decrease because the employer will no longer be obligated to pay for certain benefits. In this way, the design choices made regarding the specific features of the Welfare Plan dictate the financial commitment of the organization.

While other factors such as increasing employee salaries or hiring additional staff may lead to higher costs for the organization overall, they do not directly alter the provisions or structure of the Welfare Plan itself, which is the central issue in this context. Changing office locations could also affect operational expenses, but again, it is not directly related to the Welfare Plan's design and cost impact. Therefore, the most relevant factor in determining the costs associated with a Welfare Plan is the addition or removal of plan provisions.